What is an NFT?
Have you seen a herd of googly-eyed cartoon cats? Perhaps, a fantastic video of a high-flying Lebron dunk may have caught your attention. Did you know that all of these things have one thing in common? They have recently been turned into NFTs, or non-fungible tokens, a new and unique method for digitally purchasing and selling art, music, and other media.
NFT simply stands for non-fungible tokens. We can define an NFT as a digital artifact, which reflects real-world assets like art and music. People buy and sell them digitally with cryptocurrency.
Did you know that the crucial information recorded in a standard NFT essentially lets an art creator, such as an artist, digitally “autograph” their art? This is why even if a piece of music or an image has been shared hundreds or thousands of times if you purchase the NFT, you are purchasing something unique. It is worth noting that each token is carefully recorded in an immutable ledger, often using the same blockchain development technologies that are behind most cryptocurrencies.
You may know that most headlines around NFTs tend to focus on the sale of various digital artworks, viral media or memes, like the famous ‘Charlie Bit My Finger’ video on YouTube. However, that is only a limited overview of this format. Some other NFT examples include domain names, tickets to events, or in a few cases, even redeemable physical items.
According to NonFungible.com and L’Atelier BNP Paribas, NFTs were a whopping $250 million market in 2020, with significant investments up almost 300% year-over-year. Did you know that the bulk of NFTs are often stored on the Ethereum network?
Note that certain NFTs, which tend to store additional information allowing them to function a bit differently, are also well supported by the blockchain.
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Why Would Anyone Buy an NFT?
Increase in Value
You should know that this is one of the prime reasons for buying NFTs. According to investor trends, the main reason most NFTs increase in value is simply because many NFTs are used in various blockchain games, and these games have become more popular.
Keep in mind that a great example of this is CryptoKitties. It is a blockchain game that allows players to create their unique virtual cats.
You should know that these cats are tokenized as NFTs; also, some of the NFT cats grow considerably in value as the video game becomes more popular.
Ownership of Something Unique
As NFTs are unique in nature, there is something special about buying and owning a piece of art or music that’s like no other. So, it is safe to assume that you’ll be among the few who own these collectibles. This is also linked to profitability. That can make your investment lucrative.
Technically, all NFTs are unique collectibles, and people consider them valuable. They are unique and distinct, and only one of each exists. Upon purchasing them, you can easily hold on to them. In most cases, their value will increase with time.
However, keep in mind that the most significant risk of buying NFTs is the volatile nature of this new market. And that is not all; people are worried and concerned about the high level of energy consumption involved.
Whether buying fine art or a CryptoKitty or 1982 Mouton Rothschild, note that investing in alternative markets often carries greater risk than the money you invest into more mainstream places, like equities.
Also, before you can purchase an NFT, you’ll have to set up a cryptocurrency wallet in order to pay for the purchase. Some notable and reliable NFT marketplaces include the following:
What is a music NFT?
Keep in mind that an NFT is like a digital authenticity certificate. And digital artwork, such as music, by its nature, can be easily copied and distributed instantly throughout the world.
For musicians, music NFTs present a great opportunity to interact with some of their biggest fans while separating themselves from standard distribution models.
Note that purchasing music NFTs gives customers proof of ownership for the files they are collecting, no matter how many digital copies are there. Did you know that royalties from various music streaming services tend to pale in comparison to the impressive numbers musicians like Grimes and Kings of Leon have pulled from selling NFTs?
Additionally, NFTs offer the biggest fans many special perks apart from authentic ownership claims. And like art, music or songs made with NFTs can be duplicated and reproduced but without the authenticity that blockchain provides.
You may know that on Feb 28, Grimes auctioned off about $5.8 million worth of various digital art pieces within just 20 minutes. To be more specific, she sold NFTs. It is worth noting that the same weekend as Grimes’ significant sale, a popular electronic musician 3LAU sold about $11.6 million in NFTs.
Similarly, Latin-trap star Ozuna also sold out a batch of valuable NFTs for another $800,000. Did you know that now Kings of Leon are also getting in on the action?
Where to Buy NFTs
Are you looking to dip your toes in the new waters of NFTs? If so, you can quickly get started on various platforms, such as OpenSea or NiftyGateway. These websites generally sell digital artwork NFTs, whereas music NFTs are a little harder to come by.
While sales of music NFT have been increasing, that is all set to change radically over the next couple of years. Note that NFTs are created via a process known as minting, where digital files are carefully copied and stored on the blockchain (often the Ethereum network). After minting and purchase by the collector, it is possible to place the NFT on various different marketplaces and networks for show or sale. Keep in mind that NFT’s now allow artists to sell directly and quickly to their fans without the need for an intermediary or a distribution channel.
One platform that you must know when it comes to buying NFTs is Opulous. This is because, with Opulous, artists can easily embed a specific real-world share of their future or potential music royalties in Opulous NFTs. This is convenient as it allows fans to earn money from the art they prefer and love just by owning these NFTs.
10 Types of NFT’s
Following are the most common types of NFTs that you should consider for your next NFT investment.
Online collectibles are the fastest-growing NFTs that have surfaced on the internet with the development of Cryptokitties. These Cryptokitties were one of the first investments people made towards NFTs. They became increasingly popular back in 2017 when they started affecting the Ethereum network.
These kitties are digitally designed cats with particular traits, which make them highly popular compared to others. This made these designed kittens an ideal addition to the NFT option.
The NFT artwork includes programmable designs, art, and innovative pieces. There are plenty of limited edition and classic art pieces, which we could soon see as programmable NFTs.
Additions like the oracle and smart contracts can help the creators present these artworks on blockchain websites. This could also lead to the amalgamation of IoT and blockchain with interesting applications like token and sticker scanning.
This will allow art enthusiasts to find an artworks history, a list of previous owners, as well as the prices they were sold for in the past.
Concerts are globally accepted events where thousands of people invest in tickets for hundreds and thousands of dollars. However, the inclusion of event tickets as an NFT on the blockchain network could have extensive applications.
For instance, a buyer could purchase a limited edition event ticket as an NFT, store it on the blockchain network (or an e-wallet), and access it.
There are several companies like Ticketpark that are offering these NFT event tickets to buyers globally. However, the terms of purchase vary for each ticket and provider.
These event tickets are also available through mobile devices. There are plenty of artists that are offering event tickets through their social media account.
Music and Media
The music and media industry has seen some serious developments ever since the infusion of NFTs into the market. This has helped the NFT and blockchain industry develop a new kind of NFT. Interestingly, it is possible to turn media and music files into NFTs and use them as exclusive property.
Buyers can look forward to two prominent platforms like Rarible and Mintbase to purchase these NFT music and media files. Moreover, the true applications of these NFT platforms are virtually limitless.
It is something in favor of both the artist and the listeners. The artists get to reach out to their audience directly, whereas, the listeners get premium quality music. The exclusive music feel is the main reason why people are now investing in these NFTs.
NFT game material such as in-game purchases are used as tokens. These NFTs can provide a record for these in-game items, which drives growth in the game-based economies. These tokens not only are valuable but also grant players tons of benefits during their gaming sessions.
Buyers can sell these gaming NFTs to other users for relatively higher prices. Similarly, game companies can earn royalties over these gaming NFT purchases/sales.
Virtual items include a wide array of materials that you can deal with online. While these virtual items first started as gaming essentials and artworks, they have now branched into more sophisticated approaches.
For instance, many faith-oriented developers are using NFT sites with VR technology to create real-life environments of religious sites. This allows NFT owners to visit these places without leaving their physical location. However, these sites still need a lot of time for proper development and large-scale applications.
There are plenty of real-life valuable elements that you can now sell as an NFT. For example, real estate, valuables, antiques, and several other real-life items can be sold on the internet as an NFT. These real-world assets are easier to sell for the right price.
These NFTs primarily act as a purchase or sale deed that makes the real world asset someone’s property on the internet. Some people are also comparing these kinds of NFTs to online auctions, where the highest bidders gain ownership of valuable assets.
Identity confirmation and access options are some of the biggest concerns for online NFT dealers. This is primarily because there are several users who fake their identities for illegal activities.
Fortunately, blockchain and NFT developments now allow users to store their identity information without the risk of losing them. This is primarily because blockchain technology is highly secure and incorruptible.
Users can utilize the technology for identity certifications, quite similar to event ticket NFTs. You can mint certificates, licenses, and other identifying documents on the blockchain using the identity NFT method.
Memes are one of the most popular trends in the world of social media. Almost every social media platform has its set of memes ready for social, political, economic, and tons of other sectors of life. The inclusion of memes as an NFT also contributes to the demand for memes.
This is a great step for content creators, as people are indulging in creating unique meme templates, texts, and incorporating them with trending news primarily for fun.
Ethereum Domain Name Services or unstoppable domain names are another important type of NFT that you should know about. These ENS can help users combine complex personal information in secure, non-accessible forms.
There are plenty of domain names being sold for thousands of dollars. For example, the domain ‘win. Crypto’ topped the domain sale record at $100,000. Most experts believe that several other domains names may also peak soon.
Music NFT Sales
Here are several music NFT files for sale on OpenSea.io, recorded and produced by our very own founder Angelo Frisina.
Blind is a groovy and harmonious tune that brings a positive feeling to listeners with sharp, quick, and raspy vocals. The tune is catchy and upbeat and will get you out of a dark or depressing mood with its uplifting rhythm.
It is the perfect song to drop into your party playlist as it is uplifting.
Burning Fire evokes various emotions associated with fire, such as passion, love, and revenge. The high tempo pop-rock tune also features fabulous guitar work punctuated by unique and frantic drumming. The tune combines elements of pop-rock and electronic music. The song has a nice rhythm, and it is an instant mood maker.
Moon Dancer is an upbeat song that will have you smiling and dancing no matter when it gets airplay. The tune starts unconventionally and features crystalline synths, a groovy and throbbing rhythm section, and floating above them all, the icy-cool vocals make this tune unforgettable.
Rock Dogs is a catchy and positive tune that combines various instruments with seamless precision and evokes various emotions, such as joy, dreaminess, and adrenalin. The song takes you on a hypnotic journey that you will love. The tune is both groovy and dark.
It is a joyful and colorful slab of cosmic disco, clearly showing that upbeat does not always have to mean cheesy.