An 8TH-GRADE INTRODUCTORY GUIDE TO NFT — Even your grandma will understand NFT after reading this guide.
The world is growing. Everyone talks about Blockchain technology.
Think about it.
We can’t risk not following the trend.
This brings us to NFT.
That’s what everyone is talking about.
And why is everyone talking about it?
Because that’s where the money is.
WHAT IS NFT AND EXPLANATION OF TERMS
NFT means Non-Fungible Token.
What is Fungible?
What is Non-Fungible?
Fungible simply means something that can be EXCHANGED or REPLACED.
You say something is FUNGIBLE when you can replace it with something else…………..
Something of EQUAL value & EQUAL type.
You ordered a blue Samsung S8 online.
And Samsung produced 400 million copies of the blue Samsung S8.
Think about this:
Do you really care about where it was made? If USA or Germany?
You’re only concerned about getting a blue Samsung S8.
What This Means:
Now, that blue Samsung S8 is Fungible….
Because there are 400 million copies of it and you can easily get a blue one.
You can also change it to another blue one.
At the end of the day, you still have a blue Samsung S8.
This is a fungible token.
Another example of a fungible commodity is MONEY.
Pretend for a moment you borrow your friend (John) $1000.
When John returns the $1000, are you concerned if it is $100 notes?
You are only concerned about if the money was $1000 or not.
If it is INTERCHANGEABLE and still maintains its value…..
What is Non-Fungible?
NFTs (Non-Fungible) are items that are unique & rare & especially INDIVISIBLE.
If you part ways with them, you CAN’T get something to let them again.
For example, the Presidential Jet of the President of the United States of America, called AIRFORCE ONE, is a Non-Fungible Token. There is only ONE of it.
If the jet crashes, there is no other. It’s gone!
It is not your regular Boeing 737 airplane that is boarded daily in many airports around the world.
There is only ONE copy of the Airforce one.
Another example is humans.
We are Non-Fungible.
If a person dies, there can be no other person exactly like the late fellow again.
In the crypto world, NFTs are digital assets that you store in your Ethereum wallet.
Most times, they are:
Some Popular NFTs
Bored Ape NFT
William Shatner’s Personal Memorabilia
The first NFT ever was created in 2014 by Kevin McCoy.
It is a GIF interchanging art he called “Quantom”. It is currently on sale for $USD 7M.
Here it is… 👇🏾
All these NFTs carry various values in Ethereum crypto.
You can buy in global NFT markets like Opensea, Rarible, Foundation & more.
Now, ANYONE can create an NFT & put it up for sale.
Here Is The Deal…
NFTs are/can be worth a LOT of money.
Their value grows as they become more popular.
Don’t forget that they are rare & the law of economics maintains that if the supply of a thing is lesser than its demand, its value goes to the moon 🚀!
I’m sure you are asking, why should something just anyone can create be worth so much money & why should I pay for it?
How It Works
Although you may think any NTF (let’s say an artwork for example) is something you can just copy & paste or save as JPEG on your devices (like I’m guessing some of you may try now😅) no dear…
If it is in your gallery, it’s just a media file.
If it is in your wallet, then it is an NFT.
NFTs are based on CRYPTOGRAPHIC TECHNOLOGY that does NOT allow duplication to happen.
That’s why people theoretically ascribe value to them because they are scarce and cannot be recreated.
Also, the Ethereum-Blockchain platform can identify & detect original from duplicate NFTs, hence there can be no fraud.
NFTs are digital assets.
For example, think of a digital ‘Mona Lisa’ by Leonardo DaVinci.
Before We Go….
Every day, people will pay a lot of money for NFTs because…….
They want to own something unique & rare that carries real-life monetary value.
Remember, the Ethereum Blockchain platform will allow no one else to recreate them.
You can’t duplicate it.
It is UNIQUE & RARE.
So, Why Should You Get Into NFTs?
Just like me, you don’t want to be left behind.
Furthermore, NFTs are crypto too in form of medias — pictures, artworks, audios, videos, 3D models, etc.
It is an opportunity for creatives such as photographers, body painters, graffiti artists, sculptors, musicians, etc……. to sell their arts & earn huge percentages in royalty.
It is also an investment in crypto, just like our coins that we are all used to. Just that NFTs appreciate like 100,000 times faster if you ask me.
Most importantly, NFTs are going to become smart contracts. That is, NFTs are going to replace everything you know as a receipt today.
In addition to this, NFTs grant you certain benefits as a holder.
For example, I’m guessing you must have come across BORED APE YACHT CLUB NFTs. Holders of those NFTs get access to yacht parties & network with billionaires across the world.
Creators can use it to grant benefits to their clients.
If you are a photographer & you make NFTs, you could give certain discounts to customers who hold your NFTs.
The time is coming super fast when your plane tickets, train tickets, school website portal, etc. will be NFTs.
Do you get the concept?
The possibilities are endless!
Till next time.