Key points: The Metaverse, NFTs, and You
Keith Koo, Managing Partner Guardian Insight Group, Host “ Silicon Valley Insider” Radio Show & Podcast
Henry Kim, CEO Metacomica, Founder ComicCauses.org
Below are some key vocabulary and notes from the February 2022 Gateway webinar “The Metaverse, NFTs, and You” cohosted by NAAAP, ALA, and ABL.
You can watch the entire webinar on YouTube: https://www.youtube.com/watch?v=A-jyEajmZwM
Metaverse = A shared virtual environment that people access via the Internet
NFT = Non-fungible token = a non-interchangeable unit of data stored on a blockchain that can be sold and traded. Each NFT is unique, separating it from fungible tokens that can be traded for each other.
Fungible = Mutually interchangeable. Currency is fungible.
Blockchain = A digital ledger of transactions that is duplicated and distributed across a network of computers.
Blockchains are used to verify and record transactions. They can be referred to as triple-entry accounting, a way to record trustless transactions.
Trustless = trust in humans or institutions isn’t required to make the system work
Cryptocurrency = An encrypted data string that denotes a unit of currency. A digital asset people use as investments and for online purchases. Cryptocurrency are fungible tokens.
Web 1.0 = The Web was made of static content & static pages that users could read. It was about reading and getting information
Web 2.0 = The Web becomes more centralized & interactive. It is about reading, writing, and interacting with websites.
Web 3.0 = The Web becomes more decentralized. Users have more control & more freedom to create their own communities. It is about reading, writing, creating, and ownership.
Web 3.0 is a more decentralized version of the Internet. Users have more control, more freedom, and more options to create their own communities.
An NFT is a piece of code that gives proof of ownership.
NFTs are recorded on a blockchain.
NFTs can be used for identification, certification, and documentation
How NFTs are used:
1. Fine art, luxury brands, sports, and athletic and other memorabilia. Applications for NFTs have taken off are primarily in the collectibles, art, gaming and virtual worlds
2. Personal identity management. NFTs can be used to record and verify degrees, academic certificates, licenses and other qualifications as well as medical records, birth and death certificates.
3. Supply chain and logistics. The main function of NFTs in the supply chain lies in authenticating products, ensuring their quality and verifying their origin.
4. Contracts and real estate. NFTs can be used to document and authenticate the history of contracts and real estate transactions. They can also be used to verify ownership.
NFTs are in their infancy. Their value comes from the community it exists in. Some of the early projects have been bid up in value by individuals who want to gain social status or notoriety…..they want to be part of the “cool kids club”.
NFTs can be used by artists to authenticate their creations as well as give them a vehicle so that they will continue to receive royalties if their artwork is sold or resold in the future. NFTs can be used to verify ownership.
NFTs have the ability to transform many industries. They can be used to create and grant different levels of access (example: memberships and tickets)
NFTs are currently popular with people who want to gain social status through ownership and speculators (“flippers”).
While there may be many worthwhile NFT projects in development, there are also many “junk projects”, scammers, and hackers out in the Internet waiting to take advantage of people. One of the current challenges of this new industry is the rampant fraud that is widespread and mostly unchecked.
NFTs and cryptocurrencies can be very volatile and risky investments. “Buyer beware” .
Bitcoin and Ether (Ethereum network) are the most well known of the cryptocurrencies. Bitcoin is the “gold standard”. There is a maximum number of Bitcoins that will ever be available (21 million). About 19 million have already been created.
Originally published at https://medium.com on April 1, 2022.
