[Series] NFT 101 with Pikasso
In the previous article, we discussed “blue-chip” NFT, which are the most reliable and trustworthy NFT investments given the short market history. Just like any investment, understanding the market psychology and history is a great way to create solid future returns.
🔥 But is the NFT market worth your time and money?
🚩 Why Are People Investing in NFTs
As the world becomes more and more digital, the line between our virtual and actual self becomes blurred. Most people spend so much time in the virtual world, either for work, play, or socializing, that our digital persona can be something very important to us. NFT allows for ownership of digital assets, creating a system of ownership and tradeability that gives value to digital items.
When you post something to a social network, ultimately it becomes property of that website. Similarly if you buy a premium cosmetic skin in your favorite video game, you possess it in your collection, but often cannot trade or transact it for any return value. You might drive incredibly large amounts of traffic to Tik Tok through a video you make, and get paid a small royalty for the use of it, but ultimately the parent company is the one who profits the most off transactions like this. NFT create immutable digital records of ownership that allows owners to take control of their digital assets, trade and profit from them. In addition, since the digital information stored on each unique NFT can be anything, it can also represent tangible items, making them a great way to prove ownership and authenticity for products whose value is dependent on authenticity, like high-end purses, industrial parts or trading cards.
💥 What Is the Difference Between Cryptocurrency and an NFT?
NFT and crypto are often lumped together as one and the same, but nothing could be farther from the truth. Both use blockchain technology to create value, but do so in different ways. Crypto are fungible items meant to be used like currency is. You can go to any restaurant and buy a dinner, and when the bill for $20 comes, you can use ANY $20 bill in your possession to pay for that dinner. The restaurant doesn’t care which specific bill you use, because currency is fungible, or interchangeable. Crypto then utilizes blockchain technology to control the supply, verify transactions, and bypass the higher fees of centralized bank options.
NFT are unique, one of a kind tokens that cannot be exchanged for any other token on that blockchain. Even limited items can be interchangeable. Honda only makes a certain amount of cars each year, but when you pick the model that you want, you’re certain that it is made in the exact same way as every other car of that model was made. NFT are for unique items. You can buy a print of the Mona Lisa, but there is only one, and that is what gives it value as an important piece of art history. NFT takes digital ownership to the next level.
NFT utilize the blockchain to create immutable records that verify specific information about a digital or physical item. This means that anyone transacting in the NFT market can be sure of the item’s scarcity, authenticity and sale history. Even if the item was a physical piece of art, minting the sales record to the blockchain would prove you were the last person to buy it, and make selling that physical item more verifiable and authentic. If you bought the Mona Lisa, you’d probably want an accompanying NFT to mark the transaction!
🎊 Conclusion
Buying and owning digital assets is still a confusing subject for most people. Meta’s attempt to normalize the metaverse has been met with apprehension for example. But the truth remains, the way we interact with the world is becoming increasingly digital, and people want to be sure the money they spend gives them actual ownership. Meta’s Metaverse is just a small slice of the myriad of virtual worlds and digital realities that are being created right now.
NFT should be seen as an important step in the tech revolution, allowing you to take ownership of your digital assets and create real world profits for you, the buyer, instead of the company who produces it. Just imagine you start playing a little known multiplayer game that goes viral. In its later iterations it has a huge player base, but you were there since day 1, and have many rare digital items only available to early players. Wouldn’t you like to have ownership over these items, to use your hard work and dedication in a way that profits the user the most? That is the future of NFT.
About Pikasso
Pikasso is a firebase infrastructure for NFT apps and games, creating an easier way for projects to create NFT, all on low-cost layer-2 ecosystems. Pikasso saves users the time needed by using a no-code platform to create NFT, with an improved UX/UI, and marketplace generator for each NFT project, all while bridging the gap between web2 and web3 content.
