Hy, I’m back
with an interesting topic NFTs
Have you
ever heard of NFTs? Yeah, NFTs. If you have been actively involved in Twitter,
You tube and LinkedIn then you probably heard about NFTS.
This is one of the most expensive NFTs.
The full
form of NFTs is Non-Fungible tokens (NFTs)
There are
two key terms in it
Non-Fungible
and Token
If I would have to simply express in then, to replace the world fungible. I would use the word replaceable. This means no-replaceable.
Let me start with an example, suppose Think and
Grow Rich this book has a lot of copies millions of copies of this book are
sold out. Because his book has been mass-produced. So, every copy is the same which
means if you buy a book from Amazon one day then if you go to an offline
bookseller and buy another copy on day 15, there will be no difference between
the two copies. They will be at the same price and that’s why you have got the same
copy. That means that this book is replaceable.
You can replace this book with any other book at any point in time and that makes it a replaceable asset.
But this
book in my hand is unique. While reading I have highlighted many things in a
lot of posts; it’s, which means this particular copy, this one copy in my hand
is not replaceable. You cannot buy this particular copy from anywhere else
because it has my notes, my highlights, and my scribbles, and that makes it nonreplaceable.
H is book is only one of its kind and now you can use that for anything
possible, right?
You can
imagine a bike or a car that has only one unit. or is manufactured in a limited
edition, which is very different from the mass-produced cars that there are.
You can
imagine a specific battle, a specific image called everything.
Anything unique and non-replaceable.
Now let’s
come to the concept of token
What is a token?
Tokens are riding
on something called the blockchain.
Let me try
and explain. What is the meaning of Blockchain and the meaning of token?
Suppose I
buy an item from you. Let’s say I buy a
book from you, ok? (:
You are a shopkeeper.
I came to your shop and tell you. You say it is for Rupee 100.
I scan your QR with my phone at that time Rs.100 flashes on my screen. I enter my E-Sewa pin and you get Rs100. Now this transaction was very easy but what all happened in the background? When I scanned it and entered the pin to pay Rs.100 at that very second, in milliseconds, my bank checked whether I have rs100 or not, and if I had then they would approve the transaction. when the transaction, gets approved, this Rs.100 is transferred to your bank and the bank registers that you received Rs 100 from someone, and this entire transaction was recorded.
But all of
this is happening at a bank level. So the bank is keeping a record of every
transaction that is happening at your end because you have a bank account
there. This is called a centralized way of banking.
Centralized Bank
Secondly money
as such is unlimited. The money that we have is just a piece of paper.
Government can print it as many times as they want, is that the value of your
money?
Value ↓
Production
Can reduce at
any point in time because a lot more money has been printed ao just as it
happened during demonetization, the note or the currency itself is disregarded,
and somebody decided to validate it overnight that is what centralized is. It
is great because only one person is founding all the rules and regulations but
it is also not good because that one particular person has a lot of power, that
need not be an individual it could be an institution an organization, or a
collective but that is how it is.
In 2009,
Someone named
Satoshi Nakamoto
Nobody knows
who he really is, and in that people, he said, can we transform this centralized
world, into a decentralized world?
This means
if I gave you Rs 100 to buy this book then a ledger was created can that be a
public record? This means it is not bank owned but is publicly owned. That was
the concept of Blockchain.
When I give someone Rs 100 not rupees but 100
tokens and the token is just the name of the currency in the blockchain in the
world.
If I give you Rs 100 tokens then someone first
has to check whether I ever have 100 tokens or not who is that someone?
It’s not one
person or one institution. It’s the entire world theoretically. Thousands of
computers that are spread across the world will simultaneously check whether I
have 100 tokens or not. If I would not have then it would say transactions disapproved,
and a record will be created for the same, if they have the transaction
approved and the tokens go into your account then that transaction will be
recorded forever and ever. Nobody can move it and erase it and nobody can edit
it.
And that’s
the concept of Blockchain.
How does it work?
NFTs work on blockchain technology. Each NFT has
the potential for several different applications due to its distinctive
construction. A digital asset management platform is an ideal vehicle for
digitally representing physical assets, such as real estate and artwork. In
addition to removing intermediaries and connecting artists to audiences, NFTs
can also serve as identity management platforms because they are built on
blockchains. NFTs can remove intermedia.
Many crypto-trading enthusiasts and art
collectors use NFTs. Additionally, it can be used for digital content, gaming
items, investment collateral, and domain names.
Quite a lot of celebrities such as Shawn Mendes,
Jack Dorsey, and Snoop Dogg have taken an interest in the NFT. In addition to
releasing unique memories and artwork, they are issuing securitized NFTs.
Since 2014, NFTs have been around, but now they
are gaining popularity for several reasons. The main reason for the same is
that crypto is fungible, which means that it can be traded or exchanged for
another crypto.
As NFT is easily created from digital objects,
it includes both tangible and intangible items which include Music, Tweets,
GIFs, Art, and Designer objects.
Evidently, Jack Dorsey, co-founder of Twitter,
sold his first tweet as an NFT for more than $2.9 million.
Selling your work as NFTs can help you earn more money. You can develop and sell almost anything digital as NFTs. Original audio samples, films, memes, music, digital art, and much more have been sold for an enormous amount of money in the past.
I will be posting another part of it. How is Blockchain connected to NFTs?
Thank you for Reading
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