![]() ![]() What NFTs are notīlockchain technology and NFTs in particular are a confusing topic, and I've already seen a couple common misconceptions online, so let's address these first. Just as the internet made web pages cheap, easy and ubiquitous, NFTs will make marketplaces cheap, easy and ubiquitous. NFTs simply make this process easy, cheap, and trusted. This type of transaction can happen for any type of asset. NFT technology enabled this exchange of value. There is only one original Everydays, and MetaKovan owns it. This original copy is verifiable through the NFT that he purchased which was minted by Christie's on an Ethereum blockchain. The key is that MetaKovan didn't just buy any JPG copy of Everydays he bought the original JPG copy of Everydays. Why would someone pay millions of dollars for a JPG? This shocked many because as digital art Everydays essentially is nothing more than a JPG image that anybody can freely download. The highest price paid for an NFT to date was MetaKovan's purchase of Beeple's digital art piece titled Everydays: The First 5000 Days for $69.3 million. NFT technology basically replaces these human intermediaries with a digital blockchain (think of it like a public digital record book) that certifies who owns what and can't be tampered or altered. Example of these intermediaries are government records offices, escrow and title companies, and registries. NFTs have practical, real world utility because they offer a cheap and ubiquitous way to create verification of ownership and transaction history for anything, without needing some type of trusted central authority to act as a trusted intermediary between parties. Assets on a non-fungible chain are unique - there is only one copy of each token, so think of these like ID cards or passports. ![]() Assets on a cryptocurrency chain like Bitcoin are fungible in that every Bitcoin is the same (similar to cash). The difference between them is their fungibility, or mutual substitutability, or more simply, their sameness. In the world of cryptographic assets, there are two fundamental types: crypto-currencies ( fungible tokens) and non-fungible tokens. ![]()
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