Thread by @FiftySatFinance

WTF is an NFT?

Here's a simple breakdown of what they are and why they're important.

[ THREAD ]

1. What Is an NFT?

NFT = non fungible token.

"Non fungible" means unique.

An NFT is a one of a kind digital item.

This can be:

• Songs
• Photos
• Event tickets
• Video game items

2. How Do NFTs Work?

NFTs are stored on the blockchain.

A blockchain is a transparent tamper-proof database.

People from around the world contribute their computing power to host and secure the database.

All information is publicly available.

No single person or company has control.

No one has the power to change or delete stored information.

Ethereum is the top blockchain platform.

But other platforms are on the rise:

• Flow
• Solana
• Binance Smart Chain

3. How Are NFTs Unique?

Every NFT has its own ID number.

The NFT's data:

• Who owns it
• Who made it
• When it was made
• How many copies exist

Can't be tampered by 𝗮𝗻𝘆𝗼𝗻𝗲.

Not me.
Not you.
Not the government.

No one.

4. Why Are NFTs Important?

NFTs are undeniable proof of ownership and authenticity.

Peep @jackbutcher's visual below.

https://twitter.com/jackbutcher/status/1374025919342477316

"BuT i cAn RiGhT cLiCk aNd sAvE iT"

Yes.

You can save the image.

But you can't save the NFT's data.

Let's look at concert tickets for example.

Have you ever been scammed by buying fake tickets?

Shit sucks.

Imagine a concert ticket as an NFT.

The NFT's data would show:

• Who made it
• The time it was made
• How many copies exist
• Who owns it

And no one can change that.

You can screenshot the ticket but you can't duplicate the data.

Anyone can look at the NFT's data and verify it’s a legit ticket.

The tickets are blockchain verified.

Now imagine this with...

• Patents
• Licenses
• Certificates
• College transcripts

NFTs are bigger than digital art.

5. NFTs and Physical Items

NFTs aren't limited to the digital world.

You can use NFTs to authenticate and prove ownership of physical things.

Let's say you wanted to buy a limited edition pair of Yeezys.

There are only 100 pairs in the world.

NFTs can be used to authenticate the shoes so you don't get scammed.

The NFT's data would show:

• It was made by Adidas
• The serial number
• The shipping route

You can confidently buy the Yeezys knowing they're blockchain verified.

6. Programmability

You can also program NFTs to have special functions.

Artists can program royalties into their art.

You can program your art to pay you 5% profits every time it's traded.

No more middlemen taking all the profits.

And no one can fuck with your royalties.

You can also program NFTs to pay royalties to your fans.

@3LAU is releasing the first fan owned song.

50% of the song's streaming revenue will be paid to the NFT's owners.

Fans can directly invest in an artist and get paid for their support.

https://twitter.com/3LAU/status/1441133134641197065

NFTs change the game for how we own, authenticate, and monetize 𝗲𝘃𝗲𝗿𝘆𝘁𝗵𝗶𝗻𝗴.

We're only scratching the surface of NFTs' potential.

We'll dive deeper into more use cases next time.

Stay tuned.

Thanks for reading!

If you got value from this thread:

• RT the first tweet
• Follow @FiftySatFinance for more crypto and finance content

Peace ✌🏼

https://twitter.com/fiftysatfinance/status/1443205099648548867