Many people we speak to in our circle of friends have no idea what NFT’s are, making us feel like we were talking about something out of this world. So we decided to write up a short guide on what NFT’s are, easy enough to explain to your parents why you spent 1 ETH on digital art.
NFT’s and who are they?
The technical term means Non-Fungible Token; in simple terms, it means something that can’t (Non) be replaceable by another identical item (Fungible). Generally, that item is a digital asset (Token) and can be in any medium; a song, picture, story, license, legal document. In fact, almost anything that can be generated digitally can be categorised as an asset. So long as it is unique and not ripped off, which was online creators biggest concern with posting anything on the internet… until blockchain came along.
Blockchain, you say?
Blockchain is the technology running Bitcoin and other variations in the cryptocurrency world. Blockchain is a digital public ledger that records information and makes it impossible to change.
Imagine a spreadsheet distributed among thousands of computers globally. Now think of the network designed to regularly update this system of record. That is essentially what a blockchain is.
Blockchain ❤ NFT’s
Now we know what an NFT is and a rough idea of blockchain. How do the two come together? NFT’s need the blockchain to be verified, leading us into the world of digital ownership.
With blockchain technology’s strength and power, we can now verify if an NFT belongs to a specific wallet (blockchain address). This is so powerful because we never had the technology to prove we own something online, but now we do. So we can now confirm that a unique piece of art is owned by a specific wallet.
But what about screenshot-ing?
We see many users online who claim that they can take ownership of these NFTs by taking a screenshot. However, you can take a photo of the Mona Lisa, doesn’t mean you own it. A screenshot doesn’t make you the rightful owner of that asset. Having the address ownership to the original contract gives you a total claim of the NFT.
NFTs and Community
Now we understand NFTs, the big question is, why are people spending half a million on pixel art?
NFTs have bred projects bringing together thousands of people into a community. The community is created with unique value and utility, attracting users to purchase the NFT. The NFT can be either a 1/1 version or have unique attributes to the other NFTs in the project, making some rarer than others.
Community NFT Projects create limited artwork releases while adding value to the NFT holders. These can range from real-life events to special access, rights to vote on funding allocation, anything that brings utility to the NFT, which increases the value of the NFTs. In addition, the wallet holder can sell their NFT to a person who is interested in joining the community for a higher price.
Wrapping up
The communities we have been included in, and the love we have seen being involved in NFTs have inspired us to bring it to the local Sydney community. So we are launching the first Premier NFT Sydney Conference on March 2022 and would love for you to join us and help drive our mission. Educate our local community on NFTs and the benefits they will continue to bring to our lives.
Register here: nftsyd.io
