NFTs and The Metaverse are discussed by Bloomberg’s top financial writer. Matt Levine, one of the best financial reporters in the world, wrote a four-thousand-word feature for Bloomberg Businessweek entirely dedicated to digital money. Only twice before has a single author written an entire issue of Bloomberg’s magazine.
1) NFT
Matt says that the majority of NFTs are not hosted on the blockchain. How is that even possible? Matt, on the other hand, talks about the blog post by Signal’s creator, Moxie Marlinspike. Moxie explains how your image is stored off-chain and how the URL in your NFT will lead you there. So, the NFT talks to a server where its picture, name, and description are stored. Also, anyone with access to the server in question can change the NFT.
Recently, it was found that intellectual property rights and royalties are not enforceable on the blockchain. In the NFT industry, companies often get investors by promising to transfer ownership of intellectual property used in marketing materials for their projects or by actually doing so. This happens off-chain, though, so it can’t be enforced in court. So, if you buy an NFT, you will get a reference to some kind of digital art.
And Matt explains it so well
“Even though these NFTs aren’t legally binding, they still make people feel like they own something. Even though the technological and legal links between blockchain, JPEG, and ownership may not be very strong, these cultural links are enforced in practice.”
He gives the example of Bored Apes. It’s a virtual neighborhood that has its own festivals and conventions (using a monkey NFT as your Twitter profile pic.)
2) Metaverse
At first, Matt doesn’t know what the Metaverse is. Someone told him that “It” was a way of talking about the future. It’s a world where everything from home to work to fun is done online.
He does say that if this is the future, it will be very important to sell, track, and distribute digital products online, and that we can do this by using NFTs to limit supply.
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