But that doesn't help, does it?
Let's take one step at a time. What is a token?
ЁЯМЯ WTF are NFTs?
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The ultimate thread (in simple English) to take you from zero to hero.
Get some coffee and come with me on this journey ЁЯСЗ
But that doesn't help, does it?
Let's take one step at a time. What is a token?
- Currency of an ecosystem.
- Flag of a country.
- Lease of your car/home.
- Amazon credits.
Anything well-defined.
Which, like any other currency, is fungible. Fungible, eh, what?
One dollar in my pocket is exactly the same as the one dollar in your pocket.
ЁЯСЙ Fungible = interchangeable.
Unless they are not.
Are they interchangeable now?
NO.
What you have in your pocket is one of a kind.
Unique.
Non-Fungible.
One dollar? Naah.
Ten? Maybe.
A hundred? Who knows?
The value of that one dollar totally depends on who is valuing it.
- If a collector gets it, they might keep it forever and pass it onto the next generation.
- If the president him/herself gets it, they might value it as just another dollar (because they can make more).
It's a non-fungible token.
Now, back to the crypto world...
One bitcoin in my wallet is valued exactly the same as one bitcoin in your wallet.
But in 2014, something called "monetized graphics" came around, and it was....
Made by @mccoyspace and @anildash.
In 2014, it was minted on the Namecoin blockchain.
It is called "Quantum."
And it is the first-ever NFT.
In simple terms, blockchain is a record-keeping mechanism.
It can keep any sort of record, and they look like this тАУ
Example тАУ
1. If the data contains my Bitcoin balance, the data is valued in BTCs.
2. If the data contains my Ethereum balance, the data is valued in ETHs.
A unique combination of zeros and ones that makes up the digital media (image, song, video, etc).
[Sidenote тАУ Everything digital is some unique combination of zeroes and ones.]
Think of your favorite popular artist. Mine is Shakira.
There's one original account. And a million fake accounts in her name.
What's the difference?
To put the data that makes up the digital media on a blockchain, along with its owner. To start with, the creator is the owner.
(The original Namecoin blockchain was limiting and not well adopted.)
And it went for $1.4mn. ЁЯТ╕ЁЯТ╕ЁЯТ╕
They simply get their name attached next to the data that represents the digital media.
Forever.
(Or until they decide to sell it further.)
Like your autographed dollar bill тАУ
If a homeless person gets it, they might exchange it for a nice meal.
If a collector gets it, they might keep it forever and pass it onto the next generation.
