Tuesday, January 25, 2022

Is it profitable to make NFTs

An employee at OpenSea, the largest NFT marketplace in crypto, bought NFTs based on insider information, according to a statement issued by the company.

OpenSea Exec Used Insider Knowledge to Profit From NFTs

Google announced a partnership with Dapper Labs, the NFT company behind NBA Top Shot, to support and scale Dapper’s Flow blockchain.

BitMEX executive Gregory Dwyer agreed to be extradited to the US for conspiracy to evade money laundering regulations.

Abra, a crypto wealth management platform, raised $55 million in a Series C.

Canaan, a Bitcoin mining manufacturer, brought in a record$167 million in revenue during Q2.

Solana’s mainnet came back online Wednesday morning after the network was down for nearly 20 hours.

Asset manager Franklin Templeton plans to raise $20M for a blockchain venture fund.

Coinbase filed with the National Futures Association, its first step to allowing crypto futures trading on the exchange.

$1 billion worth of ether has been burned since August’s London hard fork.

A new amendment to the $3.5 trillion “Build Back Better” package would apply wash sales rules to digital assets if passed.

Bitwise filed for a bitcoin futures ETF.

Ethereum co-founder Vitalik Buterin was named to Time Magazine’s 100 most influential people of 2021 list.

What Do You Meme?

What’s Poppin’?

An employee at OpenSea, the largest NFT marketplace in crypto, bought NFTs based on insider information, according to a statement issued by the company.

“Yesterday, we learned that one of our employees purchased items that they knew were set to display on our front page before they appeared there publicly,” said OpenSea.

OpenSea’s statement comes shortly after @ZuwuTV accused Nate Chastain, head of product at OpenSea, of purchasing certain NFT projects just before the platform gave it space on the front-page. Essentially, the tweets allege that Chastain used his knowledge of OpenSea’s promotion schedule to scoop up hot projects before prices spiked from its position on the front page of the marketplace.

While not necessarily insider trading, as insider trading does not exist in crypto per se, OpenSea is treating Chastain’s actions as something akin to frontrunning. The NFT marketplace posted two new guidelines for employees, explicitly forbidding any such actions in the future.

  • ​​OpenSea team members may not buy or sell from collections or creators while we are featuring or promoting them (e.g. on our home page); and
  • OpenSea team members are prohibited from using confidential information to purchase or sell any NFTs, whether available on the OpenSea platform or not.

OpenSea is having a third party conduct a review. It remains to be seen whether OpenSea will keep Chastain or not.

Recommended Reads

  • Resident Advisor on DAOs:

  • Bankless on why the world needs crypto:

  • ConsenSys’s Matt Corva on crypto and regulations:

On The Pod…

Once the block reward diminishes greatly, can Bitcoin be secured only by transaction fees? On Unchained, Bitcoin writer Vijay Boyapati and Ethereum Foundation’s Justin Drake debate the merits of Bitcoin’s security model, which Drake says will largely rely on transaction fees as soon as within 20-30 years, not in 100+ years. Highlights:

  • Justin’s and Vijay’s professional backgrounds
  • why Justin thinks Bitcoin cannot survive solely on fees
  • how Bitcoin is currently secured
  • what makes Bitcoin’s security subjective rather than binary
  • how much it would cost in dollars to 51% attack Bitcoin
  • what the Bitcoin network could do in response to a 51% attack
  • how to calculate Bitcoin’s security budget
  • why Bitcoin’s price can’t go exponential forever
  • whether a “nuclear option” for Bitcoin miners could protect against a 51% attack
  • why nation-states could be either pro or anti-Bitcoin
  • why a Bitcoin Standard could be similar to the Gold Standard
  • how Bitcoin will change going forward, and why Vijay thinks transaction fees will increase
  • why Justin does not think transaction fees will increase enough to secure Bitcoin’s base layer
  • how Justin would fix Bitcoin’s security model — and why he thinks the 21 million hard cap is a meme
  • why Vijay does not think Bitcoin’s security model will ever change — especially the 21 million hard cap
  • what Justin thinks Ethereum is doing better than Bitcoin
  • why Vijay thinks Ethereum will fail

Book Update

My book, The Cryptopians: Idealism, Greed, Lies, and the Making of the First Big Cryptocurrency Craze, is now available for pre-order now.

The book, which is all about Ethereum and the 2017 ICO mania, comes out Jan. 18. Pre-order it today!

Despite this bullish outlook though, the near-term uncertainty surrounding crypto assets may dampen investor sentiments considering the often contradictory commentary emanating from the Central authorities that govern all asset classes in the country. If there were to be a ban on private cryptocurrencies, as is being mulled by the RBI, it will impact the trading of NFTs and dim the otherwise bright prospects of this revolutionary asset class.

Why are Indian celebrities clamoring to release bespoke NFTs

iStock Dileep Seinberg, Founder and CEO, Thinkchain, a Crypto, NFT, and Blockchain Consulting company says NFTs are primarily released by celebrities to either cash in on their legacy or by newcomers to earn a quick buck without having the fear of being accepted by the audience.

Related

Non-Fungible Tokens (NFTs) as an asset class have exploded on to the scene in 2021 and gripped investors the world over with prospects, transcending beyond the realms of mere tokenism by unlocking far more value for all stakeholders involved.

For artists, NFTs offer the promise of price discovery that does not exist beyond the few renowned auction houses functioning today, while investors can cash in on their purchased NFTs anytime they deem fit. This flexibility along with the immutable nature of these digital assets have catapulted NFTs to the top of the list of crypto-based assets in existence today.

In India, there is an exponentially growing interest in NFTs riding on the back of this global trend and buoyed by the slew of NFT releases by prominent celebrities. Amongst the most notable ones are Bollywood superstars Amitabh Bachchan and Salman Khan, who are on the anvil of launching their collection, and cricketers like Dinesh Karthik who have already put up NFTs based on their match-winning moments. With a country that counts Gen-Z and Millennials as comprising the bulk of the crypto investor base of more than 100 million investors, these NFTs are bound to be lapped up with a strong fervour.

Sotheby's has sold $65 million of NFTs in 2021, while arch-rival Christie's has sold more than $100 million of the new type of crypto asset

Dileep Seinberg, Founder and CEO, Thinkchain, a Crypto, NFT, and Blockchain Consulting company says NFTs are primarily released by celebrities to either cash in on their legacy or by newcomers to earn a quick buck without having the fear of being accepted by the audience.

"There are some celebrities who have built around themselves a great life. They are looking to monetize on their legacy by launching their own NFTs. The others are fairly new to the industry and earlier they were dependent on some godfather or commercially driven studios and distribution network, where these artists barely received the worth of their efforts. With the advent of blockchain, it is possible to skip all the middle layers to reach an audience who can appreciate the work and reward buying their NFTs," he says.

Despite this bullish outlook though, the near-term uncertainty surrounding crypto assets may dampen investor sentiments considering the often contradictory commentary emanating from the Central authorities that govern all asset classes in the country. If there were to be a ban on private cryptocurrencies, as is being mulled by the RBI, it will impact the trading of NFTs and dim the otherwise bright prospects of this revolutionary asset class.

Mia Ekta, Founder, and lead developer, Sugarland says every time a government bans or threatens to regulate any sector, celebrities and influencers tend to sync with the public and bring people together to communicate to the government about the regulation not being acceptable.

"NFTs have proven to be lucrative - and now are becoming a revenue-generating resource for millions of artists who have already joined 'the NFT stream', not to mention the future potential the space holds," she says.

Aliasgar Merchant, Developer Relations Engineer at Tendermint says India has a rich cinema and artistic legacy that goes back more than a century and this creates an opportunity for NFTs to find a unique niche for themselves on a global level. Also, India being one of the fastest-growing economies in the world presents additional opportunities for NFTs.

Seinberg adds that India is one of the most favourite destinations for foreign investments and has a talent pool that is renowned globally. "What's most lucrative for foreign investors is the price difference at which Indian artists can produce original works. For instance, high end-VFX films like 'Koi Mil Gaya' are produced at a cost that is 3-4 times lesser than Hollywood. Such a huge price difference can lure foreign investors to invest money in NFTs made locally," he says.

When you think of NFT, art may be the first association that comes to mind. NFT technology has found its way into popular art and even the world of fine art.

What’s an NFT Good For?

Non-fungible tokens have many potential use cases. One of the most prominent applications for NFT crypto coins is blockchain gaming, particularly in immersive metaverse-like visual environments. NFTs are also gaining popularity in the world of fine art and as collectible investments.

NFTs in Gaming

Gamers like the idea of owning one-of-a-kind in-game weapons, vehicles, clothing, real estate, characters, and more: items that are theirs and only theirs. Over time, gamers form strong attachments to their in-game resources. NFTs are an excellent way of representing them.

Once you’ve created or purchased an NFT gaming resource, you could conceivably use it with multiple games, allowing you to move from one game to another with the same custom avatar or magic sword.

For example, the Decentraland gaming platform uses NFTs to represent unique player resources. Decentraland includes a bustling marketplace where players can sell and buy NFTs.

Some NFTs are earned through in-game achievements. Others are acquired through treasure boxes or purchased from NFT markets.

NFTs are good for players. They’re even better for their creators, who can look forward to receiving significant rewards if their NFTs prove popular to gamers.

Among the gaming world’s best known NFT moguls is the rapper Snoop Dogg, who invites fans to a pool party at a virtual version of his real-life mansion, which he has created within a gaming platform called The Sandbox. Fans can check out the rapper’s art collection, cars, and furnishings, and they can purchase event tickets and collectible NFTs within the game.

Revolutions in NFT Art

When you think of NFT, art may be the first association that comes to mind. NFT technology has found its way into popular art and even the world of fine art.

One of the first and most notorious examples of NFT art was a digital collage called Everydays – The First 5000 Days. The NFT was sold at auction at Christie’s, where it fetched nearly 60 million euros.

Since then, many fine-art auction houses have experimented with NFT sales, often auctioning partial ownership of artworks that remain in museums or galleries. In July 2021, a Swiss auction house named Artemundi teamed a bank specializing in digital funds to auction off 4,000 shares in a 1964 Picasso painting called Fillette au béret. The painting remains in a climate-controlled vault where it can’t be viewed by the public – including those who purchase NFTs and own a share of it. Bids for the NFTs started at more than 5,000 euros.

When a piece of art is sold or auctioned off as an NFT, the ownership may be unique and transferable. It can be resold at a higher price. But it usually does not include physical ownership of the artwork or even intellectual property rights such as copyright. Those aspects of ownership may be sold along with the NFT, but typically they are not.

Collectible NFTs

Among the most popular NFTs are collectibles. These are typically small jpeg files that are created as part of a collection – CryptoPunks and Bored Apes are examples.

The image files have minimal inherent value except to collectors. Because each image is unique, fans who are looking to complete a collection may pay thousands of euros for a simple NFT.

Some collectors find satisfaction in owning a popular NFT or a complete series. Others expect to take advantage of rising prices and sell their collections at some point.

Celebrity and Sports NFTs

On a number of platforms, sports teams and entertainers have created NFTs for fans. The fans support celebrities by purchasing the NFTs, and in return they get a closer relationship.

For example, holders of a football club’s NFTs might get to vote on which image of the club’s mascot will appear on the wall in the locker room or which song will be played in the stadium when the team takes the field.

Other benefits might include discount tickets, special seating at events, an opportunity to meet sports stars and celebrities, or discounts on exclusive branded merchandise.

NFTs as Investments

If you don’t get the physical artwork associated with an NFT, or if the NFT is merely an easily copied jpeg file, it is reasonable to wonder how it is that the NFT has value.

It is the unique nature of NFTs that leads to their value. Each NFT is a one-of-a-kind digital asset, and popular ones are traded at high prices in NFT marketplaces. Many NFTs include provisions for their original owners to receive a percentage of the transaction price whenever the NFTs are sold in the future. Suddenly, paying a few hundred euros for an NFT that may sell for thousands within a few months seems like a smart investment.

NFTs in marketplaces are traded like sports cards or collectible dolls. They have unique value primarily to other collectors. The value of a popular NFT can climb to thousands or even millions of pounds.

nft as investments

Non-fungible tokens, or NFTs, have sparked a lot of interest in the crypto markets all around the world. People are buying and selling NFTs in millions of dollars, making it a terrific opportunity for artists to sell their work.

Creating and Selling NFTs

NFTs are here to stay, as per TIME magazine, and a slew of well-known celebrities and brands have already jumped on board.

If you're a digital artist searching for a place to sell your work online, NFTs is a great place to start.

Analysts predict that by the end of 2021, the NFT market will have grown to more than $1.3 billion.

Many people believe that NFTs are the future of artwork collection and that more blockchains will follow suit.

Users must learn how to promote an NFT collection in order to profit from it, according to The Verge. Don't just put it up for sale and hope it sells. Make sure users tell their friends about their NFT collection.

However, be aware of scams in the NFT space, as there are quite a few of them.

© 2022 iTech Post All rights reserved. Do not reproduce without permission.

2.NFTs can be monetized: An important aspect of NFTs worthy of note is their ability to provide opportunities for artists to earn from their creativity. They are able to put their art on display in NFT marketplaces like Diagon and others.

All You Need To Know About NFTs

Diagon

A new talk has hit our streets, and it’s not going away soon! NFT happens to be the new talk of the town. Famous radio and TV stations, even influential people like Gary Vee and Mark Cuban, have made several mentions of it. Lindsay Lohan, a pop icon, could not hold her excitement, commending how NFTs actually give real owners rights over their artworks. She forecasted that cryptocurrency, NFTs, and blockchain in general, are the future of entertainment.

Although NFTs appear t o be profitable to many people, some others think it’s a bubble. Renowned figures like David Gerard and Charles Allsopp have been the major critics.

What are NFTs?

NFTs, non fungible tokens, can be anything, ranging from photos, videos, audio and different types of digital files. The distinguishing characteristic of all kinds of NFT is that they can be verified to be true on the blockchain. That is, over a decentralized ledger system, anyone can verify the true ownership of any artwork related to an NFT.

1. Unique nature: Non-fungible tokens have a distinct feature that serves as evidence to determine the true owner of any digital art which has dealt with piracy to a certain extent.

2.NFTs can be monetized: An important aspect of NFTs worthy of note is their ability to provide opportunities for artists to earn from their creativity. They are able to put their art on display in NFT marketplaces like Diagon and others.

3. A variety of values: Unlike other cryptocurrencies like Bitcoin and Ethereum that are fungible (easily exchanged with something of the same value), NFTs are different, because no two NFTs are equal.

4.NFTs can neither be split or broken into pieces.

How much can NFTs be sold for?

It was stated earlier that art owners can tokenize their work and put it up for sale.

Here are a few examples of the price at which certain NFTs have been sold in the past:

A meme made in 2011 of a flying pop-tart cat was sold for more than $500,000.

After some weeks, a musician called Grimes sold some of her artwork for more than $6m.

Also, the founder of Twitter, Jack Dorsey, advertised an NFT of the first tweet with the highest bid being $2.5m.

NFTs are generally expanding at a fast rate, and their importance in the crypto space can not be overlooked.

Want to know more about NFTs, Click here for more details on how you can take proper advantage of the NFTs space.

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How to Flip NFTs for Profit? Secret NFT Tools

Have a lot of unanswered questions about the intriguing world of NFTs? If so, buckle up. This video covers the basics of NFTs, the popular marketplaces, and cool tools that can help flip NFTs for profit.
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Jump to the part you’re interested in:
0:00 What’s an NFT and how does it work
2:08 OpenSea vs Rarible vs Solanart
4:55 NFT flipping tools
8:05 Best NFT proxy providers
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NFT flipping tools:

NFT proxy providers:

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What Are the Differences Between Inkjet Printers and Laser Printers?

There are a variety of differences in between laser and also inkjet printers. Both tools will allow the customer to publish info kept in a computer system to a file.

The Advantages of USB Microphones

For a lengthy time currently innovation has actually been advancing and this short article will certainly check out among the developments from the audio globe, the USB microphone. Think of just how less complex recording would lack whole lots of cords obtaining tangled behind your computer system well there is a remedy to this, a USB microphone. A USB microphone utilizes one cable television which plugs straight right into a USB port and also is the straightforward way to computer recording.

How To Share A Printer On A Network

Producing a common printer on a LAN enables all individuals on the network print from another location without the requirement to have a printer straight affixed to their PC or laptop. To begin you need to allow sharing for the printer that is affixed to the one of the computer’s. This is similar to the means to share data as well as folders.

Hurdles To Business Adoption Of The Tablet PC

The intro of the tablet PC in 2010 opened a floodgate of unexpected need by customers. Coming on the heels of the apple iphone, both Apple as well as software application manufacturers have profited from the extremely prominent iphone os.

How To Improve A Wireless Network

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Printed Circuit Board Manufacturing Process

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I will guide you through the steps and good practices to flip an NFT so that you can be confident that you also do the right steps when you it for the first time.

Advanced strategies of flipping NFTs for profit

Advanced strategies of flipping NFTs for profit

This effective video course will help you understand NFTs, and how to Buy and Sell your own NFTs without wasting unnecessary time and money (or rather Ether and cryptocurrency) through trial and error.

I’m going to guide you step by step and show you how easy it is to buy and sell NFTs for a profit.

Anybody can create an NFT, but there are some important steps, and you need to understand the technologies behind it, its features and constraints.

I will guide you through the steps and good practices to flip an NFT so that you can be confident that you also do the right steps when you it for the first time.

You don’t need any coding skills to create an NFT, but you need to follow some steps, have a wallet, buy some crypto for gas and sign the transaction.

This NFT Course will give you a clear understanding of this phenomenal new niche!

With all of its PROs and CONs, so you can get a realistic expectation of it. And don't get me wrong. The NFT market is a place where we can make a lot of money, but first, you need to know how it works and what you need to be careful of.

I will give you a realistic idea about the exciting new NFT world in this trading course, and I will be honest!

I won't tell you that you have to buy NFTs and join immediately, and I promise you that you can make quick profits.

This is an educational course that aims to teach you all the aspects of NFTs.

I will share all of my experience on how to look for valuable NFTs. I will give you tips on how to choose the artist and what you need to keep in mind if you want to sell NFTs on your own or if you want to become an NFT artist.

I will take you step-by-step through engaging videos, and you will see the beauty of the NFT pieces of art.

What you will learn in this NFT Course:

What precisely the NFTs are how they work

How to buy NFTs with a debit/credit card without owning crypto

Which are the most popular and trustworthy NFT platforms with all of their PROs and CONs

Different techniques on how to buy and sell NFTs

I am confident that you will like the NFT course and offer a 30-day Money Back Guarantee. So if you decide that it was not the right one for you, you can always take advantage of that option.

You can see much of Martino’s work in the video embedded above. His data visualization occurs in two parts. The first part, beginning at 1:48, demonstrates the growth of NFTs between 2017 and 2021. The spheres are NFT traders. Links between them are actual NFT trades. The larger the sphere, the more active the trader.

Science proves it: Most NFTs are worthless

But you’ve got to see this jaw-dropping visualization of NFT trading in 2021.

In March 2021, digital artist Beeple sold a work at Christie’s for $69 million . A year prior, his prints had never sold for more than $100 apiece. But this was no print. It was an NFT—aka, a nonfungible token.

What does that mean? It means that while anyone could copy a JPEG of Beeple’s work, only the buyer owned it, according to a digital paper trail. This distinction between reproduction and ownership made all the difference in valuing the work, as the artist became one of the world’s wealthiest creatives overnight.

But according to new research, Beeple’s success is an extreme outlier. A team of researchers out of the University of London, including Andrea Baronchelli, an associate professor in mathematics, and data scientist Matthieu Nadini, analyzed the sale of 4.7 million NFTs, exchanged by more than 500,000 buyers and sellers, representing nearly $1 billion in transactions. The general takeaway is that, while you might think nonfungible tokens are a skyrocketing business for collectors and creators, the vast majority of NFTs can’t buy you a meal at McDonald’s.

[Image: Mauro Martino]

Only 1% of NFTs sell for more than $1,500, and 75% sell for $15 or less. Even worse? “The majority of these pieces don’t even sell, so they don’t enter our analyses,” says Mauro Martino, head of IBM’s Visual AI Lab, who depicted the research as a dazzling series of graphics. “People just spend money to produce an NFT and that’s it. It would be hard to suggest for an art friend to play [in this space] and get rich in NFTs, because very few people can find profit in this market.”

It’s a topic Martino is intimately familiar with, given that he spent nearly a year visualizing the aforementioned research into a network of trades, or what you might consider a snapshot of the NFT market—a task he considers one of the most complicated of his career. With frames that contain 7 million network links, a single change could necessitate minutes of rendering time before Martino could see the results.

“I learn by doing, playing with nodes, and modifying the visual to see where to go,” Martino says. “But when you have to wait five to ten minutes for a frame? It’s hard work.”

You can see much of Martino’s work in the video embedded above. His data visualization occurs in two parts. The first part, beginning at 1:48, demonstrates the growth of NFTs between 2017 and 2021. The spheres are NFT traders. Links between them are actual NFT trades. The larger the sphere, the more active the trader.

What you see from 2017 to 2021 is basically a universe coming alive. At first, a relatively small conglomerate of traders—rendered in pink for trading cards in the CryptoKitties game—dominate the frame. But then nodes start appearing in every direction and color. White stars represent solo NFT projects. Blue represents items from the NFT-based online game Axie Infinity. The green trunk that slowly grows beneath the rest of the visualization is for Sorare collectible cards, from an NFT fantasy football game that basically exists in its own vacuum.

[Image: Mauro Martino]

Once this evolution is completed, the second stage of the visualization begins, in which Martino pans the camera around the NFTs in 2021, allowing you to take in its wild scope and visual splendor. What you’re looking at is literally the shape of the NFT market, structured by the trades of all sorts of different NFTs.

Now, Martino didn’t include every piece of data from the paper’s own starting data set. And that data set is only a slice of the $10 billion NFT market. Still, Martino demonstrates that NFT communities are logically structured rather than completely haphazard.

The pink CryptoKitties smear across the visualization because individuals can actually breed and trade their own new cats, driving the sort of peer-to-peer trading that NFT fans love, swapping cat cards among themselves. But Gods Unchained, a role-playing game in which every item is an NFT, appears like a black hole in the middle of the entire visualization. Why? It’s the key distributor of its NFTs. And it appears that people who play Gods Unchained are highly active in other NFT endeavors, so it branches out from a single position.

While Martino admits that NFTs aren’t likely to make you rich, working on the project did move him to respect the market.

“There are people who think it’ll just be here for a few years—a temporary trend. We really discovered the market is growing, and is starting to have some structure, rules, and behavior we can track. So we feel NFTs will stay with us for a long time,” he says. “[Collecting digital objects] is not an expected behavior from humanity. [But] it’s emerged, and we think it will stay growing.”

The fact is that Ethereum, the blockchain most often used by NFT marketplaces, and other cryptocurrencies, require too much power to run, and no amount of tree planting is going to undo that. Ethereum is promising an update to their system that would use almost no energy, but that’s still off in the future. Those who don’t want to compound global warming may want to stay out of the NFT game or wait until a better alternative emerges.

What Are NFTs? How to Monetize Your Photos Using Blockchain

This year has been a whirlwind of financial news that requires explanation. I’m sure most of us rewatched The Big Short during the Gamestop short squeeze fiasco a few months back, and then there was the cryptocurrency meme DogeCoin, which made some waves. That’s tired. What’s wired now are non-fungible tokens (NFTs).

Their seemingly-overnight meteoric rise in popularity has confounded many, including myself, begging the question: What are NFTs? Are they a cryptocurrency, a form of digital media, a speculative asset? The answers are no, kind of, and yes.

What Are NFTs?

NFTs are digital assets whose ownership is verified by thousands of computers around the world using blockchain technology. Turning a regular digital asset into an NFT is called “minting,” which “tokenizes” the digital asset on the blockchain. NFT’s are sold using cryptocurrency, so the buyer and seller need a cryptocurrency wallet to participate in the transaction.

The digital asset itself is no different than non-NFT media, but its verification on the blockchain gives owners of the NFT legitimacy. While some people may buy NFTs because they like the content, many are treating NFTs as speculative assets, which are purchased because they may increase in value and sold for profit. With many NFTs selling as one-offs or in limited quantities, the digital scarcity increases the value of an NFT over time.

Who Owns an NFT?

When an NFT is sold, and the transaction is verified on the blockchain, owners have digital proof of their purchase. That doesn’t mean they own the original asset or the copyright for that asset. They just own access to the NFT version of that thing, which is verified and cannot be changed unless sold. The blockchain verifies the transaction, which acts like a digital receipt that validates ownership of the NFT.

NFT ownership can be bought and sold, which is verified each time on the blockchain, but the original creator of the NFT is permanent. Typically, artists receive payment once when they sell their artwork, but selling an NFT is different. Each time an NFT exchanges hands, the original creator of the NFT receives a cut of the profit, which is a royalty payment. With the hope that NFTs appreciate in value over time, creators could make more on royalties than the initial price of the NFT.

Smartphone

Beeple’s “Everydays: The First 5000 Days” sold at auction for $69 million. The image of the artwork on the phone looks exactly the same as the real thing, except that the NFT version’s ownership and authenticity are verified through the blockchain. Image via mundissima.

With NFTs, creators—whether they be photographers, videographers, or illustrators—have more control over their works. Right now, NFTs are the hot new thing and, while the bubble may burst and cause NFTs to depreciate instead of appreciating in value, savvy creators can get in on the craze and line their crypto-wallets. While one of Beeple’s NFTs resold at auction for $69 million, an NFT can be any digital asset or digital representation of a thing. People have sold tweets, NBA highlights, crypto-cats, music, and the list keeps growing. If you create digital assets, there’s a chance somebody may want to buy them as NFTs.

The Hidden Cost

With all the excitement surrounding NFTs, not many have talked about what it takes to buy, sell, and mint NFTs. Depending on the platform, you could be charged a fee for either of those three, which pays for the computing power needed to verify purchases and mint NFTs. And, those fees can change from moment to moment, adding a level of volatility. Buyers can end up paying more for the gas fees—the name of transaction fees—than the NFT itself.

Sellers can pay gas fees when minting an NFT, and on OpenSea, sellers can be on the hook for gas fees when the NFT sells. So, it’s possible to pay for gas fees twice as a seller, and that doesn’t even take into account the fees associated with converting cryptocurrencies. Users have to convert cryptocurrencies since not all NFT marketplaces accept the same ones, which ends up being another fee as it requires the blockchain to verify the conversion.

All this ends up costing a lot of money, especially now as the increased number of users has caused gas prices to skyrocket. While sites like Rarible charge buyers 2.5% for purchasing an NFT, other marketplaces can charge more. The financial cost is obviously a burden for any creator looking to mint and sell NFTs. But more than that, NFTs and cryptocurrency are harming the environment, which is worth considering.

Are NFTs Bad for the Environment?

Cryptocurrency

Cryptocurrency mining farms like this use dozens of mining rigs to solve complex mathematical puzzles. Cryptocurrency is awarded to those who solve the puzzle, which requires lots of computational power and, therefore, electricity. Image via Mark Agnor.

Every time users mint, sell, or buy an NFT, thousands of computers, which form a decentralized blockchain, must verify that transaction. Verifying a transaction on the ledger requires a lot of computing power, which itself requires a lot of energy. That energy has to come from somewhere, and while crypto mining operations run on renewable energy, there are many more who get their energy from non-renewable energy sources, which pollute the environment.

On a broader note about the role technology plays on global warming, it’s important to mention the impact of data centers owned by companies like Google, Amazon, and Facebook. These data centers, which hold your Tweets, Facebook posts, and YouTube videos, require thousands of servers. By having accounts and storing data on these platforms, users are partly responsible for the greenhouse gases caused by energy consumptions from these data centers.

While selling NFTs is bad for the environment, so can being on the internet. From an environmental perspective, cryptocurrency mining farms and data centers look identical. NFT creators could purchase carbon offsets to stay carbon neutral, but what’s better than fixing something is not breaking it in the first place.

The fact is that Ethereum, the blockchain most often used by NFT marketplaces, and other cryptocurrencies, require too much power to run, and no amount of tree planting is going to undo that. Ethereum is promising an update to their system that would use almost no energy, but that’s still off in the future. Those who don’t want to compound global warming may want to stay out of the NFT game or wait until a better alternative emerges.

.JPG to NFT

Although it’s still too early to tell, NFTs may become a legitimate way for artists and creators to sell their work. With the ability to profit from the future sale of NFTs in perpetuity, NFTs can pay off big time in the long term. But, as great as they may be for creators, NFTs aren’t perfect.

The high cost of gas fees, the volatility of cryptocurrencies, and the effect NFTs have on the environment are valid reasons to stay away. It might be best to wait until the volatility and high fees die down, which might open up the doors for more creators to join, who may be put off by the prohibitive costs associated with minting and selling NFTs. Even then, the ethical repercussions of minting and selling NFTs may not sit well with those who care about the environment. Sure there’s money to be made on the platform, but if our environment is footing the bill, is it worth it?

I know how I feel about it, but I can’t answer that for you, as a creator. If you find value in selling NFTs of your work, that’s your decision. Though NFTs may stick around and become a way for us to trade digital collectibles like they’re a speculative asset, they could just as well fade into obscurity, which may cause NFTs, as a whole, to depreciate.

Shutterstock doesn’t charge exorbitant fees to upload your images or sell licenses of them, and neither of those things harms the environment. Steadily selling image licenses may be a more conservative approach, but it’s undoubtedly less of a hassle. Although, if you’re adamant about selling NFTs of your work, know what you’re getting into. Fortune may favor the bold, but so does tragedy.

NFTs vs. Stock Photography

For photographers or other creators who create stock content, selling NFTs could be an alternate revenue source. On sites like Rarible, Cargo, and OpenSea, illustrations and animations seem to be the most popular forms of NFTs. Photography has yet to make an impact as a viable NFT, but with the hype surrounding NFTs at the moment, it could happen.

Both stock photography and NFTs pay original creators for their content with each transaction, but there are differences. On Shutterstock, for example, photographers receive a commission each time a user purchases a license of an image. However, there’s no initial payment when uploading an image. Original creators of NFTs, on the other hand, get paid when selling the digital asset the first time, and they receive a percentage of the profit from each subsequent sale. Either one can be beneficial to photographers, but there are some things to consider.

Crypto Art

The term crypto art is interchangeable with NFT, or non-fungible tokens. Image via Justlight.

With NFTs you can earn a big payout from the onset. Instead of selling licenses for an image, you’re selling access to a blockchain-authenticated digital asset that the owner has digital proof of. You can sell one NFT of an image or as many as you like. Though, producing too many may dilute the overall price of each NFT.

Creators of NFTs can continue to make money every time it’s sold, so long as the royalty is built into the contract. However, the one problem with this is that the owner of the NFT may not sell for a long time, or ever. While the initial payment may be a nice chunk of Ethereum, creators may not see another “cryptocent” for a long time, or maybe ever. But, just as with Shutterstock, the more images, or in this case NFTs, you sell, the more money you’ll make.

Although both are ways to make money off photography, selling NFTs may require some technical know-how and an understanding of cryptocurrencies and blockchain technology. Now that you have an idea of what NFTs are, you can choose to start minting NFTs or wait to see if the trend sticks around. Just beware of the gas fees, the impact on the environment, and the volatility of cryptocurrencies, as a whole.

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Sodapoppin isn’t the only streamer who has been publicly skeptical of NFTs.

Sodapoppin slams people making NFTs & crypto “their personality”

sodapoppin

Sodapoppin was streaming Dead by Daylight on December 23, when he opened up about a trend on Twitter that has been bothering him.

While the game booted up, he vented to his audience: “Dude, I keep getting followed by f**king people who are verified on Twitter, and I’m like ‘Oh, who is it?,’ and I look at it, ‘NFT connoisseur, talk to me about Bitcoin!’ Like, that’s it?”

Soda explained he understands why people do such heavy promotion of NFTs and crypto through social media, adding: “I mean, I get it, it actually makes a lot of people a lot of money.”

  • Read More:Top 10 most expensive NFTs ever sold

However, this doesn’t mean he’s on board with the aggressive promotion of non-fungible tokens. He ended his thoughts with, “But, holy f**k, it’s become people’s personality at this point.”

The streamer released a video back on September 8, where he educated himself on the world of NFTs and described their pricing as “ridiculous.”

Sodapoppin isn’t the only streamer who has been publicly skeptical of NFTs.

On November 27, fellow Twitch star Asmongold slammed NFTs and said, “Am I the only one who finds people scrambling to spend thousands of dollars on a picture of a monkey ridiculous?”

While Soda respects people finding ways to make a profit using new technology, he made it clear he’d like to be left out of it for now.

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