Crypto Academy Week 10 - Homework Post for [@levycore]. Introduction to non fungible tokens.

Hi @levycore my name is @allbet and this is my first assignment in your class. It is also my first assignment related to NFT's. Actually, it's my first time ever learning about NFT's. But without a doubt what I have learned has been exciting.

So before I develop this week's assignment, I think it is necessary to understand the concept of an NFT, which I developed in my own words.

Les't get started.

_{Image edited by me in Powerpoint. Central image taken from: ^Source}

NFT

It is the digital representation of a unique and collectible asset, such as artwork or albums of famous musicians and even online game skins. They provide a digital property.

They are programmed in such a way that it is impossible to reproduce them in masses, and they are indivisible but interchangeable.

From this concept, I understand that these tokens were made to exchange through the blockchain unique items. But while the famous artist paintings and game skins are cool, what really caught my attention are the Famous Player Cards, or rather clips of famous players.

For that reason, my selected NTF project is: NBA Top Shot. ^Website

^{NBA Top Shot. NBA Properties.Source}

As a sports lover, I could not pass up the opportunity to see for myself what is the whole movement of NFT's in sports.

As we know Blockchains have revolutionized the whole world, including sports, generating a great number of new opportunities.

One of them is NBA Top shot, which is an initiative created by the company Dapper Labs in conjunction with the NBA, born from the idea of merging blockchain and sports.

“Dapper Labs has recapitalized and collaborated with the National Basketball Association to create N.B.A. Top Shot, a marketplace for digital highlight clips that are the tech equivalent of baseball cards." ^Source

NBA Top shot is born in October 2020 and is a platform that allows to obtain and exchange these digital highlight ... but, wait.

Exactly how does the NFT technology work in NBA Top shot?

I recognize that NFT's are a somewhat abstract concept and difficult to understand the first time, so we will go step by step the way I understood it.

All my life I have loved collecting players' cards. Since I was a kid I collected cards of basketball players, baseball players and even collected albums of soccer players. What kid never dreamed of having an autographed card of his favorite player?

_{Panini Album, World Cup Germany 2006. This Photo was taken by me. This Album is my Property.}

NBA Top shot takes this feeling and takes it to the next level, as it turns every player card into an NFT within the ledger of the blockchain platform. But that's not all, as instead of being static images of the players, these are short videos or clips of the best plays of the NBA's most famous players.

The clips are not limited to just the best plays technically speaking, they can also be important plays due to their relevance in a crucial championship game. (Like a last-second lay-up).

This feature makes it a valuable commodity, because who wouldn't want to own the clip of Michael Jordan or Lebron James scoring the last championship point at the buzzer...It is a collectible item that will definitely gain value as the years go by.

Reasonable Doubt.

Some detractors comment that it is absurd to pay to own a clip that can be watched over and over again for free on Youtube. To answer this let's go back to our sports card example.

_{Cristiano Ronaldo and Lionel Messi Cards, taken from my Album, and edited by me.}

We all know these two players. Regardless of our tastes, they are both considered the two best in the world. However in 2006, when these cards were issued, this was not the case, these two were just a couple of a bunch of players. At the time these cards were not worth above average, however, with the pass of time and due to the accomplishments both players have achieved, their cards are worth much more today than they were 15 years ago.

However, what makes the card value is obviously not the material it is made of, because someone on the internet could look up an image of the two of them and print it out. What makes the card's value is the demand in the market and the value it has for people, as well as the validation given by the publishing house that prints the albums and cards.

In the case of NBA Top shot NFT's (highlight clips) the same principle applies. What gives value to the tokens is the demand from people, and the validation granted by the NBA as an official and authorized product that will gain value over the years.

Investment opportunity.

In NBA Top shot, the clips are obtained through the purchase of packs (just like baseball or soccer cards), these packs contain the clips. There are different types of packs, depending on the quality of plays and the players they contain. Naturally, no one knows what plays will come in the packs and naturally, the best plays will come in more expensive packs.

_{HOLO ICON pack. Price 999$. Image taken from NBA Top Shot website. ^Source}

In fact, the prices range from $199 (a rising stars pack, containing 7 clips), to $999 (a legendary holo icons pack, containing 10 clips).

Let's suppose we buy a rising stars pack for 199$, and among the clips, there is one of a rookie player performing his first slam dunk.

_{This is the content of the packs. A series of NFT'S in the form of highlight clips. ^Source}

Since it is an unknown player, maybe the clip is not worth much, in fact, the whole pack of 7 clips costs $199. But just imagine that the player becomes famous 10 years from now and breaks all NBA records. What would happen to the value of the clip you purchased?. The clip featuring the first slam dunk of the greatest NBA player of all time? The price would multiply, and for you, it would be a great investment.

For this reason, I believe that collecting NBA Top shot NFT's is an investment opportunity.

Conclusion

Although it may seem a vain concept, we cannot underestimate the uses to which blockchain technology and NFT's are being put. They have begun to revolutionize the entertainment and digital property industry.

Believe it or not, NBA Top Shot is a platform that is heading for the upswing. As of today, Dapper Labs reports over $200 million in sales; in just 7 months.

Every day more and more people are joining. So I think, it is a good opportunity not only for fun collecting but for long-term investment. If not, then why have people paid up to $250,000 for a LeBron James highlight clip?