What is a NFT—Non Fungible Token?
I’m guilty of making a flawed assumption. For some time, I’ve operated from the basis that Radiusphere NFT enthusiasts possess, at minimum, a basic understanding of Non Fungible Token fundamentals.
I’ve recently come to realize that this is a gross miscalculation.
Thusly, I am crafting this message for curious onlookers—for those with little or no previous experience in this space. While Blockchain innovation is infantile, many technologists like the creator of Radiusphere have been intimately acquainted with cryptography, distributed systems and monetary policy for decades.
I often take for granted the years I’ve spent at the forefront of these innovations and gladly offer this non fungible token overview.
Non Fungible Token (NFT) Art basics
Radiusphere Fine Art NFTs are cryptographic tokens which live, more or less securely on immutable, and sometimes decentralized ledgers known as, Blockchains.
Email me at: Radiusphere@protonmail.com if you need resources that will give you a cursory understanding of Blockchain and other historical context to these innovations.
While Radiuspher NFTs correspond to non representational fine art, other Non Fungible Tokens are created to be digital representations of real estate, rare wine, musical and videographic content, and a myriad of other physical and non-physical items.
The process of manufacturing digital assets out of physical assets is known as, “tokenization”.
One of the most significant aspects of NFT innovation is that these tokenized digital assets are completely—incontrovertibly unique. They are not unique because I say, or because an “art expert” says, or because the government says, or because your faith-leader says—Non Fungible Tokens such as Radiusphere NFTs are unassailable because of computational science—cryptography.
Fundamental objectivity and non-affiliated 3rd party verified uniqueness is the consequence of advanced mathematics, mechanism design (game theory and the study of incentives, motivations and outcomes) and independent distributed “trustless” (no single entity has authority over the system) networks.The Creator of Radiusphere Fine Art NFTs
Therein lies the beauty, complexity and, often times, confusion of NFT technology—blockchain, Bitcoin, crypto, etc…
Immutability, Intrinsic Uniqueness and NFT Transferability
Traditionally, transferability is ripe with friction—fraud, authentication, security, middlemen, fees, taxes, association dues, cronyism, bureaucracy—encumbrance after encumbrance reduces the ease and speed of asset transfer while, often, dramatically increasing the expense and possibility of human error.
Side note about the Tokenization of Real Estate, Contracts, Escrows and Property Title…
This is why the fees associated with the transferring of Real Property (Realty or Real Estate) are astronomically expensive, slow and inefficient—an entire ecosystem of leaches have built their livelihoods from systematically extracting equity from your home’s value—when you sell.
Real Estate—is an entire universe of its own and Tokenization offers the promise of purging the leaches from their unimaginative, complacent and entrenched positions. I am a champion of this innovation and applaud its advancement!
Back to Radiusphere and the 109 Non Representational Fine Art NFTs within my collection…
Once objective uniqueness is established and agreed upon (the magic, and seldom understood word—consensus), then the floodgates are opened.
This is where we find ourselves on the technological timeline in 2022.
We are able to create unique, verifiable, transferable digital assets—NFTs. We can extract value from them, through exchange (transfer) and other means. These Non Fungible Tokens have become, in legal terms—consideration (the value that changes hands as part of an agreement between two or more parties).
Non Fungible Token Fundamentals: To be continued
There is simply too much to cover at length in this post. I will follow up this entry by diving into the application and mass adoption of NFTs which is driven by economics, speculation and financial opportunism—so beautiful!
In the meantime—keep learning and, by all means, PAY CLOSE ATTENTION,
PS. No matter who you are, where you live or what your level of understanding is—if you choose, if you learn, if you grow—this once-in-a-lifetime opportunity is yours for the taking.