Non-fungible tokens (NFTs) have caused a lot of hype over the last two years. There is a lot of confusing terminology that can make it difficult to grasp exactly what NFTs are and why people are so interested in them. I hope that this post can provide a starting point for people interested in web3, NFTs, and the metaverse generally. I’m looking forward to learning more about this space together 🙂. Please feel free to ask any questions you may have.
The Metaverse
It’s important to recognize that Meta (FB) is NOT the metaverse. This is Facebook trying to capitalize on people’s lack of understanding of what the metaverse is, to try and have people funnel into FB instead of doing their own research and seeing the bigger picture.
The metaverse is really just the connection and interoperability between all online communities. For example, World of Warcraft is a small portion of the metaverse. Twitter is a small portion of the metaverse, each Discord group, etc. You can then get into the virtual realm aspect, such as Sandbox and Decentraland, which are further examples of the metaverse.
Non-Fungibile Tokens (NFTs)
You can imagine web3 as a blockchain layer that is added to web2 (the current internet). NFTs (non-fungible tokens) are a way to track digital files using blockchain, but the NFTs themselves only form a part of this developing ecosystem. Digital files have never before been able to be given a unique identifier. That means it’s possible to truly own a digital object.
Consider the implications of being able to track everything online in a transparent way through blockchain. While NFTs as art is currently exciting, you can imagine them being used to track title and deeds of real estate, being used to track inventory around the world, being used to track news to trace it to a reputable source, etc. I think the use of blockchains as a way to track digital files goes well with the concept of developing an online reputation, in a way that information can properly be traced back to the source. This means that we can have each individual transact with one another directly, in an authentic and trackable way, without the need for intermediaries; instead relying on a decentralized system that supports the interconnectivity between all of these individuals.
Of course, there will be nefarious parties interested in capitalizing on other’s ignorance and misfortune, but that’s humanity. We can do better.
In terms of resources, the number one rule of getting involved with web3 is DYOR (do your own research). This is a complicated area to get involved in, so I would highly recommend researching the base technologies before jumping into investments.
For context, I started researching blockchain 4 years ago as a way to combat the mass dissemination of misinformation (e.g., Cambridge Analytica and the 2016 US election). I took a bit of a break from it, and got back into it a few months ago while researching NFTs for photography. I have since realized that there is so much more to it than I ever imagined, in a way that brings me hope for the future of society.
Resources
I’ll share a few more resources here to help people get started. Again, I highly, highly recommend wrapping your head around the base technology before trying to think about the bigger picture. There is so much misinformation out there on this, please be careful.
There is a lot to learn here. Make sure you take breaks if you feel overwhelmed at it all (I experience information overload on many occasions). I have included some helpful links to the base tech, and then have listed the megathread by punk6529. The megathread is effectively a list of explanations on different topics relating to blockchain, NFTs, wallets, smart contracts, regulations, etc. If anyone has difficulties navigating the thread, feel free to reach out to me here (or on my twitter). Once you get to around thread 16 from the main thread, there is a series of sub-threads that have specific explanations for different aspects of NFTs and the broad concept of decentralization.
1. What is Blockchain?
This video from Simply Explained explains what a blockchain is, and how it works.
2. Proof of Stake (PoS) vs Proof of Work (PoW)
This video explains the different block verification techniques used in cryptocurrencies. Proof of Work miners mine blocks to verify a transaction, while Proof of Stake validators validate transactions.
3. What are Smart Contracts?
Simply Explained covers what is a smart contract and its role in blockcain and cryptocurrencies in this video. NFTs have two parts to them: a digital file and a smart contract.
4. What is an NFT?
Simply Explained covers what an NFT (non-fungible token) is in less than 4 minutes.
5. How to Build an Open Metaverse:
Punk6529’s megathread to An Open Metaverse 🚀. I personally came across this thread when I was new to the NFT space, and I am very glad that I did. This thread provides an in-depth summary of many topics that are essential to understanding the NFT space.
