How to Create Value in a World of Copies?
The value of content that is easily copied and cloned is close to zero. The most important thing is functionality. With the emergence of blockchain and web3, several new types of easily creatable content have appeared, and even the invented technical methods to make content unique often do not make this content valuable. Yet, some content does become valuable. Let’s talk about tokens and NFTs.
NFTs, as they are promoted, do not have practical utility because NFTs are also content that can be easily copied. Yes, digital proof of ownership of a unique NFT is retained, but has this ever mattered with content? If a copy looks identical to the original, it does not change the perception of the file as easily copied (cloned) content, and therefore, it holds insignificant value.
So, what could be the practical application of NFT technology?
To understand this, we need to know that, from a technical standpoint, NFTs and regular tokens differ only in their emission quantity. When creating, for example, ERC-20 standard tokens, the number of unique units is determined by their creator, and they can set any number that everyone can transparently see. NFTs are issued in a single quantity, which is why they are conveniently associated with a recognizable image. But the ease of issuing both regular and NFT tokens is no different, and anyone with average computer knowledge (even without knowing programming) can create them in minutes.
So why are some tokens so expensive? Mostly because of simple hype. But the most important thing is the transparent, trustless information about the number of these tokens. If the quantity of certain tokens is clear and transparent to everyone, it then depends on the hype. And this is what happens.
How does a token differ from stablecoins?
Technically, there is no difference. The distinction lies in whether there are declarative statements about what the created token is equal to or corresponds to. If no one declares anything, it’s just a token. But if a claimant (a guarantor) appears, stating that they take on obligations to back it with, for example, a dollar, then at that moment, such a token turns into a stablecoin.
The presence of such statements from a reputable entity turns an ordinary token into a stablecoin. These tokens, in the process of circulation, become equivalent to regular money.
I just explained how something that was worth nothing turned into real money. Moreover, this story is not much different from how what you consider money became money.
In the end,
we all have a tool for creating content. And whether it will be valuable to someone depends only on your statements and your reputation. In a world where it is easy to create a copy, these two factors — your word and your authority — become decisive. They determine whether your token, be it NFT or regular, becomes just another digital artifact or a valuable asset in demand on the market.
Remember, “When two people do the same thing, it is not the same thing.”
