What the hell are NFT's?

The country of whoever sold it or whoever purchased it or who created it is it a financial security an asset is it artwork or currency do you work off the value of the data itself or the payments made for the data it's still so new that world governments are still figuring this out which is why using NFTS  to launder money is still so common so let's go back to the original idea of me selling you nothing remember those companies who sold you land on the moon or sold you a star and what they were actually doing was selling you a position on their locally held database which said your name is associated with this star or your name is now associated with this patch of land on the moon those companies didn't actually own the rights to sell that but no one else did either so no one could claim ownership of it what you were buying was the novelty of saying you owned it NFTS work in a somewhat similar way except instead of selling you something no one owns they're selling you the privilege of claiming ownership of a small space on a database that they themselves created  every sale is corroborated on the blockchain ve created the queue and all the positions in that queue are on unique bits of land with unique identifying numbers behind the scenes  blockchain has checked this and ve paid him to do so and then  associate each position in the queue with an image to give you some visual representation to associate with the purchase of that position and then  start selling the positions now every single position is essentially the same but whoever buys zero zero zero one is going to have slightly higher status because we value the number zero zero zero one more than any other random four digits which means they can then convince you to buy that position from them simply because it's desirable it doesn't do anything you want it the problem is anyone else can now create their own queue there are hundreds thousands possibly tens of thousands of cues being created and Mr blockchain is validating every single one remember they're not checking that each individual picture associated with a spot is unique they're checking each individual queue location or digital location is what the owner of that NFT gets given to represent that space is up to the person who created that space if it helps imagine removing  artwork all the pictures and replacing them with just strings of ones and zeros every NFT the space on the database is still represented with a unique picture the picture is now just a binary string if you did this the actual practical features do not change at all the only reason we use pictures or icons or spinning  is to give us something pretty to look at the NFT itself the non-fungible token is simply proof of purchase of receipt of a unique simple bit of digital data which no one else can claim ownership of at any given moment but how does the original creator benefit once they've been sold well some NFTS can have long-term taxes attached to them and every time a trade is made from user to user the blockchain will notice this and a small percent will go back to the original creator leading to residual royalties forever so the next time you want to laugh at someone for spending thousands of pounds on buying a picture of a monkey remember they don't actually own a picture of a monkey they own the rights to say they own a position on a database which is represented by the visualization of a monkey which only maintains its value because people think it has value and if everyone suddenly stopped caring tomorrow it would be worth nothing the entire NFT space is a speculation market and the fluctuating values and intangibility of the NFT itself makes them incredibly hard to tax which is why right now this system is a haven for money laundering companies are jumping on the let's sell NFTSbandwagon because it essentially allows them to  into their associated in-game assets if you as a company have already got thousands of graphical assets for your game you want to make even more money and convince fans they are buying a piece of history then you'd simply mint thousands of NFTS artificially rare non-reproducible positions on a digital chain then you'd associate each position with an image but not ownership or copyright transfer for the image itself then you'd sell those NFTS  positions on the chain if someone owns NFT it will only maintain its value if other people want it they always have a vested interest in convincing you it is valuable you should buy it that's why NFT bros are so vocal about their support for the entire system it's built on believing it works so a non-fungal token is a receipt granted to you by the owner of a specific NFTcollection of your current authority in an exceptionally limited capacity over a position on a database which is represented visually by a picture but is itself not the picture the value of any given NFT is linked to who created it who has owned it before you who is selling it now and which artwork if any is associated as the visual representation of it please don't take this video as an exclusive or comprehensive guide this was more to explain the basics it's worth going and doing more research on the topic and looking further into the complexities of a system that just exists to part people from their money while providing essentially nothing thank you very much for your time thank you again to the supporters and twitch who keep the channel alive you can support from only one pound a month check the video description for links to the  twitch twitter and discord or the second channel josh drive plays where review old games voted on by you as always have a great day.