December 4, 2023

What is an NFT?

Let’s start simple. The acronym ‘NFT’ stands for Non-fungible Token. “Fungible” means that an asset can replace or be replaced by another identical asset, with no change in value. For example, 1-$100-dollar bills are exchanged for 2-$50’s, 10-$10’s, or 100-$1-dollar bills; Or 1oz of gold for 1oz of gold. The exchange is completely equal. “Non-fungible” means that a given asset is ‘unique’ or ‘one of a kind’ and cannot be traded equally with another. For example, trading a concert ticket to Row 1, Seat 1 with a ticket to Row 2, Seat 1. This got confusing for me because the ticket holders are going to see the same show but, it’s not about the show at all, it’s about where they are sitting, their number. In most scenarios, an NFT is a cryptographic asset on a blockchain platform such as Ethereum. Here, NFTs can be unique digital artwork, in-game items, or other forms of digital collectibles. How I usually explain it in one sentence is, “NFTs are unique digital artwork, no two alike.” This goes back to the concert seat example. Let’s say there is a ‘collection’ of 10 digitally signed digital pictures of a given athlete. They both have the same ‘view’ when looking at it but the difference is in its code where it shows what number it is in the collection, a limited amount, and the location on the blockchain.

Now you might be asking yourself ‘What makes an NFT valuable?’ Just like real-world examples, assets are measured in the properties the asset holds. Take ‘The Townskaters’ NFT Collection for example. Each Townskater holds different attributes chosen through a layer selection process. These NFTs are generated by having layers or images of several categories that, when selected in a specific order, create a final image. It’s much like a book. All the pages come together in a specific order to tell a story. One page is meaningless without the others. With these given attribute layers, we assign a rarity to each layer which theoretically makes one layer worth more than another with a lesser rarity. Once these layers come together, they become an NFT and then are ‘tokenized’ to blockchain technology to show a certificate of ownership when the NFT is bought or sold.

‘The Townskaters’ NFT project started much like the beginning of most projects that come into fruition, with nothing more than a box of scraps and an idea to connect Townskate to the NFT community. One driving force in the layer creation was to make ‘The Townskaters’ unique and diverse just like each one of you reading. We imagined a project that anyone could relate to as if they were looking at a friend or relative when viewing ‘The Townskaters’ for the first time. Our goal is to reach NFT enthusiasts, people interested in the Townskate brand, new and pro skaters, as well as the everyday person that otherwise has no interest in NFTs but likes what they see. With this goal in mind, we hope to get as many good-hearted smiles and laughs upon minting as we have had during the creation process.

This NFT project has blossomed into a large project due to its time and effort-demanding nature. This project, while large, is really quite small in the broad strategy of Townskate as a whole. The future holds no limits, only time will tell. Expect this production to be one of many to come from this group.

“The future belongs to those who prepare for it today”

Malcolm X