NFTs - the good, the bad, the worst?

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  • Introduction, overview
  • Music NFTs
  • Metaverse, Gaming NFTs
  • Fashion NFTs
  • Certificates and Edtech NFTs
  • Buying and selling
  • How to find good projects?
  • Tools and platforms
  • NFT Development
  • Scams, summary

Introduction

NFT is a non fungible token - simply meaning it cannot be traded for something else. You cannot trade your face with someone else’s face - but you can trade cash for something else. Or maybe bitcoin for another bitcoin - or $ETH for another $ETH token. We’ve seen pictures getting sold for millions of dollars but that’s not everything that there is for NFTs. There are a lot more use cases for NFTs around the world, let’s discuss some.

  • Metaverse, Games, P2E, DAOs, Real estate, Supply chain, Governance, Identity, etc

Opensea did $5B in sales - imagine how many people are buying, selling, trading NFTs every single day. It’s here to stay, so let’s learn together! Read more about it here: https://decrypt.co/91748/opensea-record-5b-ethereum-nft-market-swells

Some of the most expensive NFTs

‍Let's discuss some use cases!

Music NFTs

  • Musicians sell – Artists decide what percentage of royalties they will put up for sale in the form of NFT. This gives fans the right to the purchased part and access to certain benefits. It depends on the creators what the benefits are, and they can combine digital art, fan experiences, and songs.

  • Collectors buy – When artists sell royalties of their songs, they are available to customers in the form of non-fungible tokens (NFTs) directly from musicians. Also, in the package containing the token, the performer can add additional benefits for customers. For example, when selling royalties from a particular collection of the song Rare performed by Nas, you can also get tickets for the concert, signed vinyl, and more.

  • Earning royalties – When you become the owner of the tokens purchased from the creator, you can claim royalties when they accrue. The payout time now depends on the artist.

  • Token trading – You can manipulate your tokens as you wish and even sell them. NFT exchanges sell and buy these assets, so you can put them there with your offer. But the moment you sell your NFTs, then all your royalties, as well as the benefits they bring with them, become the property of the new buyer.

Metaverse, Gaming NFTs

From a technical perspective, the metaverse is emerging as a set of persistent, 3D virtual environments that are linked together to create a virtual universe. A more straightforward description of the metaverse is that it is just the internet with a highly visual layer of interactive and immersive content on top.

Axie Infinity is arguably the leading NFT-based game of today. It lets players breed digital NFT pets called Axies and trade plots of virtual land. It also features a play-to-earn model, rewarding loyal players with tokens. This has made the game a big hit in the Philippines, where payouts from the game can top the average national salary.

Gods Unchained — Gods Unchained is a digital collectible card game that pays players when they beat their opponents. It’s similar to card game classics like Magic: The Gathering, but as the cards are tokenized, players have true ownership over in-game items.

Zed run is another great example of how NFTs will change the way we play games online. We will buy NFTs as the ‘tokens’ we buy right now and use those to play or earn something.

Ever gone to an arcade? You go and buy coins first, then use those coins to play something there. Exactly! NFTs are similar and they're used to participate in these games. They offer more utility than just those tokens but still there is a lot more to explore.

People are buying land in the metaverse to put up their houses and art. It might not make sense, but think of it as an investment - sometimes you buy a house where you don't live - you have it for investment.

Read more

Fashion NFTs

Beyond the bubble: Making NFTs work for fashion | Vogue Business

Metaverse and NFT fashionables are real. Tons of companies are bringing in artists to make wearables inside the virtual world.

In February last year, virtual sneaker brand RTFKT Studiosproduced more than $3 million USD in sales with a limited-edition drop, which included both a tangible pair of polychrome sneakers and an NFT that correlates with the shoe.

The MetaBirkins NFT showcases a digital art gallery of luxe handbags reminiscent of the silhouette of a Birkin bag, decorated with furry florals, cow print, distorted smiley face motifs and other psychedelic patterns.

Read

Certificates and Edtech NFTs

Colleges and ed tech bootcamps have given out certificates for the longest time.

It’s time to gamify it. You don’t get a boring certificate when you win a game - you get a nice reward with a fancy animation ‘attached’ to your digital account.

This is what is happening in ed tech as well.

Edtech solutions like learnWeb3 and buildspace give you NFTs when you complete their course. But how does this help?

Firstly, you get to show off that in the digital world and is connected to your address (anyone can see it)

Secondly, you become an alumni which is super easy to verify and get added to their additional feature list like the job board. So a company hiring can see who all have graduated from the course (it’s a HUGE business and need right now)

Thirdly, you become part of their DAO, which is a decentralized autonomous organization.

Buying and selling NFTs

OpenSea admits at least 80 percent of NFTs hosted on its platform are  plagiarized or knock-offs: Digital Photography Review

Now we’ll discuss what everyone is actually doing with NFTs - trying to make money. It’s super simple to buy an NFT but tricky to find actual good projects. Here’s how you buy an NFT

  • Get a wallet - Metamask account and transfer some ethereum: https://metamask.io/

  • Go to Opensea, connect wallet, and buy whatever NFT you want to - click “Buy now”

Good project checklist

DYOR - do your own research before buying into a project. This is a general checklist to determine if the project is going in the correct direction or not. There are many more things you should look at - which you’ll learn more as you dive deeper.

  • Do they have a great looking website without any typos?

  • Do they have any utility and a defined roadmap?

  • Are the founders active on social media and not anonymous?

  • Are the social accounts just bots or real followers with engagement?

  • Are they trying to solve a problem or do something unique?

  • Is the minting price reasonable or way too low?

  • Checked the number of owners, people who minted?

  • Do they have a great development team? Check their socials

NFT helper tools

There are many tools which track how NFTs move in the real world - who is buying/selling, the rarity, upcoming projects, and more!

Rarity tools

Rarity.Tools has an excellent scoring system for NFT rarity when you’re looking at NFT projects. The rarer the NFT you buy/hold is, the more likely it is to retain and increase its value. However, rarity.tools is only one NFT rarity tool. There are several other great tools we’ll go over that determine NFT rarity!

Developers

Watch the complete Solidity, smart contract video before moving forward.

You can do a lot of things in the NFT space as a developer. Start with a platform to buy, sell, trade and take it from there. ERC721 is a standard for representing ownership of non-fungible tokens, that is, where each token is unique.

Here's the main mint function which is called when the user tries to buy the NFT.

function mint(address to,  uint tokenId)  external  {
  require(to !=  address(0),  "mint to zero address");
  require(_owners[tokenId]  ==  address(0),  "token already minted");
  
  _balances[to]  +=  1;
  _owners[tokenId]  = to;
  emit Transfer(address(0), to, tokenId);
}

Stay tuned for more!

Scams

Read more

Summary

  • Every single person (including celebrities) promotes their projects - be super careful
  • Simple art pieces don’t usually bring any utility - you can still buy for the art
  • Youtubers partner with NFT projects all the time - everything is PAID
  • Don’t put in your savings - most projects are going to 0 anyways
  • Finding utility is hard - you have to research for hours - look at our checklist
  • DYOR - do your own research. NFA - Not financial advice

Plan from here?

Take explosive action from here and dive into this field more:

  • Be active on social media - that’s where the most action is!
  • Post what you’re building or buying. ‍

DYOR - NFA - Do your own research - Not financial advice