What's an NFT?

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Actor: Julie Nolke
Written and Shot by: Sam Larson
Editor: Alec Mckay
Production Assistant: Jill Agopsowicz
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[@timothywright1318]

I work in commercial banking and my little bro was making fun of me over the holidays because I didn’t know what an NFT was. I asked him to explain it and he couldn’t. This is spot on! Love it!

[@lokithecat7225]

So easy... It's like having the "Real" Receipt for some garbage that only exists on the Internet. There might be, one day, some Internet places where you can only use the Garbage, if you have the "Real" Receipt.

[@Astraeus..]

I wouldn't worry about it. Here's all you need to know. 1- The "concept" isn't technically a scam, but the presentation and how people use them almost always are 100% scam or scam-adjacent. 2- Due to number 1, everybody involved is either a scammer or is being scammed, which actually then also tends to turn them into an unwitting scam-assistant. And finally, 3- Digital "ownership" in itself is a completely bullshit concept, and anybody who says otherwise is probably suffering because of 1&2 already, so you can ignore them :P

[@ToyKeeper]

I'm amazed how many comments have made it past the filters. Usually when people talk about this stuff on youtube, it auto-deletes the comments about a minute after posting. So it's difficult to even tell people it's a scam. It's basically a way to repeat the horrible things people did in the stock market in the 1920s, but like... online. Because there are laws against most of it in the regular markets. I'm reeeeeally not looking forward to the aftermath when it finally crashes.

[@mattcwell]

@@Astraeus.. Quick question? If you have $1,000 in your checking account, does that mean the bank must carry $1,000 to back that up? Of course not. Your bank account is a digital record, i.e., digital assets. Your $1,000 is kept on a computer that can then be redeemed for dollars. What if you want to change it for pounds, or yen, or euros? On thing that happens is the bank takes a cut all the way around for moving that digital asset.

[@Yobachi2007]

@@Astraeus.. Cryptocurrency is all a scam, based on scam fundamentals like non-fungible tokens that you have' but can't have, cause its not an actual thing. Just some 1s and 0s generated by a series of computer servers, that is backed by nothing, and has no actual value. The name of it blatantly tells you that its a scam. It's crypto as in cryptic. When how a business or money system works is esoteric and hidden even from its own clients, that's called a ponzi scheme. People are dupes.

[@suzanne3722]

And that is why you have the KZbin award on the wall…well deserved Julie 😃📈

[@julienolke]

hahah thanks!

[@dawnstudios7813]

@@sexygirls9151 I wish I could funge you, bots.

[@totenkopfgrgdfhb1336]

that award in non-fungible ;)

[@UTUBERAJ]

@@julienolke You are a ROCKSTAR

[@NaudVanDalen]

Soon there will be a gold one right next to it A few weeks to maybe a few months if they are slow. Let's hope they don't switch to handing out NFT play buttons instead because that would suck.

[@katiaaskildt7830]

I'm an economics major that spent 5 years studying economics. I cannot for the life of me think of NFTs as anything other than a joke to show how the law of demand could apply to anything

[@Grannn]

I concur.

[@ireallyreallyhategoogle]

Checkout Ali Spagnola, she used NFTs exactly how they are supposed to be used.

[@ct5625]

I tried to explain it to someone a few months ago. I ended up just saying that a bunch of people who put more faith in computer game scores than actual life achievements have been duped into taking it real-world. This person then asked me about bitcoin. I told them it was the same principle.

[@ireallyreallyhategoogle]

@@ct5625 Nah bitcoin is worse because bitcoin miners have taken all the good computer hardware and now i'm stuck with my old computer.

[@lynth]

Sorry, but you are a straight-up horrible economist if you do not appreciate the concept of non-fungibility or what kind of impact NFTs backed by smart contracts have on how ownership and contracts are managed. Or what a serious shift it is to provide a basis for permanent ownership of digital goods (or a digital identity to non-digital goods). Even as an anti-capitalist, you should have read Marx and understand the concept of fictitious capital and what kind of a disastrous effect it has on an economy. Go and read "A Contribution to the Critique of Political Economy" right now, I guess.

[@mattclouts]

"Good for the environment though cuz you're saving paper." "No, not at all!" Exactly what I wanted this morning, coffee in my nose from laughing. Thanks Julie!

[@julienolke]

Happy to be of service!

[@OvSpP]

‘No, not at all’ The block chain uses up several servers just to work and a lot of power. Glad she acknowledged it!

[@shreyasgk1]

@@julienolke I'm gonna be the ass to point this out, but the environmental impact depends on the blockchain being used. NFTs are created on many different blockchains and some are a lot more energy-efficient compared to others. Also, the high energy consumption doesn't directly correlate to a negative impact on climate. Over 50% of Bitcoin energy consumption comes from renewable energy sources. I know I'm being the party pooper, sorry. Love the vid!

[@PyoreBliss]

@@shreyasgk1 not really a valid point when as a whole NFTs and the Blockchain is not any better for the environment than any other server based system. Until we are no longer dependent on fossil fuels nothing server based can be environmentally friendly.

[@somefreshbread]

@@shreyasgk1 They're almost all ETH and pretending like they aren't is silly.

[@lordgates9180]

This made me laugh. Love it. Thanks, Julie! NFTs in short: Someone created a queue for people to stand in. This queue doesn't go anywhere, and never will, but people can buy places to stand in that queue. The owner of that queue then associates art, music, etc, with the different positions in that queue. As humans, we innately place higher value on positions farther up in the queue or with higher 'quality' assets like pictures and music. Someone buys a place in the queue, and they now have the right to say, "My position is associated with this thing." Other people now want THEIR name associated with the thing. So the value goes up. NO ONE ELSE can have their name in that position. This is maintained by the blockchain. That's it. That's the whole thing. You do not own anything. You do not have any copyright over the asset associated with your position. You just get to say, "Look! I own the position associated with this neat thing!" Obviously, if some major artist or company make an NFT and link positions to major songs or famous art pieces, people will want their name associated with those things. But buying an NFT for that slot doesn't equate to ownership in any way. If you're thinking this is stupid, you aren't wrong. It's like 'buying a star'. You're just paying for your name to be associated with that star in a database somewhere. Hope that helps for anyone confused! Credit to Josh Strife Hayes for the clarification.

[@Marcelelias11]

To be fair, I would totally buy a star if I could name it after me. That's still worthless, but just imagine me pointing at my star and saying "hey, do you see that star? It's named after me"

[@Nikki_the_G]

@@Marcelelias11 Right. And if aliens came from that star to visit us, they would be called Marceloans.

[@normanclatcher]

@@Nikki_the_G I'm totes using that in a future sci-fi story.

[@faisalhakim5920]

that is pretty good analogy.

[@messibessi11]

I’m too drunk for this

[@alcamino314]

I thought NFT was text-speak for "enough tea", i.e. "Want some more tea?" "No, I've had NFT, thank you very much"

[@Ikaraii]

You are not British. Because "enough tea" isn't in our vocabulary... *UNLESS* you preface it with "I've not had [enough tea]".

[@messibessi11]

This is the most beautiful thing

[@MariaMaria-sr8zg]

Works for me

[@revvolutions]

Badump tss

[@Spikey100000]

Reach

[@jeoxs]

This is the best representation so far of anyone trying to explain NFTs in "simple" terms. Julie should be on the MCU.

[@julienolke]

hahaha

[@ArabellaWilmot]

Marvel Cinematic Universe? 🤔

[@kage3069]

Not the MCU, the JCU!

[@Karlyr_]

* trying to explain NFT in "simple" words *without making it look like a money grab.* A Non-Fungible Token is a token tied to whatever digital good you want. You own a token and nothing else. And a token that isn't physical whatsoever. It's supposed to represent ownership of a digital good, but since the good is digital in nature anyone can have a copy of the digital good. The token is yours and can't be duplicated or recrafted... But what's the point in owning a bunch of ones and zeroes...

[@brainzz712]

@@Karlyr_ the only point is if other people tell you your 1s and 0s have a value in currency and then others want to buy those 1s and 0s. it's a bit of a pyramid scheme

[@wocket42]

Best NFT explanation: "I'm on a list now, so THEY know." I think that's all you need to know on how NFTs work.

[@IceMetalPunk]

Yep. She said that and I was like, "yeah, that's... pretty much all it is."

[@ToyKeeper]

I love that she brought up the word "funge", because, um... :D Funge, n.: A blockhead; a dolt; a fool. [Obs.] --Burton. [1913 Webster]

[@pammasheppard1338]

But who is "THEY"?

[@wybo2]

@@pammasheppard1338 Anyone who cares to look at the list. Think of it like this, the government has a list of who owns what piece of land. If you buy a piece of land from another person, you and the person selling it notify the government about the sale and add the proof of payment. (this will be different for every country/county/town in the world). The government then goes to its list and changes the 'name of the owner' section of that piece of land on that list. NFT's try to be that governments-list without the need of a government, and usually for images instead of land. Unfortunately for them, most people don't care about the list. BUT, if we as a society, decided that we DO care about the list, and consider the use of a image without being listed as the owner on the image as theft/copyright-infringement, then it becomes theft/copyright-infringement and can send the new crypto-police after the violators. Luckily, there is no crypto-police (yet).

[@pammasheppard1338]

@@wybo2 thanks for the explanation

[@Devastish]

For those of you who are wondering, "fungible" is a legal term that means non-unique or replaceable, and is used to describe things that can easily be mixed together so that it cannot be separated into it's original groups. For instance, grain is fungible because it can be mixed with other grain of the same quality and you wouldn't notice the difference or be able to meaningfully separate it. "Non-fungible" essentially means "unique" or "irreplaceable". I don't know much about NFT's, but the idea of a Non-Fungible Token sounds like a scam trying to use legal terminology to sound more legitimate so it can create an artificial demand for an item that doesn't do anything.

[@Ben-rz9cf]

The fact that it deals with the rights to an arbitrary token rather than any actual rights or licenses to the image kind of does make it a scam. Like, if you buy the NFT to an image, you literally still dont even have the rights to use that image non-commercially. Which is kinda bonkers, right? You might as well call it an arbitrary worthless token

[@stein1919]

something i saw on Twitter. "Imagine you have a hot wife that everyone in the neighborhood is drilling. but you have the marriage certificate. that's the NFT"

[@psilorder86]

I think what they want to do is "limited edition" items but digitally. Except digitally everything can be copied. So they have to make a system for keeping track. Except they started with the system for keeping track and had the idea that the could do limited editions.

[@kubukoz_]

you actually got it completely right lol

[@vandogtrailer6701]

@@Ben-rz9cf Actually it really has nothing to do with rights to the token. It's just like having the keys to the fungible tokens. If you have the keys, it's yours. ... Art has always had certificates of authenticity. This is better because it can't be forged. Not sure why everyone is so confused. You can copy the Mona Lisa too. Still only one original. The 21st century will wait for everyone to catch up.

[@Downhuman74]

This quote I found is the best explanation I've found yet for NFTs (I don't claim ownership of it, but it's perfect): --- Imagine if you went up to the Mona Lisa and you were like “I'd like to own this” and someone nearby went “Give me 65 million dollars and I'll burn down an unspecified amount of the Amazon rainforest in order to give you this receipt of purchase”. So you paid them and they went “Here’s your receipt, thank you for your purchase”. And then went to an unmarked supply closet in the back of the museum and posted a handmade label inside it behind the brooms that said “Mona Lisa currently owned by 'yournamehere' ”. So if anyone wants to know who owns it, they’d have to find this specific closet, in this specific hallway, and look behind the correct brooms. And you went “Can I take the Mona Lisa home now?”. And they went “Oh god no, are you stupid? You only bought the receipt that says you own it, you didn’t actually buy the Mona Lisa itself. You can’t take the real Mona Lisa, you idiot. You CAN take this though.” And they give you the replica print in a cardboard tube that’s sold in the gift shop. Also, the person selling you the receipt of purchase has at no point in time ever owned the Mona Lisa. Unfortunately, if this doesn’t really make sense or seem like any logical person would be happy about this exchange, then you’ve understood it perfectly. ---

[@davbah]

Perfect ! ^^

[@late2theparty]

Accurate.

[@Shuizid]

I think I've heard all NFTs are stored in the same blockchain - though no idea. Apart from that, the only thing slightly wrong (and worse) is that in the internet, there is no "original Mona Lisa" - every copy is virtually and thus virtually identical to whatever someone would consider the first one. So there are only the replicas from the gift shop.

[@vanivari359]

that's kinda valid, but: you can sell the receipt again and it might be worth 90 million dollars now and nobody else can own the receipt for the mona lisa but you. Many NFTs right now are just "art trade" - it has the value because people are willed to pay the value. You buy a digital asset and hope that somebody else buys it from you for more money. But: the actually interesting part is that these NFTs could be used for something. For example it could be a weapon-NFT in a computer game. You buy it and can use it in the game and then sell it again. Or you play the game, find a weapon-nft and sell it to other players. And: if you today create a meme and post it on twitter, it is copied and used a million times and you get nothing. But if you use it on a "blockchain twitter", your meme is actually connected to you and some memes might be so great that other people pay money to use it. NFTs could heavily influence the distribution of stock-photos or news or whatever. All of this already exists, but in a less secure way. So there is a lot of hype, but the underlying technology could create something which helps artists to have more control over their work. And you can always proof who the current owner of a picture, video or song is. No Mona lisa stolen and hidden in a billionaires secret private art gallery anymore.

[@Daddonite]

@@vanivari359 Except you could still steal the actual Mona Lisa and put it in your secret private art gallery, just someone else would hold the proof of ownership.

[@TheGroovyGuitarDude]

I’m still confused… Does the token funge or not?

[@OvSpP]

It literally can’t!

[@julienolke]

depends if it's nonfungible

[@utezahn3174]

Wouldn’t that be a funging token? Obviously, YOU can’t funge it …. but it could still funge.

[@_piulin_]

bLoCkcHAiN!!1!11

[@kaseyseverely8636]

@girls⤵️♋️ So is it fungable or not?

[@spodreman7732]

What I learned: -NFTs is non-fungible -therefore you can’t funge then -if you try to funge them, you can’t -the reason why you can’t funge the tokens, is because blockchain -once you buy one you can _have it_ (or you can screenshot it but nobody would ever do that)

[@mikelisteral7863]

15-30 = my body is better than yours! 30-45 = i know more than you! 45-60 - i have more money than you! 60-80 = humble and kind.

[@quietguy61]

and your name is on a list

[@steventate4687]

I just screenshotted an NFT

[@izme1000]

@@mikelisteral7863 I can't wait for the having more money part.

[@0colorofspring0]

I lost it at "Try to funge that right now. Try to funge it." *Julie squints hard*

[@texaswunderkind]

The easiest way to confirm that you purchased an authentic NFT is that your money is gone, and won't be coming back.

[@julienolke]

truth

[@marcellkovacs5452]

So, it's like a casino receipt. Got it.

[@tlalnetlalli04]

It’s nice to see Julie venture into the realm of educational KZbin. I mean, of course *I* already knew that “fungible” was an agricultural term dating back from the 15th Century BC, but I’m sure all the laymen could benefit from the information this video presents.

[@Hexydes]

I mean, the definition is right in the word. "Non-fungible". It literally means you CAN'T funge it.

[@reidflemingworldstoughestm1394]

@@Hexydes Toccata and Funge in C minor

[@user-dd5vg9zp3s]

Kramer from Seinfeld entrance...love it

[@mandoman9959]

That slide in at 0:02 was SMOOTH AF!!!

[@LarryLatouf]

I love this. As someone who knows exactly how the technology is supposed to work... I can't believe the world spends money on NFTs..

[@JimAllen-Persona]

Neither can I. But then again - I don't understand people that put their life savings into Crypto or art either.

[@bate01071]

Ditto

[@WayneBraack]

Yes we'll there's the Flat Earth, Scientology, Ancient Aliens, Atlantis, some guy in sky that wears sandals that's supposed to be cool, so why not.

[@Nintendocomics-clubs]

Just another great tool for money laundering

[@julienolke]

but why would you get something fungible when you could get something non-fungible?

[@sarahkoe1903]

As a German, I somehow assumed NFTs were just some "English thing" I couldn't understand, but which had an obvious meaning for everyone in the English-speaking world. Well! Now I now what the abbreviation stands for - and that everyone else is just as confused as I am. Thanks people, I feel you!

[@NickFisherman]

83% of the times that you put that NFT on the screen, I was able to funge it without you even knowing, or being able to do anything to stop me.

[@julienolke]

🤣🤣🤣dying

[@Shuizid]

That's what the blockchain WANTS you to think - but really it blocked you, but because you think you funged it, it saves future blocking work, which is good on the chain, so it doesn't get weary, you know? Don't wanna break the chain.

[@NickFisherman]

@@Shuizid this is untrue. That's just what I want THEM to think. If they understood how I keep funging their NFTs, the blockchain would figure out how to stop me.

[@Shuizid]

@@NickFisherman It doesn't have to because the blockchain wants you to think, that it does what you want it to think what you think it thinks but really it's thinking one step ahead because it's a very long chain AND very good at blocking.

[@NickFisherman]

@@Shuizid you must be at least ten steps ahead, because I couldn't follow that. Maybe all my funging actually isn't working.

[@humzahkhan6299]

Sometimes I forget Julie is only 1 person and doesn’t actually have identical clones in the same room to film the video.

[@michaelreifenstein2114]

There is a third Julie operating the camera.

[@FlatOnHisFace]

"Why are you ruining the fantasy? We know the reality. Don't mess with the fantasy, okay?" -- Gary Wallace

[@bowdiddly6172]

And you can prove this, how? Ha, gotcha trying to funge her!

[@michaelreifenstein2114]

I've just worked out, mirror Julie is operating the camera in this video. If she needs help threesome weathergirl Julie steps in.

[@stanthechanman]

@@michaelreifenstein2114 It's Julies all the way down

[@auran_vesdranor]

Talking about NFTs and then introducing the sponsor with "It's important that we all take care of our mental health". Gold! Just gold!

[@thebomber45]

Best explanation I've ever heard, 11/10!

[@julienolke]

I really aim for accuracy and ease of understanding

[@Jeff_Segal]

Funny you should give it an 11, because I did have a slight Spinal Tap 11 feeling.

[@TheNewTravel]

It's almost like NFTs are a giant scam but no one's willing to admit it because there's fast cash to be made by selling them ;)

[@tuseroni6085]

Most new thinks are scams, at least at first, nfts are being used in that way a LOT right now, but the concept has its merits, kinda like a trading card, you aren't trading it for its art or its stats but for the card, and being able to use it in tournaments. Nfts can be used in a similar manner, as something which can be traded or used to show ownership of a digital good.

[@Miketar2424]

@@tuseroni6085 And it totally funges.

[@AudreysKitchen]

Literally. It's a pyramid scam.

[@desiv1170]

Not at all!!! No one is willing to admit it, because in doing so, they'd have to admit they don't know what funging is!!! :-)

[@hollyl5702]

@@tuseroni6085 um.. no. I disagree with that premise. Actual products with real value are not. For example, cars were not a scam even though there were already horses and buggies, they were just a different form of transportation. That actually worked.

[@soapymargherita]

Can I just say you are a master of acting against nothing. I honestly forget there's only one of you making these instead of a pair of identical twins.

[@rogue6]

From now on I'm exclusively entering rooms by sliding in sideways, grabbing the door frame to stop myself and saying "Yo" with a chin lift

[@deeb8733]

🚶‍♂️🤣

[@RhombonianKnight]

I recently saw another KZbinr explain that NFTs are basically Beanie Babies, but more worthless. Your video is definitely the better explanation.

[@davidnelson4960]

Goal

[@liplock000]

Legit saw a huge TY display in a pretty popular store the other day and was very confused. Like, are beanie babies a thing again…..? Why?

[@picaludica]

Hello, fellow Jesse Cox fan! *wave*

[@RhombonianKnight]

@@picaludica hello there! 👋

[@anona2017]

@@liplock000 Ty stuffed animals are still popular with kids (and probably some adults)

[@flyonwall81]

This is one of the most clear, concise and factual descriptions of NFT's I've seen. Clear as mud. :)

[@damianessing]

It tells you literally everything you need to know about them, absolutly

[@ThisIsTechToday]

This is FUNGING hilarious 😂

[@MikeHughesIntermernet]

It's actually NON-FUNGING hilarious. Don't go funging what you can't afford.

[@adarateranroldan]

@Willy on Wheels 💀

[@Andrew_M_Ward]

I laughed through the entire skit... from the sock-slide into "YO" to the 1500 B.C. reference and it just gets funnier by the second...

[@walterdayrit675]

I don't FUNGING get it....🤷

[@FreedomForMaryland]

You are Tech Today.

[@1234j]

Congratulations on OVER 1 million! You're brilliant. Cheers from England.

[@julienolke]

thank youuuu!

[@StonedCoconut96]

@@julienolke I just noticed it! Congrats, Julie! So happy for you :D

[@vizdrom]

*Congratulations on 1 million* ! Finally the day has come

[@IceMetalPunk]

"The NFT is proof that I bought it." "Bought what?" "The NFT." "Right, I'm asking about the NFT. It's proof that you bought what?" "The NFT!" "The NFT is proof that you bought... the NFT?" "Yep!" "..." "I spent enough money to feed homeless people for a month on this!"

[@steven9432]

NFT's: spending a lot of money to buy someone else's receipt.

[@gavins9846]

It aint like anyone else here's donating to homeless shelters by the month either. I've yet to meet anyone who actually buys NFT's. What's with all this uproar.

[@IceMetalPunk]

@@gavins9846 "It aint like anyone else here's donating to homeless shelters by the month either." I donate to cancer charities every month, I'm sure some people choose homeless-based charities to do the same 🤷‍♂ "I've yet to meet anyone who actually buys NFT's. What's with all this uproar." There are a lot of people I haven't met who nonetheless exist. If you count everyone you and I have collectively met combined, it's still less than a tenth of a percent of the people in the world. "I haven't met anyone doing this" and "no one is doing this" are extremely different things. Last year alone, people spend $22 billion on NFTs.

[@gavins9846]

​@@IceMetalPunkYea people do what they want with their money. Dumb or not.

[@IceMetalPunk]

@@gavins9846 Obviously they do. Doesn't mean no one can have opinions about how people spend their money.

[@allanansume5524]

CONGRATS ON 1 MILLION🎉♥️ You totally deserve this Julie, you've brought joy to more than a million ppl in this past two difficult years. Truly thankful 🥰

[@julienolke]

💕

[@daverhoden445]

So Santa finally delivered? Congratulations!

[@shoesncheese]

Astonished at how well this just sounds like a casual chat between two friends. Great writing and acting. Also, will start using "to funge" as a verb IRL.

[@proudnoob124]

This was almost a perfect representation of reddit's understanding of NFTs. All that was missing was a mod banning you for harassment after you dared to respond with "spelling out the acronym doesnt tell me much at all" on an "intro to NFTs" thread

[@jimh472]

Most of the time Reddit is just Twitter trying to act smart. +

[@ToyKeeper]

Yeah... and they'll definitely ban you if you actually look up "funge" in a dictionary and post what you found: Funge, n.: A blockhead; a dolt; a fool. [Obs.] --Burton. [1913 Webster] :D

[@sleepysera]

@@ToyKeeper Oh THAT's where blockchain is from...it's a queue of blockheads. Makes sense, thanks.

[@NaudVanDalen]

"I spent my life savings on a randomly generated picture in the hope that someone else will also spend their life savings on it and I'll earn money!" is basically the reason why people buy them.

[@burger_kinghorn]

The Dutch figured that out the hard way with tulips 388 years ago.

[@NaudVanDalen]

@@burger_kinghorn And now someone made tulip NFTs. I hope nobody spends too much money on them.

[@LepusProd]

At least the tulips probably had a pleasant smell to them

[@ImDaBeast1234567890]

As someone who knows a lot about crypto and nfts, I can confidently say everything in this video is correct

[@TimeAngelxx]

@@ohio oh that's actually good. But the baseball cards aren't fungible obviously.

[@fiddley]

@@ohio so what happens if you try to funge them?

[@3dartxsi]

@@ohio it's not digital baseball cards. Those would be of some kind of value and utility. What NFT's are is digital "dibs" on something. If you put an NFT on a baseball card, you'd be doing the equivalent of calling "dibs" on it. And if anybody actually gave credence to that, it might actually be worth something.

[@skeetermcswagger0U812]

@@3dartxsi So if somebody used crypto/digital currency to reserve a CYBER TRUCK would that be an NFT? 😆😅😂🤣

[@hellodzheng00]

I learned so much from this video. It was quick. Straight to the point. I am ready to go out into the world and blockchain the crap out of NFTs. Thanks Julie!

[@LabyrinthMike]

I have now gone from being confused about NFTs to not understanding them at all!

[@julienolke]

try watching the video again. it's pretty straightforward

[@jonesasher9240]

@@julienolke Haha ..

[@chrys9256]

BetterHelp is the perfect sponsor for this video. Anyone buying NFTs certainly needs their services.

[@LXSeaV]

Amen 😂

[@rileyolson6008]

🤣

[@stealthis]

I don't trust them with all of those influencer sponsorships they have

[@hermanrobak1285]

Are their services fungible?

[@AmyB369]

Better help is actually not good

[@dsar8727]

As a certified Blockchain Developer, I can confirm is this is exactly how I explain NFTs myself.

[@wendinalani8648]

my name is on the list for the petition to De-Funge NFTs which uses a lot of paper for people to sign so it's not at all good for the environment, but it's the best $30 grand I ever spent

[@NiGHTSaturn]

The attitude when you said « Are you asking what an NFT is? » is spot on. It’s been incredibly puzzling on to what my final opinion will be on NFTs. I’m a musician but also a graphic artist. The amount of fellow artists that had their art stolen to be sold as NFTs is overwhelming. Really disgusting. But on the other hand, so many music artists believe that it will save the music industry’s problem when artists aren’t properly paid. It’s not sustainable though. And the problems are not about to stop. 😵‍💫😵‍💫

[@cet6507]

I would love NFTs if they were really used to fund artist, it's like a certificate of authenticity for digital art. The value is in the underlining work, commission some art and get the NFTs for them so you could resell it as the original. That one copy stays valuable even if it's copied all over the internet.

[@hoshiharucho7526]

@@cet6507 This one comment has finally allowed me to understand what an NFT actually is. I thank you.

[@swiftroph]

@@cet6507 It's actually not a certificate of authenticity at all. Images are just linked to a # on the blockchain of a group. Another group can use exactly the same image and link it to another #. You also don't own the image, you "own" the # linked to the image. You have zero right on the image itself.

[@Izzy-fr1zu]

Sorry I don't know anything about NFTs, can you explain this? How could they solve any problem in the music industry?

[@free22]

@@swiftroph I think cet is trying to describe how they wish nfts worked. Not how they do. I wish they worked that way too. Can we make this a thing?

[@CharlotteDobre]

Nailed it.

[@sewlemony1470]

CHARLOTTE!!!! I love you so great to see you here!

[@suzana_grau]

You've made it!!! One million subscribers- OLE!!! Congratulations 💗💗💗

[@ClaudiosCollection]

BLOCKCHAIN! Best move ever! That's all I know about NFTs. Loved this, Julie!

[@julienolke]

happy to help

[@toriless]

Yeah, whenever something does not make sense just yell out "blockchain".

[@EdwardT9]

Congrats on 1 million! Non fungible means it never goes bad, so like fungus can’t grow on it, so it’s “non fungible “. Always fresh, never moldy... Hope that helps, thanks!

[@blue04mx53]

so, it's either WonderBread or a McDonald's French Fry

[@lumanaughty1025]

I love the KZbin plaque in the corner of the shot

[@JTgreentalk]

That's EXACTLY what I thought too! clear as mud.

[@ShaunCheah]

Hi everyone! Just popping in here to say that as a top-tier patron, I actually have a receipt that declares ownership over this video in particular. Please do not funge this video! I would like to clarify that I do not own the video, but I do own a receipt that says I own this video. Hope that makes things clear and again, please do not funge it!

[@RuhanMajithia]

All right, i wont funge it.

[@Kioto_Nakamura]

@@RuhanMajithia you woud not be able to even if you would try. because blockchain

[@RuhanMajithia]

@@Kioto_Nakamura ah yes true

[@lefterissarafis8389]

No one cares what you say Shaun I'mma funge the living excrement of this video... WTF BLOCKCHAIN!?!????

[@ronjo4]

Block chain! Sorry even a top-tier patron can’t stop the power of the BC from a counter-funge.

[@michaelleue7594]

The irony of both characters "funge-ing" (i.e. losing track of the real one because it's mixed with a fake one) the non-fungible token without even knowing that they're doing it.

[@edwinalfaro6610]

I screwed up and got an UN-fungible Token Item (U.T.I.), so now I got a UTI , and it burns when I pee for some reason. That's no Fun. In fact its Un-Fun...gible actually.

[@kungfunge8991]

before my girlfriend left she gave me an Electronic Fungible Unit, or an EF-U

[@Quantris]

This is not the whole story but: You know how you could buy like a limited edition print with a little plaque on it that says "#123 of 456" or something? The "non-fungible token" is basically that little plaque. Though it's slightly "better" in the sense that it's provably #123 of 456. Though also nothing even stops the company that made it from just creating another series later so you are still trusting their word on that. The print, btw, is not non-fungible. You can funge it all you want, especially because it's not inexorably attached to the plaque. In most cases it's barely even connected.

[@IceMetalPunk]

Yeah, that's a good analogy. Buying an NFT is like buying the plaque without actually buying the print.

[@FlorianRachor1]

@@IceMetalPunk You get the print, it's just that the print is worthless if it weren't for the plaque. That's actually the best explanation for NFTs. It's not different from buying baseball cards or some other collectible though. The issuer prints a million pieces, says "those are strictly limited" and you hope that at some point in time it will be worth anything. 99% of NFTs sold now will be worth jack shit in a few years, but people are hoping to get that 1%. Always has been this way with collectibles.

[@IceMetalPunk]

@@FlorianRachor1 You don't get the print, though. With a print, it's a physical item, something that is unique. There may be other prints of the same image, but because the items are physical, they each have their own wear and tear that changes them into unique things over time. A nick there, a smudge here, etc. With digital art, that's not the case. There is no physical print, the "print" you get is just a sequence of 0s and 1s, and anyone with a copy of it has the exact same thing with not a single difference.

[@cm-yu6gu]

2:35 the acting here is stellar like that little head nod detail is so on point had to replay it 3x

[@cutubeish]

Finally this explains so much! My wife started using that block chain maneuver every time I tried to initiate some funging. little did I know, she just became non fungable. I wonder if there is a vaccine... Thanks Julie!

[@joebeone]

That slide and "Yo!" is freaking classic

[@joebeone]

Cannot stop thinking about and quoting this freaking sketch!!! It's so good.

[@ronjo4]

Can’t quote it. It’s non-fungible. Unless it’s block-chained, then it’s open season.

[@VicJang]

This is so good lol. You really did a great job demonstrating how most NFT “investor” pretend to know what’s going on 😂

[@bunny_0288]

It's just a good old fashioned stupid tax if you ask me lol

[@isntitabeautifulday1648]

Yep. I mean, if you know what's going on, you simply don't invest in NTF. Like, ever.

[@jackbalnis9580]

Had this same exact convo with a client last week. Even the ones in the know, don’t know how to explain it. This was fantastic. I’m gonna start doing that slide in “yo” at work then maybe it’ll help with my nft presentation lol… Congrats on hitting 1 million subs. Continued success.

[@julienolke]

Haha nice! Thanks!

[@DreadDeimos]

NFTs are hard to explain because image NFTs have no sense whatsoever. Real value of NFT would be attainable if they were used for concert tickets, company shares representation, property ownership management and many other cases where you would have some kind of a third party that would recognize it and back it up with real products and services.

[@MrTomtomtest]

@@DreadDeimos NFT has sense, money whether FIAT or crypto is fungible, as in you can mint a billion 1€, each one will still be worth the same 1€. NFT on the other hand are limited, each one is unique and can have different value, hence non fungible. It is that uniqueness & the transparent proof of ownership that blockchain brings that is interesting, not only for art but for countless possible application from license plates to academics. Just needs to mature a bit, like most of crypto.

[@DreadDeimos]

@@MrTomtomtest Oh, I know. I develop smart contracts including NFTs as a day job.

[@teresa_meow]

The panic of knowing what NFTs are but also not knowing anything about NFTs... You know?

[@jcaashby3]

I saw people getting upset about nft being attached to gaming and looked up what exactly a NFT even is. Still confused as to why people get upset about it.

[@Positron49]

@@jcaashby3 Its because gamers are hyper sensitive to the games becoming focused on micro-transactions and pay to win setups. I agree with them, but that is because they do not know what an NFT actually can be. There WILL be some studios that are greedy and use NFTs in this way, just like they do with dollars. There will be others (and especially independent and smaller developers) that utilize it to enhance the game. It can bring really great and cool things to the industry with the proper marketplace.

[@garymartin9777]

I'm glad she 'splained it cause I had a wholly creative expansion of the acronym.

[@peterkossits4794]

It's about time someone made fun of that crap! Julie, I'm so happy to have had the opportunity to funge all your videos over the past year. Thank you!

[@apathyangel1]

My 10-year-old asked me what an NFT is, and I was stuck trying to explain something I don't understand, in terms a 10-year-old would understand. I settled with, "owning an NFT is like if you symbolically own a meme." She said, "... I don't get it." Neither do I, kid.

[@IceMetalPunk]

You're not wrong, though. Another way to explain it: "An NFT is like a receipt that you get when you've gone shopping. It's not the groceries you bought, it's just the receipt proving you bought them. And it doesn't stop anyone else from also having those same groceries without a receipt." And if she says that doesn't make sense, or asks why anyone would spend money to buy just a receipt, then she's both correct and smarter than the massive numbers of idiots paying for NFTs for digital media. NFTs work well when the proof of ownership *is* the product, like concert tickets. So when the thing you're buying is just the proof that you paid for something. But when they're used to prove you bought anything else, especially virtual products, they're pointless and dumb.

[@AndyCutright]

That is an excellent explanation.

[@ebgbjo2025]

It's a scam to part fools from their money. Easiest way to explain it.

[@mikefule330]

If a gift shop at an art gallery has 1,000 prints of the same painting, those prints are fungible. You ask to buy one and it doesn't matter which one of the 1,000 identical prints they give you. If you want to buy the original painting, that is non-fungible: you are buying that particular one, and they cannot give you another as a substitute. Money is fungible. If I sell you something for a Dollar, it doesn't matter which Dollar you give me. If you order a TV set from Amazon, as long as it is the right model, it doesn't matter which particular one they take off the shelf to send to you: it is fungible. If you order an autographed 1st edition of a book from a book shop, then you are buying that particular one, and no other will do, so it is non fungible. A non fungible item is simply a single unique item that can be sold or bought. A non fungible token is a set of computer code (maybe an image, maybe a piece of music, maybe a "bitcoin") that contains a sequence of code that identifies it as unique. The blockchain is a sequence of data which gives a complete and verifiable history of the NFT. Anything that is unique can have a tradable value, whether it is the Mona Lisa, an autographed 1st edition, a garment once worn by a famous person, or the title to a piece of computer code.

[@Acciaio83]

Love this video because most NFTs are explained this way! But just to be nerdy and clarify. Fungible means it can be traded for an equal value $1 for $1. Non-fungible means that something has intrinsic value, i.e. tickets to courtside seats at a NBA championship game (~$50,000) or tickets to your local arbor day festival (~$10). Both are "tickets" but can't be traded as equals. A NFT can be digital art to a digital deed to a house.

[@shanematthews1985]

Except that you aren't buying any art, if you were buying physical art you wouldn't need the Blockchain because you actually owned the item, with digital goods you can easily replicate them and it's impossible to tell them apart, hence you actually own nothing other than the receipt you overpaid for

[@tfofurn]

Julie yelling "Blockchain!" would be a great ring tone. Gotta make it non-fungible, though.

[@WildBlueAngel1000]

The amount of "alrights" was too damn perfect.

[@MyClutteredGarage]

You put the “fun” in non-fungible.

[@davemiller6055]

The genius of this is that it works both as a joke and as a viable explanation. Great job. Next, I want to see NFTs explained to mirror Julie.

[@MrHerks]

I’m glad you broke this down cause when I fung, I get funged and I wasn’t 100% sure why. Now I know it’s non fungible it all makes sense.

[@ronjo4]

What makes NFTs so amazing is that you have to try to funge them with the power of your mind, but you need to block chain it with your hand. 🤯🔥

[@zcmini000]

I know it's supposed to come across like Julie, doesn't know what she talking about. But she summarised NFTs pretty amazingly.

[@Peaslepuff]

I really can't get over how incredible your hair looks! Goals

[@gtn9]

Finally She has hit the million mark.. The most heartiest congratulations on achieving this milestone. I was more anticipated about that benchmark more than Julie herself. Onwards to 2 Million..✌🏻

[@brandihillier]

Congrats on 1 million subscribers. You so deserve it.

[@julienolke]

thank youuuu!

[@Thiesi]

One million subs?! This is crazy - I remember when KZbin suggested me this channel which was about a month or two before the first "Explaining the pandemic to my past self" video. Almost unbelievable how much has happened since then - in the world but of course also here! Wow! Congratulations from me too!

[@CLCustom1911]

This is the best explanation of NFT's and blockchain I've ever seen in the history of ever. The chain blocks the funge, because blockchain, and the reasons, because.

[@deniz547]

I still don't know what an NFT is but this makes the most sense somehow, so yeah!

[@lenochod6]

My thoughts exactly :D

[@julienolke]

Happy to help

[@thepandaman]

My layman's understanding is that it's just a means to prove original ownership of a digital asset. It's easier to wrap your head around non-fungible physical assets. There's only one Mona Lisa, and even if someone managed to make a perfect copy, it wouldn't be *the* Mona Lisa, so the original is considered a non-fungible asset. A fungible asset would be a dollar bill. You could swap it with another dollar bill, it wouldn't make any difference - they're both worth the same. NFTs attempt to mimic that, but with digital assets, which is a weird concept where you can just copy-paste, and you've got a identical copy. So it's just a "token" to prove that you are the owner of a piece of digital art for example, even though there might be 100s or 1000s of copies of it.

[@Konarcoffee]

@@thepandaman Can you funge this explanation a bit so it's a little more amenable for the blockchain??

[@keerya4179]

It's because the concept is weirdly confusing for something that is actually just betting money. The idea is to buy the NFTs and sell it for a higher price to pigeons that buy the bs about ownership and stuff (that's us). It's basically a scam. You pay for an ownership that mean nothing and can't be enforced (sometimes of stolen art too). If you stop at the buying part you're an idiot, if you understand it's a money game and how it's easily rigged you're either a scammer or someone with gambling addiction. Companies that jump on the wagon because they think it's popular are morons at best.

[@feenix1033]

You hit a million! Congrats Julie, so happy for you!

[@brutalmonkey79]

True story. This video helped me blockchain my wife’s attempt at funging my mint chocolate Oreo. Thanks Julie!

[@omnicatalyst]

Best explanation of NFTs and block chains I've ever heard. Equally as accurate as most interpretations I've heard.

[@pdxbny]

Thank you Julie for finally being the person to explain NFT's in plain and simple terms that anyone can understand.

[@Zayas897]

So you understood her lol I need NFT for dummies

[@paulsmith410]

1:15 "So, in the 15th Century BC...." I just choked on my breakfast burrito.

[@joelalonso8991]

Happy 1 million subscribers!🎉🤯

[@dwp3864]

Perfect timing on this video. I had been recently investigating NFT's myself to make sure I really understood the basics of them. After finding out what Crypto Punks were and that actual humans will pay insane amounts of money for something a 4 year old could accidently create I told a friend that the end of the world should be just around the corner now. Awesome video!

[@davbah]

you forget the part that there is no real property right so anyone could just copy the ntf they bought

[@Taurusus]

@@davbah You can't copy the NFT, that's the point. The other point is, the _art asset_ isn't the NFT. You can right-click to your heart's content, that isn't what an NFT is. You can make a _new_ NFT from that art asset if you want, but everyone will "know" that's a different NFT because blockchain. In short, this is all very silly.

[@hughbrackett343]

Hmm. I know a three year old. I should be able to have him cranking out NFTs by the end of the year. Not only that, he already has an extensive oeuvre to use for the artwork.

[@angusmarch1066]

@@TaurususNFTs as they are, are redundant garbage. Lemme explain. So NFTs are Non Fungible Tokens. In other words, a token which cannot be copied and replaced by an exact replica. Theres a lot of techy bs that goes with the explanation, but as I understand it, its a reciept that comes with product. The reciept and the product are sperate entities. You can screenshot the product, but it will not come with the reciept. In theory, NFTs are a useful advancement in technology. Imagine, say, you are at the airport and your passport is now an NFT. That means a TSA agent scans your passport and it tells them, that this passport belongs to you and is not a forgery. Where even the most security heavy of traditional passports can be replicated by a skilled enough hand, as yet, the reciept you get with the NFT passport can not be remade. As the meme says, "the blockchain doesnt lie." Where NFTs get stupid is when you try and monetize them as commodities or as art and this actually raises all kinds of philosophical questions about what art is, and how commodities derive value. Its easy to see the value in an NFT passport or concert ticket. The ticket itself grants you access to somewhere you couldnt otherwise get to and the NFT code bolsters the authenticity and therefore the security of the ticket. But what value does a mass produced picture of a monkey have? Well that depends on what you believe. Is it the monkey that you find valuable or the code on it that has value? In my opinion, the value of an object is dependent on its purpose. A ticket's purpose is to grant you eclusive access to a place. Does it being replicated, therefore reduce that purpose? Yes, therefore an NFT makes sense. A piece of art is designed to be enjoyed and looked at and to inspire people. In physical art, the value of it comes from seeing the brushwork up close. So would a screenshot would not have the same value, as it is not capable of being admired as fully as the real thing. However in online art, the value and purpose simply come from admiring the talent of the artist. Even when looking at the best of digital art, youre enjoying the maximal experience that is possible. So if I attach an NFT to it, so that it is now "one of a kind" it has not done anything to reduce or enhance the value of the picture. The NFT is redundant. If I screenshot the picture, I will not get anymore out of it than the holder of the NFT. It doesnt matter that its not longer an NFT, or an "asset". I am enjoying it the same amount that you are and for free. You've just attached false value to an object to present the illusion of exclusivity. Hence, NFTs as we know them are dumb.

[@davbah]

@@Taurusus You can't copy the ntf (because the ntf is a property right), you can very easily copy the picture link without any trouble. That's what I mean.

[@deepabst]

chefkiss for the knowing nod and "it's non-fungible" at 2:53

[@davesampieri]

1,000,000 subscribers!!! Congrats!

[@bobbirne4983]

That was a kick block one can learn from.

[@humanperson8418]

Fun fact: The earliest known example of writing is the 'Kish tablet' which is an ancient Sumerian limestone tablet. Do you want to know what was on it? While not yet translated, it is believed to have been used to record transactions. That's right. It was just a ledger recording common day transactions. From ancient stone tablets, to modern day banking, and now blockchain. They are all just variations of the same technology. Recording who owns what and for how much.

[@kungfunge8991]

In the art of the martial art discipline, Kung-Funge, the "Non-Funge" manuever, better known to laymen as the "Block-Chain" is the most difficult to master. According to the master Sen-Sei, if done correctly there is no defense, AND no offense. If it appears that I am "man-splaining" this topic to you, no offense. KUNG-FUNGE!

[@edwinalfaro6610]

I am only a Plaid Belt in Kung Funge, so we aren't on Block Chain yet

[@whispypuffs4670]

God I'm so relieved that I'm not the only one with absolutely no clue about what the hell NFTs are. This video is just incredibly accurate to how everyone naive enough to buy one explains it To be honest this is easier to understand than their explanations

[@IceMetalPunk]

The actual explanation isn't far from this video's. An NFT is basically just a digital proof of purchase. In the case of NFTs for digital art, it means you can prove you bought the art, but you can't stop anyone else from making identical copies of that art for themselves for free; they just won't have the receipt you have. Sounds dumb? Because it 100% is, and people spending tons of money on them generally have no idea what they're doing. NFTs work when the proof of purchase *is* the product, like a concert ticket. When used to represent ownership of a separate digital product, like art, it's a complete and total waste of time and money.

[@Marcelelias11]

Even if you understand it perfectly, it's still stupid.

[@AndyCutright]

@@IceMetalPunk That's not right. You _never_ bought the art. You do not own the art. You bought a receipt for some transaction. You bought a hash in the blockchain. Literally you just bought a string of hexadecimal characters, nothing more.

[@IceMetalPunk]

@@AndyCutright That string proves you bought the art. "You do not own the art" -- sure you do. When you buy the NFT for it, you get a lovely copy of it. You own the art, just like everyone who makes a copy of it owns it.

[@AndyCutright]

@@IceMetalPunk The string proves you moved some amount of a crypto currency from your wallet into another wallet. That's all the blockchain does. It verifies an exchange. It doesn't communicate any information about the reason for the exchange. It doesn't verify you bought and own the copyright of some piece of art. Only a contract can do that. You absolutely do not own the art, unless the contract for which you transferred your crypto currency states you assume ownership.

[@SuperbowlJoel]

I saw someone on Run the Burbs tonight! Congrats Julie!

[@n0030021]

Well done! You could have substituted so many other terms into this sketch and gotten the same point across - that's a quality sketch!

[@ShermanChin]

This is the first tech video I have seen you do and it is an awesome take on how ridiculous the concept of an NFT is but like abstract art, certain people do love collecting them and the blockchain keeps a record of who owns them. Good work and please do more tech videos, Julie! 😊

[@CinemalecularFilms]

That imperfect screen-protector placement...TOTALLY can relate! 😉

[@AndrewTube]

yay! julie finally got the 1 millions subscribers which she deserves!!!

[@minski76]

"This is fungible. This isn't!" "And what's the difference?" $30k.

[@samuelluria4744]

You have one of the most bright and fun personalities ever! Your "blocking" moves are too damn cute!

[@mantasvalciukas5734]

It's scary to me how many people have this actual level of understanding of block chain and chose to invest their money in it because of some tik tok they saw or something.

[@natashahanson2875]

Julie's comic timing is genius. Makes me laugh out loud over and over.

[@AllenBaranov]

Combined with the fact that this is a person talking to themselves. The "try to funge it.... Blockchain" part is incredible.

[@natashahanson2875]

@@AllenBaranov Yes absolutely agree. It is rare that I laugh out loud with videos, but with Julie I do this constantly. Total pro. I think my fav was when she said that Betty White was trending again LOL, hysterical.

[@ralphmcmahan2139]

It's so refreshing to see someone expressing their individuality by doing what everyone else does.

[@jessstoodley7205]

This simultaneously answers my questions and raises so many more

[@julienolke]

It's the blockchain part that I find people get stuck on

[@jessstoodley7205]

@@julienolke your explanation will be the only thing that comes to mind from now on ✋⛔⛓

[@OvSpP]

Last week, when my grandparents asked me what NFT was I knew they were getting big.