NFT EXPLAINED: How to start making millions from NFT Collection
The idea of buying something which isn’t there can appear strange and unreal, but NFT goes beyond this imagination.
The non-fungible tokens bring a new dimension to digital interactions on blockchain technology. It is proclaimed to be the next big thing in 2022.
NFT has gotten the attention of a lot of people across the globe. The Ethereum based blockchain technology had gained huge acceptance from people and become so famous suddenly with a huge amount of money being pumped into it.
UNFOLDING NFT:
Think about bazaars done by Catholics, where they can value a simple item for a certain price, of cos we know the cost of that item(Say a Pen used by the Priest) or any item, might not be up to a thousand USD.
But it’s been valued at that price by the organizers or the creators and somebody else can come and value it higher say I will pay 10k USD for it. It’s a big moneymakers event for the catholic church. In reality, they were giant sales with all proceeds going to the parish, obviously.
This simply shows how values are been placed on physical assets for whatever reason, either by the creators, influential or to credit the creator's effort. The difference here is that NFTs are digital assets.
Now, from another angle, let’s think about NFT in an Art Exhibition where Artwork has no duplicate, the Artist made just one of that incredible pieces of art, and it’s been valued at 100k USD and another person can say I will pay 200k USD for it or say an Artwork made by a famous Artist in the oldies, it’s now been valued and up for sale in an auction for a certain price. It might not be that beautiful as you might have thought, but the value might come from who made it or how old and unique the artwork is, while a lot of people believed you can’t pay enough for the creativity and intelligence of an Art Work.
Note that there is only a single piece of this physical artwork, it has no replacement, once it’s sold then there is the transfer of ownership.
Now think about all this in a digital form and that’s Non-Fungible Token(NFT). A digital certificate of authenticity for digital items/assets like Gifs, video, jpegs, mp3s. And any other file format that will be certified as one of a kind, hence no replacement.
The digital tokens can be thought of as certificates of ownership for virtual or physical assets. Traditional works of art such as paintings are valuable precisely because they are one of a kind. But digital files can be easily and endlessly duplicated.
With NFTs, artwork can be “tokenised” to create a digital certificate of ownership that can be bought and sold in the NFT marketplace.
As with crypto-currency, a record of who owns what is stored on a shared ledger known as the blockchain. The records cannot be forged because the ledger is maintained by thousands of computers around the world.
MAKING MONEY WITH NFT:
NFT art could allow creators to profit off memes, JPGs, MP3, GIFs et al.
“The creator originally owns it, and then they can sell it and directly monetize and have recognition for their work.
A few lists below of NFTs sold of thousands and millions of dollars:
— 34 digital collectible pieces of art, called CryptoPunks, sold for over $1 million in ETH.
— A digital artist Beeple sold an NFT art collection for over $3.5 million.
— An animated Gif of Nyan Cat meme of a flying pop-tart cat sold for nearly $600,000.
— A musician Grimes sold some of her digital art for more than $6m.
Not just art that is tokenised and sold. Twitter’s founder Jack Dorsey has sold an NFT of the first-ever tweet, with bids hitting $2.5m and was sold.
— Christie’s sale of an NFT by digital artist Beeple for $69m (£50m) set a new record for digital art.
— French firm Sorare, which sells football trading cards in the form of NFTs, has raised $680m (£498m).
Leading Advantages of NFTs:
NFTs are Transferable: Unlike exchange-traded fungible tokens, NFTs are bought or sold on special marketplaces like Opensea, Nifty gate, Rarible et al. However, their value depends on their uniqueness.
NFTs are Authentic: Blockchain technology powers non-fungible tokens. Obviously, your NFT is genuine and unique since it’s nearly impossible to create counterfeits with a decentralized immutable ledger on the blockchain.
They Preserve Ownership Rights: NFT’s use of decentralized platforms where no owner can alter the data once committed on the blockchain technology.
Non-Fungible Token (NFT)Use Cases:
NFT is a digital record that can represent any physical or intangible item like an artwork, a video clip, an in-game skin or currency, a music file, a real estate property (tokenized), or a collectible card.
Gaming
NFTs are popular in the gaming industry since these tokens solve some of their inherent problems. For example, top games such as Fortnite prohibit the sale of rare traits and accessories such as weapons and skins.
However, with NFTs, these features can easily be transferred and used in different games. As such, non-fungible tokens can help drive in-game economies.
Digital Assets
This might sound crazy but think of Decentraland. Here, participants can buy virtual land like the Metaverse. Another example that is closer to home is ENS (Ethereum Name Service), which uses NFTs for its ETH domains to facilitate buying and selling.
Identity
NFTs are ideal for fighting identity theft. Examples of things that can be digitized to represent identity include academic qualifications, medical records and even our appearances.
Furthermore, digital artists can turn their work into NFTs for copyright purposes. This can be in form of Gifs, JPGs et al.
NFT’s use to prove identity includes converting physical game tickets into non-fungible tokens to weed out counterfeits.
Collectibles
NFTs, bring a new dawn to the collectible world. Consequently, conventional collectors are now onto digital assets.
Extras:
Read here to learn how to create your own NFT collection.
Be a part of the latest NFT Project launching in January called DYSTOPIAN.
Watch the latest video on NFT and Cryptocurrency controversy below.
Watch out for the next Article on four major steps in creating your own NFT collection and how to go about it.
Author: Slick Akinrolie
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