WEBVTT

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[MUSIC PLAYING]

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Non-fungible tokens or NFTs are
cryptographic tokens that live

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on a blockchain, each with
unique identification codes

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and metadata that
cannot be replicated.

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NFTs are digital representations
of physical assets.

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They're often likened
to digital passports,

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since each token contains
a unique non-transferable

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identity to distinguish
it from other tokens.

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The distinct
construction of each NFT

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has the potential for
several use cases.

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And much of the
current market for NFTs

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is centered around collectibles,
such as digital artwork, sports

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cards, and rarities.

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Because NFTs are
based on blockchains,

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they can be bought, sold,
and traded more efficiently

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and without intermediaries.

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This simplifies
transactions, reduces

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the probability of fraud,
and creates new markets.

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But there is a key difference
between crypto and NFTs.

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Like physical money,
cryptocurrencies

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are fungible, meaning they
can be traded or exchanged,

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one for another.

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For example, one Bitcoin
is always equal in value

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to another Bitcoin.

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NFTs shift the crypto
paradigm by making

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each token unique
and irreplaceable.

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This makes it impossible
for one non-fungible token

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to be equal to another.

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Put another way,
NFTs are an evolution

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over the relatively simple
concept of cryptocurrencies.

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Today's modern finance
systems consist

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of sophisticated
trading and loan systems

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for different asset types.

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By enabling digital
representations

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of physical assets,
NFTs are a step forward

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in the reinvention of
this infrastructure.

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[MUSIC PLAYING]

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