Ethereum Blockchain and Money Explained
What exactly is a ERC20 Token, an ERC721 or ERC1155 NFT?
Introduction
Our previous post talked about AI, Merging with Blockchain, and how it affects human relationships. Then there was a question about, 'What's the first NFT you're going to mint, and how can you do this in 10 minutes using AI?'. Please check out Flowcity.art and discover what Flow City is all about. We hope that what we have to offer benefits society in understanding our societal purposes and our personal purpose here as we live in the universe.
Web 3.0 is a convergence of blockchain, the metaverse, and the spatial web. When you visit Space Jam's original website, the first thing you notice is that it looks old and terrible, and that is because it was created with Web 1.0. Now you can easily recreate this website in 10 minutes by using Open Codex.
You can ask me, "Can you create a spacejam.com/1996 looking website for me?" And we will recreate the website from Web 1.0 to Web 3.0. While Web 3.0 is where we are heading, Web 2.0 is where we are now.
What is Web 2.0?
Web 2.0 is what we're currently experiencing on the internet. For instance, the zoom calls you're having and other websites you visit like Google, Amazon, E-commerce sites, and social media, e.g., Instagram. These are all ideas of where we're at with web 2.0.
In 1996, many people doubted that we would be selling stuff on the internet like we are today. They also doubted if we could do more things on the internet or if the internet would become prominent.
During the.com era and crash of 2000, the value of a company was based on whether they had a '.com,' and the number of visiting the site was more important than profit. Eventually, with the emergence of Facebook between 2003 - 2007, we started merging into what we now know as Web 2.0.
Web 3.0 and the Banking System
The idea of Web 3.0 surfaced about a decade ago. Bitcoin said, 'Why doesn't the internet have money? We're going to be the money of the internet.' PayPal is the money of the internet today with the help of Web 2.0, but Bitcoin solves the problem of having a physical bank in between. Currently, banks are almost entirely working on Web 2.0.
Web three takes that banking system and moves it into an anonymous, decentralized form. The old banking system was around for a very long time. The new digital banking system hasn't been around for as long. However, we're a digital society as money runs digitally in almost every society. Web 3.0 is bringing us to this new form of money.
We are moving into a new age where we don't have to post our stuff on Amazon, although having a central entity like Amazon, Facebook and Google is extremely beneficial. Regardless, with Web 3.0, we can interact on a global scale peer to peer, for the first time without Amazon, Google, or Facebook. You can set up your own community, create your own cryptocurrency (Rally.io and Hathor are coin creators), and send your coins, backed by whatever value you put into it. For instance, if you take $10, create ten coins, and put those $10 into those ten coins, each coin is worth $1. If you understand this principle, you can begin to understand what blockchain is about.
What is an ERC 20 token?
We're injecting finance in a new way that hasn't been previously possible. You can send coins you created to your friends or create a Super Coin, an ERC 20 token. An ERC 20 token (super coin) is a currency that you can program with code. Blockchain is all about codes that can be programmed. You can use what other people have programmed because everything is public.
Imagine having the power of Google, using the open-source codes that they created. You can take what previous blockchain companies have done and re-create it to make it yours. It's called Stacking. By Stacking, you can top what other people have created and alter the code according to your needs.
Take rally.io, for example, it gives you the ability to create your own currency. If you've got fans, you can give your currency out to your fans. This concept is new, different, and unique. That's an ERC 20 which Ethereum uses.
Ethereum: The Future of the Internet
Ethereum is the future of the internet which provides cryptocurrencies that anybody can create. If you put $10,000 into 100 created coins, each coin will be worth a hundred bucks. With this principle, you can essentially create your own brand on any platform.
Every ERC 20 token is on the Ethereum blockchain, and there's one address, just like your home address. Whenever you expect a mail, the sender can send the package through UPS, USBs, DHL, or FedEx, or even use multiple people, but in the end, the package ends up at your address.
The same thing happens when tokens are sent to you. The tokens arrive at your address as long as the sender has the correct address. That address is called your Wallet. That's is an ERC 20; sending money or currency from your address to other addresses. Just like you can own multiple houses, you can create multiple addresses, make multiple transactions, and send money to these different addresses.
We are currently burning Ethereum. Imagine melting a pile of gold coins, but some of the gold evaporates because the fire is hot. Some of the gold won't make it to the end, and the gold left behind becomes more valuable. That's what is happening with the US dollar today; it is backed by nothing but the people's trust. So the more people use it, the more effective it is, and the longer we'll stay on that system. That system has nowhere to go but towards an infinite road of printing more. And the more we print, the more expensive things get. So different markets are created through this process.
The Ethereum Ecosystem and its Growing Value
Essentially, ERC 20 tokens on Ethereum are currencies flowing in and out. The Ethereum network is an ecosystem that you can build. For instance, you can develop your own ERC 20 token, write your own contracts and even make your own company on Ethereum.
Everything is moving towards Bitcoin and Ethereum because they are not being continuously printed into infinity. Bitcoin has a capped supply, and every time somebody loses their Bitcoin wallet and can't access their funds, Bitcoin becomes more valuable. If you have 21 million Bitcoin and 1 million disappear, Bitcoin becomes more valuable because you can never have more than 21 million Bitcoin. If you have 118 million Ethereum, and you're burning a million Ethereum every year, then Ethereum becomes more valuable because the capped supply is actually diminishing. If we have 3 trillion us dollars, which increases to 6 trillion us dollars the following year, the price of a piece of a loaf of bread has to move from $3 to $6 to make up for the difference.
Ethereum is getting more valuable over time, and as this avalanche of money moves towards the space, you can create your own tokens and inject value into them. It will bring in an age of abundance because everyone will be involved. Many people, especially those who have been left out of society, would be brought into this space for the benefit of humanity. It will be different from our current society that put laws that prevent people from doing great things. Web 3.0 allows anybody to create their own paradigm, as long as you have a smartphone.
What is ERC 7 21?
NFT (ERC 7 21) is a nonfungible token which means you can't transfer an NFT directly for another NFT because of their unique differences. For instance, your favorite musician created a song, and you own one of the copies. If they have a hundred thousand fans, that copy becomes valuable because other people want it. So, what do you do? You can rent it out. And just like people divide land and houses into spaces, you can fractionalize that copy and rent it back out.
NFTs are going to a magical place where you can own a space you can visit and hang out with your friends and family. Also, you can take value from the digital world (your digital real estate), bring it to the real world, and buy real estate with digital real estate. How crazy is that? As a result, NFTs and the real world are starting to merge.
ERC 7 21 is not just a JPEG or an image. It's like a world, an ecosystem where we live, get work done and collaborate with AI. 80% of real-life can be experienced in this spatial environment. And the more time we spend in this metaverse counter-intuitively, the more we will be able to spend more time in nature. With an NFT and a headset, you can teleport and be with your family; that way, you have avoided the cost of travel, time, and energy.
These NFTs can be coded to create diverse experiences. For instance, you can code an AI DJ to greet visitors with a specific song whenever they arrive at 7 pm every day. You can also code a giveaway of $1 anytime visitors arrive and spend up to ten minutes. So, every day, people show up at 7:00 pm, they get $1 into their Wallet. They can also access the spatial space through their computer screen, not only in VR. In the same way, you can show up at a conference or festival and receive NFT or money for being part of their community.
Why you should want an ERC 1155
This is just an ERC 7 21 or multiple NFTs that you can create simultaneously. What the ERC 1155 allows you to do is: if you have 10,000 entries, instead of creating each NFT individually, you can create them all at the same time. Let's use cars as an example; I'm Tesla, I want to produce 10,000 cars. I'm not going to create one car at a time. Instead, I'll make the 10,000 cars simultaneously, in one batch.
ERC 1155 is essentially just a batch collection of many things. The crazy part is that each of these NFTs can be created uniquely. With AI, we can create generative art. As a software developer, you can create art or finance. Jobs like Truck drivers, bankers, bank tellers, and investor stockbrokers can be automated and kept at your home address on Web 3.0. Remember, your digital home address is like your physical address in the real world. You can invite your friends over and hang out in your digital homes and NFT.
Conclusion
If you can program, then you can code and create the future. You can write your own smart contract if you can speak English to open codex and GPT 3. You can take what other people created and re-create amazing things. This concept is pretty deep, but I hope you learned a thing or two. Thank you for being here, I’m grateful for you, and I hope you don't forget to flow.