Session 4 Algorand Bocconi Fintech Lab Kick-off 2022

1. ECONOMICS OF NON FUNGIBLE TOKENS
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2. MY BACKGROUND
Early crypto investor. Co‐Founder at Eterna Capital, a London
based VC investing in early stage blockchain companies. Equity
investor in Algorand.
In the NFT space since the very beginning. NFT artist focused on
programmable art and the intersection between visual art, poetry
and music.
Co‐Founder at Aorist, a next generation cultural
institution supporting a climate‐forward NFT marketplace for
artists creating at the edge of art and technology. Aorist is built on
Algorand.
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3. Algorand is a scalable, secure and decentralised digital currency and blockchain platform. Algorand was founded by Silvio Micali, Turing award
winner, co‐inventor of zero‐knowledge proofs, and a world‐renowned leader in the field of cryptography and information security. He founded
Algorand with a vision to democratize finance and deliver on the blockchain promise.
The problem with many blockchains is they sacrifice at least one of the key properties of security, scalability, and decentralization, known as the
blockchain trilemma. Silvio and his team solved the blockchain trilemma by inventing a new Pure Proof of Stake (PPoS) consensus protocol, which
is the protocol that the Algorand blockchain uses.
WHAT IS ALGORAND?
Pure Proof of Stake (PPoS)
Consensus
Efficient Blockchain: scales
to billions of users
Enterprise Speed:
1000 TPS, <5s Block Times
Instant Finality:
There are no soft forks
Cost Effective: < $0.001 USD
cost per transaction
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4. PROBLEMS OF THE NFT SPACE
Scalability
NFTs are a rapidly emerging asset class
with an Achilles heel: scalability. Like
most other cryptographic tools, NFTs
greatest weakness comes from the code's
deployment in the real world. Limited
transaction throughput, high transaction
fees and slow transaction time are all
muting this immutable technology's
revolution
Environment
According to an estimate backed up by independent researchers, the
creation of an average NFT has a stunning environmental footprint of over
200 kilograms of planet‐warming carbon, equivalent to driving 500 miles in
a typical American gasoline‐powered car
Forking
A fork represents a split in the blockchain
network that results in a new, updated version of
the code and protocol. If there is a mirror chain
where an NFT asset has become duplicated,
there is nothing digitally unique about it. This is a
fundamental issue when it comes to NFT and the
main argument why NFTs must be on a chain
that does not fork
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5. Aorist
The first cultural
institution supporting a
climate‐forward NFT
marketplace for high
value, blue‐ chip artists
creating at the edge of
art and technology.
Aorist embodies a cross‐disciplinary program of
artist commissions, international exhibitions and
partnerships that bridge the digital and physical
domains, while supporting experimentation, co‐
creation and innovation.
Aorist leverages web3 technology to offer
advanced tools for artists to push the limits of
their practice, while protecting principles of
ownership, authenticity and social capital.
Aorist is powered by Algorand,
the first Pure Proof of Stake Blockchain.
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6. Refik Anadol Andrés
Reisinger Nancy Baker
Cahill Carlos
Betancourt Studio
Brasch Leandro Erlich
Auriea Harvey Joanie
Lemercier Jonas Lund
OMA
Charlotte Taylor
Nicholas Préaud
Quayola
Pilar Zeta
$525K+ Andrés
Reisinger’s Arcadia was
sold during a Christie’s
auction.
14 WORLD
RENOWNED
ARTISTS
$815K+ Refik
Anadol’sMachine
Hallucinations beat
the record of most
expensive NFT ever
sold on Algorand.
SALES REPORT
$5.5 M
TOTALSALES ON
AORIST IN 4
MONTHS
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7. “It was better than good.
I loved it, which was a relief. I’d come
to Miami looking for great examples
of NFT art.
Anadol’s work [commissioned by
Aorist]—visually stunning,
intelligent, mesmerizing— amazed
and moved me. Will NFTs transform
the art world? Are they even art?”
●
SEBASTIAN SMEE, THE WASHINGTON POST
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8. Unique Properties of
Algorand NFTs
ASAs Opt‐In
As you need to opt in to any ASAs in
your wallet you won’t receive
unwanted assets ‐ which might also
lead to unwanted taxable events
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ARC‐19 NFTs
You can create NFTs using the new ARC‐19
standard that allows the NFTs to update
based on certain external inputs which
you can customise
NFTs as Layer‐1 ASAs
DeveloperscaneasilyissueNFTs
throughAlgorandStandardAssets(ASA),
whichisafunctionalitythatenablesthe
issuanceofnewdigitalassetsstraightin
Algorand’sLayer‐1blockchain.
Theseassets requirenosmartcontract
code.Itonlytakesonetransactiononthe
AlgorandblockchaintocreateanNFT.
Thistransactiondescribestheproperties,
bothmutableandimmutable,ofthe
token.

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10. On November 30, Aorist hosted
a benefit auction with The
ReefLine, an artificial reef,
marine sanctuary and sculpture
park in Miami Beach, as part of
its ongoing commitment to our
planet.
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11. CONTACT DETAILS
TWITTER: @andreabonac
INSTAGRAM: @andreabonac
EMAIL: contact@bonaceto.com
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