Non-Fungible Tokens (NFTs) is a new class of digital assets. An NFT is a unique and non-interchangeable unit of data stored on a digital ledger. NFTs can be used to represent easily-reproducible items such as photos, videos, audio, and other types of digital files as unique items, and use blockchain technology to establish a verified and public proof of ownership. Each NFT acts much the same way as a deed to a house, a note on a car, a license for an action, protection for intellectual property, and as certificates of authentication.
NFT’s connect the creator and minter directly to the process of distribution in an open market format, and provide rights of ownership and royalties to fans and owners of the content. It acts as an encrypted, accessible container that digital content can be placed inside of, and sealed with a smart contract and minters signature. The container is then minted (coded into the blockchain ledger) and issued to the personal wallet (i.e. MetaMask) of the individual either who minted or purchased it or to a wallet on a market platform (i.e. Open Sea) to be sold. Once it is purchased, the rights of ownership are completely in the hands of the purchaser to transfer to whatever wallet they desire, and accessed through any supported player or viewer of their choice (NFTs: Art in the Digital Age, Osburn, 2021). Purchased NFTs can then be resold for a higher value than originally purchased in relation to its growth of digital asset value as determined by Trade Volume.
NFTs differ from cryptocurrencies by their uniqueness and ownership value. Two individual bitcoins are worth the same and, therefore, are fungible. That means they can be traded or exchanged for one another. But NFTs are different. Due to their unique digital signatures, it’s impossible for NFTs to be exchanged or to be equal to one another. Hence, they are non-fungible (Exmo, 2021).
For the project, NFTs minted into the Elysian Field collection will act as passports to the Metaverse as well as to populate it. Possession of a passport grants membership to the DAO and is required for entry to Elysian Fields. Users can hold more than one passport, but only one is required to remain in possession to retain membership. The wallet that holds their passport will be connected to the Metaverse and act as their user ID on the blockchain.