March 4, 2021

Why NFTs Are Attracting Everyday People to Crypto | Jake Brukhman on Unconfirmed Podcast

Check out Unconfirmed Podcast Episode Page & Show Notes

Whereas a cryptocurrency has many identical units all worth the same, Non-Fungible Tokens (NFTs) represent unique digital assets.
- For instance, collectibles, 3D models, stock photography, syndicated content, music royalties, movies, articles, blog posts, books, etc.
NFTs allow creators to sell and license digital content to users in various ways, which opens up liquidity in previously non-tradable paper rights
- Additionally, blockchain technology replaces privately owned market places with a decentralized smart contract-based system
Intellectual property rights can apply to NFTs in different jurisdictions, platforms will facilitate agreement terms between buyers and creators

Non-Fungible Tokens (NFTs) represent unique digital assets. By contrast, a cryptocurrency has many identical units all worth the same
Think of unique digital objects as an asset class, with NFTs as a technology to denote ownership and royalty streams to these objects
- For instance, collectibles, 3D models, stock photography, syndicated content, music royalties, movies, articles, blog posts, books, etc.
NFTs are “liquid intellectual property rights for digital content”
- Creators of digital art and collectibles can create, trade, and license NFTs, and investors can invest in NFT companies

Blockchain technology disrupts privately owned market places and replaces them with a decentralized smart contract-based system
- Ownership and governance is democratized among participants and token holders
Tokens can be traded, crowd-funded, and incorporated into other financialization schemes to manage risk
- For instance, using NFTs as collateral or co-ownership of a single NFT

Owning an NFT means buying intellectual property. An analogy: people can download the Mona Lisa online, but only the Louvre holds the property
Intellectual property rights can apply to NFTs in different jurisdictions, platforms will facilitate agreement terms between buyers and creators
- These property rights may also be enumerated in traditional legal contracts (e.g. Open Law)
- Additionally, some projects like Aragon are working on a global digital jurisdiction and global on-chain dispute resolution
In short, NFT creators can give the purchaser legal property rights. In the long term, those property rights might be enforced on-chain

Finance is no longer limited to academia and investors and professionals. DEFI and NFTs educate the younger generation about finance.
- Trading digital art and collectibles comes naturally to people. Thus, Jake predicts the NFT space can get on par with DEFI space
- Keep in mind, platforms like Rarible are at 100K monthly active users currently