THE

QUICK & EASY

GUIDE TO NFTs

Metaleap University
NFT BOOOOM ...

Non fungible tokens or

- — Enabled by the game -

NFTs are causing a

— changing breakthrough of
revolutionary shift as one of blockchain technology ,

the most significant NFTs are an innovative

technological innovations in solution to severe problems
plaguing the music art and
tech and finance But having
, ,

content creation industries

.

turned into a cultural

.

phenomenon in 2021 it s , ’

become very easy to get lost

in the hype surrounding the
NFT space .

While blockchain technology

can be complicated at
times NFTs are much easier
,

to understand than most

people think This guide is a
.

living document that aims to

demystify NFTs so that you ll ’

come away with a basic

understanding of
what the heck are non -

fungible tokens ,

what they do and most ,

importantly ,

why they matter

And why should you
care ?
WHAT IS AN NFT?
NFTs are a new type of digital An NFT can be a piece of
asset with an importance digital art a song a poem
, , ,

placed on its non fungibility If

- .
a baseball card an entry ,

we asked you to let us borrow ticket and so much more .

INR 100 you most likely

,
Think of it as a digital
wouldn t open your wallet and
’
collectible that lives on the
say Which Note do you
, “
blockchain But what s
. ’
want This is because the INR
special about an NFT as
?”

Note is fungible Each INR 100

,

opposed to the art in your

.

Note has the same value as

every other INR 100 Note .
home or your old Pokemon
NFTs on the other hand are
, ,
cards is that an NFT is
,

non fungible in the sense that

-
created or minted on a
( “ ”)

no two are the same Each NFT .

blockchain thus making it
,

is a unique asset that cannot completely digital ,

be replaced by an identical trackable and immutable .

version because there is no

identical version .
When something is NFTs enable true
minted on a blockchain , ownership of a digital
it and all of its
— asset in a way that wasn t ’

attributes will live — possible prior Although

.

there forever This means . some argue that they

that an NFT can be could simply download a
purchased sold gifted , , , JPEG image of an NFT
etc and its history and
., and save it this action
,

value will forever be would be akin to taking a

recorded on the picture of a painting and
blockchain . saying you now own that
Because of this non , - piece You may be in
.

fungible tokens are the possession of its likeness ,

perfect medium for but ownership and

scarce assets such as art control of the actual
and collectibles as their , asset is easily confirmed
provenance and paper on the blockchain .

trail is open for anyone Everyone can see it but,

to see at any time . only one can own it .

Similarly they can never

,

be torn damaged bent

, ,

or broken Unlike in most

.

traditional art markets ,

many NFT marketplaces

also enable 10 or more %

secondary sales royalties

for creators in
perpetuity meaning ,

artists continue to profit

as their work increases in
value !
Can you imagine if the Mona Lisa subject to years of travel
, ,

trade and duplication which some speculate isn t actually

, ’

the original painting was an NFT There would be no

, ?

questions of it s authenticity
' .
FUNGIBLE!
WHAT’S THAT?
Fungibility refers to the gave you a US 100 dollar
interchangeability of a note because they do not
good or asset Put . have the same value .

simply when ,

something is
fungible it means ,

every other thing

like it has the
same value .

Fungibility is a core
property or money .

Let s say you have a 100 INR

’

note You probably don t

. ’

care if someone took it and We can say INR are

gave interchangeable and
you another 100 INR note therefore fungible However
. ,

in its place .
US dollars and INR are not
For you it s the same it holds
, ’ ;
interchangeable therefore
, ,

the same value .

not fungible
.

One may be a little worn out ,

crumbled or someone decided ,

to use it as a temporary
notepad .

It s still a 100 INR note and

’ ,

it has the same value .

However you wouldn t feel the

, ’

same if someone took

your 100 INR
note and
 BITCOIN
On October 31, 2008, a link to
a paper authored
by Satoshi
Nakamoto titled
Bitcoin: A Peer-to-
Peer Electronic
Cash System was
posted to a
cryptography mailing
list.
To many probably, this was just
another attempt to suggest a
the solution to some of the
technical
challenges of using peer-to-
peer distributed networks.
The paper described “a
system for electronic
transactions without
relying on trust.”
A couple of months
earlier, on
August 18,
2008, the domain
name bitcoin.org was
registered.
The identity of
Satoshi
Nakamoto
remains a
mystery till today.
A pseudonym used
by the person or
persons who developed
bitcoin. After releasing the
bitcoin white paper, he, she, or
they created and deployed
the bitcoin software on
January 3, 2009.
The bitcoin network became a
reality when people started to
download and run the bitcoin
software on their computers,
and
the first block of data was
added
to the chain.
Basics
Blockchain
Blockchain is literally a chain
of blocks. When we say the ERC-721
words "block" and "chain" in ERC-721 is the seven
this context, we are actually hundred and twenty-first
talking about digital proposal in the Ethereum
information (the "block") proposal process (EIPs) to
stored in a public database standardize how these
(the "chain"). "Blocks" on the
applications are made and
blockchain are made up of how Ethereum will work.
digital pieces of information.
Specifically, they have three
parts: Transactions (day,
time, amount, etc);
Participants (user's "digital”
signature") and a Block to
distinguish them from each
other.

Ethereum
Ethereum is an open-source
platform that enables
thousands of decentralized
cryptocurrencies and
projects to be built and
deployed on their open,
public blockchain.
CryptoKitties is an excellent
example of an NFT .

The first game of its kind

built on the Ethereum
blockchain ,

CryptoKitties is a product of
Dapper Labs which is
,

valued at 2 billion at the

$

time of writing this article .

CryptoKitties was started by

a DJ from Vancouver ,

Canada who loves cats

, .

Each CryptoKitties token

represents a unique virtual
cat that people can
purchase trade , ,

raise and even breed with

,

other CryptoKitties .
 Dragon We can attach those IDs to
any physical or digital asset
#896775 Gen 9 
Snappy Cooldown (30m) 

Buy now price 

600 ETH 
$1920060 USD or thing and make it so that
the ownership of that ID
means the ownership of the
physical or digital asset.
So when you own an NFT,
you get all the benefits from
that ownership of the
physical or digital asset it
represents.

So a Non-Fungible Token is:

Proof of ownership of a real
Think of them as digital or digital asset
trading cards that people A unique ID number
can get to mate with each All the identifiable
other :) characteristics of the
In reality, an NFT is just a asset
unique number, an ID. We All the rights and
then attach privileges that come
information to make it mean with ownership
whatever we want it to Coded, packaged,
mean. encrypted using
When it comes to cryptography
CryptoKitties, Recorded and tracked
the ID points to a unique on a blockchain

digital cat with specific
characteristics (colour, eyes,
shape, attitude,
breed… etc.)
WHAT’S POSSIBLE WITH
NFTS?
Many will live their life without
the prospect of seeing a
Picasso in real life, but with
tokenization,
it is possible to change that.
Picasso’s masterpieces are in
short supply and cost a fortune.
The cheapest drawings are
worth hundreds of thousands of
dollars, and the most expensive
was sold for $179 million.
So if we want to make a
Picasso masterpiece available
for many to own and enjoy the
return on their investment, we
must tokenize it.
That’s one way, but if the owner
of the Picasso is not willing to
share its ownership, they can
still:
•Sell the rights to 100 high-end
prints in real size; each can be
represented by an NFT called
PicassoReal.
•Sell the rights to 500 high-end
prints in a smaller size; each
can be represented by an NFT
called PicassoSmall.
•Sell the digital right to own a
digital version of the painting
that can be represented by an
NFT called PicassoDigital.
If you decide to own a high-
end print, say print 34/100,
you also receive an NFT called
PicassoReal proving that you
are the owner of that print.
You can verify that the owner
didn’t issue more than 100
PicassoReal tokens and find
out how many were sold.
You can choose to hang on the
print and sell it later for a
higher price. When you do, you
also transfer the ownership of
the
NFT to the person who bought
the print to prove they are now
the rightful owner of the print.
However, if someone got the
print illegally or created a
fake print, they can’t prove the
ownership since they do not
have the NFT representing that
print.
 HOW PROOF OF
OWNERSHIP CAN
MAKE YOU MONEY?
Using NFTs, artists get paid,
continue to get paid and
maintain control over their
work and creations.
Put simply, NFTs give the power Sell anything that someone
back to artists and creators. else finds valuable — Jack
With proof of ownership, you Dorsey auctioned his first
can tweet ever as an NFT and sold
do quite a lot: for $2.9 Million

12-year-old made around

Rs 3 crore by selling whale
emojis as NFTs
Prove your ownership
anywhere and everywhere as
the value of the assets
appreciates — CryptoPunks
have sold for a
cumulative $43 million.
THE NFT MARKET

In 2021 Almost 41 billion

The realm of possibilities for
$

worth of Ethereum based

non fungible digital assets is
-

NFTs were sold according

-

vast Your identity qualifications

,

to Chainalysis research
. , ,

real world property and digital

cited by the Financial
- ,

collectibles could all exist on the

Times
blockchain They would be
.

These include digital art

.

tokens you can keep show

,

digital music virtual real

, ,

share or sell NFTs can empower

,

estate VR wearables
, .

us as individuals to instantly
, ,

gaming assets
transact with anyone in the
,

blockchain domain names

world while companies can
,

luxury goods and more

,

manage their entire inventories

, .

using digital tokens Given time .

and investment NFTs may

,

become the foundation for

future economies .
Beeple’s opus.
Created over 5,000 days, the collage is the
first purely digital artwork (NFT) ever offered
at Christie’s. It sold for…$69m USD!
CAN HISTORY HELP US
PREDICT THE FUTURE?
When we first got the internet
everyone predicted video
conferencing It took us 40
years and a global pandemic
to get some decent video
conferencing and we are still
not there
!
What no one predicted is the
rise of Facebook TikTok Uber
and Airbnb
Innovations enabled by
blockchain technology free the
internet from the grip of
centralized power hungry
corporations It gives us the
power to decide what matters
to
us what we value what we are
, ,
willing to pay for and how to
pay
for it .
, Soon everyone will be
collaborating to create infinite
.
digital artwork like Beeple s ’
opus Created over 5 000 days
. , ,
the collage is the first purely
digital artwork NFT ever
,
( )
offered at Christie s It sold for
’ . …
$69m USD !
Bands like Kings of Leon will
release their albums as an NFT
, , ,
so their fans can unlock all kinds
of special perks like limited -
. edition vinyl and front row seats
to future concerts .
And creators who go viral for a
meme like Nyan Cat can enjoy
more than clout and followers
-
and earn six figures for their
.
work
.
,
Concluding Words ...

In the near future we re

, ’ Often described as a
sure to see NFT games , watershed moment akin to
collectibles events shows
, , the invention of the internet ,

and more fill out the NFT technology will

market With commercial
. undoubtedly go through
and institutional interest different stages of
growing monthly the,
development The .

speed at which projects ecosystem seems to be in

and endeavors can be the early adoption stage ,

produced and launched with years of innovation

has increased ahead to broaden the
exponentially .
horizons for the world of
non fungibles The good
- .

news You re still early

? ’ .

Buckle up and enjoy the

ride!

THOSE WHO ARE WILLING TO GO

BEYOND AND INVEST IN LEARNING AND
EDUCATION WILL PROBABLY BE THE NEW
WORLD S BIGGEST WINNERS
’ .

Metaleap University