What is an NFT?
(A thread with the simple answer + examples with pictures)
Note: Guessing the examples will be most helpful.
(A thread with the simple answer + examples with pictures)
Note: Guessing the examples will be most helpful.
First, why you're hearing so much about NFTs...
B/c the prices are so eye-popping and because different NFTs seem to be popping up every day, even in the mainstream.
Christie's auction house just sold a piece of digital art as an NFT for $69 million!!! (it's an example below)
B/c the prices are so eye-popping and because different NFTs seem to be popping up every day, even in the mainstream.
Christie's auction house just sold a piece of digital art as an NFT for $69 million!!! (it's an example below)
NFT = Non-fungible token
Non-fungible means the items are unique and can’t be equally exchanged for another (e.g. digital art)…vs. fungible like Bitcoin.
An NFT is just about anything digital that has been put on a blockchain. You can trace authors, owners, and buy/sell them.
Non-fungible means the items are unique and can’t be equally exchanged for another (e.g. digital art)…vs. fungible like Bitcoin.
An NFT is just about anything digital that has been put on a blockchain. You can trace authors, owners, and buy/sell them.
Since we're so used to the physical world, it can be hard to understand what "owning" means.
But the fundamental human concepts of status and bragging rights still apply.
Think of "conversation pieces"..."Elon Musk used this spoon!"
But the fundamental human concepts of status and bragging rights still apply.
Think of "conversation pieces"..."Elon Musk used this spoon!"
Here's how the platform selling Jack Dorsey's first tweet as an NFT explains ownership: "The tweet itself will continue to live on Twitter. What you are purchasing is a digital certificate of the tweet, unique because it has been signed and verified by the creator."
Example 1: NBA Top Shot
Think digital trading cards...they feature highlights from players.
Think digital trading cards...they feature highlights from players.
Example 2: Digital Art
Christie's sold the jpeg for Beeple's "Everydays - The First 5000 Days" sold for $69 million.
Christie's sold the jpeg for Beeple's "Everydays - The First 5000 Days" sold for $69 million.
https://twitter.com/ChristiesInc/status/1365100549385957378
Example 3: CryptoKitties
Virtual pets from a blockchain game.
Virtual pets from a blockchain game.
Example 4: CryptoPunks
"10,000 uniquely generated characters"...given away for free originally but now a huge secondary market...average sale price has been $25k over the past year (converted from ether).
"10,000 uniquely generated characters"...given away for free originally but now a huge secondary market...average sale price has been $25k over the past year (converted from ether).
Example 5: Kings of Leon album (NFT version)
Per NME: "you’ll own a token on the blockchain from which you can download the record, exclusive moving artwork and access to limited edition vinyl, but then no more will be made and existing tokens can’t be reproduced."
Per NME: "you’ll own a token on the blockchain from which you can download the record, exclusive moving artwork and access to limited edition vinyl, but then no more will be made and existing tokens can’t be reproduced."
Example 6: Jack Dorsey's first tweet
Current bid: $2,500,000.
Current bid: $2,500,000.
https://twitter.com/jack/status/20?s=20
To get you thinking optionality...
- Grouping multiple NFTs into a single contract
- Track and authenticate custody stream of physical assets
- Contracts
- Streamlining processes
- Identity management like passports
- Fractionally owning assets
- Royalty streams on future sales
- Grouping multiple NFTs into a single contract
- Track and authenticate custody stream of physical assets
- Contracts
- Streamlining processes
- Identity management like passports
- Fractionally owning assets
- Royalty streams on future sales
What I think might be a reasonable way to participate in the NFT trend...
https://twitter.com/anandchokkavelu/status/1370756408086528005?s=20
Ending with some good primers/resources...
digiday.com/media/wtf-is-a…
wsj.com/articles/want-…
investopedia.com/non-fungible-t…
digiday.com/media/wtf-is-a…
wsj.com/articles/want-…
investopedia.com/non-fungible-t…
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