NFT - Explain Like I'm 5
- Non Fungible Tokens (NFT) is the ability to create 100% unique, digital 'finger prints' that can be bought, sold, or transferred.
- Basically, NFT = "hey I own this (asset) and I can prove it with the unique token I have in my crypto wallet"
- Instant Authentication / proof of ownership.
NFT Frequently Asked Questions:
Q: What do I actually own when I buy an NFT?
A: You get a 100% unique token in your wallet that represents whatever asset you chose to purchase (and can be verified). This token can be transferred, sold, etc...
Q: But can't a .jpeg file I buy be copied / pasted etc...?
A: Well, the mona lisa is "copied and pasted" every day, and hung in homes, offices, etc... But copy / paste doesn't mean they own the Mona Lisa. Value is in ownership. Which NFTs can prove very easily.
Q: How can the REAL artist prove that a copy is a FAKE?
A: this is what makes NFTs revolutionary. Every time an artist mints an NFT, it is permanently timestamped on the a public database (blockchain), and cannot be reversed or deleted. So pointing your finger to your "time stamp" is all you need.
Q: Can only GIFs and images be sold as NFTs? What about physical items?
A: Surprisingly, NFTs have no bounds! Check out these phyiscal Uniswap socks that released as an NFT. At the time of the screenshot, they were going for $115,000!
Where to buy NFTs?
NFT Marketplaces:
How To Purchase NFTs?
👉 Check out our guide on purchasing NFTs here: Buying NFTs
How To Mint and Sell NFTs?
👉 Check out our guide on minting and selling NFTs here: Sell NFTs
NFT Royalty: Crypto Punks
There are 2 NFT projects that basically revolutionized and inspired the creation of the NFT token itself which we now know was Ethereum's 'ERC-721 token.'
- These 2 projects are crypto kitties and crypto punks.
Basically, when you buy an NFT, you're buying a unique token, which represents the item you have purchased ownership of. (can be any asset not just art)
The main catalyst of NFT's:
Crypto Punks - Highest sale in the millions $$$
What?
- Crypto punks are a set of 10,000 unique pixel art avatars which have different attributes.
- Attribute examples: Glasses, beard, male, female, smile, frown, etc...
- These 10,000 punks got randomly mixed with different attributes, some rarer than others.
- in 2017, each of the 10,000 punks were redeemable for FREE by LarvaLabs.
- Now, since no more will ever be made, they are being re-sold for insane amounts.
Why so expensive?
- Punks are seen as the first NFT. ("NFT Royalty"), which gives them historic value.
- 10,000 punks means very limited supply, and demand is only INCREASING.
- Punks are showing to be a great Store of Value for Ethereum holders. Like real art.
Where can I buy punks?
Popular NFT Collections
NFT Flipping Opportunities Everywhere:
Watch this story of Mark Cuban's NFT saga, and how an experiment turned into a lot of money:
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