In the year 2021, the term NFT was used often throughout the huge Internet. Young people who are not familiar with this word are uncommon.
Facebook articles with shared headlines feature computerized paintings of monkeys selling for millions of dollars — these are wild times, for sure!
Thus, it is comprehensible that NFTs are frequently referenced in muddled sentences or in claims that decry and question their speculative nature. The headlines are frequently sensationalized, as is the case with news in general, and this is true in the social media age more so than ever. Flashy and perhaps deceptive articles are frequently more successful in drawing readers’ attention than in-depth explanations of NFT technology.
In all honesty, the NFT ecosystem is something that has never been seen before. It is simple to dispel the widespread myths and misunderstandings about this industry by comprehending the particulars and potential of NFTs.
A Brief History of NFTs
On May 3, 2014, Kevin McCoy created the first-ever NFT, called Quantum, as part of a presentation on putting digital art on the blockchain. Intriguingly, he called it “monetised graphics,” and it lived up to its moniker, selling for USD $1.472M at a Sotheby’s auction in June 2021.
The following was Cryptopunks, which debuted in June 2017 on the Ethereum network. It was a collection of 10,000 distinctive digital characters that was essentially free to mint; all minters had to pay for was gas. They have come far from something that was virtually free. The cheapest punk available for purchase right now costs 48.95 ETH (about $96,284 USD).
Additionally, cryptopunks frequently appear in the catalogues of auction houses like Sotheby’s and Christie’s. In addition, the most expensive punk sale was just last week on February 12th, 2022, when an unique Cryptopunk sold for 8,000 ETH (about USD $15.752 million at today’s exchange rates).
The NFT craze that has defied social standards of art collection has been largely attributed to Cryptopunks, along with other NFTs like Beeple’s Everydays: the First 5000 Days (Which was Sold for 69.3M $) and later Bored Ape Yacht Club (BAYC).
CryptoKitties is another initiative to raise awareness of NFTs. They debuted in 2017, and their fame exploded. The news was humming with tales about the enormous profits made by players and traders, which were dubbed “Digital Beanie Babies.”
All of this prepared the NFT ecosystem for its demand and project explosion between 2018 and 2021, notably on the Ethereum chain. Numerous projects that were launching every day helped OpenSea grow. Since then, prominent initiatives with enormous market valuations like BAYC, Azuki, and CloneX have called Ethereum home.
The Solana environment, which is home to STEPN, started to flourish in 2021. Similar to STEPN, the blockchain is ideal for many cryptocurrency programs due to its quick transaction times and affordable gas costs.
What exactly is an NFT?
We can clearly understand what the acronym NFT (Non-Fungible Token) stands for by looking at the words that make up the abbreviation. Something that is fungible can be readily exchanged and, in the end, cannot be distinguished from a different component. Consider a stack of ten $100 notes as an example. Any one of these ten dollars can be used to pay $100 at a restaurant, regardless of which one is selected.
The same is true for trading cards that were printed in exactly 1,000 copies. These things can be combined. On the other hand, non-fungible goods are distinctive, cannot be duplicated, and can be distinguished from one another. For instance, there is only ever going to be one authentic Mona Lisa. Nobody in their right mind would exchange the genuine copy for a duplicate, even if they existed. The same holds true for assets like houses and automobiles, as well as 1/1 trade cards. So how do NFTs contribute to this theory?
The token may include metadata, such as photos or particular characteristics. Because each STEPN shoe has a different token address and a different code, even though they may have the same appearance and stats, they are individual assets.
When you purchase an NFT, you are also purchasing the JPEG’s source code. However, it’s not uncommon to find much more than simply a nice picture. There are countless applications for NFTs. This is also referred to as utility and is essentially how NFTs are used.
NFT use cases
NFTs can be used in web3 apps and games as crypto-assets, just like STEPN. It’s interesting to note that games that allow NFTs can exchange and use them thanks to blockchain technology. For instance, certain NFTs are made to be cross-game assets that may be utilized across different games. The game designers must choose how to incorporate these NFTs, which have various attributes including power and velocity.
Additionally, NFT mints by IT firms can serve as seed funding rounds. By emitting tokens from the NFT in this fashion, early investors can be rewarded. Token demand is increased because they can be used to pay for the business’s services or goods.
Metaverses are also included in utility projects, and your NFT may take the form of playable avatars or virtual real estate. By identifying use cases for their tokens, like as the marketplace integration to buy NFTs, projects provide their tokens more functionality. Shredded. Tokenized discounted payments are now accepted on some e-commerce sites.
NFTs have enormous promise for makers and creatives as well. A whole new world of 1/1 art is blooming, and many artists are here cultivating devoted fan bases. The blockchain is being used by musicians to store their music, such as in Daramola’s Supply Chain initiative. NFTs give content producers the freedom to distribute their work directly to consumers without paying extortionate commissions.
NFTs’ social component is also grossly underappreciated. For entry into Decentralized Autonomous Organizations (DAOs), a specific NFT may be needed. They could be places where people network to establish themselves in the industry or exchange useful new information. Holders at higher levels have the opportunity to mingle with powerful individuals. Owners of the Bored Ape Yacht Club can boast with pride about living in the same neighborhood as Paris Hilton and Justin Bieber.
It is obvious that there are many real-world applications for NFTs that go much beyond simple JPEGs. New utility forms will continue to be constantly introduced as long as people innovate.
We must first admit that there may be a bubble in NFTs that is just waiting to explode. The market is euphoric, and empty-vessel projects are readily available. A lot of speculative money is invested in this in the hopes of becoming the next “crypto millionaire,” but when unforeseen circumstances occur and optimism gives way to dread, volatility results. We frequently hear sage traders suggest investing in initiatives that actually provide value to the real world and rely less on volatile market sentiment to succeed.
The second argument is that there are projects like this—projects with real value—out there. NFTs can be roughly categorized as either utility-based projects, high-level collectibles, or both. They all offer value in two distinct ways.
With their NFTs, collectibles like Okay Bears and the Bored Ape Yacht Club from their earlier years have little practical use. Nevertheless, they hold a dominant position at the top of the ETH and SOL NFT ecosystem, commanding a huge volume and valuation. Projects with a strong focus on branding and culture are frequently attributed with being the ones that break through to the general public and develop a viral brand recognition through billboard advertisements in crowded places.
On the other hand, the usefulness offered by NFT technology represents a revolution in technology. In the future, it’s possible that items like identity and travel documents, as well as property deeds, will turn into NFTs. Many contemporary issues are resolved by instantaneous updates and unforgeable, tamper-proof documents.
In essence, NFTs represent the next frontier of human advancement and open a completely new universe to us. The technology is already available; our job is to innovate and expand the boundaries of what is practical.
NFTs are a potentially ground-breaking innovation, and we have only begun to explore their potential benefits for human civilization as a whole. The widespread misconception around it serves as a significant impediment to popular adoption. Thus, it is the obligation of crypto-natives to demonstrate to the public the full potential of NFTs.
Being in a position where Web3 newcomers make up a sizable portion of the playing population, STEPN is aware of this. The team wants to encourage as many people as possible to join in and take their first step into Web3 by providing a quick and easy onboarding procedure.
Disclaimer: The opinion expressed here is not investment advice – it is provided for informational purposes only. It does not necessarily reflect the opinion of EGG Finance. Every investment and all trading involves risk, so you should always perform your own research prior to making decisions. We do not recommend investing money you cannot afford to lose.