Investing: NFTs (Non-Fungible Tokens), explained

NFTs (Non-Fungible Token), explainedA non-fungible token (NFT) is a unique and non-interchangeable unit of data stored on a digital ledger (blockchain). NFTs can be associated with easily-reproducible items such as photos, videos, 3D models, audio, and other types of digital files as unique items (analogous to a certificate of authenticity). NFTs use blockchain technology to provide a public proof of ownership. Copies of the original file are not restricted to the owner of the NFT, and can be copied and shared like any file. The lack of interchangeability (fungibility) distinguishes NFTs from blockchain cryptocurrencies, such as Bitcoin.NFTs have drawn criticism with respect to the energy cost and carbon footprint associated with validating blockchain transactions as well as its frequent use in art scams. Further criticisms challenge the usefulness of establishing proof of ownership in an unregulated market based on digital files that are easy to copy.Resource: Wikipedia (https://en.wikipedia.org/wiki/Non-fungible_token)Key TakeawaysThe difference between fungible tokens and non-fungible tokens is fungible tokens are cryptocurrencies like Bitcoin while non-fungible tokens are unit of data that represent a unique digital asset stored and verified on the blockchain.NFT represents a lot of things (which is usually a picture). It is also a pointer within the URL to that picture which is usually stored in an interplanetary file system.NFTs are not divisible but can be fractionalized.There are four major types of NFTs which are: cryptopunks, bored ape yacht club crypto (BAYC), game NFTs, and collectible NFTs.Currently, art is the second biggest pillar of NFTs with two types of art which is an original art and generative art.Original art type of NFTs are designed in a software like an image or GIF and sells it as an NFT.Generative art type of NFTs are designed through an algorithm that will create the art on the moment it is minted. Subscribe!If you enjoyed the podcast please subscribe and rate it. And of course, share with your friends!You can also listen and join us on ReasonFM (https://reason.fm/podcast/wiser-than-yesterday) or just ask questions. Don't Forget to leave a comment on this episode See podvine.com/privacy-policy for podcast listener privacy info. Hosted on Acast. See acast.com/privacy for more information.

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Wiser than Yesterday hosts open-ended discussions, breakdowns, and summaries of the world's most thought-provoking and inspiring books.Our hosts, Nicolas Vereecke and Sam Harris digest non-fiction books from all centuries and genres. They discuss the biggest philosophical insights and practical lessons for health, wealth, wisdom, and happiness.This podcast is here to help listeners become smarter. To learn about new ideas and to gain more perspectives on the books and ideas they are familiar with.Each season we tackle a new field and read the best books on a given topic such as racism, startups, stoicism, or personal finance. We cast a wide net to summarise all sides of opinions in an area to come to a wider understanding of the topic at large as well as help listeners navigate the different opinions and ideas they haven't heard of.We dive into topics such as philosophy, business, equality, psychology, politics, economics, and who knows what else. Our goal is to simply explore the best ideas and learn new things. You're most welcome to join us for the ride. Hosted on Acast. See acast.com/privacy for more information.