NFTs For Dummies de Laurence

NFTs For Dummies

Laurence

It's not often that a brand-new investment comes along that revolutionizes how we buy and sell digital assets. But that's what non-fungible tokens (NFTs) did. Built on blockchain tech, NFTs are shaking up the world of digital commodity investing. And you can get your slice of the pie before everyone jumps into the arena.

In NFTs For Dummies, you'll find straightforward answers to critical aspects of the NFT phenomenon. You'll learn exactly what non-fungible tokens really are, how you can find them, and even how to create your own valuable NFTs. You'll also discover:

How to find reliable and safe NFT marketplaces where you can be sure you're dealing with reputable buyers and sellers
A peek behind the NFT curtain to see how NFTs work and what, exactly, you own when you buy or make an NFT
Discussions of the kinds of digital properties that can be converted into an NFT

Perfect for anyone who wants to learn about the market for buying, selling, and creating crypto collectibles, NFTs For Dummies is the only resource you'll need to get a handle on this cutting-edge tech and start making it work for you.

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Cuprins

Introduction 1 About This Book 1 Foolish Assumptions 2 Icons Used in This Book 2 Beyond the Book 3 Where to Go from Here 3 Part 1: Getting Started With Nfts 5 Chapter 1: Introducing Non-Fungible Tokens 7 Beginning at the Beginning: What Is a Non-Fungible Good? 9 Exploring Uses for NFTs 10 Finding Out How an NFT Works 11 Buying NFTs 14 Why buy NFTs 15 NFTs as investments 15 Proceeding on Your NFT Journey 16 Chapter 2: Owning Your Own Nft 17 Where It All Began: Non-Fungible Kitties 18 Blockchain for the masses 18 Not just a passing fad 20 The impact of NFTs 20 The game mechanics of CryptoKitties 23 What's In Your Wallet? Setting Up MetaMask 24 Setting Up Coinbase 26 Creating your Coinbase account 27 Verifying your phone number 27 Adding your personal information 28 Verifying your identity and adding your bank account 28 Adding funds to your wallet 29 Collecting, Breeding, and Selling Your Very Own Non-Fungible (Crypto)Kitties 30 Buying your first CryptoKitty 30 Using the Offer function 31 Breeding your kitties 31 Chapter 3: The Future of NFTs 33 Dissecting the Anatomy of a $69 Million NFT 33 Redefining Property Rights (NFTs Are Not Just about Digital Art and Kitties!) 36 NFTs and Digital Property 37 Music, movies, and books 37 Photos and other digital art 38 Game assets 39 NFTs and Real Property 39 Homes, cars, and nondigital pets 40 Art, jewelry, wine, and other collectibles 41 Imagining the Possibilities 41 Part 2: Buying And Selling Nfts 43 Chapter 4: Getting In On The Nft Game 45 Knowing the Ins and Outs of Buying NFTs 46 Examining the success of early NFTs 46 Thinking about NFTs as an investment 47 Understanding the Risks of Hot Wallets like MetaMask 49 Comparing hot wallets 50 Weighing the pros and cons of hot wallets 50 Uncovering Your MetaMask Wallet 52 Installing MetaMask 52 Securing your MetaMask wallet for Chrome and Firefox 55 Buying Ether for Your MetaMask Wallet 55 Exploring NFT Marketplaces 56 Navigating the OpenSea of NFTs 57 The Nifty Gateway 62 Rarible's decentralized governance 64 Chapter 5: Investing In Nfts 69 Understanding NFTs Are Not Cryptocurrency 70 Introducing NFT Investing 71 Deciding Whether NFT Investing Is for You 72 NFT Investing Strategies for Beginners 73 Valuing your NFT 74 Choosing your strategy 76 Discovering the Best-Performing NFTs 77 Exploring Popular NFT Types 79 Table of Contents v Digital art 79 Collectibles 79 Games 79 Music 80 Popular memes 80 Reporting NFT Gains and Paying Taxes on NFTs 81 Part 3: Developing Your Knowledge: A Step-By-Step Guide To Programming Your Own Nft 83 Chapter 6: What Is Ethereum? 85 Revealing the Ethereum Virtual Machine 86 Ether: The Gas That Fuels Your Transactions 88 The journey of a transaction 89 Compensating the (proof-of-) workers: What's in it for the miners? 91 From happy hour to surge pricing: Determining a reasonable gas price 92 Setting your budget: Is the sky the (gas) limit? 94 Transaction fees 96 The Blockchain: Where It's All Stored and Secured 99 Ethash and proof of work: What makes Ethereum tamper-proof? 100 Miners and nonces and bears -- oh, my! 102 How many "confirmations" until I'm actually confirmed? 102 Uncles and orphans 104 Hard forks: Updates to the underlying protocol 105 Smart Contracts Make the EVM Go Round 106 The nascent life of a smart contract 107 Exciting possibilities 108 Notable limitations 109 Oracles: How to Connect to the "Outside" World 109 Shining a Light on Ethereum's Fundamental Structure 111 The big picture 111 Nuts-and-bolts of the blockchain 112 Gas essentials 113 Things that make the EVM an interesting place 114 Chapter 7: Creating an Ethereum Account 115 Understanding Externally Owned Accounts 116 What it means to create an account 117 Private versus public keys 118 Digital signatures 121 Discovering Contract Accounts 123 Knowing the Difference Between Public Networks and Private Environments 126 Local development environments 126 Test networks 127 Main network 127 Preparing Your Accounts (on MetaMask) 128 Renaming accounts on MetaMask 129 Adding different ETH to different accounts 131 Funding your testnet account 132 Exploring the Ropsten testnet blockchain 135 "Disappearing" balances 136 Chapter 8: Setting Up a Development Environment 139 Exploring Your Ethereum Solution Stack 140 Elements of the Ethereum stack 140 Here a stack, there a stack: Pre-made stacks 142 Put On Your Hard Hat: Constructing Your Environment 143 Setting up your local blockchain test environment 143 Connecting a custom (Ganache) network to your MetaMask wallet 147 Adding local (Ganache) accounts to your MetaMask wallet 150 Synching the Remix IDE to your MetaMask wallet 158 Chapter 9: Deploying Your First Smart Contract 163 Working with Smart Contract Languages 164 Starting with the Solidity version pragma 165 Going from source code to bytecode 166 Key Elements of a Smart Contract 168 Data 168 Functions 169 Event logs 170 No Need to Reinvent the Wheel: Using Smart Contract Libraries 171 Ready for Takeoff: Launching Your Smart Contract 171 Beginning with a simple template 173 Compiling before takeoff 175 Deploying 176 Chapter 10: Discovering Token Standards 185 Introducing Ethereum Development Standards 185 Ensuring interoperability and composability 186 Learning the ABCs of EIPs and ERCs 186 Understanding Standard Token Interfaces 189 ERC-20 token standard 190 ERC-721 non-fungible token standard 192 Other token standards on Ethereum 194 Chapter 11: Building An ERC-721 Token 197 Writing and Compiling Your NFT 197 The code 198 The play-by-play 201 Deploying Your NFT 205 Deploying on Ganache 205 Deploying on Ropsten 208 Deploying on Mainnet 217 Nurturing Your NFT 219 Following your NFT on the blockchain 220 Interacting with your NFT 222 Part 4: The Part Of Tens 225 Chapter 12: Ten Marketplaces For Your Nfts 227 The OpenSea Marketplace 228 The Axie Infinity Marketplace 229 The CryptoPunks Marketplace 230 The NBA Top Shot Marketplace 231 The Rarible Marketplace 232 SuperRare Marketplace 233 The Alcor NFT Marketplace 234 The Binance NFT Marketplace 235 The Foundation NFT Marketplace 236 The Crypto.com NFT Platform 237 Chapter 13: The Ten Most Expensive Nfts 239 Everydays: The First 5000 Days 240 CryptoPunk #7523 241 CryptoPunk #3100 242 CryptoPunk #7804 243 Crossroad 244 Ocean Front 245 CryptoPunk #5217 246 World Wide Web Source Code 247 Stay Free 248 CryptoPunk #7252 249 Index 251

Notă biografică

Tiana Laurence has been at the forefront of blockchain, cryptocurrency, and cryptocollectibles for her entire career. She is the author of Blockchain For Dummies and is the head of Laurence Innovation, a venture capital group. Seoyoung Kim, PhD, is an Associate Professor of Finance and Business Analytics at Santa Clara University where she teaches FinTech and Financial Engineering in the graduate business program.