65%+ of people get this wrong about NFTs ….
1. Most people think an NFT is a digital artwork. They are wrong.
The NFT is not the digital artwork itself.?
The NFT is more like a certificate of ownership.
The NFT identifies the digital artwork as unique, as authentic and verifies who owns it.
2. Many people think an NFT is a digital artwork. They are wrong for another reason
NFTs are not ONLY used for digital artworks.
NFTs can identify and verify ownership of any “asset”, where “asset” means “any thing of value”.
3. NFTs can identify and verify ownership of DIGITAL assets such as:
- digital art
- music
- videos
- property in video games: items, skins & land
- tickets
- domain names
- identity documents and credentials
4. NFTs can identify and verify ownership of PHYSICAL assets such as:
- a building?
- a vehicle?
- a physical painting
5. The most common mistake you will see, anywhere people are talking about NFTs ...
... is confusing the certificate of ownership (the NFT) with the asset it identifies and verifies ownership of.
The Certificate of Ownership (NFT) is stored on a Blockchain. The asset itself is almost always not stored on a Blockchain.
Blockchain / AI - Strategy / Consulting / Development
2 年It's even worse. The current ERC721 implementation of #NFTs stores nothing more than what account owns what (id) of a NFT type/collection. Everything else is (worst case) not on-chain, but on "normal" centralized servers. They hold the meta-data, not the media/art-work, ... If the servers go offline, meta-data and artwork is gone. Application specific NFT smart contracts could store the meta-data on-chain and IPFS could be used as a decentralized storage solution, but allover NFTs need to be designed more careful when representing assets of real value. Advances in blockchain technology will help in the long term to allow more storage on-chain, but large media files may still be an issue for quite a while.
Good explainer, Alex.
Consulting to for-purpose CEOs to deliver more impact with existing teams and systems - by freeing humans up from admin.
3 年NFTy, concise, useful. Thanks Alex Freeman
CIO | Technology Transformation | Director & Strategic Advisor | AI, Web3 & Digital | Public Speaker | profile picture @giantswan
3 年Yep.