{"id":1211,"date":"2023-02-14T22:32:14","date_gmt":"2023-02-15T02:32:14","guid":{"rendered":"https:\/\/parmaks.com\/Resources\/what-is-nft-personal-development-blog\/"},"modified":"2023-02-14T22:32:14","modified_gmt":"2023-02-15T02:32:14","slug":"what-is-nft-personal-development-blog","status":"publish","type":"post","link":"https:\/\/parmaks.com\/Resources\/what-is-nft-personal-development-blog\/","title":{"rendered":"What is NFT? | Personal Development Blog"},"content":{"rendered":"

\"Profit<\/a>
\n<\/p>\n

\n
<\/a><\/span><\/i><\/div>\n

What
\nexactly is an NFT?<\/b><\/span><\/span><\/i><\/p>\n

It\u2019s a digital asset that represents some real-world
\nobject like music, art, in-game items, or videos. NFTs are bought and sold
\nonline, often with cryptocurrency, and are usually encoded with the same
\nunderlying software as many cryptos.<\/span><\/span><\/p>\n

NFTs are becoming well-known now, though they\u2019ve
\nbeen around since 2014, because they\u2019re an increasingly popular way to buy and
\nsell digital artwork.<\/span><\/span><\/p>\n

Conti and Schmidt report that \u201ca staggering $174
\nmillion has been spent on NFTs since November 2017.\u201d<\/span><\/span><\/p>\n

NFTs are usually either one of a kind, or one of a
\nvery limited run, so they have unique identifying codes. Arry Yu, chair of the
\nWashington Technology Industry Association Cascadia Blockchain Council and
\nmanaging editor of Yellow Umbrella Ventures says they \u201cessentially \u2026 create
\ndigital scarcity.\u201d <\/span><\/span><\/p>\n

This contrasts with most digital creations, which
\nare almost always practically infinite in supply.<\/span><\/span><\/p>\n

So, cutting off the supply of a given asset should
\nraise its value (assuming it\u2019s actually in demand at that moment).<\/span><\/span><\/p>\n

Many NFTs, especially nowadays, have been digital
\nworks that already exist in some form elsewhere (like securitized versions of
\ndigital artwork that\u2019s already out on Instagram).<\/span><\/span><\/p>\n

Why are people willing to spend so much money on
\nsomething they could screenshot or download elsewhere?<\/span><\/span><\/p>\n

\u201cBecause,\u201d say Conti and Schmidt, \u201can NFT allows the
\nbuyer to own the original item.\u201d<\/span><\/span><\/p>\n

Also, since it has built-in authentication to serve
\nas proof of ownership, collectors can amass an online collection. Some collectors
\neven value \u201cdigital bragging rights\u201d almost more than the item they\u2019ve
\npurchased.<\/span><\/span><\/p>\n

People are starting to answer the question: how do we assign value to something that
\ndoesn\u2019t exist? What is a digital object worth?<\/i><\/span><\/span><\/p>\n

\u201cWhile we were all waiting for virtual worlds to
\nspring up,\u201d says Joe Procopio, entrepreneur and founder of TeachingStartup.com
\nand GetSpiffy.com, \u201cFacebook was selling out of Oculus.<\/span><\/span><\/p>\n

While we were laughing or wincing at the pop culture
\nreferences in Ready Player One, Minecraft was letting its players build their
\nown blocky starter-kit societies.<\/span><\/span><\/p>\n

And while we were debating the \u2018realness\u2019 of Bitcoin
\nas a currency, someone was paying 170,000 real dollars for a CryptoKitty.\u201d<\/span><\/span><\/p>\n

If you\u2019re an entrepreneur, you can\u2019t help but wonder
\nabout the method of calculation on that $170,000 digital cat\u2019s valuation.<\/span><\/span><\/p>\n

The value of that CryptoKitty was determined by the
\nexpectation that its value would increase over time. That same speculation
\n\u201cdrove the great alt-coin rush of 2017, and some painful lessons resulted in a
\nhardening of the rules of value for digital currency.\u201d<\/span><\/span><\/p>\n

Many have found that some of the \u201cmust-haves\u201d for
\nalmost every type of token come down to scarcity, supply and demand, ability to
\ntransact, and tangible proof of ownership.<\/span><\/span><\/p>\n

The digital coin is still only a virtual piece of
\nmoney, and ownership is still only in the virtual sense. But thanks to the
\nimplicit rules in the blockchain (documented by smart contracts), virtual
\nownership became \u201creal enough.\u201d<\/span><\/span><\/p>\n

What\u2019s
\nthe difference between an NFT and cryptocurrency then?<\/span><\/span><\/i><\/p>\n

NFT stands for Non-fungible token. A fungible asset,
\nlike physical money and cryptocurrencies, can be traded or exchanged one for
\nanother.<\/span><\/span><\/p>\n

They\u2019re also equal in value. One dollar is always
\nequal to another dollar and one Bitcoin equals any other Bitcoin.<\/span><\/span><\/p>\n

In fact, cryptocurrency\u2019s fungibility makes it a
\ntrusted means of conducting transactions on the blockchain.<\/span><\/span><\/p>\n

On the other hand, a non-fungible asset, even if
\nbuilt using the same kind of programming as cryptocurrency, cannot be exchanged
\nwith any other non-fungible asset.<\/span><\/span><\/p>\n

Each NFT has its own digital signature that makes it
\nimpossible for it to be exchanged for (or equal to) another one.<\/span><\/span><\/p>\n

For example, say you have two different video clips
\nfrom an NBA game.<\/span><\/span><\/p>\n

One clip isn\u2019t even necessarily equal to the other
\nclip, much less to an entirely different work of art.<\/span><\/span><\/p>\n

\n<\/div>\n

\"Profit<\/a>
<\/p>\n","protected":false},"excerpt":{"rendered":"

What exactly is an NFT? It\u2019s a digital asset that represents some real-world object like music, art, in-game items, or videos. NFTs are bought and […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[],"class_list":["post-1211","post","type-post","status-publish","format-standard","hentry","category-blog"],"_links":{"self":[{"href":"https:\/\/parmaks.com\/Resources\/wp-json\/wp\/v2\/posts\/1211","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/parmaks.com\/Resources\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/parmaks.com\/Resources\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/parmaks.com\/Resources\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/parmaks.com\/Resources\/wp-json\/wp\/v2\/comments?post=1211"}],"version-history":[{"count":0,"href":"https:\/\/parmaks.com\/Resources\/wp-json\/wp\/v2\/posts\/1211\/revisions"}],"wp:attachment":[{"href":"https:\/\/parmaks.com\/Resources\/wp-json\/wp\/v2\/media?parent=1211"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/parmaks.com\/Resources\/wp-json\/wp\/v2\/categories?post=1211"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/parmaks.com\/Resources\/wp-json\/wp\/v2\/tags?post=1211"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}