NFT Decoded: What is an NFT and Why You Should Care?

On this episode of AI: Decodes the System, AI does a solo episode where she decodes the topic of NFTs. If you want AI to decode a topic, please send an email to ai@aidecodes.com.   

What is an NFT? NFT stands for nonfungible token. Simply put, it is a unique digital asset that cannot be replaced by another identical asset. This makes them perfect for representing unique items, such as collectibles or digital art. NFTs are created on blockchain platforms like Ethereum and EOS. These platforms allow developers to create decentralized applications (dApps) that use NFTs. So why should you care about NFTs? Here are three reasons:

1. NFTs are immutable, meaning they cannot be counterfeit or altered. This makes them much more secure than traditional assets like fiat currency or even gold.

2. NFTs are transferrable and can be easily bought, sold, or traded. This makes them very liquid and gives them the potential to become a new type of currency.

3. NFTs are programmable, meaning they can be used to represent anything from land ownership to loyalty points. This gives them a lot of potential applications that we have only just begun to explore.

So there you have it! NFTs are a new type of asset with a lot of potential. Keep an eye on this space, as NFTs are sure to revolutionize the way we interact with digital assets.

Help me become the #1 (number one) podcast and podcaster for technology, public policy, data, law, and culture. Subscribe, download, and share.

If you like the content, feel free to support the show by donating to my Patreon account at the link below: https://www.patreon.com/Aidecodes

Transcript

Copy Transcript Copied

00:00.00
aidecodes
Hang good people weapon to welcome to another episode of AiDeco system podcast the video edition but you can also listen to this edition on the aideco system podcast please be aware I do not edit the videos. Not doing it. So if you want the more clean version. It doesn't have all the um, ah ah and bloopers feel free to just listen to the straight up podcast wherever you get your podcasts. Um, so today is another solo episode I'm doing these which were not done in season one because. I realized that a lot of times when we were talking about topics with guests. Some people did not know what the heck I was talking about and um, even though we use terms like crypto ai nf ts or what have you within the different interviews I wasn't breaking it down in a way that folks could understand so my goal is to post. 1 big interview and then come behind that to talk about all the things that could be associated with that topic to help folks better understand so these episodes are quick and short if you listen to a few of them. There are less than 10 minutes I try to keep them around 5 um, and we really just decode a topic in plain english because that's the whole point of this podcast so you can understand what the heck is happening out here in the areas of data tech public policy and law in plain english so you know exactly? Um, what's happening and can at least contribute to the conversation or know where you can go to actually search these things on your own.

01:24.64
aidecodes
So today. What are we going to talk about nfts is a topic. So what is an nft n a t stands for non fungible token. So I know you're like I've heard of nftt people are buying all this art online folks are selling it. They're telling me. We're going to make a whole bunch of money. Don't know about all that. But what I play I to do today is literally talk about what isn' an Nft and why you should care so to start off like back to what I was saying what is an Nft nft t stands for nonfungible token even think about what that means if you think about. Nonfungible. That means that it's a unique asset and in this case, a digital asset that cannot be replaced by another identical asset think about it in the real world like For example, we all know there is a mona lisa a lot of people have counterfeited Mona Lisa or um that picture or other artists work in the nftt space. You cannot counterfeit an item. Why? Um I'm going to explain that in a couple seconds so because it is a unique item or unique digital asset that cannot be your place. It makes it the perfect. Um. Tool for representing unique items such as collectibles or digital art and Nfts are created on blockchain platforms like ethereum and Eos if you don't know what blockchain is please go back to few previous episodes where I talk about blockchain. But this technology uses blockchain.

02:54.34
aidecodes
As you all are learning even more about Blockchain Blockchain has so many different uses. That's why I tell folks, it's not just about crypto. It's not just about um these limited you use cases. There are smart contracts. There's so many things that can happen on blockchain so please make sure you listen to that episode so that you understand what is blockchain and what's going on with it. But back to the nftt. So like I said they're built on the blockchain platform. So these platforms allow developers to create decentralized applications also known as d apps or daps is lowercase d capital a Pbs and they use those decentralized apps. To you be up, they create those um apps to use these and Nfts. So. Why should you care about the nfts. Um I have 3 reasons I want to go over today. So 1 niess are immutable meaning they cannot be counterfeit or altered this makes them. So much more secure than traditional assets like currency or even goal. So the way that they are made because they are lying on that blockchain platform. We learned about this earlier they can't be changed. They can't be moved so you know that if you have the nftt that you currently have that's the only one is. Um, validated within the community. No one else has that nftt in particular which makes them really cool for things like digital art so you can have a digital version of something like a Mona Lisa and you know you are the only one with that version of the Mona Lisa also think about um, nftt's being used and like.

04:24.90
aidecodes
Um, if you're a gamer or you're playing a different game and you want to buy a different skin imagine if someone want to sell unique skins or outfits in the digital um space or in a game space. You could buy that unique outfit where no one else has think about a designer in real life who creates a limited addition. Or a limited amount of a product in the physical world. The Nfts allows you to create that in the digital world as well. So that's the first. Um, reason you should care about and Nftts The second reason is and Nfts are transferable and can be easily bought sold or traded. Um, this makes them very liquid and gives them the potential to become a new type of currency currency because folks can literally sell trade and put them up anywhere. A lot of folks are selling trading and buying um their nfts on different websites. So that's something you can literally do right now if you're interested in this space. I would be a little bit wary about folks saying this is going to be the big Nft or this is going to make you a whole bunch of money in the future. That's not what I'm trying to teach you all about today I'm trying to teach you about what the technology is and the benefits of the technology so you could understand its use case. Some people use and nftts right now to even get into their um like virtual conferences. So there are folks who will when you buy the ticket you can get an m nft that says you this is your ticket your true ticket to get into the conference concert or what have you? So that's one way you're thinking about doing it so you can transfer sell it.

05:52.31
aidecodes
Easy buy easy sell it and all that cause stuff last but not least and the areas that I'm going to talk about today is that Nat are programmable meaning they can be used to represent anything from land ownership to literally loyalty points within the organization and Nftts are all over the place. It's just like. Ignore the word n of t and think about the technology under it. It gives the ability to have so many different applications that um, you can build up on the n oft or create with the n oft because it doesn't have. It's not a thing. It's just a technology that allows you or a token. That cannot be changed so that token can be anything literally. It can be like say something you want to sell land ownership and then in that Nft you decide that you want to put the land ownership there and have that represent the land ownership or if you want to get people points. You could do that or if you want to have a digital ticket. You can do that there is no. Limit I don't think to what you can use right now because folks are trying to figure out how they want to use and Nfts and and the future of this work so that's just the quick version of and nftts. Um, it's just a new type of asset with a lot of potential. I want you to keep an eye on this space as nft excuse me as Nfts are sure to revolutionize the way we interact with digital assets. What are some of the ways you think we should use and Nft if you're watching the Youtube feel free to put it down in the comments. But hopefully you better understand what and Nftts are again. This is not a get rich.

07:19.90
aidecodes
Um, quicks game or anything like that I Just really want you all to understand what is the technology and how you can possibly interact with it all right? Thanks folks have a good one.