Speaker 1: I'm with Lucas and this is Black Tech, Green Money.
Speaker 1: I'm gonna introduce you to some of the biggest names,
Speaker 1: some of the brightest minds, and brilliant ideas. If you're black,
Speaker 1: in building, or simply using tech to secure your back,
Speaker 1: this podcast is for you. About a week ago, I
Speaker 1: mentored my first n f T and I've been increasingly
Speaker 1: enamored with the idea of both collecting digital art and
Speaker 1: the concept and implications of smart contracts over this past year,
Speaker 1: and after doing a bunch of research over the last
Speaker 1: couple of months, I decided I wasn't going to really
Speaker 1: learn by sitting on the sidelines. I needed to get in.
Speaker 1: Either I was going to buy some n f T s,
Speaker 1: or I was gonna make some, or I could do
Speaker 1: both UM. What kept me apprehensive about buying n f
Speaker 1: T s was the hype surrounding some of the ones
Speaker 1: we've probably all heard of, Crypto punks and Board eight
Speaker 1: Yacht Club. While learning UM, I found it difficult to
Speaker 1: decipher signal from noise as I both explored what I
Speaker 1: wanted to invest in and learned how to actually buy
Speaker 1: something I wanted. I knew the punks and the apes
Speaker 1: had a lot of value, but they were tens of
Speaker 1: thousands and hundreds of thousands of dollars to secure, and
Speaker 1: there were cool things I found in price ranges I
Speaker 1: didn't mind investing in. But you know, being a newbie,
Speaker 1: I didn't feel comfortable yet that I was making a
Speaker 1: good move buying something obscure or relatively obscure. And you
Speaker 1: might think that securing your first n f T is
Speaker 1: as simple as finding when you want in swiping your
Speaker 1: m X to get it as you would like on Amazon,
Speaker 1: but you would be wrong. There are layers to making
Speaker 1: transactions in the world of crypto, and it's very easy
Speaker 1: to make expensive mistakes. Simply moving your money from one
Speaker 1: pocket to the other pocket can cost you um. All
Speaker 1: in all, I didn't struggle with understanding that the art
Speaker 1: hand in hand with the tech had value and big implications.
Speaker 1: But I understand why some people do have that challenge
Speaker 1: and internal questioning, and we'll talk about that another time.
Speaker 1: But what I wanted to accomplish was getting my hands
Speaker 1: dirty so I could fully appreciate what digital art would
Speaker 1: and could mean, both to me as a creator in
Speaker 1: my fellow community of creators and as a collector and
Speaker 1: consumer who likes nice things. What I found in my
Speaker 1: study is so much more than just a community of
Speaker 1: dope creators with their work on display in exchange for EVE,
Speaker 1: but also an underlying technology that I believe will revolutionize
Speaker 1: agreements between people, the bedrock of functioning or malfunctioning society.
Speaker 1: But I digress. This is about making your first n
Speaker 1: f T, so I'll do my best to stick this scope.
Speaker 1: We'll talk later about, you know, buying n f T s,
Speaker 1: smart contracts and other things, but this today is about
Speaker 1: making your first n f T. And you might think
Speaker 1: as skipping, you know, having those conversations about smart contracts
Speaker 1: conversations about understanding cryptocurrency are like skipping steps, but they're
Speaker 1: really not. You can get in and start creating without
Speaker 1: under understanding the breadth of the whole world of the blockchain.
Speaker 1: You can do this without having to know that and
Speaker 1: fully appreciate that. Let's start creating some stuff, okay, and
Speaker 1: I promise you we will get to that all right.
Speaker 1: So there is some preliminary work we'll need to perform
Speaker 1: today to establish terminology definitions. If you will um hear
Speaker 1: some words and short phrases that are probably not in
Speaker 1: your daily lexicon, but will be need to be if
Speaker 1: you're to understand creating and even purchasing an n f T. First,
Speaker 1: n f T, what isn't n f T. To define
Speaker 1: n f T, let's first define what non fungible means
Speaker 1: non fungible token. What does non fungible mean? Non fungible
Speaker 1: basically means that the thing is you nique and it
Speaker 1: can't be replaced with something else. For example, a dollar bill,
Speaker 1: a one dollar bill is fungible. I could trade you
Speaker 1: my one dollar bill for your one dollar bill and
Speaker 1: we'll have the same thing. You could even have a
Speaker 1: five dollar bill and I trade you my five one
Speaker 1: dollar bills and you also had the same thing. You
Speaker 1: got five dollars. But the one of one bosk yard
Speaker 1: untitled boxer painting created is non fungible. If you have
Speaker 1: that Boski yacht painting and I trade it for the
Speaker 1: Mona Lisa, I'd have something completely different. So effectively, to
Speaker 1: be non fungible means it's like it's a one of one,
Speaker 1: all right. So let's add the tea back into non fungible.
Speaker 1: Now we have a non fungible token. So here's what
Speaker 1: people here's what people get confused. So the token is code.
Speaker 1: It's like metadata. It's a deed, like aded to a house.
Speaker 1: The token isn't the house, like the deed isn't the house.
Speaker 1: But the deed is the documentation that I own the house.
Speaker 1: It's the proof that I own the house. The token
Speaker 1: is the documentation or the code in this case that
Speaker 1: says I own the JPEG, I owned the MP three,
Speaker 1: I owned the MP four video file, I own the
Speaker 1: JIF or whatever other digital asset. It's not the digital asset,
Speaker 1: but it's the proof that I own it. Okay, So, creators,
Speaker 1: whatever digital asset you create, whether it be a song,
Speaker 1: it could be an audio file. Let's say you just
Speaker 1: spoke into your Apple, your iPhone, you know, voice recorder,
Speaker 1: and you made that in n f T. You can
Speaker 1: make that n f T. It's a digital file. You
Speaker 1: can make. Um. You know, you can go open up
Speaker 1: Photoshop or illustrator on your computer, create a piece of art,
Speaker 1: make it an n f T. You can make a
Speaker 1: word document in n f T. You can make a
Speaker 1: picture you took on your cannon. In n f T
Speaker 1: you can you can make all of these things n
Speaker 1: f T s. These can be non fungible. Their first
Speaker 1: non fungible because you created them. But you can make
Speaker 1: them non fungible tokens by assigning to them this code
Speaker 1: that puts them on the blockchain. They're already non fungible.
Speaker 1: They're already one of ones. The voice memo that you
Speaker 1: record on your iPhone is already non fungible. It's it.
Speaker 1: I can't take your voice membo swapping from mine, and
Speaker 1: we got the same thing. Your voice memo is, it's yours.
Speaker 1: It's that's that's the only one that exists. That painting
Speaker 1: that you make in photoshopper illustrator, that artwork, that's a
Speaker 1: one of one. It's already non fungible. But once you
Speaker 1: assign it to the blockchain, you place it on the blockchain,
Speaker 1: it gets assigned a line of code which makes it
Speaker 1: a non fungible token. All right, So we've already been
Speaker 1: super familiar with non fungibility because we've seen one of
Speaker 1: one things, you know, our entire lives. Well, what what
Speaker 1: is new to us is the token part of it,
Speaker 1: where it can be assigned to a marketplace, a virtual
Speaker 1: world Web three, where we can track and verify who
Speaker 1: owns the thing, who has the right to sell it.
Speaker 1: You understand this When it comes to your house, I
Speaker 1: can go to the County Auditor's office and see so
Speaker 1: and so. Jim Smith owns the house at one to
Speaker 1: three four Main Street. Jim Smith has the right to
Speaker 1: sell it. I can see that already through real world experience.
Speaker 1: What we have not had until recently is the ability
Speaker 1: to say, Okay, here's a j peg, who owns it?
Speaker 1: Who has the right to sell it? We have that
Speaker 1: now the moment we decided to place those MP three's
Speaker 1: onto the blockchain, you tokenize the asset and it then
Speaker 1: can take advantage of this new opportunity, a marketability of
Speaker 1: ownership and value. All right, minting inn n f T.
Speaker 1: Before I get too deep into explaining this concept, need
Speaker 1: to remind you that the art itself, or the voice memo,
Speaker 1: the MP four, the jpeg itself, is just that it's
Speaker 1: a digital file, a non fungible digital asset. The n
Speaker 1: F ten of this asset, this jpeg, this MP four
Speaker 1: is when this digital asset becomes represented by a token
Speaker 1: on the Ethereum blockchain, the token is not the art,
Speaker 1: Ladies and gentlemen, The token is not the art. The
Speaker 1: token represents the art on the blockchain. Okay, to mint,
Speaker 1: an n f T simply means you're assigning a non
Speaker 1: fungible token, something that cannot be duplicated, something that cannot
Speaker 1: be changed, something that cannot be altered, to your digital file,
Speaker 1: to your jpeg, to your voice memo. Once that n
Speaker 1: f T, that non fungible token is created, it cannot
Speaker 1: be changed, altered, or tamper with. It's done. I could
Speaker 1: go off script here because there's so much there, but
Speaker 1: if I do, I'll be on a scope with is
Speaker 1: this episode. So I'll stay. I'll leave that there. But
Speaker 1: this is an important concept because, as I said, the
Speaker 1: token is not the art. The token represents the art
Speaker 1: on the block chain. Then where's the art? It could
Speaker 1: be many places in any place actually, where you can
Speaker 1: store digital file. If you store files on a w S, Amazon,
Speaker 1: web services like blue host, or a server in your bedroom,
Speaker 1: the original non fungible art or digital file could reside there,
Speaker 1: right there in your bedroom. The person who owns it, however,
Speaker 1: could be somebody you've never met across the ocean. Again,
Speaker 1: there's so much here. I'm super compelled to go off script,
Speaker 1: but I will control myself. But just it's that the
Speaker 1: concept is that the token is not the art. The
Speaker 1: token represents the art, and it's stored somewhere on a
Speaker 1: server somewhere. The most native way to store digital files
Speaker 1: for the purposes of tokenization as an n f T, however,
Speaker 1: is to store them on what's called and I PFS
Speaker 1: or the Interplanetary File System, which in Layman's terms, is
Speaker 1: a decentralized AWS or a decentralized server which holds files, documents, JPEG's,
Speaker 1: audio files, et cetera in the ether. I'm not gonna
Speaker 1: go off script, but just rock with me. So minting
Speaker 1: n m T in short, is simply, again, the process
Speaker 1: of making a digital piece of art or digital file
Speaker 1: to be represented by a token and placing it on
Speaker 1: the blockchain. That's all it is. All right, I've got
Speaker 1: a couple more. Let's get through this super quick, alright.
Speaker 1: Crypto exchange UM let's use coin based as is arguably
Speaker 1: the most popular. A crypto exchange is an online market
Speaker 1: place where you can buy, sell, and trade cryptocurrency um
Speaker 1: There are several of these online. So if you want
Speaker 1: to buy your first bitcoin, and you want to buy
Speaker 1: your first dose coin, you want to trade your dose
Speaker 1: coin for somebody's light coin. You do that on a
Speaker 1: crypto exchange. There are several of these online you can
Speaker 1: use UM and ones you can download as apps. I
Speaker 1: will not go through them all UM, but the purpose
Speaker 1: for the purposes of this episode, this conversation will stick
Speaker 1: with coin based UM one of the most if not
Speaker 1: the most widely used among the whole see of them
Speaker 1: UM digital wallet another definition for you. Digital wallet is
Speaker 1: a software based system that stores your coins UM. A
Speaker 1: While a crypto exchange is where you buy, sell, and traded,
Speaker 1: a digital wallet is where you store it. So using
Speaker 1: your wallet, you make transactions like making payments as its
Speaker 1: stores your coins or UM. You gain access to services
Speaker 1: because it stores your passwords. So that's what the digital
Speaker 1: wallet is. So actually, with a lot of these concepts,
Speaker 1: will talk about the way you get access to a
Speaker 1: lot of the sites we're going to be discussing today.
Speaker 1: You have to have a wallet because the wallet serves
Speaker 1: as like you're user name and password to get in.
Speaker 1: So we're talking about that more in a second. And
Speaker 1: then gas fees UM erased the idea in your head
Speaker 1: of like automobiles, gas fees in the world of ETHEREUM
Speaker 1: is the fee you pay for the usage of the network.
Speaker 1: Making transactions, as you might imagine, on the blockchain, uses
Speaker 1: computational power. Um that computational power causes cost some money,
Speaker 1: so somebody has to pay the electric bills. Somebody's gotta fix,
Speaker 1: you know, the system if it breaks. So gas fees
Speaker 1: are the fee you pay when you perform transactions on
Speaker 1: the blockchain. We're gonna talk a lot about this concept
Speaker 1: um because it's important and this could make a break
Speaker 1: a lot of your UM experience with n f t S.
Speaker 1: So we're gonna talk a lot about this. But this
Speaker 1: for all you, for all you need to know right
Speaker 1: now is there's a concept of gas fees, which is
Speaker 1: fee the fee you pay for making transactions using um ethereum.
Speaker 1: All right, so now that we've established some foundational language,
Speaker 1: let's mint our first n f t UM. The first
Speaker 1: thing we have to have is the digital asset. So
Speaker 1: you might have like a song you'd like to place
Speaker 1: on the blockchain, or a piece of art you created
Speaker 1: an illustrator or photoshop, or maybe a poem you wrote
Speaker 1: and you saved it as a JEF. None of this
Speaker 1: conversation matters if you don't have some digital asset you
Speaker 1: want to share with the world. I won't spend a
Speaker 1: lot of time here. While having an asset is critical
Speaker 1: to this idea, it's obvious and there are other necessary
Speaker 1: steps more worthy of our time, so I won't spend
Speaker 1: time there. You gotta have it obviously. It's important, UM,
Speaker 1: necessary and required also UM that you have a digital wallet.
Speaker 1: There's no need in having a digital wallet if you
Speaker 1: don't have any coins. And yes, you will need some coins.
Speaker 1: Remember gas fees in order to mention first inn f T.
Speaker 1: The first thing you'll need to do UM is set
Speaker 1: up an account on coin base. UM. You could use
Speaker 1: other crypto exchanges, but for this example, we're gonna use
Speaker 1: this one coin bage. To set up your coin based account,
Speaker 1: you'll need all the same kind of information you need
Speaker 1: to set up any other online account, like an email address, unique,
Speaker 1: use your name, password, and etcetera. But you also need
Speaker 1: to serve up a photo of your driver's license or
Speaker 1: some other state I d UM from the coin based website.
Speaker 1: The reason behind requiring this documentation is to prevent fraud
Speaker 1: and to make any account related changes. Coin Based will
Speaker 1: ask you to verify your identity from time to time
Speaker 1: We also ask you to verify your identity to ensure
Speaker 1: no one but you changes your payment information, So be
Speaker 1: ready with your idea on hand when setting up your account.
Speaker 1: The next thing you'll need is your banking info in
Speaker 1: order to buy some which you'll need um. You'll need
Speaker 1: to have access to an online account your bank account
Speaker 1: to connect to your coin based account to swap off
Speaker 1: the currencies you'll be trading your dollars for ethereum. So
Speaker 1: you're a genius. You got this far without much of
Speaker 1: a headache, right, Well, that was the easy stuff. It
Speaker 1: gets a little bit more complex from here, but I
Speaker 1: promise it gets simpler again shortly. But this is the
Speaker 1: part where I got hung up on for like a week.
Speaker 1: There was a lot of un learning I had to
Speaker 1: do in order to be birthed into the world of
Speaker 1: web three. There were a lot of norms I was
Speaker 1: used to and had taken for granted, that are not native,
Speaker 1: or at least not at face value, native to how
Speaker 1: we perform in our analog world. This concept of a
Speaker 1: digital wallet took me a second. Um, I just assumed
Speaker 1: once I had some money in my coin based account
Speaker 1: that I was golden. I could go and make some purchases.
Speaker 1: But coin base is just an exchange. You don't buy
Speaker 1: things from the coin based app. You need a digital
Speaker 1: wallet to do that, which, after I got over the
Speaker 1: momentary state of confusion, it started to make sense. If
Speaker 1: I have a bank account, that doesn't mean I go
Speaker 1: buy some yeasys on the confirmed app using my bank account. No,
Speaker 1: I use my credit card or a debit card, which
Speaker 1: is backed either by my credit worthiness or my bank balance.
Speaker 1: You get the point. The exchange either way, it's just
Speaker 1: where I converted convert my dollars to cryptocurrency with the
Speaker 1: cryptocurrency of my choice, be it Ethereum, Bitcoin, dose coin,
Speaker 1: or Sheba or whatever. And the wallet is where I
Speaker 1: buy stuff in the marketplace, like a n f T marketplace.
Speaker 1: With this conversation, we're talking about minting n f T s, however,
Speaker 1: not buying them. But so far in our steps we're
Speaker 1: still doing the same work. To perform I have a task,
Speaker 1: you still have to have a wallet to mint n
Speaker 1: f T s. Again, your wallet is also the holder
Speaker 1: of your coins and your passwords. Remember that, so moving
Speaker 1: coins over to your wallet, the process of moving my
Speaker 1: coins from the exchange to my wallet again being new
Speaker 1: to the game cost me a little bit of heartache.
Speaker 1: Before I describe the heartache, though, I'll tell you about
Speaker 1: my wallet. There are two wallets that I have. I
Speaker 1: have one that is a meta mask wallet, and I
Speaker 1: also have a coin based wallet. Coin Based is not
Speaker 1: only a marketplace, they also provide a wallet to go
Speaker 1: alongside their marketplace services, though you do have to sign
Speaker 1: up for them independently. Once um you have some coins
Speaker 1: in your marketplace account, you'll need to move some over
Speaker 1: to your wallet in order to continue the process of
Speaker 1: minting your n f T east. This was my first
Speaker 1: experience with the dreaded gas fees. Now, I mentioned before
Speaker 1: that you get charged gas fees when you make a
Speaker 1: transaction on the etherym blockchain. Remember so I also mentioned
Speaker 1: that at this point I had already purchased some eth.
Speaker 1: So why is now moving money from my coin based
Speaker 1: account to my wallet, in this case, my coin based wallet,
Speaker 1: when it wouldn't have matter. It could have been my
Speaker 1: metal mask wallet. Why is now the first brush I've
Speaker 1: had with gas fees when I've had to pay gas
Speaker 1: fees to get my coins in the first place on
Speaker 1: the marketplace, Yes, but no, I could go off the
Speaker 1: deep end here, but I won't what I what I
Speaker 1: will give you is enough information to understand the core
Speaker 1: concepts without balking you down in details and minutia. When
Speaker 1: you buy crypto from marketplace like coin Base, that marketplace
Speaker 1: already has the ethereum, the EAT. So having a thousand
Speaker 1: dollars in your coin Base marketplace account is effectively like
Speaker 1: having a thousand dollars IOU from coin Base. You really
Speaker 1: don't own the eath. When you go to move it
Speaker 1: over to your wallet, however, you're taking control of the
Speaker 1: e and placing it in your digital hands. So because
Speaker 1: you first simply had an IOU from the marketplace coin Base,
Speaker 1: in my case, you didn't, you didn't really have any
Speaker 1: have to pay any gas fees because you really didn't
Speaker 1: have the eath. You had a promise of ease. So
Speaker 1: platforms can get hacked and it will matter to you
Speaker 1: because they're storing your EATH or your promised eth. If
Speaker 1: it's in your wallet, however, you risk losing it if
Speaker 1: you lose your keys or your keys get stolen. You're
Speaker 1: in control. Going deeper into that isn't in the scope
Speaker 1: of this episode, but I'll leave it at that. If
Speaker 1: it's on the platform. If you have not moved money
Speaker 1: out of the marketplace and into your wallet, you have
Speaker 1: the promise of that currency. Once you move over to
Speaker 1: the wallet, then you have it in your hands. Okay,
Speaker 1: So this is where I came to pay my first
Speaker 1: real toll in the form of gas fees, moving money
Speaker 1: from my coin based marketplace account to in this case,
Speaker 1: my coin based wallet. Since I'm truly taking ownership of
Speaker 1: my ETH instead of having coin based the marketplace be
Speaker 1: a custodian from my ETH, I'm placing a recorded transaction
Speaker 1: onto the blockchain. Therefore, that requires, as we remember, computational power,
Speaker 1: and I gotta pay for that. Gas prices, just like
Speaker 1: the gas prices were used to the ones that involve automobiles, fluctuate,
Speaker 1: and they fluctuate based on the demand for computational power,
Speaker 1: the volume of network activity, and since ethereum is in
Speaker 1: more demand than ever, gas prices have been higher than
Speaker 1: they've been in months and years. Recently, they're incredibly high
Speaker 1: at the moment, so much so that the rates make
Speaker 1: some investments into n f T s UM no longer
Speaker 1: feasible and even ruin the value and possibility of future returns.
Speaker 1: So gas prices are high. UM, let's just lead it
Speaker 1: to the side because it's again out of the scope
Speaker 1: of this conversation. But it's important to know that gas
Speaker 1: prices are high and can you know can impact UM
Speaker 1: whether or not you get involved. So let's say your
Speaker 1: comfy with paying the incredibly high fees to move your feet,
Speaker 1: and you make the move. So note, I'm going to
Speaker 1: use some very simple numbers going forward as an example
Speaker 1: of actual numbers in these real life instances, very second
Speaker 1: to second. But my goal here is just for you
Speaker 1: to understand the concepts. Giving you simple numbers helps me
Speaker 1: communicate these ideas. So you had a thousand dollars in
Speaker 1: your in your coin based marketplace account, and now you
Speaker 1: have nine hundred in in your coin based wallets after
Speaker 1: paying gas fees. UM, here's a peek at everything you
Speaker 1: have so far. You have a digital non fungible asset
Speaker 1: like a piece of art or an MP three of
Speaker 1: a song. You have a coin based marketplace account, and
Speaker 1: you have a coin based wallet with some in it. UM.
Speaker 1: The next thing you'll need to ment your first n
Speaker 1: f T is an account on an n f T marketplace.
Speaker 1: For this example, I'll use the most popular of these,
Speaker 1: which is open c. There are others like Wearable, Foundation,
Speaker 1: Mentable and more UM, but open c is the biggest.
Speaker 1: To set up an account on open ce, UH, to
Speaker 1: make your first piece of art, we're going to need
Speaker 1: to use the other utility of your wallet. Remember, a
Speaker 1: wallet can perform more tasks than just spending coins. It
Speaker 1: can also serve as our password traffic keeper UM. In
Speaker 1: order to create our open sea account, will need to
Speaker 1: connect open ce by clicking the create button at the
Speaker 1: top of their web page to our wallet. UH. This
Speaker 1: require a little bit of authentication which we don't have
Speaker 1: to get into here, but I found it to be,
Speaker 1: you know, quite user freely and uncumbersome. So if you've
Speaker 1: made it this far into this episode, you should get
Speaker 1: through the process of connecting open sea to your wallet
Speaker 1: without much of an issue. Guess what you have now
Speaker 1: created your wallet and move some feet into it, and
Speaker 1: you made it past much of the heavy lifting. Most
Speaker 1: people do not make it this far, so cheers. Now,
Speaker 1: after having connected your wallet, you should see that you
Speaker 1: have an open sea account. Now you'll be able to
Speaker 1: click into your profile on open sea, upload a profile
Speaker 1: picture at a bio, your social handles and more. But
Speaker 1: let's get all that and get back to minting our
Speaker 1: first n f T. So the reason open c is
Speaker 1: the big dog in this n f T marketplace uh space,
Speaker 1: is they make it super easy to mint n f
Speaker 1: T s. What you're going to do simply is click
Speaker 1: create at the top of the page in the nav
Speaker 1: bar and start creating your item. Open Sea allows you
Speaker 1: to upload a number of file types like JPEG's, pings, PNGs,
Speaker 1: just MP four's, m P three's on and on and
Speaker 1: on um with a max size of like a hundred megabytes.
Speaker 1: So you've got plenty of space to play there. So
Speaker 1: that's pretty cool, and creators have a lot of options,
Speaker 1: and so most of this page to creating and menting.
Speaker 1: I'm sorry your first n f T is self explanatory.
Speaker 1: But the one thing, and among the last things to
Speaker 1: note here is the benefit of n f T s
Speaker 1: as opposed to the pre n f T world of
Speaker 1: art related to the creator's reward for her creation. Historically,
Speaker 1: and and still many, if not all, analog instances, say
Speaker 1: you create a painting and you're lucky enough to find
Speaker 1: a buyer at some community art show who you sell
Speaker 1: your paint too, for ten thousand dollars. You won. Right.
Speaker 1: For many artists, selling anything at that higher number is
Speaker 1: a victory. It doesn't happen often, but if it happens
Speaker 1: to you, you know, kudos to you. But let's put
Speaker 1: a real world twist on this, because it's happened time
Speaker 1: after time. You sold that piece at that community art
Speaker 1: fair for ten thousand dollars. Two years later, the person
Speaker 1: let's call him Sal, has garnered a lot of interest
Speaker 1: in that piece as he throws his remarkable dinner parties
Speaker 1: at his home in Utah. A purveyor of fine art
Speaker 1: loves the piece, visits his home for dinner and it's like, yo, Sal,
Speaker 1: I gotta have that piece. Sounds like you can have
Speaker 1: that piece. You know. They make an exchange for a
Speaker 1: hundred thousand dollars, So Sal is up ninek on his investment.
Speaker 1: He bought it for ten, he sold it for a hundred. You,
Speaker 1: the creator of the work, you realize none of that
Speaker 1: secondary sale value. That purveyor are lists it and Christie's.
Speaker 1: Then let's let's go further. He sells it again Chris
Speaker 1: and Christie's. Now it sells for six hundred thousand dollars. Again,
Speaker 1: you see none of that money. Sal made a hundred K.
Speaker 1: That purveyor who's unnamed made five d K. He bought
Speaker 1: it four hundred and sold it for six hundred. You
Speaker 1: saw none of that. You saw ten thousand, and that
Speaker 1: ten thousand dollars that you were so excited about two
Speaker 1: years ago. It is starting to feel like a raw deal.
Speaker 1: With today's technology. It is with n f T s
Speaker 1: it is with an n f T. On that same page,
Speaker 1: we're looking at on open sea. You can create a
Speaker 1: royalty that gets solidified into your art. It is not changeable,
Speaker 1: and it's up to ten in fact. So what does
Speaker 1: this mean based on our example baked into the smart contract,
Speaker 1: which is simply the settings were creating on this page
Speaker 1: we're looking at an open sea, we're baking into our
Speaker 1: n f T a set of rules that governs all
Speaker 1: transactions going forward about our n f T. So let's
Speaker 1: let's play this out again. Um, with our painting as
Speaker 1: an n f T. You're at that community art fair
Speaker 1: and Sal walks up. He's like, nice piece, kid, how
Speaker 1: much you know? In this case it's obviously a digital
Speaker 1: piece of art. But walk with me. You muster up
Speaker 1: the courage and take that big gulp and you say
Speaker 1: it's fifteen thousand dollars. Nah. You and Sal haggle and
Speaker 1: you settle on ten K. So you got ten grant.
Speaker 1: You feel like a million dollars because you just sold
Speaker 1: a piece for five figures that you created at home
Speaker 1: in your draws. Sal has his dinner party at his
Speaker 1: home in Utah and the purveyor shows up. He loves
Speaker 1: the piece and he buys it from Sal four hundred
Speaker 1: thousand dollars. This time you're not mad though, because baked
Speaker 1: into the n f T is a smart contract that
Speaker 1: outlines attend percent royalty. So you you made your initial
Speaker 1: ten k, and now that Sal is out there selling
Speaker 1: your stuff again. You made ten k on his sale.
Speaker 1: You made ten percent on his sale to that purveyor,
Speaker 1: and you cast in another ten k as you earned
Speaker 1: ten percent of his hundred thousand dollars sale. Now you
Speaker 1: had twenty thou hollars. You had your original ten k
Speaker 1: and you had his tin k. That purveyor, being a
Speaker 1: friend of Christie's auction house, list the piece and it
Speaker 1: goes for six hundred thousand dollars. Your ten percent royalty
Speaker 1: never goes away. It's unchangeable, it's unmodifiable, it's baked in
Speaker 1: what you just earned sixty thou hollars. In total, you're
Speaker 1: up eighty thousand dollars and you didn't have to do
Speaker 1: anything else besides your n f T and it went
Speaker 1: to work. Obviously, there will be millions of n f
Speaker 1: T s created as the awareness grows over time, and
Speaker 1: not all have this outcome. Most won't have this outcome.
Speaker 1: If that's not important. What is important is that we
Speaker 1: now have the opportunity for what to happen. John Michelle Botsky.
Speaker 1: I didn't have that. Gordon Parks didn't have that. You do.
Speaker 1: In the future, we'll get more into smart contracts, dolls,
Speaker 1: and other implications of n f t s like what
Speaker 1: will the means for health insurance? Possibly home sales even more.
Speaker 1: But my goal with this podcast episode is to pique
Speaker 1: your interest in the future we can all take advantage
Speaker 1: of now and benefit from for generations to come. What
Speaker 1: will you create? Black Tech, Green Money and production of
Speaker 1: Black they Afro Tech on the Black Effect podcast Network
Speaker 1: in iHeart Media and it's produced by Morgan Davon and
Speaker 1: me Well Lucas, with additional production support by Love Beach
Speaker 1: and Marissa Lewis. Special thank you to Michael Davis Adam Sims.
Speaker 1: It's a car savon Jan you know, like the wine. Yes,
Speaker 1: that's his real name. Learn more about my guests and
Speaker 1: other technis reuptres and innovators at afro tech dot com.
Speaker 1: Enjoying black tech, green money. Leave us a five star
Speaker 1: rating on iTunes. Go get your money, Peace and luck,