10 point Intro to NFT

10 point Intro to NFT

  1. Getting terminology out of the way: NFTs stand for Non-Fungible Token, where fungible means Identity, and NFT is something that's only one in the world and cannot be replaced.

  2. Fungible items are for example like a 5rs coin, you can circulate the coin to whomever you want but it will still be worth 5rs (at least till 20 years, later can be sold as an antique)

  3. The coin above is a fungible item, i.e if you have a 5rs coin, that's nothing special, I can easily obtain a 5rs coin, so there's no way I'd be giving you an extra amount in exchange for the coin.

  4. Let's say you have a Sword that was actually used by Akbar, the Emperor and you have valid proof of the same. Now, given that it's been quite some time since the emperor has left us, there's most likely no other Sword that belongs to him. So this is an irreplaceable entity, and there might be people who would pay you a crazy amount of money just to get that Sword in their possession, now that Sword is an NFT ( not a token, in blockchain sense, but you get the idea).

  5. Now, if we think of items, how do you think you can make something that's not replaceable digitally? You can easily copy anything, Texts Duh. Books lol, Songs check!, Videos you know better. In fact, I can make a bold statement there's nothing online that can't be replicated, including huge software systems, anything can be copied.

  6. The above point is also a lifesaver, we don't have to pay an enormous amount of money to watch something or read something, the knowledge these days is practically free because of that.

  7. However, it also poses a question, what if we actually want to make something exclusive, something that cannot be replaceable/copied. Here comes, the NFTs!!!

  8. And the only reason it's possible to make the NFTs, in other terms, Digitally exclusive entities is the technological revolution of Blockchain.

  9. Community, Utility, and Storytelling are the three things that drive the NFTs and the idea behind them.

  10. Paying a million bucks to buy a picture now when it can be easily copied might not make sense, it is the same as printing out Monalisa's painting, but that wouldn't make you the original owner, similar all thanks to the blockchain you can very well copy/save an NFT but you can't OWN it doing so.

Did you find this article valuable?

Support Kunal Dubey by becoming a sponsor. Any amount is appreciated!