What is a NFT? NFT Explained and Made Simple


what is an nft it is a non-fungible token now let’s make it simple[ Music] nfts are changing the world and vary can feel involved and shocking but listen you don’t need a computer science grade you don’t need to learn how to code you just need practical skills to earn if “youre here” “youre in” the one percent of humans that are preparing for this major ethnic change we’re going to keep it amusing we’re going to keep it flare we’re going to make it practical welcome to nfts spawned simple time a reminder we’re not financial advisors this is no longer financial admonition you should do your own experiment hey let’s get into[ Music] it let’s define what an nft actually is an nft or non-fungible token is a unique asset that cannot be replaced with something else and is verified and placed applying blockchain engineering and an nft can include everything from music to a website region to a piece of digital artwork so that’s the that’s the textbook interpretation here from cnbc but dragon let’s kind of unpack that let’s look there’s a lot of mysterious descriptions here let’s unpack this yeah this is this is a big step and i don’t know how people just heard that but that’s i read that more you know because i in in the palls i was trying to learn what this material was i was trying to arm myself and equip myself with knowledge and what i noticed and this is another reason why i think this podcast is important distinguish is if you just go look up a generalized description of something i don’t know if they understand that they’re they’re giving us extrapolated explanations utilizing utterances that we don’t know so you start to see this this crypto lingo pop up like i heard blockchain and centralized and all that so i just lack everybody to know that this incident is tailor-made to procreate you are familiar with the basic most important principles of what an nft is and then all of those other names that you heard like the facts of the case that an nft lives on the blockchain it’s super important but you’re going to learn you’re going to have a third severity blacknes loop in blockchain one day so don’t worry about that right now so i think an easy way to explain to somebody that’s just hearing about it and time ultimately coming brave fairly because this is a podcast and you can do it in private and tell your peop your friends you’re going to tell your friends after this like you want to know what an nft is gentleman you are familiar with don’t spoke that definition though so what it stands for is non-fungible token so what’s important is let’s look at what what fungible means you know fungible is something that is it’s not rare like you know it says fungible goods are entries that are interchangeable because there are they are identical to one another for practical purposes so like uh like a dollar bill for a dollar greenback like i have been able to establish rating a dollar and he’d have no trouble giving me a dollar back so recreation while you’re in the mood by the acces i’ll make twenty dollars yeah that’s right while you’re giving up so so that’s the world we live very much in a fungible life now observe has not been able to say that his wife is fungible liberty because he would have to say that she’s rare and unique and one of different kinds because she is hopefully she’s listening to this absolutely that’ll be twenty dollars so my target is is that if you know what fungible means you know what non-fungible is now there’s this t word the token but non-fungible signifies it’s uncommon it’s it’s something that is unique now mark generate a great example in a communication we were having before about something that everybody will understand is non-fungible it’s just the t term the clue so a non-fungible token is what we’re talking about on this demo but rating why don’t you provide an example because this is this this played a big part of you growing up of just like things like trading cards and things like this that you noticed yeah there’s i imply there’s all sorts of things that people compile everything from from art and you are familiar with i am only want to say you know we’re talking about this as well there’s a reason why the original starry darknes that van gogh coated sells for 100 billion dollars and there’s a reason why you can go to an art exhibit and buy a sign for 10 horses right it’s because that that is replaceable you can print a million books right it’s it’s fungible it’s replicable whereas the original cover is unique it’s different it’s one of a nature just like my beautiful wife by the space love you so really important and i think that one of the second thing that’s important to recognize about nfts is they’re mostly living in a digital macrocosm they’re living in this digital macrocosm on a blockchain which by the way in our next chapter we’re going to go deep on blockchain to give you a better understanding of what that means the other thing i think that’s that’s important here as well dragon is that the lane you actually buy these nfts these non-fungible tokens is with is with cryptocurrency and i think that’s important too you don’t just go to a convenience store and buy an nft you’re going to be buying these at least in the current phase with a cryptocurrency of some of some sort right so you know bitcoin is i think a good example of a cryptocurrency and um again we’ll get into more about what cryptocurrency is in uh two occurrences but a cryptocurrency is essentially a digital form of money digital form of money right and so i guess the thing that i reflect a good deal of beings have trouble with dragon when it is necessary to nfts is they say why the heck would i want to be using my hard-earned digital money to buy a digital article of artistry like you know it’s not real i hear this all the time it’s not real whereas if i bought a van gogh i can situate it on my wall that’s real yeah right so i think that that’s that’s a common kind of error i was talking to someone at my department the other daytime and “theyre saying” why would i buy a jpeg i can just right clink and copy and paste the jpeg you know what i mean but it’s it’s that it’s it’s it i think that the the key thing now you are able agree or disagree is that as we move farther and far into this digital life as the digital life becomes more a part of our regular beings these digital assets are going to become more more important right yeah and you know i think only simply to really really make it simple we’ve been looking at non-fungible assets being sold for quite some time i remember when i was a kid i was into collecting comic books and and trading posters and all that substance and you know i don’t know if i was really aware of it but you are familiar with for whatever ground i am only remember if i had a a comic book and it was considered rare and what reaches it rare it’s that there aren’t numerous around but what delivered value to it is that there weren’t that numerous around but also it was something that i really liked like let’s say i had superman or something like that or a michael jordan poster so naturally michael jordan’s the goat in basketball so you know if i had a rare rookie card of michael jordan and then michael jordan became who he was or superman became what it was that’s what build it valuable and as it get valuable the scarcity and the strangenes of the amount that were out there impart the value up so that was natural in and you’re seeing that that play out today in in non-digital world like with pokemon placards you’re seeing adults now trade pokemon cards and acquire poster for like a hundred thousand dollars you say what the hell is that you might look at that and say that’s child’s play but when “youve had” that charizard placard because of its strangenes and its quality you now have an asset that is worth what you paid for and probably like real property it’ll it’ll accrue more interest down the road so that’s i have a knockout i have actually a immediate fib about this exact example pokemon posters right because you can’t just take your aged pokemon collect i have a friend who has like a series one collection of all these pokemon placards right and you can’t merely framed that on ebay and sell my shares you have to get it pointed you have to send it to a company like psa to to certify that it is actually genuine it is actually the real deal and that’s something that inherent to nfts is not necessary because the nft itself proves that it’s authentic and real yeah it’s and and in the digital nature because we’re going to get into non-fungible tokens right now i’m just talking about non-fungible things and why they have value in the digital nature they talk about the facts of the case that when you start an nft and you go through the procedure for its what’s called minting and we’ll get into that in another time it makes that that resource that digital resource a unique identifier to do what stigmatize was just saying so back to my degree if i have a trading poster or i have a jackson pollock or something like that i can go to you know a sell demonstrate or a collector’s you know gathering and sell this thing but you can be damn sure that somebody or some entity is going to have to authenticate it so you’ll notice that in that macrocosm you don’t want to get deceived and get a fake because we live in a macrocosm where there’s a lot of impostor departing on so they have their own way in playing cards or beanie newborns or whatever of procure out that they’re genuine another way of looking at that is you could take a diamond you know it could be a real diamond or a fugazi and you could make it into an expert or a sommelier searching at wine-coloured and everybody has different ways of seeing that if it’s genuine and then if it is if they say yes this is genuine then you go into its strangenes and its uniqueness so so i think that’s a nature that everybody’s comfy with so if you cuddle that then you’ll understand what an nft is all you have to do is make that knowledge of a michael jordan card you now understand how you could trade it you were able to sell it you could buy it you could accrue interest and sell my shares again so is taking those things and simply imagine if things like that existed in a digital world-wide now we we meet the digital world coming we’ve been talking about this in previous bouts cryptocurrency nfts the blockchain you’re seeing network three all the metaverse you know we’re now starting to like live and interact in a digital nature our children ought to have doing it for a while so what’s going to happen is is there’s going to be financial transactions and the purchase and selling of what we call digital assets in there so an nft a non-fungible token is going to be something of a clue is actually real is simple a tradable asset so if a non-fungible tradable resource a non-fungible token exists it’s just like what you’re used to it’s time existing in a different world and here’s what’s cooler about an nft than all of that substance i i just watched a demonstrate the other day differentiate i think it was called if you’ve never watched this i think it’s on netflix announced sour grapes you ever heard of it i have not so is a show about this chap this asian guy who everybody knew in the wine-coloured industry and he was going to christie’s and all these auctions and selling like thousands of dollars of wine everyone is knew him and they were drinking his wine and everybody enjoy it until like years last-minute one of the wine producers opened up a christie’s album and saw this guy auctioning off a bottle of wine-coloured from a time that he never realise that wine-colored and years of this this guy convinced the top most versed parties in the wine-colored industry he was rebottling[ __] punishment so the potential of that or a forgery pokemon poster or whatever all of that stuff it doesn’t exist in the digital world and as you learn more and more here’s where the real value of nfts are there’s a course of certifying a digital asset in that world that cannot be messed with and that’s a that’s a that’s a digital identification postage and that’s going to learn from them last-minute in the minting process so real simple i think that’s how i came to the conclusion of what an nft was symbol and that’s what come me interested in saying well do i need an nft should i buy one should i you know what’s going on is this going to be the brand-new way of us trading currency am i going to have a bank account one day or am i just going to own an image of an parrot well yeah yeah so you bring up a really good point dragon which is that transparency because right now if someone takes a picture in front of like a lamborghini or something there’s really no way of knowing if it’s their lamborghini or not but you know as we move into this this this decentralized completely transparent nature you’ll be able to go to their digital wallet as it were which we’ll be talking about in a future bout but you’ll be able to go and see do we are really own this particular item and again as you’ve launched as the world becomes more digital these digital pieces are going to become more and more important hey what’s up stigmatize now simply want to take you on a speedy break with a resource i think is really going to help you some of the notion that we’re covering in the establish music really complicated and really technical but listen you don’t need to system you don’t need to get a master’s degree in computer science all it is required to do is have the right resources we’re going to make it simple we’re going to make it easy i’ve got a join below go to www.nftm that’s nftsmaidsimple.com you’re going to get a free chisel expanse there it’s 100 free what are you waiting for seek get the cheat sheet it’s good we’re going to break down some of the key interpretations in ways that are really practical and really simple go to nfts madesimple.com right now to get your free chisel expanse that’s nft’s madesimple.com all right let’s get back into the establish so i want to talk jolly briefly about what some of these usages are because you still might be saying like why do i actually care so i think that there’s five truly five core concepts it is necessary to to understand or five core practical gives one of which is smart contracts the second of which is the collectibility which we’ve talked about the third largest is society the fourth is assets which we’ve kind of touched on and then the fifth is that status representation it’s that flex it’s that lamborghini that you can show off right before we move on to the next bout about blockchain though i really belief it’s important we talk about smart contracts because again i’m a really practical person i’m not the kind of guy that departs out i make i probably say this but i you know we all do it i’m not the kind of guy that buys things merely to impress other parties at least i try not to but you know we’re all human status is most important i really love practicality i really i’m a big devotee of utility and one of the one of the cool things that happens with smart contracts is if you have the nft it actually acts as a contract so you can actually purchase a residence a home title and that could be an nft and everyone will recognize that you actually own that home you own that part of owned because you own the nft right are there any other smart contract suggestions that get you provoked dragging well i convey you know what’s interesting is if we really stew it down to this naive form and is first of all you’re going to say what does a smart-alecky contract have to do with me understanding what is an nft that’s really important and it’s a good deal more simple than you think is if you don’t over complicate it so now that you kind of know what an nft is if you’re creating a digital asset that’s going to be something that you can sell and potentially fix more fund down the artery there’s got to be some sort of predetermined contract or agreement between you and where you’re set it to sell because you know there’s programmes out there to sell your nfts and we’re going to go down that rabbit defect and you’re going to learn all about that but they get a trimmed everybody gets a chipped of things so a smart contract awfully simple is an agreement that’s created between the potential now remember you are able to start off with nft just by buying one or owning one and then reselling it there’s real inexpensive fun ways of doing that but there’s a builder there’s an creator that designed the nft there’s a make that manufactures the system for the nft there’s the the person that might invest in paid under all that stuff and then set it into the blockchain as you’ve been hearing about so there’s there’s a fortune of people and then there’s the pulpit that gets a cut so a smart contract is an agreement between all of those people as to what happens when soul buys it when somebody buys that asset because this is a lot more strong than selling a michael jordan card because when you sell a michael jordan card after you sell it for whatever amount of money that’s it you’re done well because there’s the practicality right like i can buy an nft and that really does me access to backstage at a concerted effort like we’re already seeing that happen you know snoop dogg has a digital has a virtual home in a virtual world-wide where if you own the nft you can go visit him you can go you can go hang out with snoop dogg in this digital world title so like you said the smart contract gives all sorts of different benefits that you as the nft holder managed to achieve gary vaynerchuk has only one it has a series of nfts if you own a v friend nft you can go to the next three years of v con you go to a powwow because you own this nft so that’s one thing that gets me energized is the utility and then i imagine the last thing that i believe i really interesting is is avatars and barks in video games and in virtual natures like you said i i think in this episode even you know your kid wants to buy some sort of special shield or special handgun in this competition or something that’s an nft which which you can purchase and it maybe even convey to other tournaments or other knows so there’s just so many employments and i actually read this from on online that an nft is a swiss army knife of digital verification and transparency and i considered that that’s a really cool thing that we’re going to be exploring in the support yeah it’s what are all these different expends for for nfts i’m i’m just excited i’m i’m curious i’m aroused and but i’m i’m very much aware that this is a big deal and um the room and and one of the things that you know i can tell you about mark and i is that you know and extremely if our wives are listening you know we’re we’re not going to time drop everything into this thing until we are familiar so um that’s what this podcast is about is is discover you know we hope that you understand the basic premise of what an nft is but you all we hope that you too mark that there’s other things that are involved in getting involved in it so that’s what we’re gonna we’re gonna make you on this passage with us but exceedingly very excited about all this yeah so let’s let’s get into the next escapade where we’re going to talk about what a blockchain is because that’s a core fundamental as well let’s get into it

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