news4global
  • Home
  • Bitcoin
  • Blockchain
  • Business
  • Latest news
  • Market
  • Regulation
  • VideosHot
    FTM Fantom Crypto Price News Today – Elliott Wave Technical Analysis Update and Price Now!

    FTM Fantom Crypto Price News Today – Elliott Wave Technical Analysis Update and Price Now!

    BREAKING: COINBASE AND BLACKROCK ARE SENDING PEPE COIN TO $0.01 – EXPLAINED – PEPE COIN NEWS TODAY

    BREAKING: COINBASE AND BLACKROCK ARE SENDING PEPE COIN TO $0.01 – EXPLAINED – PEPE COIN NEWS TODAY

    Polkadot DOT Price News Today – Technical Analysis Update Now, Price Now! Elliott Wave Analysis!

    Polkadot DOT Price News Today – Technical Analysis Update Now, Price Now! Elliott Wave Analysis!

    The Market On The Edge: Gareth Soloway's Shocking Revelation

    The Market On The Edge: Gareth Soloway's Shocking Revelation

    What Is a Trading Strategy || Guide to Cryptocurrency Trading Strategy for Beginners

    What Is a Trading Strategy || Guide to Cryptocurrency Trading Strategy for Beginners

    Polygon MATIC Price News Today – Elliott Wave Technical Analysis Update, This is Happening Now!

    Polygon MATIC Price News Today – Elliott Wave Technical Analysis Update, This is Happening Now!

    Injective Protocol INJ Coin Price News Today – Elliott Wave Technical Analysis and Price Prediction!

    Injective Protocol INJ Coin Price News Today – Elliott Wave Technical Analysis and Price Prediction!

    Cardano ADA Price News Today – Elliott Wave Technical Analysis and Price Now! Price Prediction!

    Cardano ADA Price News Today – Elliott Wave Technical Analysis and Price Now! Price Prediction!

    Cardano ADA Price News Today – Elliott Wave Technical Analysis and Price Now! Price Prediction!

    Cardano ADA Price News Today – Elliott Wave Technical Analysis and Price Now! Price Prediction!

No Result
View All Result
  • Home
  • Bitcoin
  • Blockchain
  • Business
  • Latest news
  • Market
  • Regulation
  • VideosHot
    FTM Fantom Crypto Price News Today – Elliott Wave Technical Analysis Update and Price Now!

    FTM Fantom Crypto Price News Today – Elliott Wave Technical Analysis Update and Price Now!

    BREAKING: COINBASE AND BLACKROCK ARE SENDING PEPE COIN TO $0.01 – EXPLAINED – PEPE COIN NEWS TODAY

    BREAKING: COINBASE AND BLACKROCK ARE SENDING PEPE COIN TO $0.01 – EXPLAINED – PEPE COIN NEWS TODAY

    Polkadot DOT Price News Today – Technical Analysis Update Now, Price Now! Elliott Wave Analysis!

    Polkadot DOT Price News Today – Technical Analysis Update Now, Price Now! Elliott Wave Analysis!

    The Market On The Edge: Gareth Soloway's Shocking Revelation

    The Market On The Edge: Gareth Soloway's Shocking Revelation

    What Is a Trading Strategy || Guide to Cryptocurrency Trading Strategy for Beginners

    What Is a Trading Strategy || Guide to Cryptocurrency Trading Strategy for Beginners

    Polygon MATIC Price News Today – Elliott Wave Technical Analysis Update, This is Happening Now!

    Polygon MATIC Price News Today – Elliott Wave Technical Analysis Update, This is Happening Now!

    Injective Protocol INJ Coin Price News Today – Elliott Wave Technical Analysis and Price Prediction!

    Injective Protocol INJ Coin Price News Today – Elliott Wave Technical Analysis and Price Prediction!

    Cardano ADA Price News Today – Elliott Wave Technical Analysis and Price Now! Price Prediction!

    Cardano ADA Price News Today – Elliott Wave Technical Analysis and Price Now! Price Prediction!

    Cardano ADA Price News Today – Elliott Wave Technical Analysis and Price Now! Price Prediction!

    Cardano ADA Price News Today – Elliott Wave Technical Analysis and Price Now! Price Prediction!

No Result
View All Result
news4global
No Result
View All Result
Home Bitcoin

New tech on the block – NFT: Decoding non-fungible tokens

April 28, 2022
Reading Time: 4 mins read
0
New tech on the block – NFT: Decoding non-fungible tokens
189
SHARES
1.5k
VIEWS
Share on FacebookShare on Twitter

Related articles

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

U.S. congressman says crypto mining tax scrapped in debt ceiling deal – Forkast News

May 30, 2023
Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

Hong Kong Web3 industry forms new associations – Forkast News

May 29, 2023

By Siddharth Pai

The term Non-Fungible Tokens (NFT’s) has been all the rage for some time now. As with most things that are technology-oriented, many people bandy about new terms without having a functional understanding of how the technology works or what it is designed to do. Most people do not display their ignorance for fear of being ridiculed. Worse, they develop a faulty understanding of the new acronym just so that they can blithely use it at a cocktail party or at the workplace. And since most of their coworkers are also foggy in their understanding, the chances of being caught out are slim.

I have seen this phenomenon occur often with new technology concepts. I have worked with people who throw out terms like “neural networks” or “Web 3.0” during a work-related conversation without the faintest idea of what these terms mean. If they are in a senior position, they often get away with it. The courage to say “I don’t know” is the preserve of the few.

We have been bombarded with news this week on Elon Musk’s purchase of Twitter. Musk is a self-proclaimed “free speech absolutist”. In a press release on Monday, April 25, 2022 announcing the deal, he said “free speech is the bedrock of a functioning democracy”. He claims he is going to work with users and management to “unlock” Twitter’s “substantial” value. Meanwhile, there has been little press on the fact that Musk is having production issues at Tesla, but that’s a topic for another day.

Before the takeover, Jack Dorsey, the founder and ex-CEO of Twitter, sold his first tweet (also the very first tweet ever) as an NFT for more than $2.9 million. Meanwhile, creators of the Bored Ape Yacht Club have created an NFT collection of cartoon pictures of apes depicted in various states of ennui. A particularly popular digital artist, Mike Winkelmann, (known online as Beeple) sold a single painting as an NFT for almost $70 million.

So, what exactly are NFTs?

While most of the noise around NFTs is to do with the sale of artwork, NFTs can be anything digital. Jack Dorsey’s tweet, for example, is not art. “Non-fungible” simply means that the item cannot be replaced by anything else—it is unique. In contrast, money is fungible. If I give you a  `500 note, you can exchange it like for like with me with another `500 note. The same with crypto currencies—one Bitcoin is the same as another. Money is not inexhaustible either—`500 earmarked for a road project in your factory can be easily diverted to work on the factory gate or, illegally, into the procurement director’s pocket. Once diverted, the `500 is exhausted.

Unlike money, a painting or a song or other piece of work is not fungible. You cannot exchange any of the Ravi Varma paintings that hang in Baroda with the ones that hang in Mysore as if there was no difference between them. Woman and Imagine by John Lennon are not interchangeable songs. They are non-fungible. Moreover, their provenance is known. We know that Ravi Varma was commissioned by T Madhavrao, regent of Baroda, to paint the portrait of the young maharaja Sayajirao Gaekwad III. Once there, he received many assignments from the Gaekwads, all of which are fully recorded, thereby establishing their provenance. These records prove beyond doubt that the works hanging in the Lakshmi Vilas Palace are indeed those of the master.

However, the advent of computers and the digital age means that any number of copies of music or songs can be made in MP3 or other formats, and any number of high-quality digital art or photographs can be copied with no loss of fidelity from the original. Court cases and government actions over Napster Inc.’s software which allowed peer to peer sharing of song files forced that company to shut down in 2001 after a clumsy system of ‘digital rights management’ under the US Digital Millennium Copyright Act was enforced. Current law is still clumsy when it comes to copying and sharing digital content. Essentially, unlike money and physical art, these digital art forms are not inexhaustible, and each copy is exactly like the original.

Enter the NFT. By using blockchain technology, NFTs create a digital non-fungible ‘token’ for each original piece of digital art or creative work (such as a photograph, a cartoon, a song, or a poem) which is now forever the only original there is. All the others are only copies of that original. For now, most of these non-fungible tokens are on the Ethereum blockchain.

A blockchain allows for the recognition of an initially defined inviolable ‘block’ (which can be composed of anything–cryptocurrencies, tokens, export/import letters of credit, and so on) and then allows for the passing of this inviolable first block to several hands which form the ‘chain’. So, a non-fungible token is simply a block on a blockchain that stores additional computerised information about the block which makes the initial token (block) unique.

NFTs capitalise on an insight into human nature—the need to ‘own’ things and the bragging rights that come with it.  Jack Dorsey’s tweet has been freely available on the internet, even to those without a Twitter account. However, his tweet is now ‘owned’ by somebody. The NFT simply certifies with computer code that the tweet is owned by a certain entity/individual. Apart from the bragging rights, the ability to sell the ownership of the original presumably

goes up as its popularity increases across the internet. For a speculator, NFTs work like ownership of any rare creative work such as a Ravi Varma original.

It will take some time for NFTs to become mainstream. In the meantime, if you want to speculate on creative digital work, whether visual or otherwise, buy a few!

The writer is a technology consultant and venture capitalist. By invitation.

Share76Tweet47

Related Posts

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

U.S. congressman says crypto mining tax scrapped in debt ceiling deal – Forkast News

by admin
May 30, 2023
0

U.S. congressman says crypto mining tax scrapped in debt ceiling deal  Forkast News

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

Hong Kong Web3 industry forms new associations – Forkast News

by admin
May 29, 2023
0

Hong Kong Web3 industry forms new associations  Forkast News

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

Bipartisan Agreement on US Debt Ceiling Sends Bitcoin Above $28 … – Securities.io

by admin
May 29, 2023
0

Bipartisan Agreement on US Debt Ceiling Sends Bitcoin Above $28 ...  Securities.io

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

Americans Say There's Still One Brand Worse Than FTX – Blockworks

by admin
May 28, 2023
0

Americans Say There's Still One Brand Worse Than FTX  Blockworks

Bitcoin pro traders warm up the $24K level, suggesting that the current BTC rally has legs – Cointelegraph

Shaquille O’Neal And Other Celebrities Are Facing A Lawsuit Due To Their Role In Promoting Cryptocurrency – Yahoo News

by admin
May 27, 2023
0

Shaquille O’Neal And Other Celebrities Are Facing A Lawsuit Due To Their Role In Promoting Cryptocurrency  Yahoo News

Load More
  • Trending
  • Comments
  • Latest

Bitcoin Is ‘Definitely Not a Fraud,’ CEO of Mobile-Only Bank Revolut Says

March 2, 2022

Bitcoin’s Main Rival Ethereum Hits A Fresh Record High: $425.55

March 3, 2022
How online shopping has changed over the last 30 years | National

How online shopping has changed over the last 30 years | National

April 6, 2022
Protocon Announces ‘Contract Model’, an Alternative

Protocon Announces ‘Contract Model’, an Alternative

April 6, 2022

US Commodities Regulator Beefs Up Bitcoin Futures Review

0

Bitcoin Hits 2018 Low as Concerns Mount on Regulation, Viability

0

India: Bitcoin Prices Drop As Media Misinterprets Gov’s Regulation Speech

0

Bitcoin’s Main Rival Ethereum Hits A Fresh Record High: $425.55

0
Hikapa X9 Wireless Earbuds Bluetooth 5.3 Headphones Waterproof Stereo Earphones in Ear Touch Control with Microphone Headset with Deep Bass for Sport, Gaming and Running

Hikapa X9 Wireless Earbuds Bluetooth 5.3 Headphones Waterproof Stereo Earphones in Ear Touch Control with Microphone Headset with Deep Bass for Sport, Gaming and Running

May 30, 2023
Wireless Bluetooth Headphone with Noise Cancellation HiFi Stereo Sound Mic Deep Bass Protein Earpad Rainbow RGB Backlight Rechageable Over Ear Headset for PC Mac Game Travel Class Home Office(Black)

Wireless Bluetooth Headphone with Noise Cancellation HiFi Stereo Sound Mic Deep Bass Protein Earpad Rainbow RGB Backlight Rechageable Over Ear Headset for PC Mac Game Travel Class Home Office(Black)

May 30, 2023
Nigeria fuel subsidy: Tinubu's plan to scrap measure sparks rush to stock up

Nigeria fuel subsidy: Tinubu's plan to scrap measure sparks rush to stock up

May 30, 2023
Xbox Core Wireless Controller – Deep Pink

Xbox Core Wireless Controller – Deep Pink

May 30, 2023

Latest News

Hikapa X9 Wireless Earbuds Bluetooth 5.3 Headphones Waterproof Stereo Earphones in Ear Touch Control with Microphone Headset with Deep Bass for Sport, Gaming and Running

Hikapa X9 Wireless Earbuds Bluetooth 5.3 Headphones Waterproof Stereo Earphones in Ear Touch Control with Microphone Headset with Deep Bass for Sport, Gaming and Running

May 30, 2023
Wireless Bluetooth Headphone with Noise Cancellation HiFi Stereo Sound Mic Deep Bass Protein Earpad Rainbow RGB Backlight Rechageable Over Ear Headset for PC Mac Game Travel Class Home Office(Black)

Wireless Bluetooth Headphone with Noise Cancellation HiFi Stereo Sound Mic Deep Bass Protein Earpad Rainbow RGB Backlight Rechageable Over Ear Headset for PC Mac Game Travel Class Home Office(Black)

May 30, 2023

Categories

Site Navigation

  • Home
  • About us
  • Contact us
  • Privacy policy
  • Terms and services
  • Home
  • About us
  • Contact us
  • Privacy policy
  • Terms and services

© 2022 Designed by news4global

No Result
View All Result
  • Home
  • Bitcoin
  • Blockchain
  • Business
  • Latest news
  • Market
  • Regulation
  • Videos

© 2022 Designed by news4global