Simple explanation_  
Non-fungible tokens (NFTs) are blockchain-based tokens that can be linked to anything from digital art to physical assets. Currently, the majority of NFTs are tied to one-of-a-kind digital collectibles (ex. art, playing cards). But the possibilities for NFTs are vast, and creators of all types have already started taking notice.

Slightly more technical_  

Within their code, NFTs contain:

• 1) uniquely identifying information like the creation date and metadata that defines characteristic of the asset
• 2) smart contracts that allow for seamless, friction-free transactions

This data adds value by 1) preventing forgery/copies 2) displaying a transparent, verifiable, immutable (unchangeable) history of ownership. 

Non-fungible vs fungible_

Non-fungible things are distinctly unique snowflakes. Everyday examples include plane tickets and your pet dog. Fungible things include subway tickets, US dollars, Bitcoin. In each of the fungible examples, any one of these can be easily exchanged for another one from the same category.

Skyrocketing valuations_  

NFTs can be linked to assets from diverse categories of collectibles – from virtual pets like Cryptokitties, to 3D artwork, to digital football trading cards. All around the world, thriving markets are rapidly evolving centered on highly sought-after assets. Through digital collectibles markets like OpenSea and SuperRare, creators, collectors, and traders meet to purchase and sell assets. Speculation, scarcity, supply, demand, and desirability are all factors that determine the value of pieces. Similar to traditional collectibles (like original Pokeman cards, Beanie Babies, and Picasso paintings), an NFT is worth as much as anyone is willing to pay for it.   

Let’s explore some impressive valuations being set by early adopters in this niche.  

• $21,350: for a digital artwork created by 17 y/o artist Fewocious   
• $47,500: for a tokenized video clip of a LeBron James dunk highlight   
• $65,000: for a Sorare trading card representing footballer Kylian Mbappé   
• $777,777: for a portfolio of work by digital artist Beeple  
• $9,000,000: for a collection of 16,000 pieces of NFT art on the Hashmasks platform  

The digital work above sold for 420 ETH (~$650,000) on Feb 4. Since blockchain is fully transparent, you can easily view the entire history of this digital artwork. The Switzerland-based Hashmask platform hosts a collection of 16,000+ unique NFT portraits created by 70+ artists. 

Underlying tech_  

NFTs are made possible by smart-contract-enabled blockchains. The first platform to support non-fungible assets was Ethereum’s ERC-721 standard. This tech was adopted earliest by CryptoPunks and popularized by CryptoKitties in 2017. Other platforms are emerging with NFT support, including FLOW, EOS, NEO, and TRON.  

How to buy NFTs_  

As this sector expands, a flurry of NFT markets is emerging. Examples include Rarible, OpenSea, and Enjin Marketplace. Once a user is registered to these platforms, the buying process is super straightforward. The user interfaces are clean, straightforward, and user-friendly. One small hurdle is that you will need an Ethereum-enabled wallet to complete transactions. This is how you will purchase and store your tokens. There are hardware and software wallets that work for this process. My favorite hardware wallet is Ledger Nano. If you use my link you can get one for 20% off. #shamelessplug  

What is next for NFTs_  

Let’s save that for another post, another day. But until then, let me know what you think about this nascent and growing market for crypto collectibles.  

The post What are (Non-fungible Tokens) NFTs? appeared first on .

Cryptokitties is paving the way for Western blockchain projects to enter Eastern markets.

Cryptokitties is a blockchain-based distributed App (dApp) that allows players to adopt, raise, and trade virtual cats on the Ethereum network. As this viral platform attempts to expand beyond the US, it is finding out that China is the gatekeeper to the Asian market.

Perhaps you missed it, but the game is already fairly popular, with users having spent over $12,000,000 on digital felines. Talk about the cats meow. ZING!

Think: Beanie Babies meets Blockchain

Lets be clear: Cryptokitties are not currency. Instead, think of them as digital assets with values that are determined by the market. Each kitty is unique and non-fungible. Therefore they rely on their uniqueness and scarcity to create value.

The first Cryptokitty was born and adopted on December 2, 2017. Moving forward, a new cat was born every 15 minutes. This continued until November 2018, after which no new generation zero Cryptokitties were generated. Now, the population increases solely through breeding.

From the site:

There are two ways to breed a new Kitty: breed two of your own Kitties together, or breed with a public sire…. If you breed a Gen 3 and a Gen 4 Kitty together, you get a Gen 5 Kitty. If you breed two Gen 3s, on the other hand, you get a Gen 4.

There’s no theoretical limit to how many Cryptokitties can exist. Anyone willing to pay the transaction fees for breeding two cats, can create a new one.

Axiom Zen, the San Fran based company that launched the game in 2017, is now ambitiously pursuing expansion into Asia. Co-founder Benny Giang, believes Asia to be a huge untapped market, and sees China as their biggest hurdle. Yet growth in this arena will required a nuanced strategy and cultural sensitivity.  

“As Cryptokitties launched… the company saw competition and copycats (pun intended) from China moving quickly into the market” Tech Crunch reported. “Just as Cryptokitties launched in China, Xiaomi launched Cryptobunny, while Baidu (the Google of China) launched Cryptopuppy.”

Ultimately I see this wildly popular game as a fun speculation platform with cute mascots. If the company behind the dApp is able to successfully penetrate the Asian market, this could pave the way for other game-like dApps developed in the US to follow a similar roadmap.

What do you think about the platform? Do you own any kitties?

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