• Real Quick Media

The Basics of NFT’s Explained

Updated: Oct 26, 2021

Simply put, we live in the age of the internet. The internet has consumed entire industries providing jobs, work, experiences & new opportunities only possible in this day and age. So if the internet has been around for the past few years, why are we only just hearing about NFT’s? What is an NFT you may ask? That is what we want to accomplish in today’s article, so please relax and read on as you plunge into the world of NFT’s.

NFT stands for “Non-Fungible Tokens”, no explaining what an NFT is isn’t as easy as simply defining it. There are entire communities and ecosystems built around the NFT space. And thanks to the internet algorithm, NFT’s have become a major hotspot in talking points from Gary Vaynerchuk to the NBA.

An asset that is deemed as “fungible” is an asset you can interchange with any other commodity. For example, a $20 note is a fungible asset because you can interchange it with another $20 note, so although you have changed your original fungible asset, the new $20 has the exact same value. So that is a brief definition of the word “fungible”. But this only answers a fraction of the riddle.

So a “non-fungible” asset is something that retains a distinct value, one of the most famous examples is the Mona Lisa an internationally famous painting.

NFT’s are a non-interchangeable verification way to establish ownership and give “tokens' ' to unique items. For example, rare pieces of art can be tokenized therefore validating the owner through Blockchain. These tokens then show as a unique asset therefore exposing any fake or fraudulent assets.

The NFT scene first became popular through a game released on Ethereum called “Crypto-Kitties”, this game allowed users to sell, breed and buy unique digital kittens. Therefore, each kitten being unique to each separate user allowed the value to rise as scarcity and demand for these “tokens” went up. The value of the digital kitties was decided by the market with the average kitty being worth $25 and some of the highest demanded Kitties being sold for $140,000. Now that is a lot! These values were constantly subject to change with the market. These tokens (digital kitties) couldn’t be bought or sold without the user’s authorization as their identity was validated through the Blockchain.

So NFT’s (Non-Fungible Tokens) are best used to validate scarcity and show ownership. If rare items were digitized without any form of tokenization, they could potentially be stolen, hacker or deleted. Unlike other tokens, these NFT’s aren’t interchangeable and are there to represent an asset.

Imagine if you will, we have 5 Mona Lisa’s in the world, so there are 5 extremely rare and valuable pieces of art that are potentially priceless. If we tokenized all of these paintings, making 5 unique tokens for all 5 pieces of art, each token is verifiable through the Blockchain and whoever possesses the private key to each token is the true owner. Fake, fraudulent and counterfeit tokens will be exposed and removed as Blockchain works on a consensus algorithm (where peers collect to remove something invalid from the Blockchain).

Tokenization (turning assets into NFT’s) is a safe way to transfer ownership rights through selling. The use of NFT’s throughout the years has only multiplied to the point where assets are becoming effectively minted turning into Tokens to be sold safely and securely through the internet. NFT’s are an authorization layer that removes the risk of fraudulent assets and establishes a clear line of ownership, helping the digital selling world to become a better place.

So that is what NFT’s are and they are some of the uses! We hope you found this blog interesting and we hope we have kickstarted your interest in NFT’s, we urge you to do more research into these Tokens as very soon the digital world could be run by them. The digital era is now and we need to embrace it as a society, understanding the ins and outs of different safety procedures can help deepen your knowledge in the online world.

Thanks for reading, you can leave a comment down below letting us know your thoughts but you can also check out our Instagram & LinkedIn for more free content. We hope you found our blog entertaining all whilst learning something new & those of us at Real Quick Media wish you the best of luck starting out! Maybe get in touch with us to learn more about some services we can provide for your business!

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