Tap In Tuesday: NFTs Explained
What is an NFT? $MEME token up 20x? Digital art? How does this work?
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So we completely missed the boat on $MEME, apparently its up 20x since September, so a whole 3 weeks.
The NFT craze has just started. There are plentiful opportunities with Rarible and other NFT platforms.
Digital art is a really interesting concept because right now we can all download the art and ‘own’ it ourselves. Now obviously on the blockchain there is a set creator & purchaser, thus allowing for permission-less and immutable transfer of ownership.
Think about how this concept can play into legal documents and agreements into the future of, say the sale of land or houses.
Transferring ownership via immutable blockchains is here to stay.
It eliminates 99% of human error in the process.
In today’s Tap In Tuesday, we’re gonna dive into NFTs. LFGGGGG!
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Tap In Tuesday: NFTs Explained
A non-fungible token (NFT) is a token on the blockchain which represents a specific asset. Unlike the USD for example, one unit of this token cannot be exchanged for another unit because the two units are different - they represent different things.
Example: 1 house coin wouldn’t be transferrable for 1 car coin - instead these tokens act as proof of ownership of the given asset. This is HUGE for real-world application of blockchain.
This concept is starting to emerge as a popular counterargument of NFTs - why should people pay for them when you can literally download them & keep them yourself?
The artist-collector ownership transfer on the blockchain, is the answer. It is cryptographically proven that you (the seller) are the owner, and when you sell the buyer is now the owner.
No downloader can claim that.
That’s where platforms like Rarible come in. Rarible facilitates digital art transfers in their NFT marketplace, where users can create, buy, & sell their art (and some people have been crushing it!)
Top sellers Blue Kirby & Pranksy have earned 285 Ethereum between the both of them (a modest $98,000).
Pretty insane numbers for a market that is so brand new. NFTs come in the form of ERC-721 the most common form of non-fungible tokens on Ethereum. They can be thought of digital collectibles that are assigned value because people give them value (similar to fiat currencies or precious metals, almost).
Where are other opportunities in NFTs?
One of our favorite games and NFT platform is Axie Infinity. Axie brings NFTs to gaming where you can purchase digital land, axie fighting characters and level up your axies to earn ETH. Yes, literally you can breed your axies and create a strategy to earn real money. For those in 2nd/3rd world countries, its enough to be full time:
Listen to our interview with Jeff Jihoz from Axie Infinity here!
Next, we’ve got Decentraland. Imagine a virtual gaming world where you can build your entire kingdom with your own purchased land and items. You can buy and sell property and land, literally home flipping in the virtual world? Wow.
Gotta admit, the graphics on this one aren’t top-notch and could use some work but its been in rapid development. I haven’t hopped in this world for awhile, definitely excited to see whats new!
I think the value from Decentraland comes from being early and getting access to learn and play around. Or you can attend a DeFi crypto conference in a virtual world, cause why not?
Imagine building a real estate empire in the Metaverse. Any takers?
NFTs are blossoming in DeFi right now and rightfully so, this concept is so friggen cool. The possibilities for creative minds seem endless. We don’t really see much adoption happening for the next few years, but the trend is heading up already and its only a matter of time before gamers, content creators, and everyone in between hops on the train.
Please be aware that NFTs are brand new and offer unknown risks to users. DYOR and be careful!
⚠️DISCLAIMER: Investing into cryptocurrency and DeFi platforms comes with inherent risk including technical risk, human error, platform failure and more. We are strictly an educational content platform, nothing we offer is financial advice. Please refer to our blog for more on mitigating your downside when using these protocols!
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