More Related Content


nfts ppt.pptx

  1. Seminar On NON FUNGIBLE TOKENS Presented by: G.Madhav Kiran 19911A1224 INFORMATION TECHNOLOGY
  2. NON FUNGIBLE TOKENS Non-Fungible Tokens (NFTs) are digital assets that use blockchain technology to represent unique and indivisible items such as artwork, music, videos, and other forms of digital media. They provide a way to certify ownership and provenance of digital items, and have gained popularity in recent years due to their ability to create scarcity and uniqueness in the digital world. NFTs are a type of cryptocurrency that are unique and non-interchangeable. Unlike other cryptocurrencies such as Bitcoin and Ethereum, which are fungible and interchangeable, each NFT represents a one-of-a-kind asset that cannot be replicated or divided. This means that each NFT has its own unique digital signature that is recorded on a blockchain, making it easy to verify ownership and prevent duplication.
  3. Outline 3 ❑ Introduction ❑ Working Of NFT’S ❑ Blockchain and Fungibility ❑ Characteristics of NFT’S ❑ Advantages of NFT’S ❑ Technologies used in NFT’S ❑ Reference ❑ Conclusion
  4. Introduction - It all started with the first NFT ever created, called Quantum, which was minted by Kevin McCoy on Namecoin in 2014. But several other NFTs were launched on pre-Ethereum blockchains over the following years — for example, Spells of Genesis launched in 2015, and stands as the first-ever blockchain-based game. Rare Pepes came out in 2016 and helped kick off the first crypto art market. - However, these projects failed to reach widespread popularity. They remained mostly unknown to all but those who were well-versed in cryptocurrency and blockchain technologies. - For typical consumers, NFTs only began to gain mainstream momentum in 2017. Around this time, the first NFT collections were launched on the Ethereum blockchain. Previous blockchains made trading and transferring ownership impressively difficult. 4
  5. 5 • Prior to 2021, two catalysts arguably helped increase price points and speed public interest along. The first was the COVID-19 pandemic, which forced many people to be more digitally native and connect with each other on platforms like Twitter and Clubhouse, where the NFT community has built a strong presence. • The second was Beeple. The longtime artist turned into an NFT pioneer when he became the first creator to sell an NFT with a major auction house. When the Christie’s auction for his “Everydays — The First 5000 Days” came to a close on March 11 at an eye-popping $69 million, NFTs could no longer be ignored. • The sale made headlines in papers around the world, and more sales soon followed. Edward Snowden’s piece, Stay Free, sold for $5 million in April. In June, CryptoPunk #7523 sold for $11 million. In December, XCopy’s “Right-click and Save As Guy” sold for $7 million.
  6. WORKING OF NFT’S NFTs are created through a process called minting, in which the information of the NFT is recorded on a blockchain. At a high level, the minting process entails a new block being created, NFT information being validated by a validator, and the block being closed. This minting process often entails incorporating smart contracts that assign ownership and manage the transferability of the NFT. As tokens are minted, they are assigned a unique identifier directly linked to one blockchain address. Each token has an owner, and the ownership information (i.e., the address in which the minted token resides) is publicly available. Even if 5,000 NFTs of the same exact item are minted (similar to general admission tickets to a movie), each token has a unique identifier and can be distinguished from the others. 6
  7. Blockchain and Fungibility 7 • Like physical money, cryptocurrencies are usually fungible from a financial perspective, meaning that they can be traded or exchanged, one for another. For example, one bitcoin is always equal in value to another bitcoin on a given exchange, similar to how every dollar bill of U.S. currency has an implicit exchange value of $1. This fungibility characteristic makes cryptocurrencies suitable as a secure medium of transaction in the digital economy. • For this reason, NFTs shift the crypto paradigm by making each token unique and irreplaceable, making it impossible for one non-fungible token to be "equal" to another. They are digital representations of assets and have been likened to digital passports because each token contains a unique, non-transferable identity to distinguish it from other tokens. They are also extensible, meaning you can combine one NFT with another to create a third, unique NFT.
  9. ADVANTAGES OF NFT’S • Proof of ownership and authenticity • Scarcity and uniqueness • Increased revenue opportunities • Greater control over distribution and usage • Interoperability • Transparency • Immutability • Accessibility • Liquidity • Fractional ownership 9
  10. TECHNOLOGIES USED IN NFT’S 10 • Ethereum: Ethereum is one of the most popular blockchain platforms for creating and trading NFTs. Ethereum uses a smart contract protocol called ERC-721, which allows for the creation and ownership of unique digital assets. • Binance Smart Chain: Binance Smart Chain is a blockchain platform that offers fast and low-cost transactions, making it an attractive option for NFT creators and collectors. Binance Smart Chain supports a variety of NFT standards, including BEP-721 and BEP-1155. • Polygon: Polygon (formerly Matic Network) is a Layer 2 scaling solution for Ethereum that offers faster and cheaper transactions. Polygon supports Ethereum-compatible NFTs and offers a bridge to Ethereum, allowing for interoperability between the two platforms. • Flow: Flow is a blockchain platform designed specifically for creating and trading digital assets, including NFTs. Flow uses a unique programming language called Cadence, which is designed to make it easier to create and interact with NFTs and other digital assets.
  11. References 11 1 -C. Cimpanu, “Miner found at USA department of defense,” https: // ng-botnet-on-dod-network/, accessed: 2020-04-13. 2 - K. Parrish, “Uk government plugin based mining,” https://www. ive-monero-miner/, accessed: 2020-04-13. 3 - A. Milano, “Russian scientists arrested crypto mining nuclear lab,” scientists-arrested-crypto-mining-nuclear-lab, accessed: 2021-2-23. 4 - D. Goodin, “Miners in youtube ads,” formation- technology/2018/01/now-even-youtube-serves-ads-wit h-cpu-draining-cryptocurrency- miners/, accessed: 2020-04-13. 5 -C. Cimpanu, “Mikrotik router hack affect 200k routers in the world,” ve-coinhive-cryptojacking- campaign-touches-over-200-000-mi krotik-routers/, accessed: 2021-2-23.
  12. Conclusion 12 - In conclusion, NFTs (Non-Fungible Tokens) represent a new and innovative way to create, own, and trade unique and valuable digital assets. Built on blockchain technology, NFTs provide a secure and transparent way to verify ownership and authenticity of digital assets, while also creating scarcity and uniqueness in the digital world. - NFTs have gained popularity in recent years, with artists, musicians, and other creators using them to sell their work directly to collectors and fans, bypassing traditional intermediaries such as galleries or record labels. - NFTs also offer new revenue opportunities for creators, as they can receive ongoing royalties on the secondary market for their digital assets. - However, the market for NFTs is still relatively new and evolving, and there are some concerns around environmental impact, speculation, and the potential for fraud and counterfeiting. - As the market matures, it will be important to address these concerns and ensure that NFTs are being used in a responsible and sustainable way.