Welcome to Hoken Tech.

In the latest horror-themed episode of the famous and long-running animated series, The Simpsons, a glimpse of reality mixed with fiction was dedicated to the world of NFTs, showcasing how, in this case, not only artworks but also individuals can be digitized and tokenized.

The episode begins with a speech by the mayor of Springfield, announcing the closure of the museum because all the museum’s artworks have been “dematerialized” within the blockchain, rendering the museum an empty place.

However, in reality, artworks are not dematerialized but rather digitized, usually through a photo or video, and then the file is embedded in an NFT, which is subsequently stored on the blockchain.

It is interesting to note the mayor’s conclusion when he states that all the artworks will be digitized into NFTs, adding, “Whatever NFT means.” Unfortunately, this reflects a certain truth because not everyone has a clear understanding of the meaning and significance of NFTs.

In fact, NFTs are a means of communication, disseminating information, and monetizing digitally-rendered assets worldwide. There are no limits to what NFTs can represent.

The episode continues by showing a father and son operating a machine that supposedly dematerializes artworks and even people, which are then automatically uploaded to the blockchain. However, this portrayal is far from reality.

The actual process involves several steps, starting with digital files (videos, photos, or documents) to be included in an NFT. Then, an NFT is created through a smart contract, blockchain fees are paid, and finally, everything is uploaded to the chosen blockchain.

The triggering event of the episode occurs when Bart enters this machine, and Homer activates it (with a warning that the source artwork will be destroyed), resulting in Bart being transferred to the blockchain.

Obviously, this does not happen in the real world in the same manner.

While one can be digitally represented, it is not possible to tokenize and sell one’s body parts as if they were assets. There are legal limitations on how one can dispose of their body.

Once Bart is digitized, his NFT is sold for a whopping $1.5 million, which worries and interests his parents, prompting them to consider digitizing their other children to see what they can obtain.

Looking at the evolution of the NFT market, there was indeed a period of high prices, partly due to the positive performance of the crypto market. However, those high prices have lost their fiat equivalent value in the current market.

In order to retrieve Bart, his mother decides to enter the blockchain with the help of experts who provide her with a USB pen containing a backdoor key to the blockchain, allowing her to bring back her son and herself.

This scenario is unrealistic as it creates the false belief that one can retrieve data from the blockchain using malicious code. It implies that the blockchain is not secure and that a few lines of code are enough to compromise it.

As demonstrated by Bitcoin’s blockchain and other blockchains, there have been no security issues, attacks to retrieve data, create crypto out of thin air, or steal crypto from other users. In reality, the protocol is more secure than one may think.

Once Marge enters the blockchain, or rather the “BlockTrain,” there is a brief explanation that this train operates based on the level of FOMO (Fear Of Missing Out), referring to the fear of missing out on opportunities. This concept is linked to past ICOs and now to NFTs.

There is truth in this statement since people tend to reason correctly when it comes to economic returns and money. However, emotions often influence the market, regardless of its nature. Negative events trigger panic selling, causing prices to drop, and vice versa.

One stratagem depicted in the episode involves the possibility of killing other NFTs to increase their value. The protagonist encounters various famous NFTs, such as CryptoKitties and works by renowned artists like Beeple, accompanied by their respective values.

Since digital assets registered on the blockchain cannot be killed or erased from the ledger, this portrayal provides a distorted view. Moreover, “killing” an NFT does not increase its value as depicted in a Russell Mulcahy film.

Bitter Ending

The episode concludes, without revealing too much, with a bitter ending where we see this train losing power, and the prices of various NFTs losing value to the point of being worth just a few cents. This has also happened in the crypto market, which has experienced fluctuations due to failed projects and market-wide events in recent years.

Unfortunately, the episode superficially depicted certain aspects and treated the subject as a passing trend,without delving into the deeper implications and potential of NFTs. While it incorporated some elements of reality, such as the lack of widespread understanding of NFTs and the speculative nature of the market, it also included fictional elements that do not align with how NFTs actually function.

It’s important to approach the episode with a critical eye and seek accurate information when it comes to understanding NFTs and their impact.