NFT Notes
🖼️ Introduction
Why Create an NFT?
From artwork to collectibles, NFTs provide a new platform for creators to sell their unique digital content directly to consumers worldwide, aiding in the preservation and proof of ownership.
What is NFT?
NFT stands for Non-Fungible Token - a type of digital asset that represents ownership or proof of authenticity of a unique item or piece of content, using blockchain technology.
Buying and Selling NFTs
Once your NFT is minted, it goes live at the marketplace for interested buyers. Typical NFT transactions include sales, auctions, and even trades.
Create your own NFT
Creation of the digital artwork is the first step to make an NFT. This art piece can be anything digital: a picture, music, tweet or even a gif! To mint your NFT, you'll need to connect a digital wallet to an NFT marketplace, set up a creator profile, and upload your digital content.
🖼️ NFTs explained
Web3 left me skeptical: people don’t want to run their own servers, protocols evolve too slowly, & most dApps just rely on a few centralized API providers. Even NFTs mostly point to mutable URLs. After building dApps/NFT myself, it all feels far less decentralized than advertised.
1/ NFTs aren’t the art—you’re buying a unique database entry on a blockchain.
2/ The image or video is just a label attached to your entry; you don’t own its rights.
3/ Think of it like buying a spot in a queue with a picture taped to it. You own the spot, not the picture.
4/ Most NFT art is auto-generated, not handcrafted—mixing backgrounds, faces, accessories, etc…
5/ Anyone can mint NFTs; the blockchain only checks the spot is unique, not the art.
6/ Why people buy: misunderstanding, speculation, brand support, or digital status.
7/ Claims of NFT weapons/items crossing between games? Technically impossible.
8/ NFT prices often rise because of insider trading between multiple wallets.
9/ Value is 100% hype-driven; if people stop caring, it’s worthless.
10/ In short: an NFT is a receipt for a unique database position, not ownership of the art itself.
🖼️ NFT Notes
🔸 NFTs are the tokenization of art, and memecoins are the tokenization of NFTs.
🔸 New DappGambl report shows that nearly (95%) all NFTs are now practically worthless (MarketCap of Zero).
🔸 With NFTs, blockchains make the jump from finance into creative applications.
🔸 Regulators would do well to recognize that blockchains are the next generation of the Internet, and applying financial regulations to NFTs is a category error.
🔸 An NFT is a unique digital object. NFT avatars are the new blue checkmarks.
🔸 NFTs are monetized memes. If the community around an NFT is dying, the NFT is likely bleeding value. If the community is surging, the NFT is likely gaining value.
🔸 Token holders have to be convinced to HODL, but NFT owners are HODLers by default.
🔸 Just as HODLers imbue Bitcoin with value, and developers infuse Ethereum with value, collectors, admirers, and users imbue NFTs with value.
🔸 The inflation hedges are shifting from gold, art, and farms, to Bitcoin, NFTs, and tech companies.
🔸 But a select few NFTs will become focal points for communities who gather to celebrate art, build collections, and explore virtual worlds.
🔸 Even “actual-value NFTs” require a social contract with the creator and community to transfer the value from the off-chain contracts onto the chain where the NFT is registered.
🔸 Actual-value NFTs” can draw upon legal and code-based contracts - a song token can provide a royalty stream, a ticket token can provide access, an item token can have in-game powers, an ISA token can provide a cut of creator earnings.
🔸 NFTs gain value when displayed, used, and promoted within vibrant and growing communities.
🔸 For NFTs representing digital art and collectibles, the creator cannot enforce scarcity - it’s up to a surrounding community to imbue the authorized NFT with scarcity and prestige within the context of that community.
🔸 An NFT’s creator may break their promise, or be unable to enforce it, or may have picked the wrong underlying platform and community - rendering the NFT worthless.
🔸 Off-chain assets represented by NFTs are not provably scarce.
🔸 NFTs tokenize all the things. By assigning a unique token to a thing, its ownership (not the thing itself!) becomes programmable, verifiable, divisible, durable, universally addressable, composable, digitally secured, and easy to transfer.
🔸 An NFT is a unique, on-chain token representing ownership of an off-chain asset. The token is backed by a social contract from its creator and a surrounding community.