At the beginning of 2021, the crypto market witnessed a spike in a month. Along with cryptocurrencies, other products in the market like NFTs (Non-Fungible Tokens) also marked the transaction volume of $3.4B on the Ethereum network on August 21.
What does Non-Fungible Token (NFT) mean?
Non-Fungible Token represents the digital form of real-life assets like music, art forms, videos, and in-game items. This powerful technology enables people to create digital scarcity. NFTs also adopted blockchain networks like cryptocurrencies, including Bitcoin. But, there is one difference. There could be many Bitcoins in circulation and only a single NFT per user. NFTs are not divisible. NFTs denote a certificate of authenticity with digital artwork. The usability of the NFT is strengthening rapidly, giving exclusive access to content, VIP perks, certain rights in the asset, etc. L
Noval forms of Non-Fungible Token (NFT):
1. Location-Based NFTs: New form of NFT is emerging that offers NFTs to the visitors of museums, galleries, and landmarks. These NFTs benefit the location and the attendees as they give exclusive benefits.
For example, at Bright Moments NFT Gallery, in Los Angeles, minting access to CryptoVenetian is awarded to visitors. The holders of these NFTs can sell them on the secondary market with the highest recorded price of 20ETH.
2. Restaurant NFTs: NFTs are for visual impression, but in early 2022 Gary Vaynerchuk is launching a restaurant NFT. The NFTs owners would be given access to the restaurant and a cocktail lounge with a private culinary experience. Celebrity Chef Marcus Samuelsson Harlem is also planning to launch the NFT for his favorite recipe for his famous fried chicken.
3. DNA NFT: Many genetic testing companies face allegations regarding their privacy policy worldwide. To ensure adherence to the privacy policy, the Founder of Nebula Genomics, Professor George Church, has published his DNA data on the blockchain.This data’s NFT will be on the Ethereum blockchain that will encode the digital location of Mr. Church’s complete genomic data, utilizing a decentralized server.
4. Tweet NFT: NFT of Jack Dorsey, founder of Twitter, sold the first tweet for $2.9m.A Malaysia-based businessman purchased it for around $100k per character. He donated his profits to the GiveDirectly Africa fund.
5. Gaming NFT: In the last few years, it has become common to purchase items for online games using real money. Axie Infinity game has launched a game on the “play to earn” model. Game players earn a smooth love potion (SLP) which holders can sell for 15 cents per SLP. In the Philippines, it is gaining popularity. Sometimes, people have quit their job to play the game full time, and vendors now accept SLP as currency.
6. Brand Perks NFTs: Taco Bell is the food joint that has issued NFTs. They have launched taco-themed NFTs on the NFT marketplace, Raible. 25 NFTs were sold in 30 minutes and are publicly traded. The highest bid for Taco Bell NFT is 1.5 ETH.
7. Real Estate Title NFTs: Physical real estate industry, along with virtual real estate, is flourishing via NFTs. This new trend encourages new options for property ownership – trustless property titles. Europe-based start-up, Propy, has connected an NFT with physical property. This system has allowed easy collateral and straightforward usage as each NFT holder has to access to ownership transferred paperwork. They have sold an apartment for $93k or 36ETH at the time of sale.
8. Virtual Reality NFT: Virtual reality games like Decentraland are issuing NFTs where players can possess the ownership of land parcels using digital real estate. Users have complete control over the applications and environments they create. The value of NFT is determined by the proximity of famous places, like plazas or roads. They sold each land parcel for about $6000. The NFT owners can buy items of clothing or names.
9. Sports NFTs: NBA Top Shot is a blockchain platform for sports collectibles where sports fans can collect NFTs of licensed video highlights. Top Shot has sold the most expensive NFT clip of a LeBron James at the highest price of $387k.
Final Thoughts: NFTs are changing the finance world. The evolution of the NFT market would be an exciting journey to witness. New kinds of NFTs are entering the market every month. In upcoming articles, we will dive into more patterns of NFTs. If you have queries, please comment on the box below. Team Blockchain Shiksha would be happy to help you.©
Thank You!
Pingback: What Is Fractional NFT? Competitive 5 NFT Platforms To Trade
Pingback: NFTs Vs Cryptocurrency: What's the difference -