Non Fungible Tokens
NFT's Explained
.A Non-Fungible Token (NFT) is a smart contract for a digital item. These are singular minted items with code built into them for authentication. Each token is a contract, meaning it has code built in to provide other value beyond the image itself.
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Tokens can offer discounts and free giveaways attached to the code, which entitle the owner to access these benefits. When you validate your token, you gain access to the benefit of that token. Further, in many cases, the token unlocks a physical version to be delivered to the owner of the token.
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If a token is sold, the new owner is entitled to the benefits. We are just scratching the surface of the range of these tokens. The ability to purchase original works with benefits and proof of purchase makes for a pretty cool path forward.
Etherium and Ether (ETH)
Etherium is a blockchain cryptocurrency traded on a variety of platforms. Ether is the currency used to create, buy and sell NFTs. You can purchase Etherium on a number of crypto markets. Coinbase, eToro, crypto.com, and Gemeni are a few examples of platforms for picking up Etherium.
You can choose to treat Etherium as a stock, or you can use it to purchase items you're interested in on the Etherium blockchain. You don't need to fully understand the Etherium blockchain to participate. It's a commodity like anything else. Tokens each have a distinct value. Since each NFT is unique, they can’t be exchanged for one another like cryptocurrencies. Because of this, NFTs act more as a form of authentication than a form of exchange.
Wallet (Crypto)
Crypto Wallets
The cryptocurrency trading platforms above are where you acquire Etherium. In order to use it, you'll need a Crypto wallet. A crypto wallet is a piece of software that enables you to send and receive cryptocurrencies, such as Bitcoin. They can be used to store multiple tokens and coins at once – however, most wallets will only support a limited number of cryptocurrencies.Wallets are used to store something known as private keys: long hexadecimal codes known only to you and your wallet. They must match with a public key so you can spend your money.
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Wallets come in many forms. They can be stored on hardware which is occasionally connected to the web to perform transactions (some people keep them in bank vaults the rest of the time) – you can even write the keys down on a piece of paper, which is one method of “cold storage.” Hosted wallets are akin to traditional banking apps. You can access your balance on multiple devices, and your funds aren’t gone forever if you lose your phone or forget your password.
There are many marketplaces to buy and sell NFTs. Depending on which marketplace you choose, you’ll be able to purchase different types of art or collectibles. A lot of these websites have secondary marketplaces with a variety of NFTs, but each platform operates slightly differently.
Some of the most popular NFT marketplaces are Rarible, Opensea, SuperRare, Nifty Gateway, and NBA Top Shot. The Disputed Territory started our NFT exploration on Rarible. So, that’s where our tokens exist right now.
You’ll need to join up on one of these marketplaces to trade NFTs. You’ll need a crypto wallet with Ether to make these purchases. At any time, you can reverse the process back to FIAT (ie: US Dollars). However, the future of tickets to sporting events, and much more are on their way to blockchain crypto.
I’m not recommending you put yourself at more risk than you would to purchase anything else you might go to a local or online store to buy. One thing I always reference for a logical realization. There was a time when most of the world was scared to put their credit card information into a website during an online purchase. Now it’s a major way of doing business. In the same way you have a physical wallet, most of the world will likely have a crypto wallet inside of five years.
Crypto Currency Trading Sites
NFT Marketplaces
Definitions
Non-Fungible Token - A unique digital identifier that cannot be copied, substituted, or subdivided, that is recorded in a blockchain, and that is used to certify authenticity and ownership (as of a specific digital asset and specific rights relating to it)
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Crypto (A Fungible Token) - A digital currency in which transactions are verified and records maintained by a decentralized system using cryptography, rather than by a centralized authority (FIAT).
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Blockchain - A database that collects information together in groups, also known as blocks, that hold sets of information. Blocks have certain storage capacities and, when filled, are chained onto the previously filled block, forming a chain of data known as the “blockchain.” All new information that follows that freshly added block is compiled into a newly formed block that will then also be added to the chain once filled.
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FIAT currency - Government-issued currency that is not backed by a physical commodity, such as gold or silver, but rather by the government that issued it.
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I am by no means an expert on NFTs, Cryptocurrency, or blockchain. All the above are gathered from a number of other places, many of them linked along the way. I've put a lot of it in my own words the way I understand it. I am working to get validation of everything above. This is my best effort to describe the subject matter if you're new to it.
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