NFTs for Idiots Like Me - I

Most experts have this habit of confusing the layman. Not because they want to, but their excitement gets the better of them and they see possibilities that others normally don't. Especially so with tech. I'm no techie and don’t understand it much.?

So, when people talk about #NFTs, #Metaverse and #Web3 it all sounds so overwhelming. Why would anyone pay ANYTHING, let alone millions, for the right to own a digital cat image? What is the need for NFTs??

They say, any technological innovation is three steps ahead of business application. As a brand consultant, I'm constantly on the lookout to understand how technology can impact businesses, more specifically, the #business of #brands.?

So, I spent time trying to understand these technologies on a basic level, to plausibly predict their immediate and medium-term applications in the business of brands.

This and the upcoming blogs are my attempt at simplifying the NFT techno demons for idiots like me.?

Disclaimer: This is NOT investment advice. This is NOT definitive and is open to challenge from the experts.?

Web 1.0 vs 2.0 vs 3.0:

Keone Chong ??,??,?? , founder of The NFT Lab ??,?? shared this tweet to explain the evolution of the Web in a recent session at The Futur?

• Web 1.0 -?Read Only - (~1995 - 2005) - A heavily controlled web, where content was published by select institutions, and we, the laymen consumed it.?
• Web 2.0?- Read & Write - (~2005 - 2020) - A more democratized web where one not just consumes but can also publish content in equal measure, like this blog I've published.
• Web 3.0?- Read, Write & Own - (Since 2020) A truly democratized web, where we can attribute ownership for the content we create, thereby amplifying monetization.

What are NFTs?

Non-Fungible Tokens, In the literal sense, are unique and non-replaceable tokens. These tokens cannot be duplicated and thus derive their value from their uniqueness.?

NFTs enable an audit trail of ownership, which can help ascertain the origin and the change in attributes and ownership of a digital property.

A digital property can be anything - an Image, a sound, music, video, to name a few.

Simply put, NFTs are means of proving ownership and traceability of a digital asset on Web 3.0.

MINTING

Not all digital properties available online are NFTs. They need to be minted into NFTs

Minting is the process of converting a digital file into a digital asset that can be sold / traded.?

There are many NFT marketplaces that provide #minting services. One could also mint their own NFT, by deploying their own #SmartContract.

SMART CONTRACTS

A Smart Contract is a set of predefined conditions and terms of agreement, like in a normal contract, and can be programmatically triggered when the conditions are fulfilled or if a certain event takes place.

For example, let's say you draw up a contract that this beautiful piece of art you created will be sold to me if I give you a certain amount of money. The smart contract will transfer ownership of the art to me only once it records the monetary transaction.

We could make it a little more complex. On paying you the money, I not only get ownership of the art you've created, but also have first right of refusal on the second piece of art you create and lead the exclusive club of your art fans. Smart contracts can be used to fulfil and execute every level of this complex transaction.

Smart contracts are permanent. Once deployed, they can't be deleted or reversed. They are called 'smart' contracts because they can be executed without the need for lawyers or physical third-party registrars.?

Smart contracts are also publicly available and can be accessed and verified by anyone.

Basically, smart contracts and the rules they are made up of, define the value of an NFT.?

Now that we have a broad understanding of what NFTs are and how they can be minted, in the next post we can go into how NFTs can play a role in our daily lives.

#BrandBuilding #MarketingTechnology #MarketingWithNFTs