The History and Future of Non-Fungible Tokens (NFTs) and Substack's Approach to Content Moderation

The History and Future of Non-Fungible Tokens (NFTs) and Substack's Approach to Content Moderation

In the world of blockchain and cryptocurrency, Non-Fungible Tokens (NFTs) have been making waves in recent years. But where did this concept originate, and why are NFTs gaining so much attention? Let's take a closer look at the history of NFTs and how they are revolutionizing the digital landscape.

The concept of NFTs can be traced back to the launch of CryptoKitties in October 2017. Axiom Zen, a Vancouver-based company, came up with the ingenious idea of creating unique digital tokens on the Ethereum blockchain. While ERC20 tokens worked well for many functions on Ethereum, they were not suitable for creating one-of-a-kind tokens. To address this, the ERC721 standard was invented, allowing for the creation of NFTs.

Interestingly, one could argue that Colored Coins were the very first NFTs to exist. Colored Coins are bitcoins that were part of the "Genesis transaction" and are unique and identifiable from regular bitcoin transactions. This early example showcases the desire for unique digital items, which would later be further explored with NFTs.

As the trading of rare digital items gained traction, John Watkinson and Matt Hall, known as "creative technologists," decided to create their own NFT project with a twist. They developed Cryptopunks, unique characters generated on the Ethereum blockchain. Unlike CryptoKitties, Cryptopunks did not follow the ERC721 standard, as it had not yet been invented. However, they were also not entirely ERC20 tokens due to their limitations, making them an ERC721 and ERC20 hybrid.

The ERC721 standard, or "Ethereum Request for Comment," was purpose-built to be the technical standard for non-fungible tokens on the Ethereum blockchain. Its main difference from the ERC20 standard is that ERC721 tracks ownership and movements of individual tokens in the blockchain, allowing for the recognition of non-fungible tokens.

The success of CryptoKitties and Cryptopunks led to the realization of the true power of NFTs. Axiom Zen spun out a company called Dapper Labs, which secured $15 million in funding from top investors like a16z and Google Ventures. This marked a turning point for NFTs, as it demonstrated the potential for monetization and investment within the space.

NFTs have since evolved beyond collectible items and artwork. The most exciting development within the NFT space is the emergence of NFT games and projects that collaborate to make items interoperable. This interoperability allows for the exchange of unique digital assets between different projects, creating a truly connected and dynamic ecosystem.

While NFTs have been gaining momentum in the world of blockchain, another platform has been making waves in the content creation and publishing industry. Substack, a platform for writers, has taken a unique approach to content moderation and monetization.

Unlike traditional social media platforms that prioritize engagement, Substack's key metric is writer revenue. Substack only makes money when its writers make money, taking a 10% cut of their subscription revenue. This aligns Substack's interests with those of its writers, fostering a sense of trust and collaboration.

Substack allows readers to choose what they see, empowering them to make conscious decisions about which writers to invite into their inboxes and support financially. The platform's entire business model relies on holding writers' trust, as it is easy for a writer to leave the platform if they feel their interests are not being served.

Substack aims to subvert the power of the attention economy, putting people in control instead of engagement-focused platforms. The platform believes in subscriptions over advertising, allowing individuals to choose whom they trust rather than relying on algorithms that prioritize click-maximization. Substack recognizes the flaws in the current media ecosystem and strives to build something better by hosting a broad range of views, which it believes is essential for democracy.

In conclusion, the history of NFTs showcases the evolution of unique digital items and their growing significance in the blockchain space. From the early days of CryptoKitties to the emergence of interoperable NFT games, NFTs have captured the attention of investors and enthusiasts alike. Simultaneously, platforms like Substack are revolutionizing the content creation industry by prioritizing writer revenue and allowing readers to curate their own content. As the world continues to embrace the potential of blockchain and decentralized technologies, NFTs and platforms like Substack are likely to play a significant role in shaping the future of digital culture.

Actionable Advice:

1. Explore the NFT space: Take the time to research and understand the various NFT projects and games available. Look for opportunities to invest, create, or collaborate within this exciting new space.
2. Support independent writers: Consider subscribing to independent writers on platforms like Substack, where you can directly support their work and have control over the content you consume. This helps create a sustainable ecosystem for quality writing.
3. Embrace decentralization: Look for platforms and technologies that prioritize user control and trust. By supporting decentralized platforms, you contribute to a more democratic and diverse digital landscape.

Sources:

• "The History of Non-Fungible Tokens (NFTs)"
• "Substack's view of content moderation"