What is a NFT (Non-Fungible Token)
You collect smurfs… A limited edition smurf comes out, 10 pieces. Very exclusive. With this smurf comes a certificate. The certificate says which of the 10 you have. You buy no. 2 of 10. Other people want this one too, so you offer money for it.
This seems very clear to me and now it gets interesting… Because this is a NFT:
You collect digital smurfs. A digital smurf comes out, unlimited number. Anyone can view/save/share the smurf. 10 digital certificates come out in addition to the digital smurf. On the certificate there is a reference to the digital smurf, a link for example. In addition, the certificate says which of the 10 you have. You buy no. 2 of 10.
The digital certificate is the NFT.
With A., the value is based on how many smurfs there are. With B., the value is based on how many certificates there are. This is, of course, very strange… though. So why is that certificate worth so much, if it is no longer about the item the certificate refers to. After all, the item is not scarce. Anyone can have the digital smurf. For that, we need to look at where the certificate comes from… namely, from the publisher of the digital smurf. The source.
Suppose a digital smurf comes out and some random person attaches a digital certificate to it. There won’t be anyone who wants to pay for that. However, if the publisher of the digital smurf issues the certificate, people do want to pay for it.
Suppose you issue a digital certificate of a tweet posted by the founder of Twitter… Would anyone be willing to pay money for that? Probably not. But suppose the founder of Twitter issues a digital certificate for a tweet posted by him….
What’s the difference? Simple, the value arises at the source. The only thing relevant is who issues the certificate.
Suppose you buy a book in the store, anyone can buy that book. It is issued without limitation. But now the author gives a book presentation. Afterwards there is a queue at the writer’s desk, people have the book in their hands and want something from the writer. What do they want? A signature in the book… And now suddenly your book is limited. Because the writer has put a signature in it. Is the book different now? Is the content different? No. It’s the same book that everybody has, but yours has a signature in it.
It’s similar to what a NFT is, but with a NFT, the writer puts the signature on a separate piece of paper, not even in your book. So your book remains the same book that everyone else has. But you have the separate piece of paper with the signature.
So why is that signed piece of paper worth anything? Because the signature is from the author. And you can resell that signed piece of paper. Without a book.
What will Gulden do?
Gulden goes back to the essence of the NFT, which will make it easy to understand for everyone and especially easy to use. Both creating and trading. We are going to apply this in a way that is unique, but at the same time incredibly logical. The power lies in its simplicity. In addition, this development was chosen because it has a very large marketing component. Of course, we’ve been working on the technology for years and now it’s time for marketing. With this project we hit both. Not even so much because of the “NFT hype”, but because the promotion component is already automatically included. Of course, that will become a lot clearer once we announce more about this application.
Gulden has been developed over the years with this kind of development in mind, without us knowing what those developments would be. Under the hood it is transactions, it is blockchain. That means that Gulden is absolutely perfect for this, that the way we are going to implement it is incredibly efficient. It’s like our blockchain is tailor made for something we didn’t know the sizes of yet. What does that mean specifically:
Phase 1 — Duration: 2 months
The development on the Gulden Core.
Phase 2 — Duration: 1.5 months (starts simultaneously with Core development)
The UI part of the Gulden app. The “NFT” functionality will be introduced in the Gulden LITE app, but also in a new application developed specifically for this purpose. This application will place Gulden in the background and the “NFT” functionality in the foreground.
Phase 3 — Duration 3 months (starts simultaneously with Core development)
Development of the decentralized trading market for the Gulden “NFTs”. Similar to a DEX, but more efficient and specifically aimed at trading “NFTs” in the apps. This trading market will be decentralized where needed and centralized where it can provide efficiency. In other words, a hybrid form.
Development will start after Witness Sync (testing next week), so it will take about 3 months in total. As soon as Phase 1 and 2 are ready, large-scale testing can already take place.
In consultation with the GAB it was decided that this project will have the highest priority after Witness Sync because of the developments in the market and the strength of the concept. That is also the reason why we are not yet announcing much about what it will be exactly. Once we are well into the development that will happen.