NFT Asset Framework

A breakdown of how NFTs differ from traditional assets and how they're being used in modern applications, particularly in sports collectibles.

What NFTs Are

• Digital art/assets that are unique and non-interchangeable
• Built on blockchain technology (primarily Ethereum)
• Different from fungible assets like cash where each unit is identical
• Value determined by uniqueness and collector interest

Traditional Assets vs NFTs Example

• Traditional Assets (Like Cash):

  • $100 bill can be swapped with any other $100 bill
  • All units are identical and interchangeable
  • Standard value across all pieces

• NFT Assets:

  • Each piece is unique (like individual art pieces)
  • Cannot be directly swapped due to unique properties
  • Value varies based on individual characteristics
  • Can have dynamic properties that change over time

Modern NFT Applications (Sports Example: LaMelo Ball)

• Dynamic NFT Properties:

  • Cards can evolve based on real-world achievements
  • Value potentially increases with player accomplishments
  • Updates automatically with real-world data
  • Different tiers/types of cards available

• Benefits Over Traditional Cards:

  • Athletes can own their IP directly
  • Direct profit from sales (vs traditional card companies)
  • Can promote directly to fans through social media
  • More control over distribution and monetization

Technical Implementation

• Uses 3D animators for high-quality digital assets
• Built on existing blockchain infrastructure
• Requires digital artists for custom creation
• Growing market for creators in the NFT space

Market Status

• Currently down 80%+ from peak
• Separated serious users from speculators
• Still maintains core believers and developers
• Innovation continuing despite market downturn