NFTs are dead. Long live NFTs
NFTs, or Non-Fungible Tokens
NFTs are growing increasingly popular, as investors and collectors look to get involved in the latest blockchain craze and some of the prices being paid for these pieces is insane.
The first ever NFT sold by Sotheby's with digital creator PAK realized $17 million. Data from DappRadar, a firm that tracks sales, showed that trading in NFTs reached $22bn in 2021, compared with just $100m in 2020. CryptoPunks ?might have kicked off the NFT profile picture trend, but the?Bored Ape Yacht Club (BAYC)?is making even stronger inroads to collectors who aren’t deeply immersed in crypto culture. Individual BAYC NFTs are being bought and traded for $10k to $1m+ and owned by Mark Cuban, Eminem, Jimmy Fallon & Steph Curry to name a few
What is an NFT?
An NFT is a unit of data stored on a blockchain that certifies a digital asset to be unique and therefore not interchangeable, while offering a unique digital certificate of ownership for the NFT. More broadly, an NFT allows to establish the “provenance” of the assigned digital object, offering indisputable answers to such questions as who owns, previously owned, and created the NFT, as well as which of the many copies is the original. Several types of digital objects can be associated to an NFT including photos, videos, and audio. NFTs are now being used to commodify digital objects in different contexts, such as art, gaming, and sports collectibles.
In other words, an NFT (or non-fungible token) is effectively a tokenized deed of ownership on a?blockchain. While mostly associated with things like digital illustrations, profile pictures, and video game items for now, it works like a traceable receipt in an immutable database. That could give NFTs a wide array of future uses as the technology and market mature.
How to Buy NFTs?
If you’re keen to start your own NFT art collection, you’ll need to acquire some key items:
Popular NFT Marketplaces
Once you’ve got your wallet set up and funded, there’s no shortage of NFT sites to shop. Currently, the largest NFT marketplaces are:
???OpenSea.io : This peer-to-peer platform bills itself a purveyor of “rare digital items and collectibles.” To get started, all you need to do is create an account to browse NFT collections. You can also sort pieces by sales volume to discover new artists.
???Rarible : Similar to OpenSea, Rarible is a democratic, open marketplace that allows artists and creators to issue and sell NFTs. RARI tokens issued on the platform enable holders to weigh in on features like fees and community rules.
???Foundation : Here, artists must receive “upvotes” or an invitation from fellow creators to post their art. The community’s exclusivity and cost of entry—artists must also purchase “gas” to mint NFTs—means it may boast higher-calibre artwork.
NFTs are dead in 2022
Although NFT art pieces are still are being bought and traded for millions of dollars, Google Trends data reveals a drop in the number of searches for metaverse or NFTs in 2022. Apart from the keyword “metaverse,” the data shows that the worldwide search for “NFT” has also started its decline this year. However, the drop for NFT is more noticeable, as it?reached record highs in 2021?then fell steeply in the first quarter of 2022. So, is this the end of NFTs? Of course not.
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NFT2.0: The Rise of Utility NFTs
Utility NFTs are NFTs with valuations based on the access, perks, and opportunities they provide to token holders. Utility NFTs are NFTs that offer clearly defined intrinsic value in addition to the usual scarcity associated with NFTs. We are still in the early stages of utility NFTs, and it provides value accrual for NFT technology as a whole, with limitless opportunities for NFT creators with vision. Utility NFTs are broadly classified into the following categories:
Utility NFTs or NFTs 2.0 are the future, based on user demand, and offer a broader range of practical NFT applications. Holding a utility NFT, for example, can grant access to exclusive experiences, early access to products, airdrops, exclusive invites to events with top celebrities/athletes, and much more. And this can be both on the digital world and in the real world alike
Long live NFTs
We might be on the cusp of seeing NFTs in everyday life with NFT2.0. Although art made NFTs famous, they are being adopted by gaming, fashion, music, technology, social media and even Scotch whisky manufacturers with endless possibilities and use cases. We are already seeing adoption of NFTs for digital identities in web3 and metaverse and then possibly moving into the real world identification & verification. Keeping in mind NFTs are only few years old, entrepreneurs, startups and big corporations have noticed the endless possibilities where the only limitation can be ones imagination. That said, not everyone onboard, YET.
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