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NFT misconception: JPEG aren't stored on the Blockchain

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Re: NFT misconception: JPEG aren't stored on the Blockchain

#231

Post by koonsolo »

bananamerica wrote: post #221
koonsolo wrote: post #218

Earlier quoted context omitted.

I agree that it's all stupid. There is a select group of idiots that want to spend a crazy amount of money on meaningless collectibles. Thats's why I understand both baseball cards and NFT's. :D

I still think that anything even marginally tangible, including virtual assets such as skins or dance animations, are way more reasonable than NFTs.

At a $5 or even $20 price point, I agree. But at a $20K, it all starts to become ridiculous. And then for me, the intrinsic value is neglectible.

But I understand what you mean.

Re: NFT misconception: JPEG aren't stored on the Blockchain

#232

Post by Animats »

arcticbull wrote: post #213
throaway6942 wrote: post #211

Earlier quoted context omitted.

We can't apply 1:1 laws to crypto precisely because of this. I can write a piece of code in a few minutes for all the collection I own, does not make it wash trading. In fact, you can very easily check it on etherscan or similar tools that this was a flash loan.

> We can't apply 1:1 laws to crypto precisely because of this. I think in a lot of cases that's simply wishful thinking. They Howey test is actually a very good fit in the crypto space broadly, especially alongside the guidance from the SEC on how to interpret it with respect to digital assets. [1] Most tokens are just straight-up securities, what we're lacking isn't regulation but enforcement. NFTs are likely not se…

NFTs are likely not securities as they fail the Howey test.

NFTs for things that already exist are likely not securities. But NFTs for things that don't exist yet, such as as virtual land in un-implemented virtual worlds, do pass the Howey Test. You're funding the development of something, not buying something that already exists. That's an investment. At some point, probably after the first widely publicized collapse, the SEC will shut many of the future-oriented NFTs down, much as they did to the ICOs starting in 2018.

Virtual land in vaporware virtual worlds is the same scam as selling undeveloped swampland in Florida, a popular scam in the 1950s.[1] There are few new scams. It's mostly the same old ones with new shiny packaging. Most of them are listed in Extraordinary Popular Delusions and the Madness of Crowds, from 1841.

[1] https://en.wikipedia.org/wiki/Swampland_in_Florida

Re: NFT misconception: JPEG aren't stored on the Blockchain

#233

Post by vmception »

bananamerica wrote: post #229
vmception wrote: post #222

Earlier quoted context omitted.

The irony being that Fornite skins are an even closer analogy to NFT collectibles. What you described is exactly why many people collect NFT collectibles. With Fortnite skins, the aesthetics, price, clout and access derived are completely beholden to the continued scarcity of the skin as well as beholden to the organization for its continued existence and use anywhere, both of which the organization can modify at any…

How is a skin the same as selling a contract for something that does not exist? A skin can actually be used. Besides selling it, what is the use of an NFT?

Skin = database entry with metadata

NFT skin = database entry with metadata

The NFT skin inherits all the capabilities of the skin, except that the database entry cant be modified. You are a programmer right? Do you know the concept of inheritance in programming as it applies here. The market finds value in that assurance.

I think you are bringing a lot of inaccurate preconceptions to this concept, there is an opportunity to erase what you knew and look at the concept from this lens: does what I say work? Is this what a portion of the market is doing? If yes, thats all you need to know. Look for those NFTs and ignore the other NFTs.

Re: NFT misconception: JPEG aren't stored on the Blockchain

#234

Post by bananamerica »

vmception wrote: post #233
bananamerica wrote: post #229

Earlier quoted context omitted.

How is a skin the same as selling a contract for something that does not exist? A skin can actually be used. Besides selling it, what is the use of an NFT?

Skin = database entry with metadata NFT skin = database entry with metadata The NFT skin inherits all the capabilities of the skin, except that the database entry cant be modified. You are a programmer right? Do you know the concept of inheritance in programming as it applies here. The market finds value in that assurance. I think you are bringing a lot of inaccurate preconceptions to this concept, there is an opport…

That's just a technical neatpick. The actual distinction is: a skin is something you use. An NFT is not.

I do program, sure, but not everything is a programming metaphor.

Re: NFT misconception: JPEG aren't stored on the Blockchain

#235

Post by koonsolo »

koonsolo wrote: post #216
newswasboring wrote: post #206

Earlier quoted context omitted.

Yes but NBA can unilaterally delete this data from the server, right? Then how am I getting any control?

First of all, who cares about the video? You "own" the dunk, not the video of the dunk. So even if the video goes down, you still "own" the dunk. How would you delete the history of a dunk? And in any other case: archive.org

> What does it mean to "own" the dunk?

For some people it's the NFT that the NBA sold. You only need 2 people with a lot of money to believe that.

Do I believe that? No. Do I believe others can believe that? Yes. Do I therefore believe it's a scam? No.

Re: NFT misconception: JPEG aren't stored on the Blockchain

#236

Post by crorella »

gengkev wrote: post #133
crorella wrote: post #71

Earlier quoted context omitted.

exactly, anyone could alter the content the URL points to.

Right, I'm really surprised that there isn't at least a hash or something for that reason...

probably adding the hash means hundreds of $$ in storage

Re: NFT misconception: JPEG aren't stored on the Blockchain

#237

Post by arcticbull »

Animats wrote: post #232
arcticbull wrote: post #213

Earlier quoted context omitted.

> We can't apply 1:1 laws to crypto precisely because of this. I think in a lot of cases that's simply wishful thinking. They Howey test is actually a very good fit in the crypto space broadly, especially alongside the guidance from the SEC on how to interpret it with respect to digital assets. [1] Most tokens are just straight-up securities, what we're lacking isn't regulation but enforcement. NFTs are likely not se…

NFTs are likely not securities as they fail the Howey test. NFTs for things that already exist are likely not securities. But NFTs for things that don't exist yet , such as as virtual land in un-implemented virtual worlds, do pass the Howey Test. You're funding the development of something, not buying something that already exists. That's an investment. At some point, probably after the first widely publicized collap…

Good point, that would rely on the efforts of others, yeah?

Re: NFT misconception: JPEG aren't stored on the Blockchain

#238

Post by TomSwirly »

todd3834 wrote: post #17

I hate to admit it but I’m still struggling to understand why people would pay so much for NFTs. I feel like I fully understand what they are and why most people want me to believe it has value but I still don’t agree. I’m waiting for my mind to change but it hasn’t happened yet. It’s frustrating because so many people I respect are leaving their high paying jobs to work in web3 startups around NFTs and I feel dumb f…

> I hate to admit it but I’m still struggling to understand why people would pay so much for NFTs.

Why would someone pay _anything_ for an NFT?

You only get ownership over the NFT itself, not the artwork.

Someone else could create another NFT from the same artwork or the original artist could.

Re: NFT misconception: JPEG aren't stored on the Blockchain

#239

Post by TomSwirly »

throaway6942 wrote: post #211
arcticbull wrote: post #204

Earlier quoted context omitted.

> Wash trading is a process whereby a trader buys and sells a security for the express purpose of feeding misleading information to the market. In some situations, wash trades are executed by a trader and a broker who are colluding with each other, and other times wash trades are executed by investors acting as both the buyer and the seller of the security. Wash trading is illegal under U.S. law, and the IRS bars tax…

We can't apply 1:1 laws to crypto precisely because of this. I can write a piece of code in a few minutes for all the collection I own, does not make it wash trading. In fact, you can very easily check it on etherscan or similar tools that this was a flash loan.

> We can't apply 1:1 laws to crypto precisely because of this.

Why do you think the rule against wash trading is there?

Because people systematically manipulated markets with it.

> I can write a piece of code in a few minutes for all the collection I own, does not make it wash trading.

Your argument is, "I can do this really fast, therefore it's not criminal"?

Re: NFT misconception: JPEG aren't stored on the Blockchain

#240

Post by TomSwirly »

vmception wrote: post #220
arcticbull wrote: post #205

Earlier quoted context omitted.

So to be clear the community is encouraging criminality and attempting to brow-beat folks suggesting compliance with the law into accepting said criminality? Sounds healthy, and definitely not like a cult. It’s not a good look to be on the receiving end of government benefits and services, gloating about your lack of contribution and encouraging others not to. This may look good in crypto circles but here in the real…

So to be clear, no, that's not what the meme is about. Is your essay from GPT-3? It's about not offering anything to a discussion as they also don't even know about what tax is relevant. This person follows that rubric exactly, as they "suspect" a tax is involved, when a flash loan wash sale would just as easily not cause any tax at all and they offer no introspection into the nature of the transaction and what quest…

> Is your essay from GPT-3?

No need to be insulting.

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