Hello, Im Crypto Casey. In this video we are going to talk about Non-FungibleTokens, or NFTs for short-lived. We will discuss what NFTs are, how theyare created, how they are being used now, and how they can be used in the future. By the end of this video, you will understandthe vast and went potential of non-fungible tokens and why they will undoubtedly becomepervasive in our modern daylight live in the not so distant future. Awesome. So lets learn all about Non-Fungible Tokens. Before discussing the specifics of non-fungibletokens and the underlying technology, there are three key concepts we must understandfor the glamour of NFTs to really sink in. Because my goal before the end of this video, is for you to have the same eureka, oh my gosh this is gonna be huge, experiencethat I had when actually burrowing into this technology. So the three notions we will visit brieflyare subjective versus objective appreciate, fungible versus non-fungible resources, and the definitionof tokens. Nice. Concept 1: Subjective Versus Objective Value So, I believed to be all can pretty much agree thatthe air we breathe and having access to drinking water are inherently important.Air to breathe and water to suck have objectivevalue for the most part, signifying people belief, sensing, or advantages dontreally add or take away from the overall importance or quality attributed to air or spray. So, subjective significance is the idea that an itemsvalue to a person is dependent on that persons minds, insights, or likings. For example, gives say I have a roundtripairplane ticket to Iceland that costs $ 600 US dollars varying tomorrow and coming backa week from now.If you cant drop everything you have togo tomorrow, or if you dont have a passport, or if you are some deranged eccentric that haszero interest in going to Iceland, then the ticket is pretty much worthless to you. Now, acquiring you can and want to hop on aplane to Icelandffffffffthree one tomorrow, if the ticket was for a middle-of-the-road posterior, versusan alley or window seat, that would probably have an affect on your sensing of the ticketsvalue. Some people prefer aisle fannies, while otherpeople wish window seats, and unless youre some deranged weirdo that they are able to literallysit anywhere on an aeroplane and zero feelings one highway or another, even if its a middleseat, the spot of the seat lends another subjective significance bed to the ticket.So breaking down the subjective value layersof the airplane ticket to Iceland tomorrow, youve got the mere knowledge that its anairplane ticket, the airline, the end, the appointments of pas, and sit place. All of these factors conclude the airplane ticketan piece with subjective price. Irrespective of the $600 cost attributed tothe ticket, everyone would residence a different quality on it due to the aforementioned factors.An even more obscure, in my opinion, and insaneexample of something with so much better subjective value, that I can virtually guarantee every singleone of you that will ever watch this video would arrange 0 significance on this item. Check it out. If you go to Ebay, do a sought for a baseballcard, filter by pre-1 942, and sort by the highest price. You will come across some fresh hell madnesslike this: $300,000 for a 100 year aged case of printedpaper, of some TY Cobb. Who is that? Honestly, I dont want to look him up because, Im obsessed, it might just cause me to want to buy his century aged baseball poster for anamount of money that could render a respectable sized house in most locates around the UnitedStates.I dont know about you guys, but for mewatching baseball, watching decorate dehydrate, subjectively equal use and enjoyment of season. But I mean, 161 parties are watching this placard, indicating there are at least 159 parties willing to shell out $ 300,000 for a emblazon printedpiece of paper. And just for fun, if you do the search forbaseball card without the pre-1 942 filter you get this: Tom freakin Brady. 79 beings potentially willing to shell out $1.8 billion dollars for this particular colored piece of paper. But hey, at least this one is kinda like iridescentor has some holographic aspect to it. Likewise, I can futs with some football. Football is watchable in my work. I dont really like boasts, but footballa close second to hockey for me. So what is the subjective value of this $1.8 million dollar Tom Brady card for me:$ 0, yeah I dont want that card or any sportscard. No no , not for me.Does nothing for me. But , now we know that a market exists forthese pieces with highly subjective value. So what is a market? The interpretation of a market is twofold. One, a market is a place where people canphysically go, or digitally access, to basically buy, sell, exchange, or trade goods and/ orservices. So a market can be a physical target like agrocery store, the plaza, or a car dealership, or it can be a virtual environment like Ebay, the Apple app store, or even a cryptocurrency exchange like Crypto.com or Coinbase. Two, the expression sell can be used to describethe existence of people who have a desire to buy, sell, exchange, or market a specifictype of product or service. So this use of the call sell is more abstractto describe, for example, the dwelling sell. Believe it or not, there is a collection ofpeople out there that wish to buy and sell homes. You can also be more specific like the Chicagohousing market, or even more specifically, the Chicago condo market.People also use the term to ask if a marketexists, which simply implies are there fairly beings out there who would want to buy, sell, exchange, or swap a particular good, busines, report, or currency? For example, when creating a brand-new good or servicethat doesnt currently exist, sometimes people act sell testing, which is justseeing if there are people that would want to buy the good or service, how many peoplethere are, how much theyre willing to spend, etcetera. Cool, so now that weve basically translatedthese deliberately complicated finance calls, subjective cost and sells, into conceptswe were already comfortable and very well known, that being: different parties are willing tospend different extents of coin on all kinds of different things they want to buy.Simple enough, right? Nice. Lets learn something else we already know, but didnt recognize it. Concept 2: Fungible vs Non-Fungible Asset First and foremost: What is an asset? Asset is a fancy finance term that simply meanssomething handy or valuable. It can be something physical like amber, itcan be something digital like bitcoin, it can be something abstract like expertise, it can be a financial instrument like a retirement plan, and it can be anything that helps yougenerate income, like a computer or cell phone, for example. Sweet. Next lets tackle the difference betweenfungible assets and non-fungible assets. Fungibility describes an resources abilityto be evenly swapped with another resource of the same type. So a fungible resource is something that is interchangeable. For example, a $100 dollar bill is fungiblebecause, if I have a $ 100 dollar bill, and you too have a $ 100 dollar bill, we couldinterchange the invoices, or I give you quarry and you gives people yours, and the value doesntchange.Ethereum and bitcoin are both fungible assetsas well. One whole bitcoin is no different from anotherone whole bitcoin. Same extends for ether. One ether is no different than another ether, as the significance is equal. So a non-fungible asset is something thatis not interchangeable and not divisible for the most part. For example, gives say I have a pet dog, and you have a pet dog, and we swapped pups. You can see how that transaction isnt anequal swap of value. Even if we had the same exact type of dogand they inspected the same, each of the dogs harbor their own unique personality, rememberings, and abilities. So examples of non-fungible assets are mansions, expended autoes, and baseball placards, like we look back early. You can see how these parts cant exactlybe partitioned evenly and retain their value, like you cant only buy half of a room, or 30% of a vehicle, and 1/10 th of a baseball placard. And the very important to note that there aresemi-fungible resources as well. An precedent of a semi-fungible asset is anairplane ticket. Each ticket for the plane, although examination andfunction the same, represents a unique seat on the plane, like the specific row and aisle, versus middle, versus window seat.A concert ticket is also a semi-fungible token, as it prescribes which tush you will be in for the event, unless youre one of recklesspit segment enthusiasts, paying for some ticket to potentially get stomped. Crazy beings. Concept 3: Definition of Tokens A clue is something physical or digital thatcan be exchanged for or represent a good, work, or other form of value or utility. In cryptocurrency and blockchain engineering, tokens are representative of value like a post, voting right, a charge, a currency, astore of value, it could represent ownership of something, or it could be multifunctionalwithin an ecosystem. So is a well-known fact that the clue doesnt have valuein and of itself, the quality comes from the asset it represents. Like a endowment card would be an example of atoken. So the actual plastic placard in and of itselfisnt valuable, but the card does represent appreciate you can exchange for whatever termsare dictated by the gift card. And when we create a token that representsa good, a service, or any of the aforementioned forms of value, its called tokenization.Nice. So weve submerge the three foundationalconcepts that will fortify your understanding of NFTs: subjective significance , non-fungibility, and clues. Next, makes talk about tokenization on blockchaintechnology. So, what is blockchain? The most plain and simple explanation of blockchainis that its records of data stored on a structure of computers. And there are 3 mainstays of blockchain thatmake it unique: Decentralization, Transparency, and Immutability. So causes break down these 3 pillars. Pillar 1 – Decentralization: The term decentralization with regard to blockchainis twofold. One, it means that the data is recorded andstored on multiple machines in multiple locations various regions of the world, as opposed to one centralplace. And two, decentralization likewise means thatno one person, corporation, authority, authority, or entity controls the data record and storageprocess. So instead of traditional centralized entitieslike the IRS, JP Morgan, or MIT recording, collecting, administering, and controlling their databy following their own protocols, deciding which servers to use, where the servers are located, and using theirown proprietary software and security systems to protect their data, blockchain allows for decentralized recordkeeping where data is recorded, accumulated, and oversaw on a network of computers with opensource software around the world.Any changes to the blockchain protocol gothrough a consensus process that no one person or entity has control over. So that is the essence of the decentralizationpillar. Pillar 2 -Transparency: The statement transparency with regard to blockchainrelates to the way in which transactions are recorded on a ledger that is available foreveryone to see and that is saved on a network of computers around the world, procreating thedata impossible to change or vary. The best path to see the value of transparencyin data recording, storage, and administration is by comparing these two situations: Currently, common citizens of the United Statesare not privy to where and how every taxation dollar is spent by the United Mood authority. We exactly “re going to have to” take the governmental forces wordfor it. And even if the government had to show theirrecords, it would be very easy for them to create, forge, or operate any data theychose to share with us, since they control their own data.Now you can see how that situation is not transparentand not exactly trustworthy. So, makes imagine if everyone in the UnitedStates had the ability to see a live, running record of where every single charge dollar wasspent by the United Country authority at any moment in time. A spooky expect right? Basically all US citizens could see a fulldisclosure of how our government is managing our money. And in this scenario, there is more trustand transparency, the 2nd pillar of blockchain technology.Pillar 3: Immutability – Immutability simply means that the data recordedand stored on the blockchain cannot change too, forged, or adjusted. And this is achieved through cryptographyand blockchain hashing operations. If you would like to listen to a more in depthvideo explaining what blockchain is and why it was developed, delight check out my blockchainguide by clicking on this connection. So, to summarize the 3 pillars of blockchaintechnology: Blockchains recording and storage protocolsmake it such that once new data is verified, it is unmodifiable, its distributed acrossa vast network of computers around the world so its hard to destroy, and no one personor entity controls the data or system, creating a transparent environment. Awesome. Now that you know of some of blockchainsimportant features, makes talk about tokenization of digital resources on blockchain technologyin the form of Non-Fungible Tokens.What is a non-fungible token or NFT? A non-fungible token is simply a representationof a unique digital asset that cannot be equally swapped or sold for another NFT of the sametype. So non-fungible tokens can represent digitalart, a ticket to an incident, an in-game item, dimension in a virtual world, or even a real-worldasset like a deed or entitlement to actual land in the physical world. So pay attention because this is where theeureka moment will start to sneak up on you.Because you will see how blockchain computes uniqueproperties to digital assets by paying parties ownership, control assents, and transferabilityon a decentralized, translucent, and immovable programme. Thinking back to our baseball poster bit, currentlyin the game Fortnite, people can buy skins that reform the mode their participates gape, andwhat really blows my imagination is these skins literally simply convert the room the digital characterin the game glances Im pretty sure; it doesnt give the character any extraattributes or anything. Which is so strange to me. Back in the day when I represented a good deal of videogames, when you made, prevailed, or bought something that changed the channel your reputation seemed, frequently it also came with some cleverness or abilities or something that gave you an edgein video games. But now people are just spending money tochange their personas robes mostly, just for egoes sake. A excerpt I always live by: egotism is insanity.Neither now nor there, regardles, if you buya Fortnite skin and then want to turn around and sell my shares on Ebay or something like a baseballcard, youll see how theres significant challenges with transposing that special digitalasset from one person to another. Well , not for long, because blockchain technologyprovides a coordination layer that will impart 6 key properties onto digital resources all predicatedon immutability which are: Standardization, interoperability, tradeability, liquidity, scarcity, programmability, and authenticity. Before breaking down these key owneds, causes promptly take a look at some examples of NFTs that currently exist to help wrapyour ability around the concept. We are going to Opensea.io, which is an NFTmarketplace, or locate where people can buy, sell, busines, and exchange non-fungible tokens. On Opensea.io, if you click on the browsebutton, then click the categories dropdown filter, you will see a roll of different typesof NFTs like prowes, domain names, virtual worlds, trading posters, collectibles, sports, and utility.If you filter by skill, you will see a collectionof static images, as well as gifs you can buy to own. If you filter by virtual macrocosms, you willsee a collecting of reputations, digital dimensions you can own, supplementaries, and all kinds ofthings you can buy, own, and use in the virtual world-wide same to video games work now, excepton a completed decentralized scaffold with its own peer-to-peer ecosystem.And if you go to trading placards, you watch prettymuch a same statu of the baseball placard madness, except digital, so much less riskof stealing and no chance of it being destroyed by a fervour or similar because you would literallyneed to take out an entire world-wide system of computers to put down the blockchainnetwork, which would involve basically destroying the living planet. In fact, domains or wallet honours are alsoa type of NFT. If you tuned into my 100 k reader special, you recollect the ETH giveaway by Unstoppable domains.Unstoppable arenas offers a solution to thelong, involved cryptocurrency domiciles currently in use, by replacing them with aneasy, human-readable name. An unstoppable region also can be used to launchuncensorable websites. The domain is stored in your pouch, justlike a cryptocurrency on the blockchain. So no one can move it around, framed it up, ortake it down except you. And last month they launched a feature thatallows you to link your blockchain domain to your Twitter handle utilizing Chainlink oracles.The Twitter handle shown in when you typethe domain into a wallet so you know youre about to send money to the right person. So if you would like your own unique walletname or domain NFT, scroll down to the description area below and click on the Unstoppable domainslink to access the correct, official area. Awesome. So now, gives breakdown the 6 key propertiesblockchain gives to digital assets and their implications for future give – Standardization Traditional digital assets currently donthave a single footing they can all exist on. For example, electronic tickets reside onticket surmounts programme, while fortnite barks reside on fortnites programme, andso you have all of these separate places where digital resources exist.So, by tokenizing digital assets on the blockchain, users can create non-fungible tokens with set standards and uniformity. And you can think of these standards likejpeg versus png formats for personas, or another example of a standard is the http protocolcomputers use to communicate with each other when we access websites on the internet. So blockchain allows for standardization inthe creation of NFTs, which guarantee all of the aspects of NFTs like possession, displaces, access, and control are federated on one common system.To better understand this, likenes you buy somevirtual asset in Decentraland and then you buy a digital residence on OpenSea.io as wellas some digital artwork. These three separate non-fungible tokens onone amalgamated structure can interoperate with each other, to enable you to made the houseon the belonging you bought and placed the decorate inside the house. And if Fortnite adopts the technology, youwould then theoretically be able to put your fancy fortnite skin in the closet of yourdigital room, or you can even leave it on the flooring if youre a soiled loafer. Lol So you can see how these standards accept developersto build applications using the same code, virtually to build everything on one decentralizedplatform, which the most frequent one at the moment is the Ethereum network.And if youd like to see an in-dept videoexplanation of what ethereum is and how it runs, you can check out my video guide byclicking on the link. So there are three standards that dictatethe tokenization process of NFTs on the Ethereum blockchain: ERC-7 21, ERC-9 98, and ERC-1 155 And before we are speaking of these ERCs, letstalk about what ERC represents. ERC is simply an acronym that stands for EthereumRequest for Comments. And it is similar to BIP, which stands forbitcoin improvement proposal. So, since ethereum and bitcoin are blockchain-basedtechnologies, there is no one person or entity that is in charge of deciding what new featuresto add, an amendment of shape, or mends to implement to the protocols. So, ERC is a process that was created as away for beings to contribute information about ethereum or interpose new features to theethereum network.ERCs, or ethereum requests for observation, are basically how developers can propose improvements to the network. So the numbers 721, 998, and 115 representthe unique ID number of those particular proposals. Cool, so tells first talk about ERC-7 21. ERC-7 21 was pioneered in January 2018 by Cryptokitties, which is a game where people can trade and spawned digital cats, where each cat is representedby a non-fungible token. The 721 standard allows for the creation oftokens with different appraises, mostly non-fungible assets like we discussed earlier. Before the standard, people generally createdtokens that were all equal or fungible, like ether for example. You can swap one eth for any other eth andtheyre all the same. However, since the implementation of ERC-7 21, developers can now deploy tokens with differing significances and dimensions like descriptions, quantityavailable, category, all from the same smart contract from which an owner can be assigned and thenthe token can be transmitted between users all in the same ecosystem.Nice. Next, tells talk about ERC-9 98. ERC-9 98, is actually pretty simple. So imagine we have a video game characterwith different clothing entries, artilleries, and supplementaries, and each one of those things, like the shirt, the sword, the hat, all of these parts is the representative of separate ERC-7 21 clues. So tells say this character in its visualtotality is made up of 50 separate non-fungible tokens. If I wanted to sell my courage to someone, I had a duty to do 50 separate transactions to send it to someone, which would incur moretransactions rewards, is cumbersome, and not ideal.So ERC-9 98 was developed and implemented tomitigate this scenario by enabling wraps of separate ERC-7 21 tokens to be bought andsold in one transaction, so you dont have to sell each item individually. Sweet. And eventually we have the ERC-1 155 standardwhich was pioneered by Enjin, an ethereum-based platform and ecosystem developers can buildapplications on. This standard allows for the deployment ofboth fungible and non-fungible tokens from the same contract.So imagine you develop a game where everyplayer has a pistol and the pistols are all equal and the same. However, also within the game there are limitedunique artilleries musicians can give, prevail, buy, or commerce. So maybe only 10 laser guns exist in theentire game, and maybe theres simply one sorcery laser sword in the entire game.This was all made possible with the implementationof the ERC-1 155 standard. Nice. So you can see how standardization works andwhy its an important property blockchain provides for the NFT ecosystem at large. Which raises us to the next key asset: interoperability. Interoperability just meant that since allof the non-fungible tokens use the same standards and operate on the same ethereum platform, we dont run into the issue I has already mentioned where we have digital tickets forevents on Ticket Masters platform, while we have Fortnite skins on Fortnites separateplatform. The interoperability owned blockchain providesNFTs allows them to be easily moved across several ecosystems, so when someone createsan NFT, its immediately viewable and tradeable on all NFT marketplaces, in virtual world-wides, and other employments due to standardization of the data recorded on the blockchain.And interoperability giving free trade onopen markets takes us to the next key property blockchain gives to NFTs, which is tradeability. So for the first time in its history, consumers all acrossthe world can create and launch NFTs that will instant be displayed on marketplacesacross the entire ecosystem. In these marts, people can buy, sell, swap, exchange, order, bundle, and auctioneer NFTs for cryptocurrency.This allows us to transcend from a centralizedor closed ecosystem like Ebay versus Fortnite marketplaces, to a true, open, free-marketeconomy. The naturalnes with which people can create, open, and busines NFTs across the entire blockchain ecosystem will change the game developmentindustry because virtually everyone will be able to contribute creative content to thegames, it is therefore not all just on the initial recreation developers. So instant tradeability imparts us to the nextproperty blockchain brings to NFTs table: liquidity. Fast, efficient tradeability on marketplaceswill lead to high-pitched liquidity. Liquidity is just a imagination finance period thatdescribes the level of activity in a market, or how many parties are buying and sellingin the market and at what frequency.So high-pitched liquidity implies entries in the marketplaceare bought and sold routinely and fast before much premium modification appears. An illustration of an resource with high-pitched liquiditywould be bitcoin, as when you buy or sell bitcoin at market price, the busines happensinstantly because there are a lot of buyers, as well as marketers, in world markets. You can sell your bitcoin for cash instantlypretty much on exchanges with high-pitched liquidity like Crypto.com or Coinbase.An sample of an asset with low liquidityis a house. So if you put your house up for sale, it mightbe eras, weeks, months, or times until you are able to convert it into cash. Even if there are a lot of purchasers in yourhousing grocery, its still not as fast to proselytize the asset to cash like with the tapof a finger on your phone with bitcoin.So yes, fast, efficient tradability of NFTsthanks to the nature of blockchain will lead to higher liquidity in the NFT marketplaces. Another owned key quality is: immutability. We discussed how immutability is a pillarof blockchain engineering, how once data is verified and recorded to the blockchain ledger, the information cannot change too. So immutability is key to ensuring authenticityof digital resources, as well as proving dearth of digital assets. So people know in your competition that there isactually merely one spell laser sword – no one can go back and change the quantity to 100or something similar thanks to the immutability property. The final belonging that blockchain bringsto the table that manufactures NFTs so valuable is programmability. Non-fungible tokens are fully programmablemeaning that they are capable of stupendou complexity like forging, crafting, exchanging, randomgeneration, and much much more. The sky’s the limit, actually. Awesome. Now that we understand how blockchain technologyadds unique, value-driving owneds to non-fungible tokens, lets talk about how NFTs couldbe used in the future across numerous manufactures and its connections. So we are already seeing art, collectibles, domains, gaming, and virtual world-wides. Biding mindful of NFTs core properties, that being, verifiable digital dearth, owned, indivisibility, interoperability, and transferability, NFTs can be used in a myriad of different ways. As I mentioned earlier, the gaming industrywill be drastically altered, as NFTs will spawn gaming most tangible and rewarding, whilealso promoting new economies and sells within the games themselves, earmarking participates togenerate income from time spent in the game as well as creating and selling NFTs thatenrich the game.So game developers will start developing newincentive methods for actors, which will inspire significance innovation for sport makes, publishers, and players alike. Filmmakers and musicians could cross-file theirwork on the blockchain in the shape of an NFT to protect it against copyright violation, or to manage performance titles which would remove the need for intermediaries like agentsand administrators. So funds “il be going” directly to the rightfulcreators of the content without third parties taking a share. Since NFTs are completely programmable, people can create non-fungible tokens that are in cryptocurrencies and digital enters. NFTs is likely to be sold and redeemable for realworld assets. For example, if you check out Unisocks exchange, a total of 315 SOCKS NFTs were created and circulated. So if you bought a SOCKS NFT, you could eitherredeem it for a pair of socks, or market it on the market, or continue to hold it whilethe toll, ideally regards and sell or redeem when youre ready.Almost anything in the real world can be tokenizedas collectibles or same like players, notorieties, and fictional characters. Proof of possession of real world collectiblescan be easily stored or conveyed and hopeless to forge. NFTs could also represent official documentationlike birth certificates, academic credentials, assurances, names, and DNA data. Depending on who formed an NFT and all ofthe previous proprietors, we could see value derive from an NFTs provenance. Like if Elon Musk started an NFT and maybeat some item in its ownership history, Vitalik Buterin owned it at some extent could havesome subjective cost to someone.The mere concept of ownership will changedrastically as NFTs make it possible to own a real world asset that could be thousandsof miles away. And definitely NFTs will perfectly introducenew people to cryptocurrency and cure drive adoption of blockchain technology. Yes, super arousing days we are living in, however, it wont happen overnight. Causes quickly go over a few bearish aspectsof NFTs existing realities. Building decentralized applications for NFTsis challenging and time-consuming. As someone is software development myself, you usually have to triple the amount of time you think it will take to complete. That being the lawsuit, we do see in currentapplications that the user experience and user interface isnt simple enough for peopleunfamiliar with blockchain to merely jump in and be able to use easily. Some NFTs that are created and listed on marketplacescould knowledge something similar to the DeFi food craze, where we have a YAM thatwent over the moon and hours later fell flat on its face hours later.So some customers that fomo into an emergingNFT market could be stuck with a worthless NFT when the promotion fizzles out. Too, most NFT projections arent retaininglongterm consumers. And since there arent a lot of users inNFTs right now, paucity of liquidity could strangle raise of the ecosystem. Likewise, although when an NFT is deployed, itsrecorded on the blockchain, it doesnt aim users will have access to it forever. Right now, the access to the blockchain ishybrid, in that if we access OpenSea.io for instance to trade NFTs, and then one day OpenSea.iodoesnt revamp their discipline or makes down their website, you wouldnt be able to accessthe marketplace anymore. So we are still working centralized portalsto access the otherwise decentralized blockchain for the time being. Once the tech has more time to develop, wewill start to see a lot of progress and growth in the room. So if youre watching this video, youresuper early to this new and provoking blockchain use-case.Awesome. I hope you procured this video navigate about whatNFTs are helpful. If you enjoyed the content, delight make sureto like and is committed to my direct for more crypto content. So are you shot about the prospects of NFTs? Do you own any NFTs right now? If not, use the link below to secure yourunstoppable domain today. What other issues do you have about NFTsthat I is likely to be missed? Let me know in the comments below. Be safe out there ..
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