A curated collection about NFTs - by bt3gl
A Non-Fungible Token (NFT) is a cryptographically secured token existing on the blockchain representing ownership of something unique. NFTs can represent tokenized ownership claims to real-world assets like a specific piece of land, or actual ownership of digital assets as in a rare digital trading card. Unlike fungible tokens such as Bitcoin where one BTC can be exchanged for any other BTC, each NFT is completely unique and represents verifiable digital scarcity.
Fungible goods are equivalent and interchangeable, like Ether, bitcoin, fiat currencies, and voting rights. Non-fungible goods are unique and distinct, like deeds of ownership, or collectibles.
A token is a representation of something in the blockchain: money, time, services, shares in a company, anything. By representing things as tokens, we can allow smart contracts to interact with them, exchange them, create or destroy them.
A token contract is an Ethereum smart contract. "Sending tokens" means "calling a method on a smart contract that someone wrote and deployed". A token contract is a mapping of addresses to balances, plus some methods to add and subtract from those balances. It is these balances that represent the tokens themselves. Someone "has tokens" when their balance in the token contract is non-zero.
NFT-enabled decentralized commerce could offer a viable alternative and save small businesses.
Non-fungibility itself allows for new kinds of transactions, where users are not limited to monetary exchanges, but can enjoy the exchange of assets (digital or physical).
Ethereum is a technology that lets you send cryptocurrency to anyone for a small fee.
Ethereum is an open-source, public, blockchain-based distributed ledger featuring smart contract (scripting) functionality. It enables developers to build blockchain applications with business logic that execute in a trustless environment, while leveraging the high availability of the Ethereum network.
Ether (ETH) is the cryptocurrency generated by the Ethereum protocol as a reward to miners in a proof of work system for adding blocks to the blockchain.
user accounts: create transactions, which must be signed using the account's private key, a 64-character hexadecimal string that should only be known to the account's owner (signature algorithm is ECDSA).
contracts: associated code and storage (the values of the variables at any given time). For instance, it might send ETH, alter its storage values, create temporary storage, call any of its own functions, call any public function of a different contract, create a new contract, and query information about the current transaction or the blockchain.
The Ethereum Virtual Machine (EVM) is the runtime environment for smart contracts in Ethereum. It is a 256-bit register stack designed to run the same code exactly as intended (a fundamental consensus mechanism for Ethereum).
Ethereum transaction fees: to transact on the network, users pay gas fees in ETH to miners running the computers that validate, or process, every transaction completed (from simple token transfers to more complex engagements with dapps). It's a unit of account within the EVM.
This fee mechanism is designed to mitigate transaction spam, prevent infinite loops during contract execution, and provide for a market-based allocation of network resources.
If the Ethereum nodes become too expensive to run, the network will be more susceptible to centralization. A solution is to split the entire Ethereum network into multiple portions. Each shard would contain its own independent state, meaning a unique set of account balances and smart contracts.
The main purpose of the upgrade is to increase transaction throughput for the network from the current of about 15 transactions per second to up to tens of thousands of transactions per second.
Increase throughput by splitting up the workload into many blockchains running in parallel (sharding), having them all share a common consensus proof of stake blockchain.
{
"title": "Asset Metadata",
"type": "object",
"properties": {
"name": {
"type": "string",
"description": "Identifies the asset to which this NFT represents"
},
"description": {
"type": "string",
"description": "Describes the asset to which this NFT represents"
},
"image": {
"type": "string",
"description": "A URI pointing to a resource with mime type image/* representing the asset to which this NFT represents. Consider making any images at a width between 320 and 1080 pixels and aspect ratio between 1.91:1 and 4:5 inclusive."
}
}
}
The lesson of Web 2.0: when the process of sharing content with others is owned entirely by private platforms, the cost of this mediation falls heavily on creators.
Zora Protocol is a universal market protocol for media ownership. Creators can set a perpetual ownership stake in their work, and are rewarded whenever ownership changes hands. Based on Ethereum blockchain and ERC-721 tokens.
struct Bid {
// Amount of the currency being bid
uint256 amount;
// Address to the ERC20 token being used to bid
address currency;
// Address of the bidder
address bidder;
// Address of the recipient
address recipient;
// % of the next sale to award the previous owner
Decimal.D256 sellOnFee;
}
struct Ask {
// Amount of the currency being asked
uint256 amount;
// Address to the ERC20 token being asked
address currency;
// % of the next sale to award the seller
Decimal.D256 sellOnFee;
}
Protocols such as NFTfi and Rocket allow NFTs to be used as collateral for peer-to-peer loans, enabling holders to treat their digital collectibles like any other asset to be monetized.
(remember: not your keys, not your coins)