who makes money from non-fungible tokens?
After the resounding success of cryptocurrencies during the last year, for a few months the entire blockchain community has only been talking about NFTs. These digital assets, also known as non-fungible tokens , are becoming a sensation in the world of digital art or collectibles.
NFT technology makes it possible to purchase a unique digital work of art online . It can be a painting, a drawing or any type of work. In these cases, the non-fungible token serves to prove its authenticity, and uses blockchain technology to ensure that no copies are made.
NFTs have been at the center of conversations throughout the blockchain community after the world’s largest auction houses, such as Christie’s or Shoteby’s , NFT Token development services began to include non-fungible tokens in their operations. In the case of the first, the auction of the digital property certificate of a work by artist Mike Winkleman managed to raise 69 million dollars . A whole fortune, which has little to envy conventional art.
Of course, unlike traditional auctions, buyers do not receive anything physical, only the authentic certificate of ownership. In this context, many influencers and technology entrepreneurs have found in NFTs a new source of income that can be very lucrative. In 2020 alone, the value of these digital assets amounted to $338 million , more than double the value of the previous year.
Millionaires make cash with NFTs
Taking advantage of the rise of NFTs, many entrepreneurs are investigating ways to do business with these digital assets. Everything can be “tokenized”: from a newspaper column to a tweet… This is the case of the founder of Twitter, Jack Dorsey, who put up for auction a non-fungible token from his first publication on the social network . NFT Token Development Company The experiment ended with a gross of $2.9 million.
This first step has also caught the attention of large content creators, who see NFTs as a formula for doing something like ultra-exclusive merchandising . “On Twitch you can send tips. You can also support a youtuber or influencer who has Patreon. I see the NFTs created by influencers as a way to support them”, explains an expert in a recent article .
An example of this trend is the collection of tokens launched by the youtuber and entrepreneur Willyrex . Its assets went on sale with a price of between one and 2,000 euros, although they could appreciate over time and reach higher prices.
In the case of Willyrex, the content creator recognizes that the launch of its NFTs responds to the increase in demand for this type of asset, where it has participated by buying several paintings using this technology.
The world of cryptocurrencies is buoyant and full of investors looking for their place. Bitcoin has gained a lot of ground in recent times but it is not the only one, you also have Ethereum . NFT Development company But although we are talking about something that, a priori, seems the same because both work with a chain of blocks, they are not. Since each of them has a series of characteristics that differentiate it.
Last week we talked about what it is and where to buy bitcoin, today we are going to compare this currency with the second best known, ethereum.
Bitcoin is accepted by the vast majority and is considered an international digital currency, while Ethereum is only accepted for transactions by digital applications or Dapps running on their own network. Below we expand more details of each cryptocurrency.
Between 2017 and 2018, NFTs exploded thanks to what happened around the online game CryptoKitties ( cryptokitties.co ) when players started being able to buy their crypto cats in the form of NFTs. Kittens can then be bought, raised and then traded / sold, and to do so they need to use a crypto currency. Each NFT kitten is unique and owned by the buyer / userwhich has validated the purchase act through the blockchain and its value can increase or decrease based on the market value. CryptoKitties cannot be replicated and cannot be transferred without the user’s permission even from the game developers.
The halving is a system by which the reward given to miners who provide, in return, the necessary security to the network is adjusted. This incentive system decreases over time to the point that, once all the bitcoins established in the protocol have been issued, the fees for the operations will be the only remaining payments to those miners. As more miners join the network, the higher the difficulty. Non fungible token development company On the contrary, if those are disconnected, the system reduces the difficulty.
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