Editor’s Note: SOFREP encourages our members to submit content to us for publishing consideration. Today we begin a series by Miguel Castro who is writing about NFTs or, Non-Fungible Tokens. It may seem like a rather nerdy topic for a site like SOFREP, but NFTs are becoming important in the digital world we all partly inhabit for better or for worse. They establish a right of ownership of the software code medium that becomes art, music, computer programs, and even real estate in virtual worlds. Most NFTs are bought and paid for with digital currency like Bitcoin and Ethereum thus representing an entirely digital economy of virtual products paid for with virtual currency.
If you spend at least a couple of hours meddling down the internet rabbit hole, whether you’re visiting news or entertainment sites, spending time on social media, or even playing games, you will have probably come across the acronym NFT and some very insane news about the money they might be worth. But very few articles actually give you an in-depth guide on what they are, how they came about, where they are going, and of course, how to get involved in that sexy, but very confusing new internet world.
This series of articles will try to answer these questions.
Non-Fungible Tokens scheme that visualizes traditional art with real money system and digital art with blockchain Ethereum system of tokens to make items unique and not fungible. (Created by Mario Taddei/Wikimedia Commons)
What Is an NFT
So let’s start with some basics.
NFT stands for Non-Fungible Token. It is a piece of digital content that exists on the blockchain, and through its existence has an ownership contract attached to it.
At the very core of that definition is that no two NFTs are alike, worth the same, nor are equally traceable. To put it simply, at the exact moment of a certain valuation we could trade one dollar for another, a Bitcoin for another Bitcoin, and so on and so forth. The thing with NFTs is that their value is more on the appreciative side, depending on their rarity, the artist, platform, or moment.
Editor’s Note: SOFREP encourages our members to submit content to us for publishing consideration. Today we begin a series by Miguel Castro who is writing about NFTs or, Non-Fungible Tokens. It may seem like a rather nerdy topic for a site like SOFREP, but NFTs are becoming important in the digital world we all partly inhabit for better or for worse. They establish a right of ownership of the software code medium that becomes art, music, computer programs, and even real estate in virtual worlds. Most NFTs are bought and paid for with digital currency like Bitcoin and Ethereum thus representing an entirely digital economy of virtual products paid for with virtual currency.
If you spend at least a couple of hours meddling down the internet rabbit hole, whether you’re visiting news or entertainment sites, spending time on social media, or even playing games, you will have probably come across the acronym NFT and some very insane news about the money they might be worth. But very few articles actually give you an in-depth guide on what they are, how they came about, where they are going, and of course, how to get involved in that sexy, but very confusing new internet world.
This series of articles will try to answer these questions.
Non-Fungible Tokens scheme that visualizes traditional art with real money system and digital art with blockchain Ethereum system of tokens to make items unique and not fungible. (Created by Mario Taddei/Wikimedia Commons)
What Is an NFT
So let’s start with some basics.
NFT stands for Non-Fungible Token. It is a piece of digital content that exists on the blockchain, and through its existence has an ownership contract attached to it.
At the very core of that definition is that no two NFTs are alike, worth the same, nor are equally traceable. To put it simply, at the exact moment of a certain valuation we could trade one dollar for another, a Bitcoin for another Bitcoin, and so on and so forth. The thing with NFTs is that their value is more on the appreciative side, depending on their rarity, the artist, platform, or moment.
NFTs can really be a lot of things. Lately, all the fuzz is about the unique digital artworks being sold on numerous marketplaces (we will get into those in a later article), but they are not limited to that. NFT’s can be game assets, event tickets, games, video content, website domains, and even property deeds or means of identification.
What makes an NFT so special is the blockchain/smart contract part. Since it is minted on the decentralized blockchain it’s practically impossible to corrupt, hack, or duplicate. And if someone does duplicate an NFT, the blockchain can prove, without a shadow of a doubt, who owned it first.
A Jump in Popularity
This digital collage NFT by Mike Winkelmann Everydays: The First 5,000 Days sold for $69,346,250 at Christie’s Auction House.
NFTs have been around for a while but recently started making mainstream news after a digital artist called Mike Winkelmann, better known in the online world as Beeple, sold a compilation of his artwork through Christie’s, a renowned auction house. The artwork was sold for no less than the sweet sum of $69 million dollars.
Yes, you read that right, the guy sold a .jpg file for almost 70 million dollars in an auction.
But the hype has been brewing since 2017 when a company called Larva Labs created the CryptoPunks, 10,000 unique NFTs, and gave them away for free. Some of those have since then been sold for over $10 million, while most of them were resold for at least over $25,000.
However, there was a catch. Larva Labs created the CryptoPunks with a smart contract that guaranteed that every time they were resold a percentage would go to the original owners, so the company has since earned a solid amount.
There is a lot to say and tell about what has happened with the CryptoPunks since their creation, but let’s save that for the CryptoPunks Special.
So welcome to the world of the Non-Fungible Tokens, an entirely new way to sell and distribute digital assets, to create and to be compensated for your creativity, and to support a cause you believe in. But especially, welcome to the future, because NFTs are here to stay, and they are going to, slowly but surely, change the world.
Mr. Castrois the founder and former director of Trastienda, a Strategic Marketing, Content and Communications Firm founded in 2014. Focused on Business Development, Trastienda clients include companies such as CMLL, Modelo, Libbey Glass Company, and TV Azteca. Today he consults for PlayStation, spearheading their business development for licensing in Latin America.
As someone who’s seen what happens when the truth is distorted, I know how unfair it feels when those who’ve sacrificed the most lose their voice. At SOFREP, our veteran journalists, who once fought for freedom, now fight to bring you unfiltered, real-world intel. But without your support, we risk losing this vital source of truth. By subscribing, you’re not just leveling the playing field—you’re standing with those who’ve already given so much, ensuring they continue to serve by delivering stories that matter. Every subscription means we can hire more veterans and keep their hard-earned knowledge in the fight. Don’t let their voices be silenced. Please consider subscribing now.
One team, one fight,
Brandon Webb former Navy SEAL, Bestselling Author and Editor-in-Chief
Barrett is the world leader in long-range, large-caliber, precision rifle design and manufacturing. Barrett products are used by civilians, sport shooters, law enforcement agencies, the United States military, and more than 75 State Department-approved countries around the world.
PO Box 1077 MURFREESBORO, Tennessee 37133 United States
Scrubba Wash Bag
Our ultra-portable washing machine makes your journey easier. This convenient, pocket-sized travel companion allows you to travel lighter while helping you save money, time and water.
Our roots in shooting sports started off back in 1996 with our founder and CEO, Josh Ungier. His love of airguns took hold of our company from day one and we became the first e-commerce retailer dedicated to airguns, optics, ammo, and accessories. Over the next 25 years, customers turned to us for our unmatched product selection, great advice, education, and continued support of the sport and airgun industry.
COMMENTS
There are on this article.
You must become a subscriber or login to view or post comments on this article.