This article will explain you all the basics to NFT’s in brief and also contains answers to FAQ/commonly asked questions or doubts about NFT’s. Reading the entirety of this article will expand your knowledge on NFT’s and help you understand the concept of the market more better.
WHAT ARE NFTs?
-Non-fungible tokens.
-Fungibility is the property of something where its individual units are interchangeable/equal in value. Ex) `$1 = $1`, `1kg of coffee = 1kg of coffee`, `500mL of water = 500mL of water`.
-NFTs are specific bits of code on the blockchain, often with an accompanying digital asset/file, most commonly an image, but almost any file type.
WHY NFTs?
-New technology, new possibilities, new file distribution methods.
-Provable ownership (more info below).
-Use cases include, but are not limited to: `membership passes, tickets, receipts, a stake in a business, art, games, game items, a key to access something else.`
-Perpetual royalties for the creator on secondary sales, without having to rely on a 3rd party to ensure they get it.
-“Commissions argument”: commissions are good, sure, but why should an artist be forced to rely on someone else saying “I want this” and what’s to stop them from deciding they don’t like the finished product anyway?
-Artists can make what they want, when they want, because they want to. No more relying on someone else to commission it, get hired for work or anything like that. They become their own boss.
Can I SCREENSHOT NFT’s?
-You can, but there’s no benefit. It’s like taking a picture of the Mona Lisa. At best, you have a copy.
-If it isn’t on the blockchain, it isn’t an NFT.
-Reselling it as a new NFT is selling a fake, which could be illegal in some cases, but regardless, carries absolutely no benefit of the original.
-You cannot use your screenshot/save for any of the use cases mentioned above. `This is because the smart contract the original NFT was minted (created on the blockchain) on is the only one that will be used for any sort of integration/checking/etc for any benefits. You are not able to mint a new one or a copy on the same smart contract.`
-You can screenshot Fortnite/Roblox skins as well, but that doesn’t let you use them in those games.
-You basically give free promotion of the NFT by sharing the screenshot/copy anywhere.
-Some NFTs can have what’s called “unlockable content” which is hidden from public & only accessible to the owner. Screenshotting/saving the file does not grant you access to this.
-Despite all this, download the image (or other) if you like it. Buying it supports the artist. Simple.
NFTs AREN’T REAL
-They’re as real as YouTube videos, phone selfies, memes, games & software.
-Fortnite/Roblox skins aren’t real either, but people buy those. The only difference there is that you lose them if you lose your account. With NFTs, you keep them even if the game you play goes down or you lose access. The NFT can be transferred again.
-Some NFTs are connected to physical things, whether items like clothing or physical art, access to real places (membership pass), entitlement to discounts/VIP benefits/etc.
-By that logic, stock photography isn’t real either, yet that has existed on the internet for far longer than the existence of NFTs or even blockchain, and people spent on those.
-Let’s not forget photography prints & services & artwork (along with any digital art work, graphic design (social media, promotional images, logos, clothing/product design)) in general as well.
WHY ARE NFTs SO EXPENSIVE?
-Getting in early on new tech, new possibilities, etc.
-It’s an open market, anyone can list for any price or make any offer.
-Much speculation.
NFTs ARE BAD FOR THE ENVIRONMENT
-You should look up the environmental impact of creating your phone. Materials need to be mined (ecosystem damage, pollution, wildlife displacement). There’s a lack of proper recycling of old devices as well. And don’t forget the power usage, where you get your power from is very likely not as clean or green as you think.
-“I live off the grid with solar/wind energy, have a fairphone, use only enviro/eco friendly products & live a sustainable lifestyle.” Awesome! Seriously, that’s awesome to hear! Very few actually do, you’re probably in the top 1-5 % of people.
-Posting on Twitter/Facebook/YouTube/Tik Tok/Instagram/sending an email, all these things use about as much energy as sending a single transaction on the blockchain, if not more.
-Server farms are permanently on all over the world for VPN/ISP/cloud/content/gaming/hosting/etc services. But these have not been criticized for their impact on the environment & energy usage as much as NFTs.
-**Gas fees.** This is nothing more than a term meaning “transaction fees”. It has nothing to do with the gas you put in your car.
-NFTs exist on proof of stake/low energy usage blockchains as well. So the blanket statement “NFTs are bad for the environment” is false.
-NFTs are just one component of many on blockchains. The blockchains would be used regardless of the existence of NFTs, as long as it is profitable to do so.
NFTs ARE STUPID / A WASTE OF MONEY / USELESS
-You are entitled to your opinion. No one is trying to force you to like or get into NFTs and if they are, they’re in the wrong. You have no obligation.
-The same could be said for trading cards, shoe/purse collections, yachts, expensive vehicles/homes.
-It’s not up to you what other people do with their money & it really shouldn’t bother you so much. It doesn’t affect you.
-Useless: see above FAQs
SCAMS, ART THEFT, TAX EVASION, MONEY LAUNDERING, ETC
-Bad actors exist in every community. This has no bearing on the thing as a whole.
-Some people use computers to hack. Does this make computers bad & give reason to ban them?
-Killers have used more than guns/knives to kill. Should scissors be banned? Baseball bats? Screwdrivers, writing implements, cars, pillows, rope, etc also be banned for the reason that they can be used to kill?
-And bots/people taking images from Deviant art & uploading to a print-on-demand service to sell products with it totally isn’t a problem at all that existed before NFTs did…
-Art theft has been happening since before NFTs existed. NFTs aren’t the issue, bad people doing bad things are.
-Yes, there have been instances of tax evasion & money laundering with NFTs. But throwing those accusations out baselessly is ridiculous. Those things take place in legitimate offline businesses as well.
