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Why Tiger Woods, Tom Brady and others are joining in on the NFT craze

Tiger Woods is the latest to sell digital collectibles as NFTs. But how much are they going for nowadays? We’ll explain.

You’ve probably heard about NFTs, short for nonfungible tokens. But what exactly are they? It’s a new type of digital asset similar to cryptocurrency that can cost you a lot of money. The craze began in 2017, and since then, Twitter’s Jack Dorsey, rock legends Kings of Leon and even Tiger Woods have sold NFTs for a pretty penny (more below).

But what exactly are you buying when you purchase an NFT? It’s not a collectible that you can keep in your dresser drawer, like Pokemon cards, a comic book or paintings. They’re entirely digital and are tied to almost anything — a video highlight, a meme or even a tweet.

If this doesn’t make much sense to you, well you’re not alone.

In short, NFTs offer a blockchain-created certificate of authenticity for a digital asset or piece of art. The interest has created a digital market that boasted $250 million in sales in 2020, with NFTs reaching new levels of hype from Visa, Warner Music Group and Nike. Even toilet paper companies are in on the latest cryptocurrency wave. Still confused? We’ll break down what NFTs really are, how much they cost and how you can get in on the latest bidding wars.

What’s an NFT?

This is the part that takes a bit of open-mindedness. An NFT is a unique digital token, with most using the Ethereum blockchain to digitally record transactions. It’s not a cryptocurrency like Bitcoin or Ethereum, because those are fungible — exchangeable for another Bitcoin or cash. NFTs are recorded in a digital ledger in the same way as cryptocurrency, so there’s a listing of who owns each one.

What makes an NFT unique is the digital asset tied to the token. This can be an image, video, tweet or piece of music that’s uploaded to a marketplace, which creates the NFT to be sold.

Do I own the asset if I own an NFT?

Nope.

That’s the real kicker to understanding the whole concept. The person who buys the NFT doesn’t own the actual asset.

«NFTs challenge the idea of ownership: digital files can be reproduced infinitely and you do not (usually) buy the copyright or a license when purchasing an NFT,» said Jeffrey Thompson, associate professor at the Stevens Institute of Technology in Hoboken, New Jersey.

For example, the creator of the Nyan Cat meme sold an NFT of it for $590,000. The person who bought the token owns the token, but doesn’t actually own the meme. That still belongs to the creator, who held onto intellectual and creative rights.

What the owner of the token has is a record and a hash code showing ownership of the unique token associated with the particular digital asset. People might download Nyan Cat and use it on social media if they want, but they won’t own the token. This also means they can’t sell the token as the owner can.

Why are NFTs so expensive?

As with physical collectibles such as Beanie Babies, baseball cards and toys, there’s a market for NFTs. The buyers tend to be tech-savvy individuals who understand the idea of wanting to purchase digital goods and likely made a killing this past year with cryptocurrencies. Ethereum, for example, went from just over $100 last March to a current price of about $3,400. In some cases, buyers are just flexing their digital wallets to show off how much crypto they have, but for others, there’s a deeper interest.

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«Specifically for art-related NFTs, there is a huge surge in demand due to their novelty and creativity of early artists,» Jason Lau, chief operating officer of crypto exchange OKCoin, said in an email. «Whether it’s a physical work with an attached NFT (think of it as a digital autograph and proof of veracity), or an entirely digital work (where the NFT is the art), this new medium is opening new ways for collectors and artists to explore their relationship with the artwork itself.»

It’s also great for the artists, says Lau. By selling digital art directly to those interested, an artist can begin monetizing work without having to try to sell it in a gallery.

What kind of NFTs can I buy?

NFTs can be tied to any digital asset. Anything you see online can be an NFT — music, social media posts, clip art and more. Today, Sorare released its «Super Rare» Lionel Messi digital trading card that’s currently bidding at €29,992.75, equivalating to over $35,000. Sorare also announced that it raised $680 million for its next-level sports fantasy game. The funding is currently led by SoftBank.

And today, Tiger Woods will sell thousands of digital collectibles on Autograph on the DraftKings marketplace. The second collection will launch on Sept. 28. Autograph is co-founded by Tom Brady, another athlete in the NFT market.

But NFTs are going far beyond sports. Recently, Fortune gave its readers a chance to get in on the NFT craze. The company sold 256 copies of the limited edition cover from the graphic artist Pplpleasr for Fortune’s August/September magazine on OpenSea. The copies sold out within five minutes starting at $1 Etherum (estimated $3,000). But the NFTs were available for resale at three times the cost.

And in August, a clip art of a rock, better known as Ether Rock, was sold for $400,000 Etherum (estimated $1.3 million). Two weeks ago, it was valued at $97,716. And in August, Visa announced its NFT CryptoPunks purchase for $150,000 in Ethereum. The financial corporation believes that NFTs play a big role in the «future of retail, social media, entertainment, and commerce.» And Vine’s co-creator, Dom Hoffman, is reportedly inventing a new way to gamify NFTs with his fantasy gaming console, Supdive.

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As the hype for NFTs grows, expect more digital assets to come up for sale and bring in some big money.

Where can I buy or sell an NFT?

While you may not want to jump right in bidding six figures, there are multiple NFT marketplaces out there to check out, with Opensea being the biggest. Buyers can search for art, domain names and random collectibles to bid on without having to break the bank. And Woods’ digital collection is one of the many NFT collections available on DraftKings marketplace, including Tony Hawk’s collection.

On the other hand, if you want to sell an NFT of your art, you can use NFTify, the Shopify NFT store, to sell NFTs without creating your own store. You’ll also need a MetaMask account to get going. And Burberry recently announced a partnership with Mythical Games to gamify buying, selling and collecting toys as NFTs through the Blankos Block Party game. CNET’s own Chris Parker also made a step-by-step guide on how to make and sell your own NFT, in the video below.

What are the downsides of NFTs?

A drawback is the hundreds of dollars in fees required to create an NFT. If you’re making your own token on the Ethereum blockchain, you need to use some Ethereum, which as mentioned earlier is kind of pricey. Then after you make an NFT, there’s a «gas» fee that pays for the work that goes into handling the transaction and that’s also based on the price of Ethereum. Marketplaces simplify the process by handling everything for a fee when an NFT is sold.

There’s also an environmental cost. Like Bitcoin, Ethereum requires computers to handle the computations, known as «mining,» and those computer tasks require a lot of energy. An analysis from Cambridge University found that mining for Bitcoin consumed more energy than the entire country of Argentina. Ethereum is second to Bitcoin in popularity, and its power consumption is on the rise and comparable to the amount of energy used by Libya.

Technologies

Amazon Speeds Up Delivery Even More With 1- and 3-Hour Options

The retailer says the one-hour option is available in hundreds of cities, with discounted shipping for Prime members.

Same-day delivery apparently isn’t fast enough for some Amazon shoppers. The retail giant said on Tuesday it’s adding new shipping options that will get products to front doors within a one- or three-hour window.

The company said in its announcement that the one-hour option is available in hundreds of cities across the US, while the three-hour option is now live in more than 2,000 areas. Amazon’s web page at amazon.com/getitfast shows whether those options are available to shoppers for their location. More than 90,000 products will be available for those shipping windows, the company said.

For those who can’t get those services (including the author of this post, who lives between Austin and San Antonio in Texas), a message will display: «3-hour delivery is currently unavailable. Check back at a later time or shop products with Same-Day delivery below.»

Pricing for the faster delivery options is not cheap: It’ll cost you $20 for one-hour delivery and $15 for three-hour delivery for those without an Amazon Prime account, or $10 and $5 for customers who subscribe to Prime.

Last year, the company rolled out faster Amazon delivery options to 4,000 additional areas

In a video of the podcast Learn and Be Curious with Doug Herrington, hosted by Amazon’s CEO of worldwide stores, Kandace Kapps, the director of the company’s same-day strategy team, spoke in more detail about the challenges of fast shipping. Kapps discussed shifts in customer buying habits over the last few years, such as more people buying household essentials like toilet paper on Amazon.

She said that Amazon can deliver so quickly by placing same-day delivery hubs close to customers in metro areas and by getting products ready to ship within 15 minutes, aided by warehouse robots.

«I think customers are going to continue to get magically surprised by how fast we can deliver to their doorstop,» Kapps said. 

Herrington said fast shipping increases sales: «When we speed up the service, the probability that somebody buys a product from us goes up.»

Other retailers, including Walmart, have been adding same-day delivery options or exploring other ways to speed up shipping times to compete with Amazon. 

Removing buyers’ moments of hesitation

Part of Amazon’s strategy, which has involved a massive buildout of locations, deployment of thousands of trucks, deals with other delivery services and investment in logistics software, is actually pretty simple: being there when people need last-minute items or make impulse buys.

«It’s about removing the last moment where you would’ve reconsidered the purchase,» said Stephanie Carls, retail insights expert at coupon and promotional-code website RetailMeNot, a sibling site of CNET. «It changes how you shop, not just how fast you get things.» 

Carls said that Amazon’s super-fast delivery is removing the timeframe when people might change their minds about a purchase.

«There used to be a gap between deciding to buy something and actually having it. That’s when you’d price check, rethink it, or decide you didn’t need it after all,» she said. «This closes that gap.»

The retail expert said that competitors, including Walmart and Target, have been speeding up delivery times in some markets. Still, they’re not matching Amazon’s scale or product range at those speeds or levels of consistency. 

«And that’s what starts to make everyone else feel slow,» Carls said. «Amazon’s advantage is how tightly connected its technology, inventory and delivery networks are, which makes this level of speed more repeatable.»

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Technologies

Dog Health Goes Digital With New AI Chatbot

Fi Intelligence allows you to ask questions of a specially tailored pet health chatbot, but it’s not meant to replace vet visits.

It might be time to rethink what it means to be sick as a dog. On Tuesday, Fi, a smart pet technology company, announced a new AI-powered chatbot to help owners stay on top of their dog’s health using a blend of personal information and generalized dog breed data.

The AI agent, which the company is calling Fi Intelligence, is integrated directly into the Fi app. It has access to all the information gathered about your dog across the entire suite of Fi products, including the Fi Series 3 Plus and Fi Mini dog collars, as well as information and documents uploaded by the pet owner. The service is for dogs only (not cats, rabbits or other pets).

If you already own a Fi smart collar, existing data will be incorporated into the AI agent’s dataset to help it answer your questions.

When creating Fi Intelligence, the company identified a multitude of common questions that dog owners have, including whether their animal friend is walking or sleeping enough, or scratching more than usual. The chatbot was created to help owners find answers to these questions quickly and easily, according to Fi.

Fi designed its agent to answer these questions using a mix of general information about a dog’s breed, personal information and biometric data gathered by Fi smart pet collars. 

Pet owners can ask the chatbot questions in plain English and get back detailed responses. Fi Intelligence is equipped to answer general questions, contrast your dog’s current data to previous time periods and compare your dog’s data to other dogs of the same breed.

Fi says its chatbot is different from general-purpose AI agents because it has been trained on a proprietary dataset containing «the largest repository of real-world canine activity, sleep and behavior data in the world.»

Fi Intelligence doesn’t replace a trip to the vet — and the company stresses it’s not supposed to. Rather, the agent is supposed to grant owners «informed confidence» about their dog’s health and can help them «show up [to the vet] with specific, documented observations drawn from weeks of continuous data.»

«The strongest signal from our beta was that owners aren’t using this to replace their vet,» said Fi’s Vice President of Product Darrell Stone. «They’re using it to show up better prepared.»

According to Fi, the Fi Intelligence integration will provide the most complete dog health profile available in the app so far. Fi Intelligence is available to all Fi members immediately.

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Technologies

Nvidia Teases DLSS 5 and Gamers Aren’t Impressed

The new AI technology is making some big changes to video game graphics that hardly anyone seems to like.

Nvidia opened its GTC conference with a keynote by CEO Jensen Huang, revealing the company’s latest tech. Among the raft of the company’s AI developments, gamers were treated to the imminent version of its AI-powered upscaling and optimization technology, DLSS (Deep Learning Super Sampling), touted as the «biggest breakthrough in computer graphics». 

Nvidia published a video illustrating how DLSS 5 can enhance graphics in Resident Evil RequiemStarfield and other games, showing before-and-after takes. But gamers weren’t thrilled. In fact, the response to DLSS 5 resembles more of a collective backlash, replete with memes, ridicule and outrage. 

Gamers were quick to point out that DLSS 5 transformed the original graphics into something vastly different. Some called the visuals «AI slop» because they look like «yassified» AI-generated filters. 

Many worry that DLSS 5 could deviate from a creator’s specific artistic vision. Critics also fear that if this technology becomes the industry standard, video game graphics might start to look the same, losing their unique visual identity. 

«Everything about this is a betrayal of these game’s artistry,» said YouTuber The Sphere Hunter in a post on X Monday. «Painting over handcrafted, intentional 3D art with shiny, wrinkly, sunken-in, porous, puckered, fraudulent, filtered nonsense is deeply disrespectful. If you want this, just watch gen-AI videos all day.»

Countless memes mocking the tech’s exaggerated features flooded the internet. Others on social media parodied the effects DLSS 5 could produce in other games. 

In a Q&A on Tuesday, Huang addressed the backlash from gamers, calling them «completely wrong.» Huang underlined that DLSS 5 «enhances and adds generative capability, but it doesn’t change the artistic control» and that «it’s in the direct control of the game developer.»

The team at Digital Foundry, which specializes in game technology and hardware reviews, called it «disruptive and transformative» but was generally positive about it, though they saw some hiccups. 

«[The images] looked a little bit uncanny, I would say, but definitely the overall portrayal of those characters is much more sophisticated,» said Oliver Mackenzie, video producer and writer for Digital Foundry.

Bethesda’s official X account replied to comments from members of Digital Foundry about Starfield and The Elder Scrolls IV: Oblivion Remastered, both published by Bethesda.

«This is a very early look, and our art teams will be further adjusting the lighting and final effect to look the way we think works best for each game. This will all be under our artists’ control, and totally optional for players,» the publisher said. 

DLSS 5 is set to be released sometime in the fall. 

What is DLSS?

Nvidia first released its DLSS tech back in 2018 with its RTX 2080 card: The RTX architecture introduced the Tensor cores, which are essential for accelerating the calculations used by the DLSS AI. The deep learning technology was designed to upscale images and video from low resolution in real time to achieve higher frame rates. 

Gamers weren’t impressed at first, but later versions of the technology did perform better in games that supported it. DLSS 4, released last year and tweaked to 4.5 as of January, made significant improvements to detail rendering, reducing motion artifacts, boosting frame rates, and generating more realistic lighting via path tracing (which incorporates interactions with ray-traced lighting). 

What does DLSS 5 do?

DLSS 5 works a bit differently than previous versions of the technology. According to Nvidia, DLSS 5 shifts from processing simple pixels to understanding 3D elements. By deconstructing characters into specific components — such as skin, hair and clothing — the AI can render them more consistently. This results in faster performance and much more realistic details, especially for textures and lighting. 

Game developers control how DLSS 5 enhances images and to what degree, ensuring it matches the game’s aesthetic. The demo video showcased some positive enhancements, but others looked like sweeping changes to the characters and the environment. 

Which games will support DLSS 5 at launch?

On Monday, Nvidia released a list of games slated to support DLSS 5:

  • AION 2 
  • Assassin’s Creed Shadows
  • Black State 
  • Cinder City
  • Delta Force 
  • Hogwarts Legacy
  • Justice
  • Naraka: Bladepoint 
  • NTE: Neverness to Everness
  • Phantom Blade Zero
  • Resident Evil Requiem
  • Sea of Remnants
  • Starfield
  • The Elder Scrolls IV: Oblivion Remastered
  • Where Winds Meet

What cards will support DLSS 5?

Nvidia has yet to provide a list of GPUs that will support the new technology. In an FAQ, the company says it will release a list of supported cards closer to its release. 

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