Non
Fungible
Tokens
#PayDecoding
explained
to kids!
Keep and sell
your masterpieces!
"Non fungible tokens" (NFT)
First, what does token mean?
Let me give you an example:
You draw a beautiful unicorn on your
computer.
Your drawing is unique!
But what makes it unique?
First of all, you, the artist.
The date of your drawing.
The technique (tools, medium, and
etc.) you used to draw
and so on.
description a friendly hardrock creature to love birthday Jan. 27, 2066
name Black u-nikorn
Owned by 666666
contract ERC721
external link http://openorbr.com/666
To protect and promote your
drawing, you can record all this proof
in a book on internet (a "virtual
register") and create a kind of "ID
card" of your drawing.
But not on any book!
On a book (called "Blockchain")
written with "indelible ink", on which
everybody can write but nobody can
delete anything.
And to easily find your drawing in
this book, you will add a number.
Well, all your drawing info in this
book is called a token!
To access your drawing, you need to
have access to this token that allows
you to get all the info, and tells you
where this image is hosted - mostly on
a website.
And "non fungible"?
Something fungible can be easily
replaced for another identical thing.
E.g., a €10 bill can be easily replaced
by another €10 bill.
They are 2 different bills, but when
you use them to buy, they have the
same value.
=
So if I want to look at your drawing,
they can't show me another one...
It's "non-fungible", i.e., it's a unique
copy that cannot be replaced by
another drawing.
(MarioTaddei, July 20, 2005)
Just like the Mona Lisa or the Harry
Potter manuscript.
So, a Non-Fungible Token is a tool to
guarantee the private property of a
digital work!
You are the owner of the drawing you
made, and the NFT proves it.
And what to do with these "NFT"?
Well, now that you have created your
first NFT, you can sell it if you want!
... AND DETAILED FOR
SPECIALISTS
An NFT in its most simple form is a piece
of artwork (or, more generally, any
Digital Asset) with a form of digital
signature.
Picasso, Renoir, Dali all their authentic
work can be attributed to their actual
signature on the canvas or their
sculpture. Experts can verify which piece
is real.
But how can a digital artist sign their
work if everything can be copied and
pasted across any site?
This is where the blockchain comes in.
The technology involved in creating an
NFT signature involves a whole network
of computers reading and approving
transactions and data.
It’s the most secure form of ledger and
quite simply, it creates a digital signature
as proof of who created it along with
other vital information.
NFTs are generally one of a kind, or at
least one of a very limited run, and have
unique identifying codes. What matters is
the numerical scarcity.
They can take very different forms:
Virtual fashion clothing
Digital art
GIF
Avatars
Video game skins
Collectibles
Music
Poetries, writings
In 2021, we notice a very strong increase
in the appropriation of NFTs by artists of
all kinds (composer, illustrator, plastic
artist, designer, ...) and by brands that
anticipate the development of
metaverses.
In the last few weeks, Nike, then Adidas,
have announced the launch of new
collections, in exclusive access, with NFTs
that can be bought in cryptocurrency,
accessible in the metaverse world.
"Related physical products, such as a
specific sweatshirt, will also be available
for sale to members of this restricted club
who will have acquired these NFTs for 0.2
ETH (Etherum, or nearly 700 euros) per
unit."
But NFTs are not necessarily designed to
make money:
- The Carrefour supermarket group uses
it to guarantee the secure and
unfalsifiable traceability of products such
as chickens from Auvergne, for example.
- The Ownest.io application proposes to
track ownership on the supply chains.
- In education, some schools (EM Lyon,
several high schools in Italy, ...) offer to
certify their diplomas with NFTs to fight
against diploma fraud.
All these NFTs allow to guarantee
"transactions" (not necessarily financial)
between several entities that do not
always trust each other.
NFTs also raise new issues:
including sustainability,
environmental impact (blockchains are
often criticized for being too energy-
intensive),
and contiguity (with intolerable
content).
Ubisoft, a video game publisher, quickly
experimented with NFTs, while choosing
to reduce its energy impact:
"One transaction on Bitcoin represents a
year's worth of video streaming
consumption, compared to 30 seconds on
Tezos" (a more virtuous French protocol).
$2.9MILLION
TWITTER CO-FOUNDER JACK
DORSEY SOLD HIS FIRST EVER
TWEET AS AN NFT FOR MORE
THAN $2.9 MILLION
(cnbc.com, March 24, 2021)
TWITTER PLANS TO ALLOW CREATORS TO
SHARE THEIR NFTS ON ITS PLATFORM BY
CONNECTING THEIR CRYPTO-CURRENCY
WALLETS.
NFTS COULD ALLOW CREATORS TO SELL
THEIR CONTENT WITHOUT A MIDDLEMAN
AND CREATE ONLINE COMMUNITIES - A KEY
FEATURE OF A METAVERSE.
$27BILLION
BETWEEN JANUARY AND
OCTOBER, ALMOST $27 BILLION
IN CRYPTOCURRENCIES WERE
REPORTEDLY TRANSFERRED TO
ERC-721 AND ERC-1155
CONTRACTS, THE TWO TYPES OF
ETHEREUM-BASED SMART
CONTRACTS ASSOCIATED WITH
NFTS.
(lesnumeriques.com/, December 08, 2021)
SOME CRYPTO-CURRENCY WALLETS:
ONCE YOU’VE GOT YOUR WALLET SET
UP AND FUNDED, THERE’S NO
SHORTAGE OF NFT SITES TO SHOP.
CURRENTLY, THE MAIN NFT
MARKETPLACES ARE:
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