Non-Fungible Tokens, and how they are a non-fungible store of value like land.

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Soygen

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Big Phoenix

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Good writeup on NFTs;



tldr like most similar "collectables"(art, antiques etc.) is nothing but a ecosystem filled with scams or money laundering.

All an NFT specifically is, is a url in the blockchain that directs you to whatever you "own". Anyone with half a brain should quickly see how NFTs at least in their current incarnation are 100% pure weapons grade bullshit. I expect in the future we will be seeing some hilarious trolls as whatever is hosted at the url a NFT points to is repalced with 2girls1cup or goatse etc. At best the server/website hosting the url vanishes and all youre left with is a 504 error.
 
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Aldarion

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Big Phoenix said:
I expect in the future we will be seeing some hilarious trolls as whatever is hosted at the url a NFT points to is repalced with 2girls1cup or goatse etc.
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This is exactly what I thought once I realized how NFTs worked. You don't own the server hosting the image - whats to stop the person hosting the image from swapping it to something illegal? Or just taking the server down?

I'm not even talking about their value as investments. The entire "own a link to a resource owned by a third party" seems like its obviously part 1 to a creative illegal scam of some kind.
 
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Big Phoenix

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Aldarion said:
I'm not even talking about their value as investments. The entire "own a link to a resource owned by a third party" seems like its obviously part 1 to a creative illegal scam of some kind.
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Thats all NFTs will ever be in this incarnation. The blockchain does not have the ability to store anything other than metadata.
 
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Falstaff

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I mean, I know NFTs are total bullshit (like land ownership, lol eminent domain), but how is this pretending to buy something and being so blatant about it even though you didn't actually buy it... how is this not illegal?
 
Big Phoenix

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Falstaff said:
I mean, I know NFTs are total bullshit (like land ownership, lol eminent domain), but how is this pretending to buy something and being so blatant about it even though you didn't actually buy it... how is this not illegal?
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In the 21st century, laws do not cover new emergent concepts. See lyft's self driving car hitting and killing someone in Arizona a few years ago and no one being charged with manslaughter/negligent homicide.
 
Flobee

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This is more related to NFTs and ETH/Web3 than the crypto number-go-down stuff happening in stonkhouse so figured I'd post it here. Also one of the better explanations of NFTs that I've seen.

For those who don't follow: The author, Moxie, is the creator of Signal and co-author of the Signal Protocol encryption used by Signal, WhatsApp, Facebook Messenger, and Skype. In other words, one of the most famous & praised applied cryptographers in the world right now.
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My first impressions of web3

Despite considering myself a cryptographer, I have not found myself particularly drawn to “crypto.” I don’t think I’ve ever actually said the words “get off my lawn,” but I’m much more likely to click on Pepperidge Farm Remembers flavored memes about how “crypto” used to mean “cryptography” than ...
moxie.org

As it happens, companies have emerged that sell API access to an ethereum node they run as a service, along with providing analytics, enhanced APIs they’ve built on top of the default ethereum APIs, and access to historical transactions. Which sounds… familiar. At this point, there are basically two companies. Almost all dApps use either Infura or Alchemy in order to interact with the blockchain. In fact, even when you connect a wallet like MetaMask to a dApp, and the dApp interacts with the blockchain via your wallet, MetaMask is just making calls to Infura!

These client APIs are not using anything to verify blockchain state or the authenticity of responses. The results aren’t even signed. An app like Autonomous Art says “hey what’s the output of this view function on this smart contract,” Alchemy or Infura responds with a JSON blob that says “this is the output,” and the app renders it.

This was surprising to me. So much work, energy, and time has gone into creating a trustless distributed consensus mechanism, but virtually all clients that wish to access it do so by simply trusting the outputs from these two companies without any further verification. It also doesn’t seem like the best privacy situation. Imagine if every time you interacted with a website in Chrome, your request first went to Google before being routed to the destination and back. That’s the situation with ethereum today. All write traffic is obviously already public on the blockchain, but these companies also have visibility into almost all read requests from almost all users in almost all dApps.
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TL : DR - dEcEnTrAlIzEd
 
Punko

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Falstaff said:
I mean, I know NFTs are total bullshit (like land ownership, lol eminent domain), but how is this pretending to buy something and being so blatant about it even though you didn't actually buy it... how is this not illegal?
Click to expand...

Its like people that ebay a picture of a PS5, while the add somewhere mentions "picture only" in small print.

A sucker is born every minute.
 
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Borzak

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Eve Online is trying to test the NFT crap. They had a drawing for NFT's of killmails from an event and the CEO of ccp made comments that in game stuff should be like real life currency. Give me a break.
 
Big Phoenix

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Good video to go with that Reddit post(I wonder who copied who here);

 
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K

kekzilla

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Game nfts seem to have use (at least to me).

Ignoring potential p2w. It seems like a good way to help fund game development long term.

Example. You sell cosmetic nfts in your play to earn game (which means players earn a token with real dollar value). Someone buys the nft and sells it later and that exchange provides a royalty fee to the developers.

Each time that nft trades they get that royalty fee again. So you focus on creating an addictive game that lures people in and the player earns tokens via gameplay to buy cosmetics. The more trades happening, the more the developers make in $$ to continue funding.

Players can also sell off at the end and potentially make a decent profit for their time spent.

Obviously this is simplified but seems like potential. Right now cosmetics in current games are one time purchases with no additional revenue for the developer. Wish h nfts both the player and developer can benefit after the initial purchase.
 
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Big Phoenix

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The problem with that concept is that the blockchain doesnt hold any asset data, its just meta data that points to a url on a server.

ALso NFT scammers upping their scam;

 
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