A Thorough Explanation on Making Money with NFT’s
Currency is the lifeblood of the economy. Without it, trade and business would be impractical, to say nothing of an entire system of accounting.
Money isn’t just a concept; it’s some kind of physical object that people can touch and hold in most cases. Paper currencies existed for centuries before cryptocurrency came into its own, with Bitcoin changing everything when Satoshi Nakamoto invented the first blockchain-based digital currency in 2009.
For many years now, people have been making money by mining or investing in cryptocurrencies like Bitcoin (BTC), Ripple (XRP), Litecoin (LTC), or Etherium (ETH). Now, there are new ways to make money with cryptocurrencies, too, through Non-Fungible Tokens or making money with NFTs!
What is a Non-Fungible Token?
A Non-Fungible Token (NFT) is a new standard for creating digital scarcity. Akin to traditional collectibles, NFTs are unique and can be owned by one person at one time. Unlike most tokens which are fungible, making them interchangeable with other units of the same type, each NFT is modeled after physical scarcity.
For example, if every token were the same as another token, whether it’s in circulation or not, you would only be able to own one token. This lack of uniqueness undermines some of the key benefits blockchain technology provides, like transferability of ownership and scarcity of goods.
Real-World Example of Digital Collectibles
One real-world example is CryptoKitties which uses ERC-721 to create unique, digital kitties. This standard became so popular that it contributed to a massive increase in ETH’s network traffic and congestion.
Real-world example: Blockchain Art Collective (BAC) A new standard for creating digital scarcity is being developed by the Ethereum community called ERC-998. It makes it possible to own fractions of an art piece instead of owning the whole thing at once.
For example, you could potentially buy 1/1000th of a painting each month until you owned all 1000 parts and had complete ownership over the entire work of art. This would be functionally similar to saving up for a higher-priced item or purchasing it in installments but with a lot more flexibility on what shapes your tokenized purchase can take.
What are the Benefits of Non-Fungible Tokens?
The main benefit is that tokens can represent unique items, assets, concepts, and entities. This means you could tokenize your house ownership, car ownership, company shares, or almost anything else you can think of.
Each token is unique, making it easy to track individual ownership over time(essential for most financial transactions). For example, you could prove that John sent Sam 3 tokens representing his new Honda Civic without revealing what he bought.
One person can only own each token at a time, so there’s no need to worry about somebody double-spending their tokens because they’ll only be able to spend them once.
Since every NFT is non-fungible, there is no need to worry about somebody else spending the same tokens as yours. This makes it possible to trace an asset/token through time and space, which can be used to build up a full history of ownership.
As digital assets become more integral to our daily lives, they will start to take on roles currently filled by physical goods like art, collectibles & real estate. At first, these items won’t even exist entirely on the blockchain. Instead, they have some data attached that proves authenticity or its origins.
Over time, however, we will see more decentralized physical assets where real-world items are tokenized and 100% existent on the blockchain. For example, you could own a digital copy of your house deed or proof that your online art collection is composed of pieces painted by Picasso.
NFTs are also trustless, which means they are not reliant on any middlemen to create, maintain or distribute them. So instead of needing an art dealer to authenticate the originality of each painting in your collection, it can be done automatically through code.
How to Make Money with NFTs?
Video Games
The video game market is a monopoly, and they earn huge money. Are you dreaming of making money by playing games?
Now you can earn a good income from your favorite video games. NFT has introduced a unique process to gain some more bucks from your favorite video games. This platform will offer opportunities where gamers easily earn from their direction skills in the game without doing anything extra or outside the game.
On this new generation platform, gamers won’t need to reach out on digital platforms for tasks, as it is directly embedded into the playing environment eliminating any chances of malicious attacks. They have a dedicated team that works day and night on making it better each day.
In this platform, gamers share the experience along with eliminating griefers and trolls. It is a win-win situation for everyone as the gamers will make money with nfts, and those who want to up their experience points can buy it from them.
Industry experts develop this new generation platform; the future will be bright and promising with the advent of this technology that helps gamers earn a good income just playing their favourite video games.
Digital Art
Imagine a world where you could profit off of your art. Many digital artists have already made that dream a reality by selling their digital arts to different platforms.
The market has started filling with various independent projects, each trying to solve slightly different originality and double-spending problems. Many factors can influence the success or failure of these ventures, but so far, there has only been one player who is achieving mainstream adoption thanks to its popularity among users: CryptoPunks.
These collectibles are 10,000 unique digital characters created with an algorithm designed by punk artist turned cryptoanalyst, Adam Clark. All punks were released on the blockchain as ERC721 tokens using smart contracts on Ethereum back in 2017.
The standard set of 10,000 was distributed across all 20 available character slots meaning that no two characters would ever be alike. Although it’s possible to buy new punks on secondary markets, this initial offering was initially sold via auction, meaning that all characters are distributed fairly among community members.
So how to do it? The process is simple: first, create an account on any digital art NFT website. Once logged in, click and upload your art for auction or sale and just wait for someone to bid or buy, thus making money with nfts.
Conclusion
Non-fungible tokens are the foundations for Web 3.0, where physical items exist digitally and can be traded/moved easily between different people without requiring heavy-handed third parties like banks & governments to verify authenticity and legitimacy.
Just like ERC-20 tokens have revolutionized fundraising through Initial Coin Offerings (ICOs), ERC-721 may eventually be responsible for simplifying the trade of physical goods & assets.
Non-Fungible Tokens are a relatively new technology that is only just starting to emerge into the mainstream, but as we continue to see the spread and functionality of digital currencies increase exponentially, we could potentially see widespread adoption before too long.
Making money with NFTs – Could Easily Be in Your Future
If you would like us help you create the right vision, story, strategy and implementation plan for your NFT project or you’d like us to review your current project, you can contact us using this link or at paul [@] MintingYourFuture.com. Minting Your Future is a specialized NFT project creation and support agency.
We’ll help you build your future, and the future of the communities we will help you build by designing and implementing the right NFT strategy. My name is Paul Brooks and I’ve been involved in web1, web2 and now web3 for nearly 15 years.
