What is an NFT and why do I Care?
What is an NFT?
An NFT (Or non-fungible token) is a unit of data, stored on a digital ledger called a blockchain, that certifies a digital asset to be unique and therefore not interchangeable.
Great! So, what is an NFT again?
Ok let’s break this down a little bit more, non-fungible means “cannot be replicated” so a non-fungible token is a unique token on a blockchain that cannot be replicated or copied. The easiest analogy to make would be to compare an NFT to a very rare item such as a 1999 First Edition Shadow-less Holographic Charizard (which apparently recently sold for $369,000) or if you’re a baseball fan, a good analogy would be to compare an NFT to a 1952 Topps Mickey Mantle Card. (While this is a loose comparison since there are likely more than one of these cards still in circulation it is the closest analogy possible.) NFTs take the idea of rare/unique trading cards or any digital asset and takes it a giant leap forward. NFTs allow for a digital trail, codified on the blockchain, that will verify their authenticity long into the future. Furthermore, NFTs don’t only have to be single/unique tokens. For example, an artist or organization can run a line of 100 serialized prints from an individual NFT, the serialization of these prints still allows the token to be unique and valuable collectible item. With NFTs it is possible to verify the original author, as well as every time it changed hands and exactly at what price it changed hands.
Ok, so if there’s a non-fungible token, it stands to reason that there is also a Fungible token, what the hell is that?
Fungible tokens are any tokens that are exchangeable for each other. The most basic real-world example would be traditional paper and metal currency. In cryptocurrency, prime examples of fungible tokens would be Bitcoin, Ethereum, Doge or SafeMoon. Fungible tokens are governed by rules and standards that allow them to function in similar fashion to the world’s various fiat currencies. So, to break it down in oversimplistic terms, fungible tokens = currency, non-fungible tokens = trading cards.
Cool, so again, why do I care?
Currently the NFT craze is all about art; creators and collectors alike are utilizing NFTs as a new form of Digital Art Collection that many are selling and acquiring either for bragging rights or as long-term investment opportunities. However, NFTs have so much more to offer than that, the existence of an asset that is forever digitally codified and tamper proof has lasting implications for not only the art industry, but also music, movies, books, and regular day to day contracts. NFTs could be the solution to the current problems surrounding copyright and trademark infringement and the overall effect it has on the original creator’s profits. In fact, NFT’s can be programmed so that every time an NFT changes hands, the original creator would receive a portion of the proceeds of the sale. This puts the power back into the hands of the creators and gives them back control of their content.
As far as real-world applications go, in the future it could be possible to have an NFT certificate with everyday items like vehicles or houses. Let’s say you want to buy a used truck and you settle on a Toyota Tacoma (Don’t @ me, I randomly selected this from a list of 10 trucks) and let’s say that Toyota minted this truck with a NFT upon creation at the factory. You would then be able to potentially see the whole history of that truck codified on the blockchain to include previous owners, accidents, and maintenance. Think of it as a digital CarFax report that is not able to be tampered with.
In addition to the above, NFTs can have direct world implications for the industries of collectibles, avatars, gaming, virtual worlds, music, film, memes, sports, fashion, pornography, academia, and utilities such as notarization.
Ok cool, I’m starting to get it, so what is ParadoxNFT doing and how do they fit in?
In addition to being a token launched on the Binance Smart Chain, ParadoxNFT is creating a digital, global Marketplace that will allow creators and users to create, buy and sell all forms of NFTs all in one central, easy to use location. Furthermore, Paradox’s exchange will offer the opportunity for organizations or artists to white label a Marketplace specifically to show case their artwork or merchandise. Paradox would provide a domain name for businesses to use (i.e. businessname.paradoxnft.com) Think of these white labeled domains as a unique art gallery where artists and creators can show case their work and sell it all online, without the costly overhead of a store or exhibition hall. ParadoxNFT will be unique within the space in that their platform will allow NFTs to be launched on multiple blockchains, not just the currently popular and costly Ethereum Blockchain. In addition, ParadoxNFT Marketplace will seek to support most, if not all potential forms of NFT utilization mentioned above.
*Photo Credit to rube.zilla of BoredApesYachtClub. He can be followed on Instagram @rube.zilla
Please follow us here on Medium for future updates. You can also follow us on Telegram, Twitter and FaceBook! Thank you for joining us for the NFT Revolution.
