Prepared for JG H. | Delivered September 21, 2021
Non-Fungible Tokens Overview
To have a broad understanding of non-fungible tokens (NFT) in order to help artists get acquainted with the space. Specifically, this will:
Provide basic information about the blockchain, the cryptocurrency ecosystem, and the NFT value proposition
Provide information that will serve as a guide in minting and selling NFTs, including average costs
The average costs can be in ETH. It doesn't have to be in USD
This will be provided as a summary with a list of sources which will include blog entries, articles, or YouTube videos
The initial hour of research indicates that data availability regarding non-fungible tokens is adequate.
The blockchain is a certain kind of database or collection of information, wherein it stores data in groups or blocks that are
in chronological order. The blocks hold the set of data.
The blockchain has been most commonly used "as a
ledger for transactions,
" although many other types of information can also be stored on the blockchain.
Blockchain transactions go through the approval of a "
network of thousands of computers.
" This ensures that the verification process is free from any human involvement, resulting in a higher accuracy of information records. It also makes the system difficult or almost
impossible to hack
Blockchain is "the
technology that underlies cryptocurrency,
enabling it to exist as a secure method of moving and validating transactions and information." This is the technology needed in creating NFTs.
The Cryptocurrency Ecosystem
A cryptocurrency is a digital asset that serves as a
medium of exchange
. Cryptocurrencies have experienced exponential growth
cryptocurrencies have been active across the globe by October 2019. In 2018, the number of active cryptocurrencies was only
The number of cryptocurrency users has also grown exponentially worldwide. In September 2016, there were only
n users, while in September 2019, there were already
Cryptocurrencies are essential in ensuring the future of digital finance because they are accessible, censorship-free, borderless, have lower costs, and offer greater security. Also, it allows individuals to have
greater financial control
of their funds.
As of the first quarter of 2021, the cryptocurrencies with the
highest transaction volumes
are stablecoins, ethereum, wrapped ethereum, and bitcoin.
is the basis for most of the currently offered NFTs because it supports the ERC-721 token standard, enabling NFT creators to capture information of relevance to their digital artifacts and store it as tokens on the blockchain."
NFT Value Proposition
NFTs have a subjective or speculative value. It is basically "
worth what someone
is willing to pay for it, which can be a lot if the NFT is made by a famous artist and the buyer is a wealthy collector."
An example of a famous artist that created an NFT is Mike Winkelmann or Beeple. Beeple's digital art was sold at
in March 2021.
We have provided some information on the blockchain, the crypto-ecosystem, and the NFT value proposition. We did not have enough time to provide all the needed information, but we could do so with additional hours of research.
The geographic focus for this research is global.
Your research manager recommends working with a
A Generalist is Industry Agnostic and give you the best value.
706 assignments | 4.8