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NFT Engaging Today’s Fans in Crypto and Commerce

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NFT Engaging Today’s Fans in Crypto and Commerce ( nft-engaging-todays-fans-crypto-and-commerce )

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Think of cryptocurrencies as digital versions of cash controlled by a private cryptographic key— a unique, random string of numbers. In the same way that physical cash exists in a defined physical form and ownership is determined by holding paper bills, ownership of cryptocurrency is determined by holding a private key and using the private key to make transfers. 027365493820 537492735482 842537292735 476283926172 625342739283 736215283910 What is an NFT? To understand NFTs, it is important to first understand cryptocurrencies. *Smart contracts are not the same as legal contracts. Smart contracts are computer code that executes simple if/then functions. Cryptocurrencies are issued and exist on a public database maintained by what is commonly referred to as a blockchain. The database is distributed across computers that are running blockchain software. No single entity owns or controls the database, and anyone can access the database, prove ownership, and transfer cryptocurrency via the private keys associated with their crypto wallet. Like cryptocurrencies, NFTs are issued on a blockchain, and are used to designate ownership of a certain asset. Each NFT is tied to some unique data, typically a digital content file of some kind (or reference thereto) and governed by a “smart contract.”* The process of converting a media file into a non-fungible token is referred to as “minting” an NFT, and, just like cryptocurrency, the NFT is written to the applicable blockchain database. Unlike cryptocurrency, NFTs are not fungible, meaning each NFT is unique and not interchangeable with another NFT. In other words, while one bitcoin is equivalent to another bitcoin, no two NFTs are the same. And, just as with bitcoins, the ownership record of NFTs is recorded on a blockchain database. Because NFTs are new, there is limited information on how existing laws and regulations apply to NFTs. Despite these uncertainties, NFTs are an interesting medium for creators. For the first time, content on the internet in the form of an NFT can be definitively owned by a specific person independent of a centralized intermediary, and this is unlocking exciting opportunities for digital commerce and engagement. All brand names and logos are the property of their respective owners, are used for identification purposes only, and do not imply product endorsement or affiliation with Visa. 4

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