‘The apotheosis of ownership’: Why NFTs

will drive the digital economy?

Discussion by Bagrat Tangian (u330559)
Agenda
● Background Information - NFT’s and the Blockchain Technology

● Benefits of NFT’s

● Shortfalls of NFT’s

● What are my thoughts on non-fungible tokens?

● What is the future of NFT’s?

Background - NFT’s and The Blockchain Technology
● Non-fungible tokens (NFT) is a special type of digital asset, which represents the ability
to be unique via blockchain technology.
○ Real-world physical items or digital assets
○ Unlike bitcoin or other cryptocurrency, not mutually interchangeable, i.e., not
fungible

● By contrast an NFT is unique; it is a one-of-a-kind piece of code, stored and protected

on the blockchain

● According to Merriam-Webster blockchain technology is "an open, distributed ledger

that can record transactions between two parties efficiently and in a verifiable and
permanent way”
○ Transactions are agreed to by the participants in the blockchain when entered
into the ledger
○ Transactions cannot be changed
○ Transactions are provably verified
○ Ensures the permanency of the records
Benefits of NFT’s
●Blockchain is fundamentally secure, decentralized, globally accessible,
and designed for individual empowerment and wealth growth.

●New financing options

●Asset ownership is the pathway out of poverty.

●Collectors and investors can clearly see what they are getting in advance,
confirm the assets validity through its unique identity and feel safe
knowing that the contract cannot be changed or falsified.

●Content on NFT’s cannot be censored.

Shortfalls of NFT’s

● Market devaluing and gas fees.

● The user experience needs to be simple and seamless

● Stabilization and adoption of cryptocurrencies.

● Authentication, ownership and provenance

Evaluation on NFT’s?
● NFTs are creating an entire new field of employment. A lot of people are
pursuing NFT art full time and are paying their bills with the proceeds.
People are even earning and selling NFTs by gaming. It’s an opportunity
to be your own boss.

● NFTs increase the value of the networks they are created on. A lot of gas
gets burned by minting and the hosting blockchain gets free marketing
when the media covers a sale (like Visa buying a crypto punk).

● NFTs give blockchains more utility. Crude Oil isn’t valuable because it’s
slick, it’s valuable because we can do a ton of stuff with it. People like
holding coins whose networks can do a ton of stuff.

● As NFT’s are getting more exposure, more individuals are starting to get
involved and invest into projects. An interesting statistic: the most
expensive purchase was made last week for 124,457 ethereum which is
about $542 million. More is only to come!
Closure and the Future of NFT’s

● We are still in the earliest stages of the technical evolution of NFTs and it is
already seeing massive progress.

● The future of NFTs may lie partly in guaranteeing the existence of the works
behind them on the blockchain.

● Popularising the fractionalisation of not only digital art, but real-world

objects.

● NFTs will change the way people share ideas forever. In this digital age, the
ability to verify actions, authenticity, and origin is priceless. Beyond that, NFTs
empower creators to capture and share their digital expressions on their own
terms
Any questions?