Hot topic of the moment? Without doubt: NFTs. Everyone is talking about them and every tech giant wants to implement them one way or another. So in Meta's headquarters the following was decided: NFTs are coming to Instagram. What exactly are NFTs? And how will this implementation work? Here you'll find out everything about NFTs on Meta's platforms. Here we go.
What are NFTs?
First of all, what actually are NFTs? NFT stands for Non-Fungible Token. Non-fungible essentially means that something is unique and can't be replaced. So, concretely? Bitcoin is replaceable. Swap your bitcoin for a new one and you have exactly the same thing. A one-of-a-kind in-game item is not replaceable. Swap your item for another item and you have something completely different in your bag. Nicely nerdy, we know.
So far so good, but to understand NFTs you also have to understand the blockchain, because NFTs are part of blockchain technology. "Okay, I got you. But what exactly is that?" Blockchain is a system that stores data in a chain of data blocks. The blocks can't be changed and it's only possible to add blocks at the end of the chain. Easy, right? One such block often contains several transactions that are the result of broadcast transaction requests and instructions. The technology isn't used only for NFTs — cryptocurrency works on it too.
In comes decentralisation… One of the reasons blockchain technology was created. All transactions running through the blockchain are laid bare for everyone in the P2P (peer to peer) network. Anyone who joins the network with their computer gets access to the blockchain chain and acts as a 'node'. A connection point where information is both sent and received in the network. Every block added to the chain is checked by the nodes to be sure it genuinely fits in the chain and hasn't been tampered with. So everyone can see and verify these transactions, and power is spread and shared (decentralised). In the (perhaps outdated) banking system that isn't the case. The bank has exclusive rights to all information about executed transactions, and the checking is therefore done by the bank itself (centralised).
So, what is an NFT? An NFT essentially works as blockchain-based proof of ownership for an item. It's often used for digital artworks, profile pictures and video game items. If you buy an 'art NFT' you're in possession of the original file of that item.
Welcome on Instagram
On Monday Adam Mosseri, head of Instagram, announced that NFTs will make their way to the platform. A small group of users in the United States will be the first able to use the new features. What's also certain is that Facebook will follow quickly.
"How will it work?" you're probably wondering. Well, NFTs created on the Ethereum and Polygon networks will be supported first. You'll get the chance to connect an external wallet such as Rainbow, Trust Wallet or MetaMask to your account, which lets you use your NFT in your feed, stories and in messages.
And what about decentralisation? A fair concern. On a platform like Instagram, decentralisation is nowhere to be found. Decentralisation is sacred to everyone in favour of blockchain technology, Web3 and everything around it. So there's quite a bit of tension there. Instagram's head Mosseri acknowledged this, but wants to stress that the arrival of NFTs on Instagram is a step in the right direction for the technology. Thanks to the enormous reach of both Instagram and Facebook, NFTs and NFT creators will be able to reach a mass audience.
The future of Web3
Why is Zuckerberg deciding now to give NFTs a place on his platforms? He was clear about that: he expects the coming years to be defined by the growth of Web3. Within five years Web3 will become a mature industry, and he expects other tech giants to jump on board too. Twitter beat Instagram to it by introducing tokens as a profile picture option. See a hexagon-shaped profile picture on Twitter? Then that image is an NFT.
Conclusion
NFTs are a hype, though the storm has settled somewhat since. Will Meta give the boost needed to turn NFTs into a large-scale success that gets the concept accepted worldwide? Only time will tell. We're curious.
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