NFTs are a growing area in the business world, but most people aren’t familiar with them. This article will cover everything you need to know about NFTs, from their value to their position in the cannabis market. You’ll be an expert on all things NFT at the end of this piece!
Cryptocurrencies: A Brief History
To comprehend NFTs fully, you’ll need to be knowledgeable with cryptocurrencies because the growth of bitcoin set the technological foundations for NFTs to become a reality.
Cryptocurrencies, or digital currencies, are a means of exchange between individuals that doesn’t rely on approval from central authorities, like governments or banks. Since crypto is decentralised, it’s attracted people with different political philosophies, like anarchism and libertarianism. To keep users safe and anonymous, crypto networks use blockchains—a ledger of cryptocurrency transactions kept across numerous computers via a peer-to-peer network.
Cryptocurrencies, on the other hand, have attracted a much larger audience than Bitcoin alone for their usefulness. Big enterprises like insurance providers, consumer staples vendors, and watchmakers accept them as currency. But where did cryptocurrencies come from? Take a look at the major events in cryptocurrency history below to find out:
- 2008: A paper is published by an unknown person under the name Satoshi Nakamoto that describes bitcoin–a decentralized digital currency.
- 2009: On January 3, 2009, the first cryptocurrency transaction took place when Satoshi Nakamoto sent 10 bitcoins to a programmer. Around this time is also when people started ‘mining’ bitcoin using computers.
- 2010: The first trade using bitcoins as currency was made when someone bought a pizza for 10,000 bitcoins.
- 2014: The introduction of the first stablecoin, “Tether”, allows users to trade based on the US dollar price without using fiat currency.
- 2015: Ethereum, a cryptocurrency, suddenly appears on the scene, along with its exchange partner Coinbase.
- 2016: The United States Securities and Exchange Commission (SEC) has issued a warning to investors about cryptocurrencies.
- 2019: Elon Musk begins championing Dogecoin, a meme currency, in the open.
- 2021: After bitcoin’s market capitalization surpasses $1 trillion, the crypto market cap gradually rises to $2.5 trillion before dropping to $1 trillion. Now that you’re more acquainted with cryptocurrency and its backstory, take a look at NFTs and how they relate to cannabis now that you’re familiar with cryptocurrency and its history.
What Is an NFT?
NFT’s, or non-fungible tokens, are a kind of digital asset that uses blockchain technology to record ownership. Blockchain is a type of digital ledger where transactions gets recorded on multiple computers that share information with each other through a peer-to-peer network.
NFTs are not like cryptocurrencies because each NFT has unique qualities. All cryptocurrency coins have equal value, but every NFT is different and therefore valuable in its own way.
Some people who are interested in NFTs think that by recording ownership on a blockchain, they can avoid issues with copying and piracy.With this system of distribution, NFTs fall somewhere between physical property and digital files.NFTs could be anything that exists as a file, such as music, art, tweets or even items you get in online games.
Who Created the First NFT?
Meni Rosenfeld, the chairman of the Israeli Bitcoin Association, developed the idea of “Colored Coins” in 2012, a concept that sought to encode real-world assets on a digital ledger. In 2014, software creator Kevin McCoy created the first NFT. The integrity of this digital picture’s ownership, known as “Quantum,” was maintained on the Namecoin blockchain.
Some people didn’t think NFTs would be valuable when they were first developed. Many of these digital assets, on the other hand, have made their creators a lot of money. For example, in 2021, the artist Beeple sold his collage “Everyday: The First 5000 Days” for $69 million.
OpenSea: Where NFTs Are Sold
OpenSea is the largest NFT marketplace and supports a great diversity of items, such as art, collectables, domain names, music , photography , sports memorabilia, and trading cards. You’re able to explore new possibilities or put up your own digital belongings for other users to find and purchase.
The Value of NFTs
People are interested in NFTs for both creative and collector purposes. They offer benefits that regular assets do not, which is similar to what bitcoin transactions provide. For example, documentation of ownership on a blockchain that is incredibly difficult to hack or tamper with creates a strong sense of security. Additionally, the decentralized state of exchange allows more room for customization when trading assets.
- For Artists
Did you know that selling a musical album, piece of digital art, and even a house all have something in common? Yeah, third parties looking to make some easy money. In the non-digital world, record labels, art dealers, and real estate agents get rich quick by being the middleman between buyers and sellers. Artists and vendors may now take advantage of the decentralized nature of digital asset trading, which allows them to break away from third-party intermediaries and their recurring costs—or commissions—which are all too common. NFTs also allow artists to produce a certain quantity of their work, resulting in scarcity and increased profits.
- For Collectors
Some people think that NFTs are not a good investment because you can’t physically hold them in your hand. However, Beeple’s recent sale makes it clear that the market disagrees.
Cryptocurrency has shown that people value digital assets, in part due to the technology that protects them, bounds them (in most cases), and makes sending and receiving them simple. NFTs also have this property, but they come with a special incentive for collectors. NFTs that are based on the blockchain have a restricted quantity and are recorded on the blockchain, making them many times more valuable than physical copies.
- For Business
The NFTs have disrupted the status quo; with their appearance, new marketplaces have blossomed, and interests are vying to get a foothold while it’s still early. Not only do NFTs provide evidence of ownership but also validation of presence; this has major consequences for events like festivals that depend on live audience involvement. Also, by embedding smart contracts into the creation process of an NFT guarantees that any future sales will include financial compensation for the original creator(s).
NFTs: How Are They Useful?
NFTs have a variety of applications. Furthermore, cryptocurrency has already shown that digital assets aren’t only useful; they’re also quite valuable (although somewhat volatile). Learn how NFTs are beneficial or feasible in today’s environment by checking out some of the most promising NFT markets listed below.
1. Graphic Art
Artwork is the second most popular NFT. Sure, you can’t hang an NFT on your wall in the same way a real painting can, but they’re just as gorgeous when exhibited as such. You may not be able to steal, misplace, or damage pricey art NFTs in today’s world! Valuable art NFTs now exist in a variety of forms, including simple yet costly cartoons of ape and cyberpunk artists to exquisite works of fine art and stunning digital masterpieces
Non-fungible tokens, or NFTs, are digital assets that have a set value and cannot be traded with other assets. They are unique. Turning GIFs into NFTs offers graphic designers a new revenue stream while businesses that want exclusive rights of these digital products can use them as a secure means of exchange.
3. Videos and Sports Highlights
Sports Highlights NFTs have great potential. For example, the NBA created Top Shot–a blockchain-based trading card system that uses fresh views of NBA highlights and digital artwork. So far, a LeBron James highlight has been sold for over $200,000. Plus, more sporting organisations are planning to get involved in this market, so it is expected to grow rapidly.
Cryptocurrencies, on the other hand, have a less immediate connection to value. Because of their restricted supply and high demand, NFT collectables are generally immediately attractive following release. Furthermore, because almost unbreakable proof of ownership exists, those who purchase NFTs can keep them secure by avoiding the risk of fraudulent replicas.
5. Virtual Avatars and Video Game Skins
Some NFTs aim to replace the value of physical items and assets, but others excel in digital marketplaces that already exist. For example, virtual avatars and video game skins have grown popular among online gaming communities. To demonstrate how ubiquitous NFTs will be online, Reddit has just created an avatar marketplace that uses NFTs.
6. Designer Sneakers
NFT sneakers aren’t tangible. They can’t be worn or carried. However, demand hasn’t slowed down. NFT sneakers are gaining a significant market following much like playing cards and other collectables. The going rate for a pair of NFT sneakers is approximately $6,000 to $10,000. If you want Nike’s CryptoKicks (a product patented by the brand), expect to pay between $20,000 and $40,000 for certain pairs.
NFTs have the potential to reshape the digital music industry, which has been devastated by pirate hoards for decades. NFTs provide musicians a chance to reclaim some measure of control over their works and skip third parties in the distribution process. Some artists are releasing one-of-a-kind versions of albums, while others are providing limited audio-visual experiences.
In addition to verifying the ownership of digital assets, NFTs can also act as a more secure replacement for paper-based “real-world” certificates of authenticity. By matching a wallet number with a certain product (like a ring, for example) and its corresponding serial number using proof of purchase logged onto a blockchain ledger, sellers can prove authenticity to buyers.
While cryptocurrency has its own share of controversies, the same can also be said about non-fungible tokens (NFTs). Let’s take a look at some of the main points of contention below.
Users are subject to fees, known as “gas,” when trading NFTs. These costs are seen as excessively high by some users, to the point that they could stifle future development in the industry.
NFT artists have to pay gas fees when minting NFTs, which are constantly rising. Even with these charges, some platforms allow others to upload and sell counterfeit versions of the original work, without the artist’s permission. This has caused many creators to worry about how secure their content truly is.
Fraud & Security
Fraud and scams are widespread in the NFT space, with many reports of buyers being scammed out of their digital wallet credentials and losing a significant amount of money. The digital asset space as a whole is still in somewhat of a Wild West phase, with security company Privacy HQ finding that 90% of survey respondents have experienced some form of scam.
How Are NFTs and Cannabis Related?
Because of their rapid growth and innovative nature, the cannabis industry has started to use NFTs. Let’s have a look at some of the more interesting projects.
Crypto Cannabis Club
Crypto Cannabis Club is the self-proclaimed hub for cannabis enthusiasts and digital art lovers. The platform offers sales of cannabis-themed NFT art, metaverse property, and play-to-earn games.
This company is the perfect case study for how NFTs might succeed in the cannabis realm. They don’t only sell digital goods, but they’re also fostering a community around this new technology and the plant. For example, they have a Discord server to greet newcomers and assist experienced collectors with set up MetaMask crypto wallets.
If you’re bored of the same ol’ NFTs featuring apes, then how about stoned felines instead? Blazed Cats has a large selection of hand-drawn cats that all have their own individualized traits and accessories. With 10,000 pieces in total, there’s bound to be at least one (if not more) that catches your eye! So take a look and see if any of these wacky kitties will become part of your expanding NFT collection.
Pokémon cards are for kids. Imagine having authorized digitized cannabis strains instead! The Peakz Company is behind Digi Strains, the first digital cannabis strain collection to ever be recorded on the blockchain. Digi Strains aren’t shabby drawings of poorly drawn cartoon figures; they’re three-dimensional metaverse citizens. Owners may display their favorite varieties in their virtual residences after purchase. These pieces of art are currently selling for around $50 each, or about 0.03 Ethereum.
The Future of NFTs in Cannabis
NFTs have been utilized in the past to represent artwork and games, but they may have a much larger role in the future. Could NFTs help breeders protect and sell their genetic material? Could seed banks release NFTs along with a limited number of seeds to produce extremely rare, pricey, and exotic strains? Only time will tell if NFTs and cannabis are a good match.
Smoking weed in an air-tight room or vehicle is a great way to conserve your smoking materials. The exhaled smoke and smoke coming from the joint, pipe, or bong is unable to escape, gets trapped, and circulates through the space where it’s breathed in and not wasted.