Women learning NFTs together...
As I'm researching and learning more about the NFT space, my goal is to bring you along for the journey so we can learn together! If you're new, I'm a woman, not in my 20's anymore lol, and I want to learn about this new world that is predominantly male and consisting of a younger demographic. Let's change that!
NFT - Non-fungible token - sounds funny and weird, but it basically means that it is a digital code that represents a digital item - truly unique and one-of-a-kind. It also means that it cannot be divided or replicated. For example, $1 bill can be replaced with another $1 bill, or 4 quarters, or 100 pennies. NFTs cannot. From dummies.com, "It could be digital art or music, for example. An NFT is secured and stored on a public blockchain. One token is not interchangeable for another, and a token cannot be further divided." (a link to more of this information below).
We learned about blockchains in the last post. Because of the transparency - every transaction is publicly visible for an NFT sale or trade - the current process requires a lot of energy, thus creating a dilemma for environmentalists. People are (rightfully) concerned that this "mining", the term used to create and verify transactions, is using more energy than some small countries!
Though it wasn't their intention, bitcoin especially. From PCMag.com..."And it isn't just mining that uses lots of power—a single Bitcoin transaction is estimated to burn 2,292.5 kilowatt hours of electricity, enough to power a typical US household for over 78 days." I'll post a link to the full article below if you are interested in reading more.
But these days, with all of the concern, many companies are changing their mining from PoW (Proof of Work - more about this in the article below) to PoS (Proof of Stake), which uses MUCH less energy for validation and creation.
Ethereum, for example, has said that they are in the process of changing their system over to PoS, which is great news for concerned artists selling NFTs on OpenSea.io (one of the main marketplaces for NFTs) that runs on Eth.
Creators themselves are turning towards being a "conscious crypto creator". ArtsHelp.net has a small course and is asking artists to take the pledge to become a CCC. I am taking that mini course to learn more!
I've included links to some articles below if you'd like to dive deeper into learning more. I know a few of you that might do just that! It's just another way to become more familiar with the process.
If things go the way people are predicting, and crypto replaces traditional money, and NFTs become mainstream, then one day NFTs will replace many familiar things. For example, instead of buying concert tickets or tickets to a baseball game through TicketMaster, we will instead buy an NFT for admittance. And maybe the first 1000 people to purchase tickets when they go on sale will also get a digital piece of art to go into their public collections, showing they were one of the first to buy a ticket.
That's just one example. Some musicians have already only released their newest albums as NFTs. This cuts out the middlemen - no TicketMaster fees and musicians aren't beholden to a record label and can actually own their own music.
There is SO much possibility out there. And with cleaner options, this space is really growing. Let's not get left behind!
Have a question or comment? Let me know below!!
Articles of interest:
DISCLAIMER: I am not a financial advisor. The content on this website and my social media sites are for educational purposes only and merely cite my own personal opinions. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary. Know that all investments involve some form of risk and there is no guarantee that you will be successful in making, saving, or investing money; nor is there any guarantee that you won't experience any loss when investing. Always remember to make smart decisions and do your own research!