On February 7, 2022, The New York Times ran an article about some of the disadvantages of remote work https://rb.gy/tbfbwe. In a previous blog, I explained that metaverse, the digital universe that can be accessed through virtual reality, can remedy the loss of interaction that employees may experience with remote work.
Metaverse can encompass web3 and non-fungible tokens (NFTs) are part of web3. What the heck are NFTs? NFTs are about exclusivity, and value attained through association. They play into the largely undeliverable promise put forth by all marketers…if you buy the Air Jordans, you’ll play like Michael. NFTs are unique digital assets that a buyer purchases from the creator with cryptocurrency in a recorded transaction viewable by the public.
When you buy an NFT you are buying a digital token that is evidence that you own the asset on the blockchain (an official ledger shared by thousands of computers.) Professional athletes are selling NFTs of their amazing plays. In March of last year, Twitter’s CEO sold the NFT his first Tweet for 2.9 million. Non-fungible means that they are not interchangeable, unlike fungible tokens like a cryptocurrency that can be exchanged for one another.
The creator retains the copyright and the option to duplicate it. If an NFT buyer wants to make copies he must get permission from the creator to do so. Just like an original painting, copies are not as valuable, and supply and demand impact value. As with tangible collectibles, the value ascribed is somewhat arbitrary. Valuation is dependent on a creator’s estimation of an item’s worth. Buyers agree to that value by committing their resources to obtain it, so with their purchase, they affirm an arbitrary valuation. It creates testimony of alignment of values. Keep this in mind when next week we explore NFTs and human resources.