Intro To NFT

The objective of the class is to give an idea of:

1. Cryptocurrencies and NFTs

2. How they're stored, used, and collected

3. What are the steps you can take to dive deeper into this space

Blockchain is literally a chain of blocks, with each block containing transactions.

Through a hands-on activity, we looked at how transactions are added to the ledger, how miners contribute to maintaining the blockchain ledger, and how a distributed system is resilient.

The reason why DLT is so powerful is because, it is:

• Distributed

• Publicly accessible

• Immutable

• Composable

We started off with an introduction to some of the better known NFTs and the insane prices that they were sold for (or are going for), and started to consider the question:

"Is there really value in these digital tokens?"

What does fungible and non-fungible mean?

NFTs are essentially unique, serialised tokens, so what's the big deal about that?

Non-fungible tokens allow for many applications.

Particular, many social applications that exist today can benefit from tokenisation because making them non-fungible solves problem like authentication. Nonetheless, NFT as a concept is largely speculative and hype-driven.

Looking at the evolution of the Internet, we see how it has progressed from:

• One-way interaction in Web1.0

• Two-way, dynamic content in Web2.0

• Decentralisation, ownership, and open access to everyone

We examined six use cases of NFTs – what is the current state of these functions with NFTs, and how they can be made better with NFTs.

In this section, we went through the generic concept of wallets and tokens, before moving on to a hands-on segment where we,

• Set up our Metamask wallets securely

• Added a network and minted an NFT

Wallets aren't like our physical wallets where we store actual cash and coins.

Instead, crypto wallets are composed of the private key/seed phrase, from which the key is encrypted and used to sign transactions on the blockchain.

With the more commonly used crypto wallets, the difference lies in who has the Private Keys i.e. who has custody of the tokens, as well as how a Hot and Cold wallet differs.

From Downloading, to writing and storing the Seed Phrase securely.

We then proceeded to add the Polygon network for the following step of NFT minting.

The browser extension is generally safer and more broadly "usable" given that some websites are not mobile-friendly. Metamask Mobile is still functional and useful in many ways.

We went through two different types of NFT minting, and understood how they are different.

People create NFTs for a variety of reasons, mainly:

• As a source of revenue for individuals

• A way to connect with customers/community

• An alternative business model for Web2 businesses

A DAO is a decentralised community that comes together to make joint decision.

From looking at Nouns and HeadDAO, we looked at how similar-looking NFTs can have different value assigned to it, and begin to consider that value lies not in the aesthetics but in the token and the organisation behind a collection.

To be done outside of the class, this is a free activity for anyone to join,

• To claim some Polygon tokens (MATIC)

• And to mint a free NFT

Access the free NFT Minting Onboarding Tutorial, courtesy of Curious Addys.

There are three main checks to look out for when making any transactions:

1. The correct URL

2. The correct contract function. Be very careful if you see "Set Approval For All" as a contract function.

3. The Max Amount of ETH (or MATIC) is present in the wallet.

NFTs are also highly traded, with the equivalent of Buy and Sell Orders.

While "liquid" in that sense, it doesn't take away the volatility of prices. In a bear market, this volatility can be even wilder.

Airdrops are a common way for projects to reward their existing their holder. It does however dilute their shareholders with an increased supply.

The more pressing concern for anyone is the presence of airdropped NFTs, which should not be interacted with at all, as most of these are meant to drain a wallet.

What are some follow-up steps if anyone would like to know or do more with cryptocurrencies?

Where to buy? What to buy?

Should you leave it on an exchange? And when is the best time to buy?

These are some commonly asked questions and considerations.

Getting on Twitter and Discord is a must.

Following which, the first and most important thing to do after creating an account on Discord is to disable DM in settings.

Thereafter, it's about joining servers, lurking and participating to get oneself more involved in the space.

What happens when you buy an NFT?

Depending on the project you're supporting and your purpose in buying the NFT, it's up to individuals to decide how involved they want to be in NFTs.

Sharing from my personal experience, these are the top questions I ask myself before buying any NFT.

For me, "Intention" is the most important consideration.

1. Always keep your own keys – if you leave your crypto on an exchange, you are essentially trusting them (which is fine)

2. Always be sceptical – if it sounds too good to be true, it probably is

3. Always check before any transactions – be safe rather than sorry

4. Get a hardware wallets and have multiple wallets for different uses

This space is still largely misunderstood, and adoption rate is probably at less than 5%.

While the risk and dangers are high, it can also be rewarding for those who take time to learn, and to participate in this upcoming economy.

As it stands, regulations is an ongoing risk, and the current interface of the most crypto wallets can still be improved.

Besides awareness, we're also lacking education, which is something that all of us can contribute to in the long run.