Pretty Boss Moguls NFT

What the heck are NFTs?!

In this article, I speak about NFTs from a "non-technical" perspective to the best of my ability.

For those of you interested in a more in-depth overview, you can read my favorite article about NFTs here. BUT read this brief article first.

Definition

NFTs (or “non-fungible tokens”) are a special kind of crypto-asset in which each token is unique — as opposed to “fungible” assets, (such as Bitcoin or U.S. Dollars), which are all store the same value. Since every NFT is stored on the blockchain, they can be used to authenticate ownership of digital assets.

What's Fungible vs non-fungible?

“Fungibility” refers to goods or assets that are all the same and can be swapped interchangeably. The dollar is one example of a fungible asset. Every dollar is worth as much as every other dollar. In contrast, NFTs are all unique. Therefore, they are called non-fungible assets.

Sporting even tickets, by contrast, are non-fungible. Even if every Atlanta Hawks ticket is the same price, they aren’t equally exchangeable. Each represents a specific seat and a specific date — no other ticket will have the same characteristics.

So...what the Heck are NFTS?

NFTs are tokens that are used to represent ownership of unique physical, digital or metaphysical items. They let us create tokens out of things such as art, collectibles, and even real estate. They're secured on a blockchain (such as Ethereum, Polygon or Solana), and can only have one official owner at a time.

Therefore, no one can modify the blockchain record or copy/paste a new NFT into existence.

How are non-fungible tokens created?

A non-fungible token is created by an artist, creator, or license-holder through a process called minting.

What are non-fungible tokens currently being used for?

  • Event tickets — companies can distribute and sell tickets to events using NFTs
  • Fan/customer engagement – artists, brands and organizations can issue or sell NFTs that represent exclusive collectibles, products, experiences, or voting rights for the future development of a product or service in order to enhance the engagement with their customers and supporters
  • Royalties – NFT’s can track fractional ownership or royalty entitlement for a piece of content or art
  • Memberships - NFT's can be used and membership tokens with exclusive member offers, benefits and more. A good example of this is our NTF collection on Opensea.
  • In-game items – as of today, players do not own their digital items and secondary markets are hard to implement. NFTs can be used to create a widely varied ecosystem of in game digital items that can be bought, sold and exchanged on open secondary markets and used across a broader gaming ecosystem rather than anchored to one game
  • Digital collectibles – organizations or individuals who have a well-defined brand can create NFTs that can be sold on the open market to fans or brand-loyal customers as collectibles.
  • Real world items – like driver’s licenses, contracts, deeds to a car, tokenized invoices, legal documents, signatures and professional certifications can be issued as NFTs to reduce the burden of proof for these credentials today
  • WAIT...There's more - there are an infinite amount of use case options that have yet to be explored!

"When they said the revolution will not be televised, who new they were talking about the internet." - Pretty Boss

What challenges currently exist for NFTs?

There are various challenges that have been affecting the adoption of NFTs, including but not limited to:

  1. Complexity - The technology and tooling behind non-fungible tokens and the decentralized applications that support them are still emerging despite the increasing adoption amongst startups as well as established enterprises.
  2. Regulatory/Legal Implications - With the introduction of new and innovative technologies also comes regulatory and legal considerations including but not limited to anti money laundering mechanisms, and securities law compliance.
  3. Rapid Innovation/Evolutiioin - The rapid evolution the NFT ecosystem (and the blockchain networks on which they are issued), presents challenges for those adopting the technology in the form of consistent change.
  4. Concerns Regarding Ecological Impact - Controversy continues in regard to the impact that energy-intensive blockchain networks on climate change. However, solutions already exist to obliterate this concern, such as the adoption of less energy-intensive consensus mechanisms and the use of “Layer 2” or L2 networks where transactions that mint NFTs can be validated more rapidly and efficiently outside of the main blockchain network. 

    The Ethereum blockchain network is rolling out Ethereum 2.0 in several phases over the next few years, and Layer 2 solutions like Polygon and ImmutableX are already helping reduce the load today.

Want to purchase your first NFT? 

Check our Pretty Boss Moguls NFT collection on opensea here.


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