Feb 9, 2024

In this week's edition of "Open Forum," CoinDesk's Jennifer Sanasie answers even more questions from social media about everything related to non-fungible tokens (NFTs).

Video transcript

It's time now for open forum, the third open forum segment of the week and we've done three because you have had so many great questions for us. If you watch first mover, you know that you could send us questions on social media and we will find the answers for you. We've been covering every aspect of NFTS all week and this is our last segment. Getting to the last of those questions. So let's get right into it and take a look at our first question. O Ky asked, what are the environmental impacts of NFTS in terms of energy consumption and carbon emissions? Now, this question was asked a few times by people on X. So let's dive right into it. Sarah Galis from DAP Radar helped us answer these questions. She told us that carbon emissions associated with NFTS are directly tied to the energy consumption of the Blockchain networks themselves. She said given that a considerable portion of the global energy mix is still derived from fossil fuels. The carbon footprint of creating buying and selling an NFT can be significant. Now that said, don't freak out progress is being made to mitigate the environmental impact through the following initiatives. She mentioned Ethereum upgrade to the proof of stake consensus mechanism. This has significant reduced energy consumption on the Blockchain clear to scaling was also mentioned, both can process transactions more efficiently, reducing the burden on the main Blockchain and its energy consumption and growing interest in alternative Blockchain technologies that are inherently more energy efficient. Like those using proof of stake or consensus mechanisms like proof of authority. Let's take a look at our second question. Now, this is from Graal and Nelda. They ask, how do NFTS contribute to artists receiving fair compensation for their digital creations? This was also a question that a lot of folks asked about on X during our last two shows on February 7th and February 8th, we talked a little bit about royalties and unpacked this a little bit more. So if you're still curious, check those first mover shows out, but let's get into it. And FTS allow artists to sell their work directly to collectors or fans without the need for a traditional middleman. So that puts some of the money made from selling art back into the creator's hand instead of in the hands of gallery houses or auction houses. This direct to consumer model increases profit margins like I just said, and gives artists more control over the pricing and distribution. Artists are also able to sell royalties that are attached to their NFTS so that every time their art is sold on the secondary market, they're able to make a percentage of that sale that is vastly different than how the art market works. Another big part for artists is NFT culture, which includes collaborations and commissions. Oftentimes when artists are featuring on the same NFT marketplace, there are opportunities for them to collaborate with each other and participate in that community to further advance their projects and their names. And this is something that wasn't really available to them in traditional art markets. Let's take a look at the last question. Now, it's from Buckle Moses. They asked, how can I ensure the originality and uniqueness of an NFT artwork before purchasing it? Now, I think this is a question that's often on people's minds, especially in this industry. How do I know this thing is real? Sarah tells us that you should take a few steps before buying the first step is always confirm the artist's identity. You can do this by checking their official social media profiles, their websites or even if their accounts are verified some NFT marketplaces offer this. So they'll have a a blue check mark or some kind of verification stamp that allows you to know that uh some due diligence has been done. Many artists will link NFT collections right from their personal profile. So you can just, you know, link right out to their profiles, check them out, do some due diligence on your own. You should also ensure that you're purchasing your NFT on a well known and reputable marketplace. And lastly, you can look at the history of ownership of that NFT Reputable marketplaces usually provide a detailed history of each item which includes the creation date, previous sales and, and ownership transfers. That's it for open forum today. Please send us all of your questions. We love answering them for you. We want to make this industry as accessible as we can. And a big thank you to Seror Galis from DAP Radar who helped us answer those questions. If you have any questions you want me to answer, just hit me up on X, send me ad M and I'll be sure to get those in the show for you.

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