Explain this to me like I am five years old (NFT)

[disneysteve]

NFTs don't have to be a claim to a picture. They can be a title to your house, season tickets, a subscription, a will, etc.

NFT future is in replacing costly processes to verify or assign ownership or access.

This part makes sense. It's not unlike when I buy tickets online to a show that go into my Apple Wallet. I never actually have physical tickets. I just have electronic proof that I purchased the tickets.


Having contracts and other documents in electronic form is great. For one thing, I'd have access to them anywhere anytime as long as I've got my phone or other computer access.


I still don't get "owning" a tweet or an emoji.

 

[euro]

But if I have a screenshot of that Jack Dorsey original tweet stored on my phone, what is the difference between that and the NFT?

The difference is the same as owning an original vanGough and a reproduction or photograph of it

 

[DayDreaming]

I'm in the camp that doesn't understand the value of things like a first tweet or a digital cartoon. I think @clobber explained it well where it's just bragging rights and you hope people gush over the fact that 'own' this thing.

If I understand this correctly, yes the digital thing (tweet, cartoon) can be copied very easily, but the NFT cannot. NFTs are unique and cannot be copied. I get that but I can't help wondering how anyone knows that you have THE NFT for owning that thing. I mean there's a long history of forgeries in the art world and even museums have found out that they own forged Van Goghs. Couldn't someone forge an NFT? Just like a painting, the original would still be out there, but what would prevent someone from creating a new, fake NFT that says this digital cartoon is THE original one and that YOU now own it legitimately?

The NFT can be separate from the 'digital thing', that is, the NFT can just point to that first tweet, or that digital cartoon residing on some other server. So what's to prevent someone from creating a new, fake NFT pointing at the same thing? Maybe you couldn't get away with this for something well known like Dorey's first tweet, but for a digital artist who isn't famous yet...

This article talks about this a bit, but I have to admit I really don't understand much of it: https://postergrind.com/how-to-chec...tic royalty payments from any subsequent sale.

 

[Dalmore]

Best explanation I have gotten regarding what an NFT is:

You're married and everyone in town can sleep with your spouse and there is nothing you can do about it but hey you've got a marriage license so there's that.

Based on my understanding of NFTs, this is a very accurate comparison.

 

[Dalmore]

I think that NFTs are an extension of the micro-transactions found in video games. Today's young adults grew up playing MMOs, earning badges, and buying in-game graphic enhancements. I see NFTs as an extension of that into the real world. You spend real money for a virtual graphic that is completely useless, except to say, "Looky at what I have, it is so cool!"

Where I do see NFTs as possibly having a future, as mentioned by others, is for things like ticket sales. Kind of like the old "Box Top Proof of Purchase" barcodes.

 

[GenXguy]

The difference is the same as owning an original vanGough and a reproduction or photograph of it

But digital images can be copied exactly bit by bit. A picture of a VanGough is not even close to being an exact copy.

I'll let the suckers spend their money on NFTs.

 

[aja8888]

As far as contracts in electronic format being NFT's, companies like Docusign have been doing this for years. And there are competitors of theirs doing the same.

 

[DayDreaming]

But digital images can be copied exactly bit by bit. A picture of a VanGough is not even close to being an exact copy.

I'll let the suckers spend their money on NFTs.

A digital image can be copied exactly, but the NFT cannot.

So someone can brag that they paid $1 million for this digital image and the NFT proves it. And you can brag that you paid $0 for the EXACT same digital image (copy). I think I'll copy your image - I don't want a copy of a million dollar image laying around in my house.

 

[target2019]

This part makes sense. It's not unlike when I buy tickets online to a show that go into my Apple Wallet. I never actually have physical tickets. I just have electronic proof that I purchased the tickets.

Having contracts and other documents in electronic form is great. For one thing, I'd have access to them anywhere anytime as long as I've got my phone or other computer access.

I still don't get "owning" a tweet or an emoji.

One doesn't own the tweet or emoji. One owns a tradeable token based on the tweet or emoji.

Like Google Pay tickets to a performance, you gain admission, but within the rules established by the seller. The mistake in analyzing this IMO is to assume it is something which it is not.

 

[GenXguy]

A digital image can be copied exactly, but the NFT cannot.

Yeah, and it's only the digital image (or digital video) that I would be interested in. So it works out well.

 

[sengsational]

Nobody here seems to be talking too much about "layering on real world things" to an NFT. Sam Harris explains how that's part of his plan

https://youtube.com/u1DgYveFF4Y?t=94

 

[clobber]

If there is an EMP attack or solar storm and I survive, I still have my painting (and it might bring me comfort as the world burns) but the NFT would be gone.

And if your house burns down then you lose the painting, but you would still have the NFT.

 

[clobber]

If I understand this correctly, yes the digital thing (tweet, cartoon) can be copied very easily, but the NFT cannot. NFTs are unique and cannot be copied. I get that but I can't help wondering how anyone knows that you have THE NFT for owning that thing. I mean there's a long history of forgeries in the art world and even museums have found out that they own forged Van Goghs. Couldn't someone forge an NFT? Just like a painting, the original would still be out there, but what would prevent someone from creating a new, fake NFT that says this digital cartoon is THE original one and that YOU now own it legitimately?

That is the point. When you store something on the blockchain (this new fancy database), it can not be forged because of the cryptographic properties. All of the blockchain explanations are also filled with so much jargon it is nearly impossible to follow. However, here is a really good one and will show you exactly how it works.

Ohh and anyone can browse the blockchain to see who owns what. You can simply pull up an app on your phone to prove to your friends that you own the asset. And they can pull it up on their device too.

 

[FLSUnFIRE]

And if your house burns down then you lose the painting, but you would still have the NFT.

But it still wouldn't bring me joy.... especially standing in the smouldering ruins of my house. I've taken a digital picture of it... just don't have some block chain pointing to the picture and the picture doesn't bring me much joy but comes in handy on the rare occasion I am out and it comes up in conversation.

 

[Markola]

NFTs don't have to be a claim to a picture. They can be a title to your house, season tickets, a subscription, a will, etc.

NFT future is in replacing costly processes to verify or assign ownership or access.

+1. Blockchain technology offers the promise of perfect, verifiable open-source record keeping of all kinds and an end to our reliance on hackable, centralized server farms.

Right now, however, we’re in the “Katie Couric, ‘Yeah, I don’t know if I’ll really use this internet thing’” ignorance and derision phase of development, while the Webvan and Ask Jeeves natural selection market shakeouts into Amazon and Google are ahead of us.

We might be better served and rewarded financially through a posture of curiosity and humility.

 

[Fermion]

I get using an NFT to record the deed to your house or something like that I guess, where it represents something of value. I can even understand an NFT that records your ownership of the plans to your house, assuming they were something you paid to have custom designed by an architect and retained the rights.

I don't really get an NFT that records the fact that you were the first person on your street to put shag carpeting in your upstairs master bedroom.

 

[FLSUnFIRE]

+1. Blockchain technology offers the promise of perfect, verifiable open-source record keeping of all kinds and an end to our reliance on hackable, centralized server farms.

Right now, however, we’re in the beginning “Katie Couric, ‘Yeah, I don’t know if I’ll really use this internet thing’” phase of development and the Webvan and Ask Jeeves natural selection market shakeouts into Amazon and Google are ahead of us.

I agree the technology will prove useful but selling of tweets and other silly things are equivalent to Beenie Baby's or maybe Pets.com back in the day.

 

[FLSUnFIRE]

I don't really get an NFT that records the fact that you were the first person on your street to put shag carpeting in your upstairs master bedroom.

I think we should all have NFTs made of our screen names and FIRE date!

 

[Markola]

I agree the technology will prove useful but selling of tweets and other silly things are equivalent to Beenie Baby's or maybe Pets.com back in the day.

Silly often evolves to essential quickly and unpredictably. The world’s smartest tech minds are pouring into blockchain development of all kinds.

 

[disneysteve]

Right now, however, we’re in the “Katie Couric, ‘Yeah, I don’t know if I’ll really use this internet thing’” ignorance and derision phase of development, while the Webvan and Ask Jeeves natural selection market shakeouts into Amazon and Google are ahead of us.

I think this is a fair assessment. Yes, some of the things that NFTs are being used for right now are completely inane and are unlikely to stick around, like buying tweets. But the technology is useful. Right now, we're in the "throw it all against the wall and see what sticks" stage. I'm sure in a couple of years, when most of the nonsense has been filtered out, we'll all be using NFTs in one way or another.

 

[donheff]

I agree with Marcola that blockchain technology will be of growing importance. Even NFTs registered on the blockchain will have their place - I don't pretend to know what that will ultimately be but I am guessing variations on cartoon apes won't be a major factor. Gartner's hype cycle charts are always fun. They show a couple of key elements of blockchain tech having passed the trough of disillusionment and heading towards the plateau of productivity. Many other elements have a long way to go. Note that NFTs are at the top of the hype cycle and poised to plummet.

 

[euro]

Nobody here seems to be talking too much about "layering on real world things" to an NFT. Sam Harris explains how that's part of his plan

https://youtube.com/u1DgYveFF4Y?t=94

link is dead

 

[rodi]

Thanks for the interesting discussion.