Tag Archives: NFT

NFTs – What are the market prospects? Should you invest in them?

Reading Time: 4 minutes

When did NFTs start?

As a reminder, NFTs or Non-fungible tokens, or at least the meaning of “non-fungible” means: 

“That it’s unique and can’t be replaced with something else. For example, a bitcoin is fungible — trade one for another bitcoin, and you’ll have the same thing. A one-of-a-kind trading card, however, is non-fungible. If you traded it for a different card, you’d have something completely different.”

“NFTs can really be anything digital (such as drawings, music, your brain downloaded and turned into an AI), but a lot of the current excitement is around using the tech to sell digital art.”

(theverge.com)

Now that we have an understanding of what NFTs are, we can start focusing on the origin of this technology. On the 7th of August 2015, the first NFT was born. Its name was “Terra Nullius”, and it was part of the Ethereum blockchain. It turns out that the NFT had one particularity, it made users able to “claim a stake”. Essentially this means that you were able to insert a short message to personalize the NFT.

Then, a few months later, Etheria v1.1 also named Blockplots was created. Other than being one of the first NFTs to be introduced to the world, Etheria had a specific trait, the buyers were able to buy “tiles” from a 457-piece map. This concept please many NFT creators, and similar concepts were created.

One of them was named “PixelMap”, created at the end of 2016, it allowed users to purchase one or more images from a blockchain with 3,970 pieces available. PixelMap was some sort of combination of Etheria and Terra Nullius, as it not only had a limited number of buys but was also individually customizable. 

The idea of owning individual digital pieces was approved by other creators and therefore decided to diversify the asset. In 2017, Ethereum Name Service was invented, and granted the possibility to users to purchase one of their decentralized domain names. As time went by, you were able to own collectible cards thanks to Curio Cards, or even one of 400 plots on the moon with Lunar Token.

All in all, NFTs have existed since 2015 and have diversified in terms of the content of the purchased asset. Thanks to the graph below, you can visualize that NFTs have just recently become a trend.

Yet as you know now, NFTs have been around for 7 years now, so why is it now so popular?

NFT and its on-growing popularity.

As no media seem to understand the proper reason for its popularity, economic and technological factors, that made sense for NFTs to have such a prosperous run. NFTs’ ability to be purchased by cryptocurrencies is therefore greatly interlinked with Bitcoin’s recent bull run. As you may or may not know, at the end of 2020, reached a record-breaking all-time high of $68,0000. One can think that bitcoins’ popularity has therefore led to crypto-purchasable assets such as NFTs. 

One of the historically notorious NFTs back in late 2017 was CryptoKitties. It turns out that they made a comeback today with the “NBA Top Shot”. The American basketball league and CryptoKitties created NFTs of the best moments of the season. As a result, the duo became the number one source of volume on the NFT market. NBA being having such popularity; one can imagine that the cooperation became a catalyzer for the technology.

Finally, the pandemic has had a major influence on the international market, particularly on the collectibles market. The collectibles market value grew to $522b (irei.com, 2021), explaining one of the reasons why NFTs became so popular.

The different sorts of NFTs

To understand if NFTs are investable today, it is important to understand the different types that exist today.

Today the main types of NFTS on the market are: 

Music: Allowing musicians to create a smaller audience of their biggest fans.

Art: This allows digital art lovers to have their unique pieces.

Access: Tickets that allow you to have access to digital content.

Redeemable: A token that authorizes you to claim a physical good.

Game objects: Think of skins for example (the color of your character in a video game), when purchased by the player, the company still has ownership. With NFTs, the player would have full ownership of the object and be able to benefit from its interoperability. 

Identity: Users will have the possibility to benefit from NFTs interoperability and the blockchain’s secured system.

Web 2.0 Databases: Keeping personal or even professional information decentralized will benefit the user in the way that they will be able to secure them, but also transfer their data to a decentralized system to a centralized one.

Should you invest in NFTs today?

It depends on the sort of investor that you are. If you are a risk-taking capitalist, in that case, trending cryptos such as the BAYC (Bored Ape Yacht Club) NFTs. This company has created many digital arts selling for millions of dollars. One of them, the “Bored Ape #3749”, sold for 740 ETH, the equivalent of around $2.9 million. Many celebrities are contentiously investing in them today, making the prices reach extremely high summits. If you are a specialist in the Art market, in that case, Art NFTs might be for you.

Of course, if you are purchasing the NFTs to support creators, or just because you want to have your “hands” on one, then sure, go for it!

On the other hand, the more “practicable” aspect of NFTs can become a great way to protect your data but also interoperate your credentials to different devices. This feature is becoming an interest for more and more companies, thus you might want to hold on to your wallet, as future competition in the industry will probably rise the buyers’ bargaining power.

Sources used:

–      https://bernardmarr.com/the-10-best-examples-of-nfts/#:~:text=2%20January%202022,lining%20up%20to%20buy%20them

–      https://www.theverge.com/22310188/nft-explainer-what-is-blockchain-crypto-art-faq 

–      https://www.one37pm.com/nft/tech/the-definitive-timeline-of-early-nfts-on-ethereum#:~:text=1.,’claim’%20on%20the%20blockchain

–      https://nftevening.com/terra-nullius-nft-project-is-the-newest-oldest-nft-in-existence/ 

–      https://medium.com/momentum6/nfts-have-a-future-beyond-investment-the-seven-types-of-nfts-you-can-get-today-674195d78087

–      https://influencermarketinghub.com/nfts-statistics/  

–      https://medium.com/geekculture/how-did-nfts-become-so-popular-f894eea22f90 

–      https://time.com/nextadvisor/investing/cryptocurrency/bitcoin-record-high-price/ 

–      https://irei.com/news/collectibles-market-value-grow-522b/ 

–      https://www.nftsstreet.com/top-10-most-expensive-bored-ape-yacht-club-nfts/ 

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Impact of cryptocurrencies on Environment

Reading Time: 3 minutes

Last year new trend in e-conomy called NFTs made it to the headlines and quickly started picking up popularity. Poland was no exception with various Celebrities and Influencers like Magda Gessler or Krzysztof Gonciarz presenting to their followers their NFTs. This spurred controversies, as some of those celebrities often engaging in pro-environment initiatives (like it is the case with Gonciarz) support the trend which is definitely not the most eco-firendly. Before I explain, how NFTs impact environment, let’s define what they actually are and how they work.

Gonciarz’s NFT profile picture

NFT (non-fungible token) is a customized virtual token which is acquired with cryptocurrencies, in most cases with Ethereum. NFTs very often take a form of a pixelized image for example a fictional Ape. To acquire one you need to buy it from an artist and in return you get a certificate confirming that you purchased it, but you are not the owner of the picture though. The fact that you have purchased a NFT is confirmed and by the blockchain technology.

To ensure that transaction with cryptocurrencies are safe and are executed properly, the data about buyer and seller are encrypted into a complex mathematical equation and placed in a dispersed network of users. Data about transactions, when they took place and how much they were worth is sorted in so called blocks. As blocks are constantly updated with new transactions new blocks are connected with the old ones hence the name blockchain. To simplify, every user can look at details behind the transaction at any time.  Solving the equation provides you with a reward. This procedure, dubbed by the community ‘mining’, requires a lot of computing power, which means that it requires a lot of energy.

Mining, which is the source of cryptocurrencies entering the market, is the reason, why the demand on GPUs is very high recently. Mining is also cause of serious ecological concerns. When we sum up all miners in the world, their equipment uses amounts of energy which can be considered enourmous – for example amount of energy Bitcoin minining uses can be compared to energy used by all inhabitants of a highly developed countries like Sweden. If the way mining works won’t be changed, then it will use up more and more energy, due to cryptocurrencies and NFTs becoming more popular. It is also worth mentioning that despite most of miners using renewable energy sources, still most (61%) of the energy reaches mining computers thanks to non-renewable spurces of energy like burning fossil fuels. Significant amount of mining takes place in China or Russia, where energy is very cheap but mostly comes from non-renewable sources. NFTs, due to relying on cryptocurrencies, is part of this process which results in draining lots of energy, while it also accounts to CO2 emissions which humanity needs to reduce in order to fight the Global Warming.

Plik:Ethereum-icon-purple.svg
Ethereum’s logo

Is it possible for the cryptocurrencies to be more eco-friendly and consume less energy? Yes, some of the cryptocurrencies are using up many times less energy than the most popular Bitcoin and Ethereum. Ethereum is also planning to change the way the currency is being mined in order to cut down their emission by as much as 99%. After all, while cryptocurrencies at the moment are bad for environment, there is huge chance that it may not be the case in near future.

sources:

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AI-painter Botto made his first million dollars

Reading Time: 3 minutes

A compelling argument for a decentralized approach when using artificial intelligence systems for creative purposes. And also an attractive business – numerous project participants had the opportunity to make good money in the future. Botto generates thousands of images, but only the community of people supporting the project decides in which direction the “creator” should work and which works will go to the auction. Only owners of Botto cryptocurrency can vote.

Botto', the robot creating works of art, makes its first million at auction  | Euronews
Seaport subject

Every week, Botto presents fifty art pieces to the community, who then vote on their favorite artwork

Botto | Decentralized Autonomous Artist
Poetic Decay

How Botto creates art?

Botto’s work begins by generating a line describing a new painting, a kind of technical task. The text is transmitted to the VQGAN neural network, which recognizes it and matches image fragments to words, and then combines them into one picture. It is sent for verification to another CLIP neural network, which determines the correspondence of the image to the words, makes corrections and sends everything back to VQGAN for revision.

When CLIP is satisfied with the result, Botto uses the GPT-3 natural language generator to create a poetic description of the painting. After that, the finished painting is sent to the evaluation of human critics – 300 different images per day. Based on the voting results, a certain number of works are selected, which receive an NFT token and are put up for auction.

Dirty Shift

How it’s work?

Botto’s philosophy of work is built in such a way that he constantly challenges critics while improving his skills. To be able to “compete” with AI, you need to pay for participation in a special cryptocurrency created exclusively for this project. The money that comes from the sale of paintings is used to buy it out and “dispose of”, so the amount of cryptocurrency is constantly decreasing, and the value is growing. And it gives members the opportunity to make money by selling their inventory, which weeds out random people.

Blast Woof

Criticism

As for me, it is not correct that they are engaged in artificially raising the prices of their coins. They burn part of their coins so that the price of the remaining ones would rise and over time a kind of deficiency was formed.

While the robot is only learning, then its actions are based only on the information received and interpreted in its own way over time it will be able to come up with something of its own, but still there will be no soul in it and most importantly it will be without UNIQUE HISTORY.

Ending

In the end, I would like to recommend visiting his official website and be sure to go to the gallery to view all the paintings. (https://app.botto.com/) Also I recommend to read his Manifesto (https://botto.com/Unicist_Manifesto.pdf)

Will the machine be able to create as a person in the future? And can it be considered art?

Sources

https://www.techcult.ru/technology/10358-ii-hudozhnik-botto-zarabotal-svoj-pervyj-million-dollarov https://3dnews.ru/1054804/iihudognik-botto-zarabotal-perviy-million-dollarov-na-nftkartinah https://newatlas.com/collectibles/botto-ai-art/ https://forklog.com/ii-hudozhnik-botto-zarabotal-bolee-1-mln-na-prodazhe-nft/ https://app.botto.com/

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