WTF is an NFT? Masterclass On Everything You Need To Know About NFTs | ITF #22

This was a monumental year for NFTs. The most expensive NFT was sold for $69.3 million. The market cap (total money in NFTs) of NFTs went from $17 million in January to $3.25 billion in August (19,000% increase in 8 months). The trading volume went from $4.75 million to $6.5 billion in the last year (141,000% increase). And finally, this year, the number of people that own an NFT went from 1 million to 25 million. This is truly insane exponential hockey stick type growth, and things are just getting started.

You may be thinking, “Alright yeah, that sounds pretty wild but WTF is an NFT and why should I care?”

WTF is an NFT?

No, NFTs are not Northern Fried Tacos and they are not Ninja Fighting Tattoos. NFT stands for non-fungible token. To understand what non-fungible means, let’s first understand what fungible means. When something is fungible, that means it can be exchanged for something else of equal value. For example currencies like the USD or Bitcoin are fungible. You can exchange any $5 bill for any other $5 bill and you'll have the exact same thing.

How Do NFTs Work?

NFTs are possible thanks to the technology of the blockchain, which is the same technology that powers Bitcoin. The blockchain can be thought of as a public decentralized database, where anyone can see what is currently stored on the blockchain and see the full history of all transactions. Therefore, with NFTs, you can see a record of when the NFT was created, who currently owns it, and the history of all the transactions for that NFT. These NFTs uniquely represent pieces of media that can be anything digital, including art, videos, music, gifs, games, text, memes, and code.

Use Cases For NFTs

There are many different use cases for NFTs today but given that it is such a novel technology, new use cases are continuing to be created every day. Here are a few of the use cases that are covered in this episode.

1. Digital Art / Collectibles
2. Music
3. Access Based NFTs
4. Gaming
5. Redeemables
6. Identity
7. Certifications / Credentials
8. Land in the Metaverse
9. Fractionalized Ownership of Assets

In this episode, we also discuss how NFTs are giving unprecedented financial power to creatives, how NFTs will change internet culture, how to buy NFTs, and what to look for when investing in NFTs.

NFTs are still early, and will evolve. Their utility will increase as digital experiences are built around them, including marketplaces, social networks, showcases (virtual museums, your own space in the Metaverse), games, virtual worlds, and more. Someday every internet community might have its own micro-economy, including NFTs and fungible tokens that users can use, own, and collect.

💣 Value Bombs

💥 1. As an entrepreneur, you will only succeed if you have a viable business model. Without money, you will die. Therefore, I think understanding the tokenomics of different cryptos, NFTs, play to earn games, and other things happening in this space is critical. There are literally new business models being invented out of thin air every day in this space.

Still uncertain about some of these concepts or have follow up questions? Feel free to reach out to Julian through Instagram (@infinitejuliaan) or Twitter (@infinitejuliaan).

💬 Discussed in this episode...

1:26 Why you should care about NFTs
2:42 Data on market cap, volume, & adoption growth
4:28 WTF is an NFT?
7:50 How do NFTs work?
13:50 The different use cases for NFTs
14:50 Use Case 1: Digital Art / Collectibles
21:20 Use Case 2: Music
27:10 Use Case 3: Access based NFTs
30:33 Use Case 4: Gaming
35:50 Use Case 5: Redeemable
36:29 Use Case 6: Identity
37:12 Use Case 7: Certifications / Credentials
38:40 Use Case 8: Land in the Metaverse
43:34 Use Case 9: Fractionalized Ownership
47:15 How to think about NFTs
49:25 How NFTs give financial power to creatives
58:10 How to buy NFTs
59:13 What to look for when investing in NFTs
1:01:20 The future of NFTs

For the full show notes of this episode, go to: https://bit.ly/itf-NFTS

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Видео WTF is an NFT? Masterclass On Everything You Need To Know About NFTs | ITF #22 канала Inventing The Future