LONDON, UK / ACCESSWIRE / April 8, 2022 / A lot of people think that NFTs are just pictures on the internet sold for millions of dollars with no inherent value. Jon Fisher, a Silicon Valley entrepreneur and founder of a number of successful Sillicon Valley starups, including CrowdOptic strongly disagrees. Jon recently pivoted from investing into startups to investing into NFTs.
Before getting into NFTs it's important to understand crypto and how it actually benefits society at large.
It's important to understand how crypto space has developed in recent years. Crypto currencies like Bitcoin, Ethereum and Solana are blockchains on top of which applications are built. They're not the applications themselves, they're blockchain networks that can be participated in by anyone who buys their native token.
Imagine Facebook, the network owners are the people who own the shares. We as users of Facebook, Whatsapp, Instagram just get the utility, without getting any of the actual value. Crypto solves this problem by making everyone an economic participant, so if the price of the token goes up - everyone benefits from it.
In that sense, DeFi is like FinTech, except that it's not being done by the banks or a small start up. Algorithms matching flows and creating yields and all sorts of incredible things without the need of banks, which are simply the middle men.
The next step in this natural progression towards decentralization is the non-fungible tokens or NFTs. At first this was misunderstood by everyone as people simply trading pictures on the internet for millions of dollars. In shorts: Yes and no. Firstly, its important to understand the difference between fungible and non-fungible tokens.
Fungible tokens are interchangeable, for example Etherium, whilst non-tangible tokens are unique and non-interchangeable. In that sense, NFTs are Layer 2 solutions built on top of Layer 1 and are a good way of proving digital asset ownership on the internet.
Ethereum's smart contracts add an extra layer of functionality and when paired with NFTs create a beautiful synergy unlike anything else we've seen before. Smart contracts allows you to put an individual action or contract built into the block chain.
For instance, let's say you're a digital artist wanting to sell your work on the internet. Using the NFT technology along with Ethereum's smart contract you can create scarcity, much like creating a set of limited edition prints. Moreover, you can include in the smart contract royalty fees, so that each time your piece of work is sold on the secondary market, you receive a fee - forever and with no middlemen taking their cut.
It gets much bigger than this. Property can be attached to the blockchain. Think for a second what a mess the property industry is right now. The title deeds that are owned by 28 different families and all of this issue of redevelopment. None of this has to happen.
If you think of a property transaction: Apart from needing a notary to confirm the two parties that have made this agreement there is a bureaucratic system on top for this, with a plethora of institutions (often corrupt) that want their piece of the pie.
If I want to buy a property from you, I don't really know the title deeds, who really owns it, etc. All of this is unnecessarily complicated and there is a simple solution - the blockchain.
If you put property on a blockchain its all automatically confirmed by every single participant of the network. This means that we a priori have trust and there is essentially no need to have a complicated system of checks and balances to ensure that the transaction can take place.
In a digital world where everything moves really fast we need trusted participants. We can't be going to the notary every time, then getting three lawyers involved and later going to the bank. We want it all to be trusted instantaneously.
NFT technology is moving really fast and is constantly unleashing all sorts of new things: Insurance, Derivatives, Credit Markets - all of these industries would be hundreds of times more efficient on a blockchain, where everyone knows who owns what and the need for bureaucracy disappears. 2022 is just the beginning and we're going to see a lot of interesting NFT developments in the future.
About NFT Global: NFT Global is a revolutionary NFT marketplace for ambitious artists, collectors, and traders. You can find Jon Fisher on Twitter @JonFisherNFTs
CONTACT:
Andy Larkin
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SOURCE: NFT Global