NFT Explained in Simple Words


hey guys! so today we'll talk about something that 
i'm sure you've heard about recently nfts which   is non-fungible tokens fungible fungible fungible 
what does that mean well fungible means able to be   copied or replaceable so obviously a non-fungible 
token is something that can be copied or   reproduced in any way right so an nft is a piece 
of information stored on a blockchain and why is   that important so let's take a step back and take 
a look at what is a blockchain without getting   into any of the complex mathematics in simple 
terms the way it works now for example with a bank   is all the information of all the transaction is 
stored on one piece of paper that the bank writes   down with a pencil and if somebody were to get get 
a hold of that notebook they could erase some of   that those transactions and write new ones with a 
pencil of course it's not with a pencil but just   as an explanation so what a blog chain is instead 
of one person having that notebook and a piece of   pen a piece of paper with a pencil everybody 
has that notebook and everybody has the same   transactions written down so if you want to hack 
somebody or if you want to steal or change some   information you have to erase everybody's notebook 
which is just physically impossible so that's why   blockchains are very important so really the first 
time that it took off in my opinion was with the   cryptokitties back in 2017 and all it really was 
is just a unique picture of a cat that had like   what different whiskers or a different color tail 
or just different characteristics and it was yours   it was unique a lot of people ask myself including 
why is that worth money if you can just do control   c control v and have exactly the same image why 
is this one worth hundreds of thousands of dollars   for example and this one worth nothing well this 
is really a philosophical concept and it all comes   back to having the original or having the only 
thing so why is the mona lisa or an original   picasso worth so much money if you can just take a 
picture of it print it out and have the same thing   or if you can get a really talented artist 
to recreate it it'll look exactly the same   and a lot of the time it even fools art collectors 
and professionals but only the original is worth   money why is that well that's just because we're 
people and when we have money to spend we want   to be the only ones who have something and it's 
the same thing with nfts it's like the monet of   the 21st century you want the original even if you 
can get the recreation so some people think that   nfts took off in the past couple years due to the 
lockdown culture that we had because before we all   used to go out in public and touch each other and 
touch the art but now we can't do that but people   still want to spend money people still want to 
have the originals people still want to interact   with art so they just now do it in a digital 
way what do you guys think does that make sense   so believe it or not the most expensive art 
piece by a living artist today is actually an nft   it was by mike winkelmann otherwise known as 
beeple and it was his everyday series which   sold for 69 million dollars pretty insane right 
now my personal favorite example of an nft that   sold recently is the favorite nine cat you guys 
remember that thing it's amazing and it sold for   a whopping thousand dollars now another one which 
i thought was pretty ridiculous because it got   taken off a youtube of all places is charlie bit 
my finger you guys remember that too from what i   think 2008 9 10 11 i don't know correct me in the 
comments whatever it was and that sold for 761   000 and really the most ridiculous one in my 
opinion is the gucci snapchat ghost which sold   for three point six thousand dollars come on guys 
who's paying for that for like seriously now it's   important to mention the corbett footprint that 
nfts and the blockchain system as a whole has on   the planet the way that it works is that all the 
computers that are participating in the mining   process are competing to solve a certain problem 
and once they do only one of those computers gets   the cryptocurrency whatever it may be bitcoin 
ethereum dogecoin and because all these computers   are competing they're using a whole lot of power 
and just on the ethereum blockchain alone it   uses 31 terawatt hours of energy of electricity 
every year and that's as much as the country of   nigeria which has 200 million people 200 million 
31 terawatt hours better water those trees kids   you're not gonna have them for long maybe one of 
you can make an nft of this and sell it and pay   for your college tuition all kidding aside 
i hope you guys like this video i hope nfts   now make sense check out our other videos click 
like click subscribe and stay geekly my friends!

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