NFTs 101 — Ep.1: What Are NFTs?

“Top 5 Questions Most Asked”

What Are NFTs?

I. “More than a JPEG?”

1. NFT = Non Fungible Token
2. Type of digital asset that can represents art and media, or give access to physical world experiences
3. Secured and stored on a public blockchain
4. One NFT is not interchangeable for another, and it cannot be further divided.
5. They are bought and sold online, frequently with cryptocurrency.

II. What are they most used for?

Utilities NFT — some NFTs give you real-world perks such as access to high-end events, groups or associations depending on who the creators are. While utility NFTs are still in their early stages, here are just a few examples from different industries:

1. Digital Collectible — represents ownership of a digital asset such as art, music or even virtual land.
2. Membership — unlock access to exclusive content or services. The real power behind NFTs is that they could truly democratize how an organization is run, from collaboration to governance and more.
3. Gaming — the most common mechanic in pure-NFT games is that creating characters, items, and other assets requires the ownership of “tokens” that can be used in-game.
4. Hospitality — currently, NFTs don’t bring paradigm-shifting benefits to the table here, but they can provide an elegant solution for the management and tracking of access rights.
5. Music & Entertainment — NFTs can be sold from digital artworks to one-of-a-kind experiences, such as private concerts or backstage tours.

For THE DOPE ONES, NFTs could truly democratize consumption and the creation and experience of music in ways we’ve never seen before. Allowing fans to support and engage with artists directly can create a more fair and sustainable music ecosystem that’s better for everyone involved.

III. What are the pros and cons of NFTs?

What are the pros and cons of NFTs?

Benefits

1. Authenticity — NFTs function as immutable digital signatures; unprecedented means of confirming an asset’s authenticity and ownership
2. Transferability — allows people to move assets of massive value globally, securely, and in full public view.
3. Transparency — transactions are effortlessly traceable, proof of both valuation and confirmable scarcity.
4. Accessibility — you can view your collection on any digital device or platform; more applications could be seen in VR spaces or the Metaverse.
5. Royalties — can be hard-coded into the NFT itself, and a percentage of the transaction proceeds is automatically sent to the creator.
6. Composability — One of the most exciting things about NFTs is how they can be thought of like Lego pieces that interact with one another and plugged into a larger, interconnected ecosystem.

Risks

1. Speculation — so far, people often misunderstand NFTs, seeing them as an asset with no other purpose than hype or speculation.
2. Illiquid and Volatile — since it is a new asset and its relatively immature state, NFTs are not widely understood. The number of potential buyers and sellers is still relatively small.
3. Infrastructural — certain infrastructural challenges need to be sorted before our world becomes a lot more “decentralized” and “web3 enabled.”
4. Fraud & Scammers — despite the blockchain, there is a potential for fraud and scammers within the space, which adds another big risk to consider.

IV. What do I need to get started with NFTs?

What do I need to get started with NFTs?

1. Get a Digital Wallet — set up a secured cryptocurrency wallet used to interact with the blockchain and interact with decentralized applications. Most people use: Metamasks (Ethereum-based)
2. Load it with Cryptocurrency — start by obtaining the underlying cryptocurrency
3. Explore Marketplace — start creating, buying (and, hopefully, selling) your NFT. Some of the top NFT marketplaces include OpenSea,
4. Follow on Twitter & Instagram — these platforms allow you to stay active and relevant within the crypto and NFT circles. Discover and follow NFT projects that emotionally connect with you!
5. Engage in Discord — the go-to platform for NFT communities. Once you have decided which communities to join, jump into the project’s channel. Imagine it as the “living room” for the community, where you get to know your like-minded community members. It is also where the early intel on presales, special announcements, and airdrops is released first.

V. Why should I be interested in NFTs?

The future of NFTs:

1. NFT is here to stay. It’s inevitable. The future of the internet will become more decentralized and web3 enabled.
2. NFT can revolutionize the way we engage with the world around us and with each other.

For more DOPE education. Make sure to follow us @DopeOnesNFT

Website: https://dopeone.io/blog

Instagram & Twitter: @DopeOnesNFT