Especially when there’s so many scams, rugs, and people seeing it as a risk and not be able to understand the technology of Non-fungible tokens.
I made a thread so if anyone ask what’s so great about it I can point them to it
NFT stands for Non-Fungible Token.
Let’s break it down so it’s easier to understand
Fungible - able to replace or be replaced by another identical item; mutually interchangeable.
Token - can be used a term of currency or a voucher that can be exchanged for goods or services.
Bitcoin is fungible since you can trade, buy , sell or divide into smaller portions and put back together and it will be identical as any other Bitcoin.
Pocketcows is NON Fungible since the Token you own CAN’T be replaced and so there will only ever be ONE. It has a Unique ID!🪪
However, there’s more uses a token can provide by adding ADDITIONAL utilities!
The token part of the Non Fungible Token itself can be used like a PRODUCT you can buy, trade, or just keep. Just like any other product we buy in real life!
“So what’s the point of an NFT if you can just buy a product in real life or on a website?”
The Non fungible token is different in that it’s located and lives in the BLOCKCHAIN! Where it will keep track of all NFT transactions and lowers the risk of losing it!
Let’s go through some scenarios of the security on ownership of official records.
If I was to barter products or services and make transactions, there’s usually no record of it unless I write it down as a paper receipt.
The paper can be burned and be destroyed!
Next step on security would be a local hard drive or online.
The hard drive can be destroyed and exploited by hackers and the servers online can be shut down and exploited as well.
So what’s next when it comes to securing records of transactions or data?
The BLOCKCHAIN!
“WOAH!? Blockchain?!! That’s too technical for me.” 🥴
Well it’s really not! Let’s break it down ⬇️
“Block” is like a box or container used for storage or transportation ! 📦
“Chain” is a sequence of items in the same type of forming. Just like a metal chain! ⛓
BLOCKCHAIN is just a chain of blocks connected to one another in order of when it was created.
What’s amazing is this chain can never be edited or broken!
Once a block has been created it goes on the chain and creates a time stamp of what occurred during that transaction!
“Why is this important?”
Since the blockchain acts like an online Ledger. It will Keep track of the Non Fungible Token when a transaction is created between 2 individuals! Always keeping tabs and never losing the information within.
“So what does an NFT do on the Blockchain?”
An NFT Is like a folder 📁. It’s a token which can hold data, information and utilities inside of it forever.
So this folder keeps it’s data in the blockchain to record transactions so they will be recorded and never be lost
“So, what’s with all the JPEGS?”
You can add art data in the “folder” to make it look more attractive visually so when you look at the token on a platform such as Opensea or a crypto wallet it shows data that’s located within the token as ART which can be used in collections.
“Can’t I just copy and paste the art and save money and the trouble?”
Yes you can!
However, you won’t be able to copy the folder the data is inside of or effect the path the folder takes on the blockchain. So you’ll have a copy of the data but never the ORIGINAL Folder.
Just as anyone can copy the Mona Lisa portrait from Google images , draw a copy, or take a picture.
They still won’t have any ownership to the original piece and it won’t hold the same value.
They are not the same!
“I can just buy art from the artist directly then.”
You can!
However, NFT technology allows artists to be able to record art as data and have a more efficient transaction history of the products they create.
Since it’s on the BLOCKCHAIN, you can check to see the Legitimacy of the product and it’s previos transactions untill the moment it was first created by the original creator.
As a buyer you’ll have a certificate of authenticity and it’s secure!
“Is that all an NFT can do?”
NO! That’s just the tip of the Iceberg!
NFT is a folder that can contain one or more files of any type (documents, pictures, videos, other folders, etc.) and even programs called (smart contracts).
NFT use case ex.
- Electronic key
- Voucher for real word events
- Video game Collectible
- House deeds
- Medical records
- Store receipts
Possibilities are endless!
NFTs are the future in how we keep track of info.
The Value of the NFT comes from the contents inside.
Using this tech we are also allowed to build programs within that follow strict rules and abide by a contract.
These programs are called “Smart Contracts”.
They help automate actions that normally would have to be done manually. Such as paying dividends!
What’s an example of an NFT with Utility?
PocketCows NFT for example has been able to take advantage of the tech by creating a LIMITED collection of only 10k unique tokens. Inside these tokens there’s the data of the Jpeg that’s shown visually when seen on platforms
Each image is also unique to complement the nonfungible aspect of the token by implementing a variety of art traits that make some images more valuable than others based availability in the collection and how it’s been distributed. Making them all unique characters!
On top of having image data, the token works as a key to be able to access an in-house created Video game!
The playable characters will match the image data that’s within the NFT.
So the player gets to play as their unique NFT character!
Another utility added is the capability for the smart contract to act as a burn tool and a pool of liquidity called “The Pasture”.
When a PocketCow is sent to pasture it gets rid of the NFT by (burning) it. This makes the collection more valuable as it creates scarcity
The liquidity pool fills up by utilizing marketplace smart contracts like (Opensea) that allows ethereum to be distributed to the creator when a nft is sold on the secondary market.
PocketCows contract will automatically distribute 10% of Ethereum received towards “The Pasture”.
The Pasture system can never be compromised and distributes equally and fairly for the owner to withdraw at their own discretion at anytime.
This creates a deflationary model to the collection and rewards those who take advantage of the program by using it!
That’s 3 of the features that have been created and we are still paving the way in showing the true capabilities of what non fungible technology can do.
NFT are about creating products with a legacy that will be able to make online technology advanced and more efficient.
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