Some basic NFT building blocks from the Playboy editors
“Is ‘non-fungible’ something that grows on feet?,” “Why would I pay a month’s worth of rent for a screensaver that Microsoft Office Suite will give me for free?,” and “What on earth is a ‘Beeple?” These are just a few of the many questions that often come up in conversations about cryptocurrency and NFTs. One of the most exciting things about the world of crypto is that it is being built in real time. As a result, the answer to one question often simply leads to new questions. That said, there are some basic building blocks that lay the conceptual (and linguistic) groundwork for understanding this rapidly evolving component of the Web 3.0 landscape. To help you get started, here is a cheat sheet for some of the most commonly used NFT terms and frequently asked questions about crypto and NFTs (at least this week).
An NFT, or “non-fungible token,” is a collectible digital asset with an unique digital identifier that lives on the blockchain and cannot be copied, substituted, or subdivided. This digital identifier certifies the authenticity and ownership of the asset and any specific rights related to it, including details regarding its provenance and authenticity. Examples of NFTs include digital art, collectibles, apparel, avatars, crypto domain names and even virtual pets (We are particular to Rabbits).
Perhaps the biggest reason is provenance, which is a record of an item’s ownership. Like any collectible, an NFT has both personal and monetary value. In the same way that a physical painting comes with a certification of authenticity that makes a poster version of that work different from and less valuable than the original, a screenshot of an NFT is different from and less valuable than the NFT. You can purchase a poster of the Mona Lisa from the Louvre, but it doesn’t mean you own the Mona Lisa. Provenance matters!
A blockchain is essentially a digital ledger of transactions that is duplicated and distributed across the entire network of computer systems on the blockchain. Each block in the chain contains a number of transactions, and every time a new transaction occurs on the blockchain, a record of that transaction is added to every participant’s ledger. The decentralised database managed by multiple participants is known as Distributed Ledger Technology (DLT).
Some of the inherent properties and tools available, as a result of blockchain technology, have the potential to disrupt and innovate across numerous major industries as we know them! Here are some of those key properties and their benefits:
Smart contracts: A smart contract is a customizable, in some ways “living,” agreement made from computer code that automatically executes all or parts of an agreement based on predetermined parameters and provisions. Smart contracts are stored on a blockchain-based platform or application, and every NFT has a smart contract. In some cases, interdependent provisions coded into a smart contract enable the agreement to directly interact with the NFT In extremely creative ways, and become part of the NFT’s “story.”
Programmability: Blockchains are programmable via smart contracts, which allows for the execution of the parameters or terms within said contracts. We’re now entering a world in which music royalties and secondary artist royalties can and should be automatically and transparently distributed to the original creators.
Provenance: Blockchain provides a reliable, unforgeable record of ownership for works of art, collectibles, and other physical and virtual goods. The immutability of blockchain ledgers serve as a permanent guide to authenticity in the metaverse and beyond by creating the opportunity to trace a piece back to its origin, as well as understand the story of who has owned it and how its value has changed over time.
Decentralization: Blockchains are supported by a widely distributed set of network participants, all of whom possess an equal level of transparency across the ledger. Because the ledger changes as new transactions occur, the security of each encrypted record increases as control of the network is spread out across more actors (because there is less likelihood for a single point of failure or breach). Also, none of the parties have to place their trust in a central authority or institution that might not have the best interests of the group in mind. More freedom. Less censorship. Very Playboy right?
Ethereum is a decentralized, open-source blockchain that launched in 2015. Ether, or ETH, is the cryptocurrency used to make transactions on the Ethereum blockchain. Ethereum is certainly not the only blockchain, but it is a type of blockchain often associated with NFTs.
One of the most exciting things about NFTs is the unprecedented opportunity they create for artists to receive residuals for their work. To put it into perspective, when a collector buys a physical painting, the original sale is usually the last time the artist is compensated for their work, even if the value of the painting increases tenfold by the time it’s sold again. Not unlike music royalties, NFT secondary sales can provide artists with a percentage of subsequent sales in perpetuity, based on the language in the underlying smart contract.
Gas fees are essentially transaction fees for minting, purchasing, trading or selling an NFT on the Ethereum blockchain. The amount of gas fees are determined by supply and demand across the blockchain, and fluctuate according to usage.
Unsurprisingly, a crypto wallet is the digital version of a physical wallet. It is an application (or hardware device) that allows you to store and retrieve cryptocurrency and digital assets. Examples of crypto wallets include MetaMask, Coinbase, and Trust Wallet.
Your wallet address is a unique address people can use to send cryptocurrency or NFTs to your crypto wallet.
You can think of a seed phrase as a social security number for your crypto wallet. Your seed phrase is a randomized list of words that you will receive the first time you set up your crypto wallet. Your seed phrase can be used to recover your crypto if you forget the password to or otherwise lose access to your wallet. Back up your seed phrase somewhere safe, ideally in multiple locations. Don’t store your seed phrase online and never share it with anyone.
You know how you might go to Amazon to stock up on household goods, or do a virtual lap on Etsy to pick up a gift for your girlfriend’s birthday? An NFT marketplace is the same thing, but instead of a place to buy toilet paper or a vintage handbag, it is an online marketplace to collect and trade unique digital art and collectibles, from baseball cards and virtual monkeys (You can even mint a conversation). Each collectible is created by an artist or creator in that marketplace’s network, and tokenized as a crypto-collectible digital item that you can own and trade. Examples of NFT marketplaces include SuperRare, OpenSea and Foundation.
To learn about future Playboy NFT drops, including the NFT marketplaces where they will be sold, visit our Drops page. In order to participate in Playboy’s upcoming drops and auctions, there are a few steps you’ll need to take to get set up:
First, you will need a crypto wallet! There are several to choose from, but MetaMask is a popular option. Start by installing MetaMask to your internet browser or download the MetaMask app to your phone.
Fund your MetaMask wallet with some ETH – you can purchase via Coinbase or Gemini, then send to your MetaMask address.
Once your account is funded you are ready to begin bidding on NFTs! Existing Playboy NFTs are currently available on three NFT marketplaces: SuperRare, Nifty Gateway, and OpenSea. The instructions for setting up an account on each marketplace are similar but slightly different.
For instructions on how to set up an account on SuperRare, visit How to NFT: SuperRare.
For instructions on how to set up an account on Nifty Gateway, visit How to NFT: Nifty.
For instructions on how to set up an account on OpenSea, visit How to Set Up an OpenSea Account.
Let’s Play.
Discord: Playboy Rabbit Hole
IG: @playboynfts
Twitter: @playboy
Disclaimers: Playboy does not own or operate the Nifty Gateway, SuperRare, or OpenSea platforms, nor does Playboy own or operate any cryptocurrency, blockchain, or crypto wallet platforms. Nifty Gateway, SuperRare, and OpenSea are independent third-party digital art auction platforms. Playboy makes no representations or warranties regarding: (i) the Nifty Gateway, SuperRare, or OpenSea platforms, (ii) the NFTs sold by or through Nifty Gateway, SuperRare, or OpenSea, and/or (iii) the security, value, or acceptance of any cryptocurrency, blockchain, or crypto wallet platforms used in connection with any auction platforms or NFT transactions. Your use of Nifty Gateway, SuperRare, or OpenSea, including providing any credit card, bank account, or any personally identifiable information, setting up any crypto wallet platforms, procuring any cryptocurrency, or the purchase of any NFTs is at your own risk and Playboy specifically disclaims any and all liability arising from any such use, set up, procurement, or purchase. Please carefully review all notices and terms provided by Nifty Gateway, SuperRare, and OpenSea and any applicable cryptocurrency, blockchain, or crypto wallet service providers in connection with their respective platforms, products, and the purchase of any NFTs.