NFTs: What’s After The Monkeys?

by | Feb 13, 2022 | 0 comments

NFTs in the ‘Bored Ape Yacht Club’ series

OpenSea is the largest marketplace for trading NFTs (non-fungible tokens)…its valuation is currently $13 billion. People (really enthusiasts) are flocking to sell/buy NFTs because they are decentralized, meaning they reside outside the control of banks or governmental control. However, on the flip-side, fraud and scams run rampant in the digital asset world and there is no recourse for recoupment of lost or stolen funds.

NFTs are digital assets. They are meant to be unique rather than interchangeable (fungible). Their ownership is recorded as software code on a digital ledger that is distributed on millions of computers on the worldwide internet – known as blockchains.

Creating An NFT

Making an NFT involves writing a piece of computer code that is recorded to the blockchain and is held in a digital wallet controlled by its owner. In 2021 over $30 billion were spent on NFTs, but they represent a complete 180 to the current financial system AND its rules of engagement… government-backed currency, rules, regulations, and enforcement to ensure (supposedly) a safe and secure business environment. As opposed to cryptocurrencies, NFTs, and other digital assets utilize the blockchain which offers a new way to exchange and store a virtual asset that cannot be altered or copied and is completely anonymous.

Are NFTs Safe To Trade

When someone lists an NFT for sale on, for example, OpenSea, at a certain price, that information is written into the blockchain.  If that seller then decides to take that NFT off-market (making it not for sale) doing so doesn’t change the underlying code on the blockchain. This allows people to use the old price to buy the NFT that sellers thought had been taken off the market. This problem, as well as other issues, are growing pains for the digital asset world and we have yet to even scratch the surface of the profound impact blockchain technology will have on current and future industries and businesses.

 

 

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By Jim Lavorato

Jim Lavorato is the founder of 4M Performance which is designed to assist businesses to survive and thrive in these uncertain times. Jim launched an entertainment-related company in 1988. He was at the forefront in cinema technology and helped spearhead the movie industry's transition to digital presentation and distribution. He also co-founded the Arboreal Group, an environmental consultancy. He has published articles on the motion picture and media industries and is a contributing editor for ScreenTrade magazine and writes a blog "Cinema Mucho Gusto". He is a certified SCORE Mentor in the SCORE Greater Phoenix Chapter and lives in Scottsdale, AZ. Learn more about Jim in his "About" page.

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