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Everyone is talking about NFT. What is it and how to make money on it?
Material posted: Publication date: 01-01-2022
The world's first SMS was sold at auction as a work of art in December of this year.

The mobile operator Vodafone has posted a screenshot of the message Merry Christmas ("Merry Christmas"). It was sold in France at an auction in the Ethereum cryptocurrency for €132,680.

The reality of 2021 is that a set of pixels can be sold at auction as a painting by a great artist. This is called NFT.

The outgoing year is the peak of interest in the topic. NFT is the main word of the year, according to the Collins Dictionary. First, in March, crypto artist Beeple sold NFT for a record $69 million at Christie's auction at that time. In the end, after the recession in the middle, it continued.

Twitter founder Jack Dorsey sold a screenshot of his first tweet on the platform in the form of an NFT for $2.9 million, followed by Elon Musk and other celebrities. One of the cases is the same SMS from Vodafone. Let's analyze what the pictures on the blockchain are.

What is NFT?

NFT (English Non-fungible token, non—interchangeable token) is a certificate of ownership of a unique digital asset. It can be a photo, screenshot, drawing, video or GIF. They are placed on the blockchain, they are bought and sold like works of art at auction.

The peculiarity of NFT is that they are not interchangeable. If you exchange some bitcoin coins for others, their value will not change. It doesn't work that way with NFT — there is no general exchange rate of this cryptocurrency, each drawing has its own value, and visually they can be completely similar.

For example, the artist Josie has two identical drawings, their cost is different. And this is not the only example. In his collection there are many visually identical NFT tokens with different values.

According to one theory, the predecessors of NFT were colored bitcoins. Their functionality was similar to that of NFT. The basic principle of their work was described by the founder of the Ethereum blockchain platform Vitalik Buterin: "The question of legitimacy is which NFTs people find attractive to buy and which are not. If everyone agrees that one NFT is interesting and the other is inefficient, people will prefer to buy the first one because it will have a higher value."

How is NFT applied?

Now NFT is a way to monetize your popularity and even trolling. For example, comedian Idrak Mirzalizade was deported from Russia this year for a scandalous joke. In response, he put up for sale his cancelled residence permit in Russia in the form of a non-interchangeable token.

"You can offer any amount, even $50. If this is the maximum amount that will be offered, I will sell for $50. And I promise that the price for this NFT, for this residence permit will increase by the time I return to Russia. And I know for sure that I will return, even after 100 centuries," says the comedian. The key is that the higher the interest in the topic to which the NFT relates, the higher the value of the token.

A more popular way to use NFT is to monetize popularity. "If NFT is seen as a casino that brings profit to already rich celebrities, the result will be less impressive," Ethereum founder Vitalik Buterin criticized tokens. And yet, this is the main way to raise the cost of NFT.

In 2013, the meme "Puzzled Chloe" appeared. In 2021, the girl depicted on it decided to sell this photo in the form of an NFT — the starting price was five Ethereum, which is about 1.1 million rubles. The trend was followed by Elon Musk — the founder of Tesla expressed his intention to sell his tweet, to which a track dedicated to NFT is attached.

Top 10 most Expensive NFT Tokens and their prices:

The Merge — $91.8 million
Everydays: the First 5000 Days — $69.3 million
HUMAN ONE — $28,985
CryptoPunk #7523 — $11.75 million
CryptoPunk #3100 — $7.67 million
CryptoPunk #7804 — $7.6 million
Crossroad — $6.6 million
A Coin for the Ferryman — $6.034 million
Ocean Front — $6 million
CryptoPunk #5217 — $5.59 million

How to buy or sell NFT?

NFT tokens are sold and bought on trading platforms. These are platforms specially created for the purchase and sale of non-interchangeable tokens. They are stored, displayed, sold and in some cases even created here.

Top 6 platforms:

opensea.io.
Rarible
Nifty Gateway
SuperRare
NBA Top Shot
Foundation

More about each:

OpenSeaThe largest NFT marketplace.

Its peculiarity is the variety of offers, which pushes the rest of the trading platforms into the background.

Terms of placement: to publish a token, you must pay a commission. It depends on many factors: the demand for them, the time of day, and so on. It is usually $70-100.

RaribleA Russian platform that has gained worldwide popularity.

Its peculiarity is the opportunity for authors to receive remuneration for each resale of their work.

Terms of placement: commission of $30-100 for each publication.

NiftyGatewayGemini Exchange platform.

It has a user-friendly interface and an impeccable reputation.

Accommodation conditions: Accommodation is free of charge. Nifty Gateway takes 15% commission from the transaction. When reselling NFT, the author is charged 10% of the transaction.

SuperRareA platform that requires confirmation of the authorship of each NFT.

To do this, artists develop a specialized certificate.

Terms of placement: placement is free, at the first sale SuperRare takes 15% of the transaction.

NBA Top ShotNFT platform with the support of the American Basketball League.

The concept of the site is to issue and sell digital sports collectible cards.

Terms of placement: 5% commission for each sale.

FoundationThe platform is considered more advanced in terms of design and functionality.

The peculiarity of the site is that in order to get there, you need to get an invitation from some author.

Terms of placement: the publication is free, 15% from the sale of the token, with each resale the author receives 10% royalties.

How to create an NFT?

Let's look at how to do this using the example of the OpenSea platform.

What you will need to create an NFT token:
Website opensea.io
A crypto wallet (Ethereum, Meta Mask or other) that will be linked to the profile
The content you want to upload as an NFT
How to do it:
Opening the website opensea.io
Choose: Create/My collections
To add a token, you need to create a collection. We add its logo, name and description.
When the collection is created, you can add the tokens themselves to it. Select "Add items", and then "Add new item".
Done. We upload the token to the website and put it up for auction.
The same steps are described on a special OpenSea page. Every platform has instructions. A video that clearly shows the process of creating an NFT on this site.

NFT Prospects

In 2021, interest in NFT will remain at least at the proper level. Since May of this year, there has been a decline in interest in these tokens — at that time, their sales fell from a peak of $176 million on May 9 to just $8.7 million on June 15. Nevertheless, interest in the topic remained at such a high level that NFT became the word of the year.

At a minimum, artists and platforms are not going to slow down. In March of this year, SuperRare raised $9 million from investors. The funds are intended for further development and restart in 2022.

Next year, many new platforms and token monetization models will appear that will allow authors to control their intellectual property, says Mango Dogwood, an expert at Be In Crypto. There will also be new reward models that will become the basis of their success.

Perhaps we are on the verge of revising the copyright paradigm. NFTs are interesting to the music industry. Dogwood says that the authors are interested in this direction. The problem of musicians is that recording studios and streaming services receive the main profit from their work, NFT can change the balance of power in favor of the authors.

It seems that the leap in development in 2021 is just the beginning.


A source: Everyone is talking about NFT. What is it and how to make money on it? (iguides.ru) 

Tags: assessment , art


Comments:

Jevick (26-04-2022 17:04:46)

NFT- это специальный блокчейн-актив, который используется для связи с другим цифровым активом. Каждый NFT-токен уникален. Незаменяемые токены используются в разных отраслях, но особенно в сфере игр и коллекционирования. Крупнейшей децентрализованной платформой для торговли, создания NFT токенами является Opensea.io. NFT невозможно подделать, авторские права сохраняются навечно. Про NFT-токены можно ознакомиться в этой статье https://profinvestment.com/nft-token/, какие особенности, преимущества и недостатки в этих токенов.



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