What are NFTs?
Ever wonder why all the billionaires are so bullish on NFTs? We'll be tackling the misconceptions of people on NFTs and Their true potential. Find out more in this article.
To start with, what are NFTs? NFT stands for a non-fungible token which raises more questions for the layman what fungibility is.
Fungibility = property of "x", which implies it cannot be interchangeable
As this goes further as some tokens are fungible to belabour the point $100 is fungible in the way of you can remake it via 10 x $10, so something that is not fungible means that it is unique, and this is what makes this important, it means that there is a unique id for it.
Having a unique identifier on the blockchain means that we can verify data is unique, which means that something can be sought to exist as per the unique identifier.
The problem with data is that it can become noisy now; if you offer a way and a route to authenticate information and data, you are better able to sort noise from a signal. It is why art collectors are paid such vast sums of money verification as a complex problem.
Now that we have established the foundations of what precisely NFTs are, some other points remember that most NFTs are decentralised blockchains. It means that verification is handled in a public ledger. It means no 3rd party.
Why is a public ledger needed? It means that peer-to-peer transactions are required and are trustless according to the protocol, big words I know. Again, to understand the innovation truly, you need to understand the paradigms that are being shifted.
You don't need a third party to confirm or authenticate that what you are buying is legitimate in the trustless protocol. It's all done automatically. It is huge. It means that we no longer need museums or art inspectors to detect what is legitimately its self-regulating peer to peer.
The smart contract mints the NFT. Then the people are free to conduct a transaction according to the market. Crypto is much more accessible than anything before because people worldwide can transact goods and settle payment without a 3rd party.
Self-executable code that is already running on decentralised systems means there are protocols and measures in place that will allow people to continue to mint this and that their transaction will occur.
Current intellectual property is all undergone and executed by various third parties. Entire industries will be disrupted by crypto imagine streaming platforms based on NFT. The music industry is already having this disrupted no third-party rent-seeking platform.
True peer to peer, you will directly pay the artist or owner of the NFT. You can also buy royalties in a much more transparent way as it is a smart contract you can also bake into much more creative financial aspects you could create a charity and trust, that automatically.
That automatically donates money to a percentage of transaction fees. As a result, the world sees a massive uprising in NFT art taking over, but the underlying value is that all digital assets can become an NFT or on the blockchain.
I am working with companies that are innovating in this space. Which will seek to verify things produced by fashion designers, to companies authenticating influencers, to establish in-game universe purchases.
NFTs are here to stay; anything that can be a digital asset will be a digital asset. It has been said that software is eating the world; well, crypto is eating the software.
The tail end capabilities of this need further expounding. Imagine every single google document on earth as an NFT, but not only that, but parts of the form will be linked to other NFTs. With all of these, you will be able to create exotic financial instruments out of Higher-order philosophical ramifications. Middlemen will eventually be cut out of existence. Decentralised protocols will replace platforms, there will be fewer gatekeepers, there will be less regulation of transactions and there will be more accessible access to finance.
It will be easier to sell something NFT marketplaces will make it easier to buy something, a digital asset. It will also allow you to know that what you are buying is a real asset. On a public ledger, not even devils can hide on a long enough timeline.
The lack of the ability for countries to regulate crypto and NFT transactions over time will lead to their erosion. Companies will slowly die out due to the rise of individual-oriented agencies.
The philosophical implications of NFTs are essential in the metamodern age of post irony. Everything was a copy of a copy that will eventually end the world will bring back artisanship, and close-knit communities will rise.
It is essential to highlight the philosophical and economic ramifications of NFTs because they will change the world in unprecedented ways; the world will fracture and decentralise crypto originated as philosophy, so are its implications.
If you like this article, please be sure to follow. So I can continue making other content like this. I've been in crypto for a long time. Disruption is already happening.
Post note. Bringing real-world assets on-chain will be the next big step in NFTs; the first property has been sold as an NFT. I was talking to a few people about how to do this. It seems like things are moving very quickly.