Do you know Nyan Cat? The .gif that was sold for $590,000 in December of 2020. Another one called, Beeple, a .jpg that was sold for $69 million. Well those were bought using NFTs (Non-Fungible Tokens). The list of extraordinary sales is vast, and some may consider it mad, given the circumstances. With everything from CryptoPunks to the Bored Ape Yacht Club, the concept of paying for a file that anybody can right-click and duplicate is difficult to grasp. In support of the Greater Fool Theory, which suggests that making a profit by purchasing an overvalued asset during a bubble is possible because you will be able to find someone else (a “greater fool”) who will be willing to pay an even higher price, many financial professionals advise against investing in digital collectible NFTs. However, the very active NFT market does not seem to be paying much heed to the beliefs of financial specialists.
Leaving economics out of the equation, the digital collectable use case is a hotbed of amazing innovation in every conceivable area. We are seeing interesting work from marketers and consumer experience specialists, as well as new markets for fine art, such as Christie’s x OpenSea, in addition to NBA Top Shot (which is the gold standard for sports NFTs).
The fact that nearly everything that can be embodied and conveyed in a digital file can be uniquely recognised, as well as purchased and sold via an NFT, is altering and upsetting historic business structures. Daniel Allan, a musician who has “flipped the script” on his centralised music overlords, is the subject of a lovely piece in Time magazine. It’s well worth your time to read it.
In-game cash and digital valuables are common features in PC and console video games. NFTs have elevated it to a whole new level. The “play-to-earn” paradigm has arrived, and Axie Infinity is a prime example. Playing Axie earns you $SLP, which can be exchanged for fiat cash on a DEX (decentralised exchange). According to FXStreet,there are expenditures that gamers bear at every stage of the route – purchasing Axies, reproducing them, and so on. When a person sells an Axie on an NFT marketplace, they may receive an average of $270. Traders play the game for 50 to 80 days to return their original investment of $800, and then they may anticipate to make $10 to $15 each day.`
One of the most fascinating use cases for NFTs is decentralised identifiers (DIDs). Decentralized identifiers (DIDs) are defined by W3.org as “a new sort of identifier that allows verified, decentralised digital identification.” A DID is any topic (for example, a person, organisation, item, data model, abstract entity, etc.) as specified by the DID’s controller.” There are numerous ways to digital identification based on blockchain. Another term for this is self-sovereign identity (SSID). You should read articles on nft crypto news to keep up with it.