NFTs are way bigger than just digital art
Here's a rundown for the non-nerds...
I'll hit on:
- What they are
- Why they're valuable
- What they can do
[[THREAD]]
Here's a rundown for the non-nerds...
I'll hit on:
- What they are
- Why they're valuable
- What they can do
[[THREAD]]
First thing we need to wrap our heads around is tokenization as a concept, cuz that's the foundation of what's going on here.
That is - taking ownership of a thing, and assigning it to a smart contract that now controls the things ownership via tokens.
Huh?
That is - taking ownership of a thing, and assigning it to a smart contract that now controls the things ownership via tokens.
Huh?
Let's say I own a piece of real estate that's worth $500k.
And I tokenize that property. I create (βmintβ) 100 tokens, and assign ownership of the property to those 100 tokens.
Now each token is 1/100th of that piece of real estate.
Each one is now worth $5k.
And I tokenize that property. I create (βmintβ) 100 tokens, and assign ownership of the property to those 100 tokens.
Now each token is 1/100th of that piece of real estate.
Each one is now worth $5k.
This concept is central to all this. It's a big use case for "smart contracts" as they are what govern said tokens.
When you see all this digital art being sold - that's what is going on.
An artist is assigning ownership of their art to some token, and then selling said tokens.
When you see all this digital art being sold - that's what is going on.
An artist is assigning ownership of their art to some token, and then selling said tokens.
Now, NFTs-
What I just described, generally, is a Fungible Token.
Fungible means 'mutually interchangeable'. Bitcoin is a fungible token (so is a USD).
A bitcoin is a bitcoin is a bitcoin. They are all the same.
An NFT is a NON Fungible Token.
A unique, serialized one.
What I just described, generally, is a Fungible Token.
Fungible means 'mutually interchangeable'. Bitcoin is a fungible token (so is a USD).
A bitcoin is a bitcoin is a bitcoin. They are all the same.
An NFT is a NON Fungible Token.
A unique, serialized one.
So what is getting super hot right now is digital assets being tokenized with unique, limited, serialized tokens that live on the blockchain.
Artist X sells 10 copies of their art piece. Each one is a 1 of 10.
Artist X sells 10 copies of their art piece. Each one is a 1 of 10.
Where previously an artist might print 10 copies of their original art, sign and number them, and sell em...
Now they can use NFTs to do so digitally instead: with each being unique and numbered.
Critics say "why would I buy one of the 10 when I can look at it for free online".
Now they can use NFTs to do so digitally instead: with each being unique and numbered.
Critics say "why would I buy one of the 10 when I can look at it for free online".
Google "Mona Lisa"
There you go. You are looking at it. You can see it. For free.
Guess what - there's only one actual copy of it, and it's estimated to be worth $860M.
Looking at it and owning it are not the same thing.
Get it?
There you go. You are looking at it. You can see it. For free.
Guess what - there's only one actual copy of it, and it's estimated to be worth $860M.
Looking at it and owning it are not the same thing.
Get it?
But this thread started with me saying that NFTs are WAYYYY bigger than the digital art use case that's making them popular.
So now that you understand them, here are a few use cases that I think are MASSIVE parts of our future.
So now that you understand them, here are a few use cases that I think are MASSIVE parts of our future.
1 - General tokenization of assets
Company stock (equity)
Real estate (Time shares)
Ownership of any physical thing
...anything. Listing things is futile.
Company stock (equity)
Real estate (Time shares)
Ownership of any physical thing
...anything. Listing things is futile.
2 - Cultural Merchandise
NBA Top Shot is branded NBA merch at the end of the day. People buy jerseys, they buy posters. They buy cards. They buy albums, records, tour merch.
They buy Moments of their favorite teams and players. (Top Shot)
THIS IS A HUGE ONE.
NBA Top Shot is branded NBA merch at the end of the day. People buy jerseys, they buy posters. They buy cards. They buy albums, records, tour merch.
They buy Moments of their favorite teams and players. (Top Shot)
THIS IS A HUGE ONE.
3 - Brand rewards and loyalty programs
This one has my mind running. Companies like Starbucks have been dishing out loyalty points for years. What can we do on the blockchain? With NFTs? Personalizing them? Making them universally transferable.
This is dope.
This one has my mind running. Companies like Starbucks have been dishing out loyalty points for years. What can we do on the blockchain? With NFTs? Personalizing them? Making them universally transferable.
This is dope.
Fwiw I'm especially thinking about the combination of 2 + 3.
Brand merch folded into loyalty points / status.
Think about a Supreme NFT, that proved my status as a Supreme customer and could be redeemed or used for X.
My mind is running on this one.
Brand merch folded into loyalty points / status.
Think about a Supreme NFT, that proved my status as a Supreme customer and could be redeemed or used for X.
My mind is running on this one.
4 - Event ticketing
This is kind of boring, but the ticket you get to a sporting event is a physical NFT. It's unique to you and your seat, it has value.
This is as obvious of a use case as can be.
This is kind of boring, but the ticket you get to a sporting event is a physical NFT. It's unique to you and your seat, it has value.
This is as obvious of a use case as can be.
5 - Look, you can mint an NFT of a damn tweet > @cent
Lol
Lol
I'm not an NFT expert, I just like breaking things down.
If you want to follow some folks living in this space right now:
Top Shot: @jacksettleman
The Nifty Show (Pod): @joelcomm @teedubya
Another: @DCLBlogger
Gary mf Vee, whose hot on NFT: @garyvee
But also --> @landforce !
If you want to follow some folks living in this space right now:
Top Shot: @jacksettleman
The Nifty Show (Pod): @joelcomm @teedubya
Another: @DCLBlogger
Gary mf Vee, whose hot on NFT: @garyvee
But also --> @landforce !
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