NFT Education

In October 2008 a research paper was published by an anonymous user named ‘Satoshi Nakamoto’ to propose a solution to double spending without the risk of trusting a third party. 

The whitepaper that was published created a blueprint for technology to function as a “Peer-to-Peer Electronic Cash System”. 

Satoshi’s vision has always been to keep all development in an open-source format for the community to contribute code and ideas.

During the initial years of Bitcoin, the actual USD value was negligible compared to today. There was a time when a user spent 10,000 BTC on two large pizzas, valued at $41 at the time.

Fast forward to today, the story of Bitcoin has evolved after a long series of spikes and drops in value. Now we have battle-tested code that was built in a public, open space. Spin-off networks are popping up all over now, standing on their own.

Common Terms

• Blockchain
• Crypto
• Encryption
• (Crypto) Wallet
• Public key
• Private key
• Seed phrase - 12 or 24 words saved in a specific order. Encryption uses a seed phrase to create a public & private key when loading a crypto wallet.
• Exchange / Marketplace
• Decentralized
• Centralized

Blockchains are made to store and transfer data without trusting a 3rd party. They can be explained simply when you look at the benefits of the technology and how it’s actually built.

Benefits of Blockchain: 

Blockchain is essentially a “Distributed Ledger Technology”, which means it is…

• Programmable - blockchains utilize smart contracts for easy automation with code.
• Distributed* - All network participants have a copy of the ledger for 100% transparency
• Immutable - any validated records are irreversible and cannot be changed
• Timestamped - each transaction is recorded on a block with the exact time it was processed.
• Unanimous - all network participants agree to the validity of each of the records.
• Secure - all records are individually encrypted 
• Pseudo-Anonymous* - the identity of a wallet holder is anonymous upon wallet creation. However, most (if not all) centralized exchanges require identity verification to deposit and trade funds.
• Decentralized* - Not having a centralized source of data storage and processing
• Open Source* - Equivalent to creative commons license where everyone is free to re-use and re-purpose the code as they see fit.

* Not all blockchains fit in every category.

How Crypto is Built: 

The concept behind crypto is a way to send digital cash between two parties without the need for trusting a third party. Requiring code for two specific groups. General users and then Community Members with the knowledge and willingness to host a server that runs specific mining software.

How a Wallet is Built:

Wallets are the KEY component for users. Enabling people to send and receive cryptocurrency.

A wallet is made of two core components, a public key & private key. 

When looking to purchase cryptocurrency there are a few options. The most common, and easiest would be through a Centralized Exchange. Another option is a decentralized exchange but that is best for experienced crypto users.

Purchase Crypto on a Centralized Exchange

1. Visit an exchange website such as Coinbase Pro, Gemini, Crypto.com or another. 
2. Create account and verify identity
3. Connect a Debit Card, Bank Account or PayPal
4. Deposit/transfer dollars to Exchange
5. After your USD transfers, purchase the crypto of your choice [ETH for this example]
6. Reverse this process to sell. Then select withdraw USD and select the appropriate account.

We wrote a guide where a beginner can take a deep dive into NFTs, and understand.

Download a free copy of "NFT 101: What is an NFT?" and you can start reading today. Only an email is required.

Unless you are well-versed in cryptocurrency and know the artist you want to purchase from we would advise reading the free guide to start-off.

(hint: everything on this page is an summarized excerpt from the guide!)

Definitions

• METAVERSE - A digital space in which users can interact with a computer-generated environment and other users. Recent experiences have been enhanced with AR and VR.
• DAO aka Decentralized Autonomous Organization - is an organization represented by rules encoded as a computer program that is transparent, controlled by the organization members and not influenced by a central government
• FLOOR - The cheapest price for an NFT from a specific collection.
• DEVELOPER - A person who knows computer science and how to write code
• RUG / RUGGED - The action of a collection getting liquidated by the team/ownership
• GAS - Cost of executing the transaction.
• GAS WAR - Event where lots of transactions are attempted at the same moment and people begin to outbid each other to be executed first.
• WHALES - Individual or Group that has access to lots of capital.
• BURN - Act of permanently removing an NFT of crypto out of circulation
• AIRDROP - For users, means receiving a crypto/NFT sent to your wallet, gas paid by the sender.
• APE IN - Term coined around the time of /r/WallStBets referring to buying a large amount of shares very quickly. Usually with minimal research. (if you decide to invest on your own accord, we recommend ALWAYS taking time to research and be thoughtful )
• AVATAR - Imagine playing a video game and running around with a character on screen. The character is considered an avatar. But also, the profile picture slot on websites is also referred to as an avatar.
• GENERATIVE ART - Art that is dynamically created using layers of art and code to randomize collections.
• MINT - Process of buying a brand new NFT directly from a creator, before it hits the secondary markets like OpenSea.
• MOON - Act of the price rising rapidly for a NFT or crypto
• METADATA - The uniquely defined properties of each NFT, often used for rarities and other utility.
• PAPER HANDS - Description of a user who sells too fast or buys high and sells low.
• DIAMOND HANDS - Description of a user who buys early and/or holds on to an asset for the long-term
• SNAPSHOT - Refers to the action of taking a “picture” of the data on a blockchain at a particular time. Typically to identify what wallet addresses are holding a specific asset, for an airdrop or other access/utility
• SWEEP FLOOR - Refers to the action of buying a large amount of “floor priced” nfts from a single collection.

Acronyms

• PFP - Profile Picture (NFT)
• WGMI / WAGMI - We Are Going (to) Make It 
• NGMI - Not Going (to) Make it 
• GM - Good Morning
• GN - Good Night
• OS - OpenSea - the NFT marketplace
• FUD - Fear, Uncertainty, and Doubt 
• MM - MetaMask - the Ethereum wallet
• HODL - Hold On for Deal Life
• LFG - Lets F*cking Go!
• SER - a sarcastic way to say, Sir.
• WEN - a sarcastic way to say, When?

NFT means Non-Fungible Token

• WTF is Non-Fungible?
  1. Fungible - “Able to be replaced by another identical item”.
     For example, a glass of water, batteries, blankets to stay warm, a dollar, oxygen, and food are all fungible. Being interchangeable and/or having identical replacements.
  2. Non-Fungible - “Not able to be replaced or replicated”.
     For example, your favorite blanket from childhood, the house you grew up in, personal pets, or even memories are non-fungible. They are unique and irreplaceable, unable to be duplicated.
• Token, on the blockchain, like a cryptocurrency

Essentially an NFT is a token on the blockchain that is completely unique.

Check out the free guide which covers all of these topics thoroughly.

Companies like Realitems.io have been using NFT technology to power supply chain tracking by tagging physical items with NFTs for over 3 years now. Customers have only begun asking about the NFT tech powering their software in the beginning of 2021; effectively 3 full years later.

NFT technology can be utilized in many ways but the use cases commonly fall into two categories from a macro view. Retail NFTs and Enterprise NFTs.

Retail - Use Cases for Consumers

• Digital Collectables/Items (Text, Pictures, Video, & Audio)
  1. Art Pieces - ie. CryptoPunks, Curio Cards, CryptoKitties, & more
  2. Music
  3. Videos
  4. Metaverse Items - such as skins for characters in game
• Unlockable/Private Content 
  1. Watch shows like StonerCats by +Mila Kunis, which require holding the NFT in your wallet
  2. Download High-Quality & Exclusive music drops such as the  Dirtybird Flight Path collection from Dirtybird Records.
  3. Behind the scenes & making of footage (removing middle men like Patreon or OnlyFans)
• Access
  1. Amazing communities and potential friendships (with similar interests)
  2. Whitelist for exclusive NFT drops
  3. Members-Only Access/Chat/Networking 
  4. In-Person Events
  5. Online/Metaverse Events
• Verify Authenticity and Product details
  1. Quick & easy verification of creators
  2. Removes risk(s) of ticket scalpers for concerts
  3. Direct access of Creator to Fans
  4. No middlemen between fans supporting creators

Enterprise - Use Cases for Business

• Supply chain tracking and optimization
• Fashion and Retail
• Owning Patents / IP / Licensing
• Media & Entertainment
• Near-Instant Remittance 
• Deeper business insights, in real time

Non-Fungible Tokens (NFTs) were created in 2013 so the technology is fairly new and many uses are still being developed and refined. 

There has never been a better time to get involved as communities/projects are scaling and resources are needed beyond software engineers.

Support the creators you love and connect with them on an entirely new level.

NFTs power way more than collectors looking for the next Pokemon, Beanie Babies, or even Digital Art to flip for a profit.

Not everyone is into collecting and that is completely fine - but NFTs are not only for collectors, resellers, and flippers. The technology is for everyone who likes to support people, organizations, and brands they love, without the middlemen. Repeat, WITHOUT THE MIDDLEMEN; it’s time for creators to really shine here!

NFT technology [via blockchain] unshackles graphic artists, videographers, programmers, and creators of all types from corporate rules, restrictions, and requirements. 

NFTs power a world led by the creators and communities who support them.

Would you consider giving your favorite TV show a few dollars to make a new season? That is only the tip of an earth shattering iceberg for creators and their fans, even new creators too!

Minting NFTs: Direct from an Artist website

Do you want to directly support an artist? Literally, have money go from your wallet into theirs, and you walk away with a beautiful NFT? (Near Instantly). Then you may want to consider minting an NFT directly from their website. 

Supplies are always limited for minting though, so turn on Twitter notifications from your favorite artists.

Minting from an unknown/unproven contract can wipe your entire wallet, crypto and NFTs. Make sure you trust the website you're on and the way you got there (type in the URL bar vs clicking links)

Secondary Market: Buying NFTs on an Exchange

Are you ready to buy an NFT, but prefer less risk? Then you will want to visit an exchange to purchase on the secondary market.

Purchasing an NFT from an exchange is a great way to acquire digital art that has already been released or sold out from the Artist. On a secondary sale, all of your funds will be going to a reseller but there is comfort knowing a commission always goes back to the creator from each resale transaction.

Popular resale websites such as OpenSea display the entire blockchain covering a plethora of Artists & Collections to explore. 

Direct Transfer from wallet to wallet

One of the main benefits of cryptocurrency is its ability to remove the need for trusting another party by utilizing protocols. However, we are so early that much of the technology has not been fully refined for trading NFTs and it can be faster (and potentially cheaper in gas) to “send as a normal wallet transfer” and hope the other person does the same in return.

PLEASE, if you are considering buying an NFT then read our guide. We dive into deep detail around how to stay safe, plus the pro's and con's of the industry.