https://www.theregister.com/2022/06/16/bill_gates_nfts/
"
Non-fungible tokens for dummies
Want to buy nothing? You'd probably say no. That's because people don't like
nothing, they like scarcity and status. In the digital world, scarcity doesn't
work because data can be infinitely replicated.
But what if I faked digital scarcity? A database with limited spaces, each
identified by a unique number. Think a line of people queuing for nothing.
There's no value inherent in one spot over another, but I sell you a position
in the queue. I'm not selling you the queue, or its destination (there isn't
one), just the right to stand in this particular position.
You give me a dollar, and I give you some paper work, signed by yours truly,
that says you have the right to stand there. Your position in the queue
combined with my paper is a token that can't be recreated. There is only one of
each position. It is, therefore, "non-fungible." The blockchain checks every
single sale of a queue position and once you've bought your spot, it's listed
on the blockchain. Want to sell your position to someone else? You can, and
that transaction will be listed on the blockchain too.
Why would anyone want a spot in my queue? Well, what if I put up a poster next
to your position? Every spot now has a unique poster, and buying a place in the
queue means you can now stand next to that poster. You don't own the poster,
you don't own the image on the poster, you can't reproduce the image, or sell
copies, or claim any other type of ownership. What you've bought is the right
to stand next to that poster – that's it. You can show your friends the receipt
that says you can stand there. They might even think it's cool.
Congratulations, you now understand NFTs. Yes, it really is that stupid."
Cheers,
*** Xanni ***
--
mailto:xanni@xanadu.net Andrew Pam
http://xanadu.com.au/ Chief Scientist, Xanadu
https://glasswings.com.au/ Partner, Glass Wings
https://sericyb.com.au/ Manager, Serious Cybernetics
