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Crypto World. Non Fungible Token. What are NFT?

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One of the most expensive NFTs in history sold for approximately $69 million and the artwork is called Everydays: The First 5000 days by digital artist Mike Winkelmann, known as The Beeple. Everydays is a collage, from the beginning of his project when he published sketches.

Photo: Everyday The First 5000 days

To begin with, let's first discuss ¿what is a token?, to have a clearer idea we will make an analogy with fiat money. That is, you can change a $100 bill and exchange it for two $50 bills, or exchange it in another type of currency, for example in your traditional currency. Cryptocurrencies are the equivalent of fiat money but in the digital world. Now the tokens in real life, let's take an example, if you go to a casino there you exchange fiat money for tokens that each has a different color and value, it is not real money but it has its equivalent in real currency, those tokens are only useful in that casino and you can exchange them again for real money. Another example is Amazon cards, or cards to use in Google Play or digital stores, these coupons would be like tokens in the real world.

Photos: Casino, Google play, amazon

Non Fungible Tokens (NFT), are a type of cryptocurrency created on a smart contract platform created on the Ethereum network, also known as unique digital assets, which can be owned and traded, for example: a group of digital cards, there are several types and models, but there is only one with the same identity. It is recommended to invest money in these digital assets?.

First we will describe some concepts:

What is Fungible?: cryptocurrencies are fungible because they are the same and can replace each other, like fiat money.

Non-fungible tokens, they are unique in their kind, indivisible and irreplaceable, unique with their ID, it is a certified possession. They are created on the Ethereum chain, they are unalterable, no one can undo their ownership or create another one exactly the same because each one has its own ID validated by the blockchain.

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Applications and Benefits

One of the first applications that emerged was CryptoKitties game in 2017, it is a game based on Blockchain, they are collectible virtual cats, which can interact with each other and produce new kitty NFTs, you can also buy, sell or exchange them. The price of the cats is variable, depending on the rarity of the NFT, there are 56 different attributes that generate unlimited combinations, so its price is variable from $5,000 to $113,000.

Photo CryptoKitties

NFTs can also represent physical assets, such as real estate, i.e. we can tokenize a house or land, with a smart contract you could sell a physical property, which could be delivered with an NFT and everything would be recorded on the blockchain.

Another application could be a collectible video or a part of it, but you would have to prove your authorship, for example: you could create a NFT of some audio or video and sell it to the public, if this would reach popularity, it could be resold at high prices.

The works of art because they have so much value?, the painting of Salvator Mundi by Leonardo Da Vinci is the most expensive painting in the world, it was paid more than 450 million $, in the same auction a painting by the artist Cy Towmbly was sold for 50 million $, you will see I am not an art critic, but it seems to me that the second one is easier to realize. These works are unique and signed by very famous people. Technology arrives to this world with the NFT, it is a technological implementation on the concept of unique works, so the NFT can cost a lot of money.

Photos: Salvator Mundi, Cy Towmbly

Artists and creators have benefited, protecting copyrights, we have platforms where you can create your art and make your NFT tokens, for example OpenSea, you can upload your digital artwork, infographics, discs, when you sell that digital asset you pass the ownership of it. Another platform is Rarible, you can also create and upload your digital artwork for sale.

Also in collectors marketplaces like Collect SuperRare Digital Artworks, those NFT can be configured to have passive income, every time that artwork is sold or changes owners. Also new services are going to come out like for FANs, you could sell your followers some signed asset, like an autographed photo, that would be unique and original, you could have it with a NFT.

Many games have a real value within our economy, thanks to the NFT we can earn those tokens and exchange them for any cryptocurrency and then pass it to fiat money. There are many platforms that offer games to earn NFT, among them we can name: Axie Infinity, Plant Vs Undead, Block Farm Club, Mir4, Wanaka Farm, Cryptomine, Battle Hero, in short there is a huge amount of games where we can invest by buying NFT and earn the currency of the game.

Photos: Axie Infinity, PlantVsUndead, Block Farm Club

Is it a good investment? It should meet these 3 factors:

Application, Popularity and Exclusivity.

Applicability: it helps to generate more money.

Popularity: it should reach many people and be popular.

Exclusivity: there can be exclusive NFTs, so they can be very expensive.

I am not a financial advisor, I am earning a certain amount of cryptocurrencies thanks to the NFT games, so far it is not much time that I invest, since the games are not so demanding for the moment and I have several NFT, which I can sell, I have recovered my investment and continue with the compound interest. If you want to enter these games, I recommend you to investigate before making any investment.

These articles may also be of interest to you:

Blockchain Generalities

Bitcoin. What is it and how does it work?

ETHEREUM. What is it?

LITECOIN. What is it?

BITCOIN CASH. What is it?

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Thursday, October 21, 2021

References:

Photo Portada: https://es.beincrypto.com/nft-estan-disponibles-para-trading-uniswap-uni/

https://pablomazaabogado.es/innovacion-tic/que-son-los-cryptokitties-y-como-usan-el-token-nft/

https://www.revistadearte.com/2008/02/12/cy-twombly-el-arte-de-los-siglos-xx-y-xxi/

https://sumarium.info/2021/08/24/reserve-incorpora-los-tokens-de-axie-infinity/

https://rubiknews.tech/newstech/node/80

https://webmediums.com/criptomonedas/block-farm-club-una-copia-de-plants-vs-undead-tiene-futuro-208v360l74sr

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Comments

I wanted to start the game plants vs undead few days ago before they're launched the pvp. Good thing that I have procrastinated because today I have seen a lot of complaints from their twitter page about glitches- missing plants, nft's , etc. oh my!

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So far I have not had any problems with PVU, at this moment I changed some LE to PVU without any problem and it continues to produce. (LE token of the game), I recover my investment, I make a little profit and reinvest what I produce in the game.

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