Non-fungible token (NFT)
In society today, most people would agree that a new and exciting buzzword going around is "Non-fungible Token". A wave of interest has spurred in recent years around the digitalized currencies and markets associated with them. Many individuals may still be curious about what these topics are and the impact they not only have one us today, but also the impact they will have on us in the years to come. This article is going to answer some of those questions and, if nothing else, peak the interest for people to research these areas further. So, how is it that Bitcoin and Ethereum and the other cryptocurrencies have thrived in recent years? What is an NFT and the blockchain? Is Bitcoin a type of NFT? Let's dive into it!
A non-fungible token is a unique digital identifier that cannot be copied, substituted, or subdivided. Fungible means mutually interchangeable. Money or cryptocurrency, like Bitcoin, are fungible because they can be transferred from one entity to another. For example, one dollar can be swapped for another dollar because they each hold the same value. Non-fungible means unique or non-interchangeable. For example paintings hold different intrinsic value based on people and perception. The non-fungible token is simply the identifier of that item.
Common Areas in which NFTs exist
NFTs are valuable because they reflect the value of the thing it represents, similar to a sports ticket. One of the biggest components of this system is that there is knowledge of definite ownership. In our physical world, if a sports ticket is lost, anybody who finds the lost ticket can use it for their personal use. That does not happen with NFTs.
Digital data recorded on a blockchain shows who it was created by and who it currently belongs to. But what kind of items are even be sold on a blockchain? (See the figure at the end of this article for example)
Art
A large portion of what people think about when they hear NFT is art. There is digital art that can move like a gif. Some of the art is dynamic and responsive. The artwork can actually change based on external sources like crypto prices. A synthetic landscape piece was generated through AI capabilities. Google took 2 million image and used quantum computing to create a picture from the images collected. Pictures like these are gaining popularity and becoming the NFT artwork people collect in the virtual metaverse.
Music
Rappers like Lil Nas X or DJs like Steve Aoki have gained lots of traction in the music industry. Lil Nas will be the first artist to drop the official TikTok NFT. Steve Aoki created something called the Aokiverse where he offered dynamic passports that gave owners of his NFTs access to both virtual and in-person concerts.
Fashion
Brands like Nike have prominence in both the real world and the virtual world. Recently, they have bought a virtual sneaker designer company called RTFKT(pronounced "artifact") and have been creating new shoes with the collaboration of ideas. Many other brands have the ability to expand into this market and offer exclusive items to their users. Fashion has always been a way for people to distinguish themselves and their status, and the virtual world is no different.
How this works
Within these fields, there are royalty options where anybody can be partial owners in up and coming ideas-whether that be a new hip hop artist, or a new fashion brand, or anything else. It is like stakeholders in a company when people buy stocks. With this style of commerce, people are able to transition between the physical and digital . By using a smart phone, one can simply tap the tag on an item and see its NFT- the value and ownership of the item.
Questions might arise as to the importance of this sort of transaction. For one, with verified identification, theft is much easier to track down and reallocate to proper owners. In this type of scenario, theft can be prevented entirely. There is also a higher assurance in the quality of goods being sold. If an RFID tag is in an item, everyone can see what has happened to a certain item and the hands it has gone through. Instead of worrying about keeping a paper trail, all the pertinent data is kept on the blockchain. With better logistic management like this, B2B and B2C transactions will be more efficient and user friendly.
What is the Metaverse?
This is network of 3-D virtual worlds that is focused on social connection.
Meta, formerly know as Facebook, is investing heavily in VR and AR technology right now with the goal of creating more realistic connection possibilities for people across the globe. Similar to metaverse, Decentraland is a virtual, computer based, 3-D world where users can buy virtual plots of land as NFTs via a cryptocurrency from the Ethereum blockchain. Users can potentially authorize or restrict access to the land they’ve bought to only people who have ownership in their NFT. OnCyber.io is another platform where artists and collectors can display their NFTs in an apartment style atmosphere. There are many possibilities for the growth of this new world!
Earning? Playing? Why not both?
There has been a rise in the “Play to Earn” fields where users can play games and earn various forms of cryptocurrency by doing so. This currency can be sent to a wallet or used for in-game purchases. A large example of this is in the Philippines during the 2020 pandemic. Without income from tourism, many people started to play Pokémon Go as a way to earn money. The larger the network of people playing, the easier people were able to provide for themselves from this gaming platform through collecting Pokéballs, training Pokémon, or many other things.
PeakD is part of the HIVE Keychain. For those that did not know, by going to the Wallet section of your profile within PeakD, there you can see various "Play-to-Earn" games where you can receive HBD or HIVE tokens.
How to gain Membership
If you have ever shopped at Sam’s Club, you probably understand the idea of having to get a Sam’s Club Membership to be able to buy some of their specialty items or take part in some of their deals. What the NFT market is doing is similar.
In order to purchase certain items in the primary market, owning a certain NFT may be required. This can result in an elitist atmosphere to the possession of certain goods and raise prices in secondary markets because of the limited ability to purchase otherwise. A popular club known as the Bored Ape Yacht Club costs six figures in order to join. Not all clubs are that expensive, but that is a possibility. However, the price is not the main reason clubs and memberships are formed. These networks are about trust, community, earning, and most importantly, learning together.
Short Word of Advice
I have personally found cryptocurrency and the NFT space to be very new and exciting but also very confusing and busy. Recommendations that most experts give in regards to this field is "Do your own research." By checking out (secure) websites and seeking to understand the market's reaction to the surge of crypto, one can find themselves with a better understanding and a deeper appreciate for the way our economy is headed. Years ago, I began to learn about cryptocurrency through a coin called Pi. It has been very informative and interactive which has allowed me to translate the knowledge I gained from them into the crypto and NFT market as a whole. Whether Pi or something else, I highly encourage people to learn about the opportunities these coins and tokens hold - both educationally and economically!
Below is a picture of how a blockchain records transactions within the Pi Network. Pi is a cryptocurrency being developed by professors at Stanford University with over 35 million users. Pi can be mined directly from people's phones, and that is part of their innovation from other platforms. For anyone interested in learning more, a referral code is needed to get started. Feel free to use my invite code to learn more.
To claim your 1 free Pi, follow this link https://minepi.com/austinE11iott and use my username (austinE11iott) as your invitation code.
