NFTs

NFTs stand for non-fungible token.

In essence NFTs are all about OWNERSHIP.

Let’s start with the ‘T’, so tokens, that means units of data, stored on a blockchain, created using cryptography and technology, so we have more security.

Each NFT is unique and the supply of an NFT will always be ONE.

So each NFT has its own identification code and metadata that can be linked to actual physical objects like a painting, a car, a house, or any digital file on a computer and can have different utilities/benefits.

NFTs role is to provide the owner of the NFT the proof of ownership.

‘NF’ stands for non-fungible that means the NFT is irreplaceable, and you can not exchange an NFT to other one and expect to have the same value, so NFTs are unique.

Fiat money like euros and dollars are fungible tokens because ONE dollar will always equals ONE dollar, you do not care what dollar is in your bank account while it is still there.

Dollars can be printed so it does not count if you have the 10th dollar printed or de 1000th dollar printed, because they are interchangeable and have the same value.

• NFTs give you the opportunity to own a digital asset and enjoy the benefits it offers, without worrying that someone could have the rights to question your ownership of the asset.

NFTs can be bought using cryptocurrencies like Ethereum (ETH), Polygon (MATIC), Solana (SOL) and stablecoins like USDC or DAI or others from different marketplaces (Opensea, Rariable). The most used cryptocurrency is Ethereum. The most popular marketplace is Opensea.

Types of NFTs

1.DIGITAL ART

Digital art is created using computers or smartphones. The art exists only in a digital format. 

Some of the forms of digital art are:

• COLLECTIBLES

Collectibles NFTs are any digital file that has a high level of popularity and it was created in such a way that its value had to increase in time.

Collectibles are usually associated with fashion, sports, paints, celebrities, influencers, movies, cartoons or other popular categories.

Collectives gives you the opportunity to own something unique, that you intended to 'hodl' (hold) for a long period of time because you either want to sell it years later for a high value and make a big profit or you have an emotional connection with the digital item or you receive benefits from having the collectible NFT.

It is like owning a paint from your favourite artist or one of the Michael Jackson's jackets or other valuable item from a person you admire.

In this case you are a collector and people can collect NFTs for whatever reasons they want.

Collectibles NFTs are so special due to their increase level of rarity.

Items are collected from a long period of time, starting with physical objects to digital art and they continue to increase in popularity, so Collectible NFTs can potentially be a fast growing industry, because NFTs can not cease to exist.

• IMAGES

Images NFTs are simple picture converted into NFTs using different apps, so any type of photography, whether taken digitally or digitalized(scanned) into a digital format. 

You take/create/save an image, put it on your computer and add it, for the first time, to the blockchain network, using a marketplace (platform), for example Opensea functions (you are free to use other platforms). This process is called 'minting' NFTs.

! Be careful to choose an image with an adequate size, because although with NFTs, there is no size limit, some marketplaces my limit the size of the file you may mint.

• VIDEOS

Videos NFTs are a popular format of NFTs due to possibility to surprise a memorable moment and making sure it will forever exists on the blockchain network.

Of course, this short moment can have only one owner who decide what will do with the content.

The popularity in video NFTs started to be remarked after NBA Top Shots NFTs, which contain highlight videos of moments in NBA history, appeared. A lot of fans wanted to obtain at least one of them and be the owner of it.

Video NFTs may contain incredible sports moments, fashion collections, funny short stories, a scene from a cartoon/movie, a personal memory or even tutorials. Like recording and uploading a video on Youtube, but instead, you choose to convert into an NFT, because you want more security, unicity or a profit (monetizing your work/skill/abilities)

! Video formats do not repeat by nature, so, some sites will loop videos automatically., so is good to know that the first frame and the last frame should be similar to create a seamless loop.

• GIFs

GIF stands for Graphic Interchange Format. 

GIFs are actually short videos that continue to repeat, but they can be images too.

NFTs GIFs are like Video NFTs, but there are some differences:

• not the same software used for creating them
• duration
• looping
• GIFs are limited to just 256 colours 
• videos have better resolution
• videos are suited for digital/art collectibles
• GIFs are suited for short animations

So, a GIF NFT can show a little moment or a meme or anything a video NFT can do, but in another file format.

• AUDIOS/MUSIC

Music NFTs are just NFTs with an audio linked to them. You unlock the audio content when you buy the NFT. Audio NFTs may or may not have a preview image. 

This is a HUGE category of NFTs, because Music NFTs revolutionize the music industry.

Music NFTs proves the authenticity of an audio content ( songs usually), the real artist who own that. Audios that are incorporated in NFTs are secured by blockchain technology and provide a new way to promote and monetize artists' work without the need for a third party to have access to their work and charge them a big percentage of the revenue the artists made.

• BOOKS&PROSE

Books&Prose NFTs provide a new method to share a writing. NFT content can be just text, such as a poem or even an entire book. They are just like Audio/Music NFTs, but instead of linking sounds, words are shown.

2. PERKS

Perks NFTs are give to the hodlers (holders) some real word benefits. Perks NFTs can be called UTILITY NFTS.

So, usually Perks NFTs have a website where you connect your wallet that is linked to your NFT to check your claims. 

Some offers would be shown to you depending on the NFT you hold, its rarity, properties and the period you acquired it.

For example:

•  discounts to courses/products/services
• free educational materials from any domain
• airdrops (tokens/ another NFT collection)
• online/in person meetings with founders
• tickets for unique events/meetings/conferences
• access to the 'allow list' of another NFT projects
• gifts&opportunities         

A good example of NFT Collection that provides perks is 'You by BFF'. If you both NFTs from the first collection (at least one) you would have recieved (after a time) another NFT from the second collection called 'BFF Friendship Bracelets'. Also, holding the NFTs from one of the collections provides you perks like discounts for courses (a free month of 170+ courses from coding and graphic design to watercolor and floral arranging. And also save 50% on monthly All-Access Pass and pay just $5/month after your free 30-days) and opportunities to win valuable NFTs (Moonbirds Oddies NFT) or to participate at conventions.

3. IN-GAME ITEMS

In-game items NFTs are usual in-game items like weapons, armor, skins, land and other features that let the users to customize their experience while playing the game. But the difference between these two is that In-game NFTs can be trade and sold on NFT marketplaces for even a high value than they initially were valued, if the owner desires this.

So gamers can now make a profit and monetize their passion for games; they understand the concept behind the game, the meaning of it, the abilities they achieve and the pleasure provided by the feeling of competition.

ANY USER CAN GAIN MONEY WHILE USING AN IN-GAME ITEM NFT AND PLAYING THE GAME.

There are currently 2.81 billion video gamers that can have today a way to monetize their work. They do not just buy an in-game item that became useless in time and lost its value, now, the same item can become a COLLECTIBLE NFT that have its benefits.

NFTs provide the unicity of the items, because game developers are the ones who create them. They could just make a lot of copies of the same item without an announcement and the owner, who for example bought the item for its rarity, may be upset. Converting the in-game items in NFTs make the supply of each of them to be ONE. No copies can be made and no changes, because they are on the blockchain and the real owner will be always show on the Blockchain Network. No upset players and more incentives to continue playing.

For example, F1 Delta Time is an Animoca Brands game where the in-game items are NFTs. Players must have car, driver, and tire NFTs to compete. NFTs for the game also include a driver's gear such as helmets, suits, shoes, and gloves, as well as enhancements for your car, such as front and rear wings, transmission, suspension, and brakes.

The NFTs contain each piece of equipment's properties and boosts, such as that specific part's effect on your car's acceleration, grip, and top speed.

And because they're NFTs, the ownership and authenticity of the items are verified by the blockchain.

4. DIGITAL TRADING CARDS

Digital trading cards NFTs are the next level for trading cards.

Physical cards (such as baseball card) were created a long time ago. They were used as collectibles or for trading. To prove you are the owner of a card you should have it physically.

People collected them because they loved what the card promote or just wanted to make money.

But as time passes they started to have littles damages. A long time ago a real meeting was needed between the buyer and the seller to trade cards. Then, online trading appear. People started using websites like eBay to shop cards.

But as time passes they started to have littles damages. Fake physical cards or replicas grew in the market and many bad actors made profits and the buyers were fooled.

Digital Trading Cards NFTs solves these problems. Each Digital Trading Card NFT is unique and can NOT be replicated because it lives on the blockchain.

So, why not use these advance technology technology that provides a better method of trading?

5. DIGITAL REAL-ESTATE

Maybe one of the best usage of NFTs is digital real-estate. 

Digital real-estate NFTs exist only in virtual environments. When a virtual land is bought using NFTs, the owner could sell it or lend it to another person. On that land, a lot of metaverse events like concerts, meetings can be hold. Digital real-estate NFTs can produce money, because people who want to use it will pay a fee for it. These are NFTs with real word utility.

Similar to how real estate deeds have a description of the property based on a survey, NETs of digital land also specify the location of the land within the virtual world. Transfers of real estate deeds are usually recorded in the local county clerk's office. Transfers of digital land NFTs are recorded on a blockchain. 

For example, Decentraland and Sandbox are online environments that simulate the real word. Users have avatars and explore the digital word with them.

Justin Bieber and Eminem are popular artists that have used Digital real-estate NFTs to hold concerts and made a high amount of money from their fans.

6. DIGITAL FASHION NFTS

Digital Fashion NFTs are digitalized fashion items that can be bought from special marketplaces. You can own the item in a virtual word or have a physical replica of it.

Benefits of Digital Fashion NFTs:

• Fashion NFTs are the best to eliminate pollution from the earth by providing sustainable yet higher designer digital garments for the desired look by applying amazing character on images.
• Fashion NFT pro is a system of Digital Fabrics, Training, and hundreds of unique yet customizable clothing templates that grant users the to create a stunning fashion designer image with a few clicks. It is easy-to-use and has amazing designs to create.
• A fashion NFT is a tokenized wearable item, such as clothes, accessories, and shoes, which can be used in the metaverse or the virtual world.
• NIKE, DOLCE&GABBANA, JIMMY CHOO, GUCCI entered in the fashion NFTs space
• Blockchain technology is giving brands new ways to fight counterfeiters by leveraging the benefits of NFTs. NFTs allow users to check for authenticity because it is open source and it keeps a record of data. Once data is stored on the block, it cannot be altered and manipulated

Usability: of Digital Fashion NFTs:

• Using fashion items in games
• Having fashion events in metaverse
• Knowing what a customer bought will also allow you to provide rewards more suitable to that customer.
• Proving the produce authenticity
• Less money on manufacturing
• Anti-fraud initiatives (tracking supply chain)
• Digital shopping experience using augmented reality (AR)

7. DOMAIN NAMES

Usually domain names are '.com' , '.org', '.net' and are used to access different websites.

Blockchain domain names are not part of ICANN ( Internet Corporation for Assigned Names and Numbers, a centralized authority that makes rules for the global Domain Name Service ). Domain Names NFTs are held in a cryptocurrency wallet.

The popular extensions for DNS NFTs are '.crypto', '.eth' and are not used to access websites.

Domain Names NFTs are used to simplify cryptocurrency payments: instead of typing or copy a long address that is hard to memorize/note/remind and being afraid of putting a wrong address, a DNS like 'mike.eth' could be associated with the address.

DNS NFTs are easy to remind and use. DNS make crypto payments to be more secure and hard to misspell. Of course there are risks here too, but at a minimum level.

8. EVENT TICKETS

Event Tickets NFTs are a better way to use digital tickets. If someone can not make it to an event, she/he can now sell quickly the ticket using NFT marketplaces, even with minutes before the event starts. No waiting until refund if it is the case, no struggle to d a buyer.

Another utility of Event Tickets NFTs are the ability to become Collectible NFTs, so they can be sold later for a high value.

Right now, after the event is done, the tickets become worthless. 

NFT TICKETS GIVE THE RIGHT PROFIT TO THE PEOPLE WHO SELL THE NFT ON A SECCONDARY MARKET, SO NO PROFIT GOES TO ORGANIZATORS, PERFORMING ARTISTS OR PROMOTERS. They have received their part from the first sells. 

More, a lot of money is saved, because there is no need for a third party to sell and verify the tickets. NFTs tickets' authenticity is automatically verified by the blockchain, so no fee costs.

9. TWEETS/POSTS

Anything can be converted in NFTs. So, if you want your tweets/posts to remain forever online, you put them on a blockchain by converting them into NFTs. You can sell them after or just hodl them.

In March 2021, Jack Dorsey sold his first tweet as an NFT for $2.9 million. This is a great way to use NFTs, who would have even thought about this possibility?

NFTs have a lot of real word utility, but more.. they give the consumers the confidence they own what they buy. No worries for being fooled.

NFTs are a great way to make money and also express values that someone believes in, starting with just a piece of art.

NFTs have royalties, that means when an NFT is bought, the seller will receive a fee. And, with every selling, that fee goes to the past owners.

NFTs royalties are usually between 5-10%.

NFTs are changing the way things work, they revolutionize industries, so what do you think? Are you gonna embrace this new space now? 

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