ELI5: What, really, is an NFT?

#1

Post by nokita » Mon, Jan 01, 2024, 8:38 PM UTC

I've read about these multiple times. I've had people explain the mechanics, but I read don't understand what an NFT is supposed to be.

Or do.

So please, can someone ELI5?

Thanks.

Re: ELI5: What, really, is an NFT?

#2

Post by thesuperbigfrog » Mon, Jan 01, 2024, 8:43 PM UTC

It is a verifible, public receipt that someone bought something.

It cannot be faked and anyone can verify that it happened.

Re: ELI5: What, really, is an NFT?

#3

Post by Hackbraten » Mon, Jan 01, 2024, 8:51 PM UTC

Not a serious explanation but a must-see:

https://youtu.be/cJzNiFLyw8k

Re: ELI5: What, really, is an NFT?

#4

Post by Baldbvrhunter » Mon, Jan 01, 2024, 9:07 PM UTC

take a file which you can duplicate for free

hash it with the blockchain, which costs you $

now it's attached to your wallet

now you can trade them by transfering to someone else's wallet for a fee of your choosing

it's a way to create artificial scarcity

Re: ELI5: What, really, is an NFT?

#5

Post by Zetobal » Mon, Jan 01, 2024, 9:45 PM UTC

thesuperbigfrog wrote: post #2

It is a verifible, public receipt that someone bought something. It cannot be faked and anyone can verify that it happened.

The gamification part of NFTs is to not be the last one holding the bag.

Re: ELI5: What, really, is an NFT?

#6

Post by speedgoose » Mon, Jan 01, 2024, 9:46 PM UTC

It’s a big number that says that you own something but you don’t actually own much, a bit like the star naming scams.

Re: ELI5: What, really, is an NFT?

#7

Post by jacobgorm » Mon, Jan 01, 2024, 9:52 PM UTC

thesuperbigfrog wrote: post #2

It is a verifible, public receipt that someone bought something. It cannot be faked and anyone can verify that it happened.

Could you give an example of how this works in the real world? Can I create a hash of a PNG of the Mona Lisa and sell that to the highest bidder, and who owns the Mona Lisa in that case? Can I change a single pixel in the PNG, create another hash and sell it again, over and over? Can I sell it once more as a JPEG or in a different resolution? Can I sell it on multiple blockchains? What happens to my ownership of Mona Lisa if I die and nobody knows my private key?

Re: ELI5: What, really, is an NFT?

#8

Post by cpach » Mon, Jan 01, 2024, 10:09 PM UTC

speedgoose wrote: post #6

It’s a big number that says that you own something but you don’t actually own much, a bit like the star naming scams.

Exactly. Or like those “Official Highland Titles” from Scotland.

Re: ELI5: What, really, is an NFT?

#9

Post by j0hnyl » Mon, Jan 01, 2024, 10:45 PM UTC

An NFT is an entry in a list of records that belongs to you. The entry might have data or a media file attached to it or reference a media file or data. You transfer, gift, or sell this entry to someone else if you want to.

Re: ELI5: What, really, is an NFT?

#10

Post by jrflowers » Mon, Jan 01, 2024, 11:12 PM UTC

It is like a RealDoll in that if somebody mentions owning one you cannot unlearn that information about them