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The new Flappy Bird game has a hidden secret: crypto (www.videogamer.com)

submitted 4 days ago by [email protected] to c/[email protected]

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[–] [email protected] 21 points 4 days ago* (last edited 4 days ago) (1 children)

The whole point of cryptocurrency is decentralized ownership. That's the big breakthrough in technology, it's the whole point of it, I can try to ELI5 how that works if you want to, but for the moment I'm just going to assume you accept that cryptocurrency can demonstrate ownership.

…

How does ownership of those tokens transfers to ownership of something else? Well, that's an excellent question, and the answer is that it happens in the same way that a piece of paper grants ownership of a house. There's no innovative technology behind that piece of paper, but still everyone would agree that it grants ownership, and the reason is that the authority that enforces that chose to respect that piece of paper.

So NFTs are not inherently proof of ownership as the person above said. The general concept of owning crypto (which no one is questioning here) is a very different topic than using NFTs as proof of ownership of literally anything else.

[+] [email protected] -13 points 4 days ago (1 children)

Do you consider a deed to be proof of ownership? A stock? The registry of a car? They're not inherently proof of ownership, they're just pieces of paper or entries on a database. If you go down the road of what is proof of ownership then no technology we have is able to prove it.

The thing is that NFTs you can prove ownership of the token, if the token correlates with something, e.g. if the DMV stored car ownership in a Blockchain, NFTs could be used to represent car ownership in a secure and decentralized way.

[–] [email protected] 8 points 3 days ago* (last edited 3 days ago) (1 children)

but, why? is there some problem with the way we prove ownership of things now? as far as i know there isn’t an epidemic of car titles or house deeds getting hacked.

[–] [email protected] 2 points 3 days ago

No, there isn't, but there are advantages to it as well, just like how a database has advantages over a paper folder.

An NFT can't be transferred by anyone other than the owner, and ownership can be verified independently.

Here's an example of a use that would be very cool and would take advantage of it (even though I know it's unlikely to happen). Ownership of games, some games are sold on different platforms, to verify the ownership of the game (or DLC, or cosmetics) games have to verify with first party services (like PSN or Steam), which means that for the most part you need to buy games on each platform individually, but if platforms used an NFT for it games would be buy once play anywhere, and they would allow you to sell or even borrow games, and no company could prevent you from doing so. Which is obviously the reason this will never happen, but it's a nice idea.

That being said there are downsides to it as well, such as a person being the full owner of stuff means that a person can lose the key and therefore lose access to the house, or that scammer can steal everything, whereas making you sign your house to someone else is a lot more beurocratic, which serves to protect you from you.

Just to be clear, I'm not a "we should use NFT for everything" type of person, in fact I don't think there are many use cases nowadays that are worth using it, but the technology is interesting regardless, and solves the problem of how to prove ownership without a centralized trusted organization.