Tag: Non-Fungible Tokens

Understanding the Rise of Non-Fungible Tokens

by Blockchain News

 

 Non-fungible tokens are currently garnering attention in the digital market. To verify their ownership and authenticity, NFTs use blockchain technology. They represent a wide variety of things, such as art, music, games, and even real estate. The concept of NFTs has gained popularity and acceptance. This article details the rise of NFTs and the potential benefits of investing in them.

Understanding Non-Fungible Tokens?

Tokens that are not fungible are assets that are encoded and stored on blockchain. Each NFT has its own unique identifier and associated metadata, distinguishing it from all other tokens. Non-fungible tokens can be traded for money, or in digital assets; their value is determined by market demand and owners.

For example, an exchange could be used to create a token for an image of a banana. NFTs could be highly sought-after and worth millions or worthless, depending on the buyer. Cryptocurrencies can be seen as tokens; however, they can be interchanged. This is a major distinction from non-fungible tokens, which are not interchangeable.

How Do Non-Fungible Tokens Work?

NFTs are created through minting, a process where information is stored on a blockchain. This involves validating NFT data, creating an additional block, and closing it. This process also uses smart contracts to determine ownership and control of NFT transfers.

 

When new tokens are created, they are each given their own ID associated with a blockchain address. Every token has an owner and the ownership info (the address the token is located at) is visible to the public. Even if 5,000 identical NFTs are minted, each has a distinct identifier and can be distinguished.

Benefits of Non-Fungible Tokens

Non-fungible tokens have several potential benefits for both creators and buyers. Here are some NFT benefits:

 

  • Artists, musicians, and even Twitter users can monetize their unique digital creations through NFTs.

  • NFTs provide proof of ownership and authenticity, which can increase digital assets’ value and make them more sought after.

  • Investing and owning a digital asset with NFTs is a great way for buyers to build wealth over time.

  • NFTs also provide transparency and security, as blockchain technology ensures their integrity. 

  • Unlike traditional physical assets, non-fungible tokens can be transferred and traded easily, making them a more liquid investment

  • NFTs provide a more efficient way to market physical assets. Tokenization simplifies the sales process by removing middlemen and allowing sellers to directly reach potential customers. This enables artists to securely offer their works without third parties.

How Can I Buy NFTs?

To buy NFTs, one needs Ether which is stored in a digital wallet. There are several online NFT marketplaces, such as OpenSea, Rarible that offer these purchases. Ethereum-based meme coins such as Shiba Inu aim to provide financial independence outside of centralized control. It is critical to assess the Shiba Inu price before purchasing.

Endnote

Non-fungible tokens have revolutionized the digital world by providing an innovative way to own and trade unique digital assets. NFTs have opened up new opportunities for creators to monetize their work and for buyers to invest in one of the unique ways of digital assets. As NFTs gain popularity, it is vital to understand the technology behind them. Whether you are a creator

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Enjin Launches NFT-Focused Blockchain, Migrates Native Token and Merges Efinity Token

by Blockchain News

Singapore-based Enjin, a pioneer in the blockchain ecosystem for Non-Fungible Tokens (NFTs) and digital assets, has launched the Enjin Blockchain. The innovative new blockchain, dedicated to NFTs, is built on the open-source Substrate framework, distinguishing it from others by integrating NFT-related transactions directly into its foundational code, rather than relying on smart contracts.

Incorporating NFT transactions at the protocol level enhances scalability and prepares projects for future-proofed digital assets. Notably, Enjin Blockchain features like Fuel Tanks and Discrete Accounts simplify end-user interaction by subsidizing transaction fees and eliminating the need for specific wallet software.

In the proposed restructuring, Enjin Coin (ENJ) will transition from the Ethereum network to become the native token of the Enjin Blockchain’s Mainnet on a 1:1 basis. Furthermore, Efinity Token (EFI) is suggested to merge with ENJ, further promoting decentralized governance and participation.

Efinity, the Polkadot parachain, has successfully forked to the Enjin Blockchain, now known as the Efinity Matrixchain. The Matrixchain preserves all data from Efinity, ensuring seamless user transition and data integrity. A flagship Matrixchain, the Enjin Matrixchain, is due to launch, utilizing ENJ as the native currency and primary platform for NFT creation.

Enjin plans to deploy additional Matrixchains tailored to meet the specific needs of enterprise and large communities, extending the opportunities for digital ownership and interaction.

Enjin’s existing community projects will utilize the Enjin Blockchain, inviting all members to participate. The Enjin App Layer, essential for low-cost NFT integration, will be readily available for developers to incorporate into their projects.

The Enjin Blockchain and the Enjin Matrixchain will be secured by Substrate’s robust Proof-of-Stake system, powered by ENJ, promising maximum security, reliability, and sustainability.

Since its inception in 2009, Enjin has remained at the forefront of blockchain innovation, continually seeking to revolutionize the landscape of digital items and NFTs. With its dedicated community and cutting-edge technology, Enjin is poised to shape the future of digital ownership and blockchain technology.

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China’s Supreme People’s Procuratorate Examines Legal Issues of NFTs Amid Booming Digital Economy

by Blockchain News

China’s Supreme People’s Procuratorate has turned its attention to the legal challenges associated with non-fungible tokens (NFTs), amidst the booming digital economy, according to an announcement made on its website.

As new-age technologies like blockchain and concepts like the “metaverse” gain global traction, emerging applications like NFTs have become the focus of market attention. NFTs, essentially digital asset certificates recorded on the blockchain, represent a new area of application for blockchain technology and have significant development potential.

However, as an emerging field, the laws and regulations related to it are still in nascent stages. Alongside the burgeoning interest in NFTs, there are increasing concerns about potential financial, management, and cyber security risks, with legal risks being a particular focus for procuratorial agencies.

Wang Xiafang, one of the experts cited in the report, urged judicial authorities to accurately discern between innovative development and unlawful activities. It is crucial to both protect genuine innovation and promptly identify and penalize fraudulent activities masquerading as innovation, to prevent the phenomenon of “bad money driving out good”.

Sun Shan, another expert, highlighted the role of copyright compliance governance on trading platforms, especially in situations where the creator and the minter of NFTs are not the same entity. The ideal scenario is when the creator and the minter are the same, but if not, it’s essential for the platform to ensure copyright compliance.

Ruan Shenyu, also contributing to the discussion, clarified the ownership rights of consumers in terms of NFTs. From a property rights perspective, consumers do not have full ownership of the NFT digital assets in the traditional legal sense. They cannot prevent others from accessing, copying, or disseminating the digital assets linked to their NFTs. What consumers do have is an exclusive right that prevents others from unauthorized alteration of the NFT’s ownership recorded on the blockchain.

The Supreme People’s Procuratorate is keen to engage experts and practitioners in a broad discussion on the legal status and risk management of NFTs, highlighting the significant interest and concern surrounding this emerging technology in China’s legal circles.

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Leading Sneaker MarketPlace Sets Foot in the Metaverse to Spur Innovations

by Blockchain News

The Edit LDN, a global sneaker marketplace based in London, has entered the metaverse by developing a premium store to drive innovation a notch higher.

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Moses Rashid, the founder of The Edit LDN, pointed out:

“Our partnership with Bloktopia is our first big step to executing our vision of being the most innovative player in the market.”

Bloktopia’s crypto paradise will house the premium store. Bloktopia is a virtual reality (VR) skyscraper built in the Unity gaming engine on Web3 technology.

 

Ross Tavakoli, the CEO of Bloktopia, stated:

“As a big sneakerhead myself, we’re really pleased to be able to partner with the UK’s number 1 sneaker destination, Edit LDN. Fortnite makes $2m a day from in-app purchases like skins (digital clothing) for avatars. Bloktopia will offer a different, interoperable option.”

Therefore, the Bloktopia metaverse seeks to be the next iteration of the internet that will enable users to attain anything undertaken in the real world. 

 

By recording a yearly growth rate of 525% since it was launched in 2020, The Edit LDN has emerged as the leading sneaker destination in the United Kingdom, serving a global audience. Moreover, its growth is expected to hit 500% this year. 

 

The metaverse world is anticipated to continue gaining traction because there is a high likelihood that consumers will purchase trending garments for their avatars as they would do for themselves. 

 

Tavakoli noted:

“Allowing the purchase of digital wearables, in this case, sneakers, through an NFT function which means they won’t be restricted to just our metaverse, and can be worn across hundreds of games and other metaverses.” 

“That makes the fashion industry and the metaverse such a good fit, as it creates a whole new income stream for our partners like Edit LDN. The customer can also be sent the sneakers physically, too,” he added.

 

Meanwhile, Mclaren entered the metaverse to showcase its luxury hypercars and supercars in the form of non-fungible tokens (NFTs) or other digital artworks. 

 

As a result, the leading automotive manufacturer intended to offer its customers a new level of experience and the chance to own McLaren-branded products irrespective of whether they could afford an automobile from the company or not. 

Image source: Shutterstock

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South Korean Car Dealer Launches NFTs to Reduce Paperwork Costs

by Blockchain News

Han Sung Motor, a South Korean imported car dealer, has rolled out non-fungible tokens (NFTs) to offer customers a secure and convenient experience based on the option of checking car details using their smartphones.

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Therefore, the company sees the NFTs as a stepping stone toward minimizing paperwork costs. Ulf Ausprung, Han Sung Motor CEO, noted:

“We will continue actively integrating digital systems in the future to increase brand familiarity and immersion among millennials and Gen Z.”

By digitizing its system, the auto dealer intends to follow an emerging global trend and appeal to the younger generations by creating “fandom.”

 

Therefore, the NFTs will comprise texts, videos, and pictures certifying ownership of the digital warranty for second-hand cars bought at Han Sung Motor. Ausprung added:

“Han Sung Motor will continue to digitize different sectors and will actively launch ESG campaigns to communicate with customers in their 20s and 30s.”

The NFTs developed by blockchain firm Alman Co. seeks to revamp the auto dealer’s operations by acting as a digital warranty. 

 

Non-fungible tokens are blockchain-based digital assets whose value is pegged on their uniqueness, given that they are non-divisible and must be bought as a whole. 

 

As a result, NFTs are different from typical crypto tokens because of fungibility. A fungible token can be exchanged for another, whereas an NFT cannot be based on its finite nature.

 

Therefore, these traits create intrinsic value for NFTs because of their limited supply.

 

Meanwhile, Etihad Airways recently revealed plans to release its first NFT collection aimed at boosting travellers’ satisfaction levels, Blockchain.News reported.

 

The NFT collection would comprise 2,003 limited-edition collectibles, including Etihad’s Manchester City FC and Greenliner-themed aircraft and was expected to open the doors to future metaverse merchandise. 

Image source: Shutterstock

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Emirates Airline to Roll Out Bitcoin Payment and Enter the Metaverse

by Blockchain News

Emirates Airlines has revealed plans to adopt advanced digital solutions, such as cryptocurrency, metaverse, and blockchain, to optimize customer satisfaction rates.

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Speaking to a media gathering at the Arabian Travel Market, Emirates CEO Adel Ahmed Al-Redha disclosed that the Bitcoin payment option would be rolled out with more flexibility. Furthermore, non-fungible token (NFT) collectibles would be traded on the company’s website.

 

As the largest airline and flag carrier of the United Arab Emirates (UAE), the aerospace giant seeks to streamline and trace aircraft records using blockchain technology. 

 

Furthermore, the Airline sees NFTs and the metaverse as stepping stones toward meeting customer needs. Al-Redha noted:

“With the metaverse, you will be able to transform your whole processes — whether in operation, training, sales on the website, or complete experience — into a metaverse type application, but more importantly, making it interactive.”

Since the metaverse and NFTs are new technological fields, Emirates intends to hire new staff to enhance this sector by developing applications to monitor customer needs. Different airlines like Norwegian Air have joined the crypto bandwagon as they seek to offer clients a worthwhile experience. 

 

Meanwhile, the decision by Emirates to enter the crypto space might be influenced by a paradigm shift being witnessed in the UAE as the nation’s interests are changing from oil to cryptocurrency and metaverse, among other blockchain and broader technological innovations. For instance, the country intends to become a blockchain capital by establishing a legal framework to aid the operation of blockchain and crypto companies. 

 

The UAE has already established multiple free zones in Abu Dhabi and Dubai. Moreover, crypto companies got the green light to set up business in the Dubai Multi-Commodities Centre (DMCC) free zone last year. 

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Undeniably Huge Amounts of Money Pouring Into Crypto and Blockchain Investments, According to JPMorgan Analyst

by Dailyhodl

The chairman of investment strategy at JPMorgan says that he was late in recognizing how big the cryptocurrency space would grow and is now taking a deep exploratory dive.

In a wide-ranging newsletter, Michael Cembalest discusses topics including Bitcoin (BTC) as a store-of-value, decentralized finance (DeFi), stablecoins and non-fungible tokens (NFTs).

The JPMorgan chairman also expands on how blockchain adoption can be distinct from cryptocurrency valuations.

While stating for the record that he speaks for himself and not JPMorgan, the analyst says,

“I did not anticipate the increase in crypto values from $25 billion to $250 billion to $2.5 trillion (and now $1.5 trillion), and I recognize that I am late to this.

There’s a ton of money pouring into crypto and blockchain investments. Venture capitalists [VCs] have been plowing money into crypto at an accelerating pace, rivaling other innovation categories.”

Cembalest takes note of where the VCs are putting their money:

“[Around] 40% in trading, investing and lending businesses; ~20% in Web 3.0 applications and NFTs; ~10% in custody; and the remainder in a variety of businesses focused on compliance, mining and data security.”

Source: Michael Cembalest/JPMorgan

Regarding crypto adoption, the investment strategist says that institutional portfolios are taking on more and more exposure.

“Crypto adoption is rising across investor types and regions. While institutional ownership has been low to date, it is now growing.

Bridgewater [Associates] estimated that ~1 million Bitcoin (around 5% of total issued supply) are now held by institutional investors via custodial intermediaries.”

Beyond blockchain being seen as an investment vehicle or source of innovation, Cembalest cites people’s desire for a store-of-value to protect against monetary inflation.

“I understand why people are interested in cryptocurrencies with a fixed supply as a store-of-value. The developed world has drowned itself in debt and fiat money, and at a pace that dwarfs anything seen in the wake of the financial crisis in 2008.

Central banks and treasuries have created a massive confidence void, and it would have been strange if some alternative to fiat money didn’t appear on the scene.

I accept the notion that a digital store of value could exist… Bitcoin is beginning to capture a larger subset of store-of-value investments when compared to the value of gold, [although] Bitcoin’s volatility continues to be ridiculously high…”

The JPMorgan analyst concludes his in-depth analysis by saying he still doesn’t plan to invest in cryptocurrencies unless a big sell-off presented bargain entry prices.

“I won’t be buying it even though part of me wants to…

I would take another look if crypto valuations and the companies linked to them plummeted to deeply distressed values.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Disney Seeks Manager To Help Lead Company’s Efforts in the Non-Fungible Token (NFT) Space

by Dailyhodl

Disney appears to be interested in jumping into the non-fungible token (NFT) space.

The entertainment giant is currently advertising for an open “business development” manager position.

The position requires “knowledge of and passion for Digital and NFT categories.”

Explains Disney,

“You will help lead Disney’s efforts in the NFT space including monitoring the evolving marketplace, setting category strategy, and managing key partners.”

The successful applicant will work at Disney’s Glendale, California office.

Disney isn’t the first major corporation to express interest in NFTs. Earlier this week, retail video game company GameStop announced a partnership with Ethereum layer-2 scaling solution Immutable X (IMX) to create a joint NFT marketplace.

In late December, retail giant Walmart filed a United States trademark application for an NFT marketplace that provides a platform for “buyers and sellers of downloadable digital goods authenticated by non-fungible tokens.”

Footwear giant Adidas announced earlier that month that it was partnering with premier NFT brands and influencers to explore the metaverse.

And Nike filed a trademark application in October for products involving “downloadable virtual goods… for use online and in online virtual worlds.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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Market Intelligence Firm Chainalysis Issues Warning Over Murky Trading Practices in Nascent Crypto Sector

by Dailyhodl

New data from crypto insights firm Chainalysis reveals that wash trading may be artificially inflating the value of non-fungible tokens (NFTs).

In a new report, the market intelligence firm finds that while most of the 262 wash traders they identified were seeing losses, they have profited nearly $8.5 million as a group overall in 2021.

“The 110 profitable wash traders have collectively made nearly $8.9 million in profit from this activity, dwarfing the $416,984 in losses made by the 152 unprofitable wash traders.

Even worse, that $8.9 million is most likely derived from sales to unsuspecting buyers who believe the NFT they’re purchasing has been growing in value, sold from one distinct collector to another.”

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Source: Chainalysis

Wash trading occurs when a party conducts a sale where they are both the buyer and the seller of the transaction to create a misleading price valuation for an item. They then sell the price-inflated asset to an unsuspecting trader who believes they are getting a discounted deal.

“In the case of NFT wash trading, the goal would be to make one’s NFT appear more valuable than it really is by ‘selling it’ to a new wallet the original owner also controls.

In theory, this would be relatively easy with NFTs, as many NFT trading platforms allow users to trade by simply connecting their wallet to the platform, with no need to identify themselves.”

However, this practice of wash trading NFTs isn’t technically outlawed as it has yet to be targeted by law enforcement and regulators. According to Chainalysis, lack of oversight could inhibit the future growth of the NFT marketplace.

“NFT wash trading exists in a murky legal area. While wash trading is prohibited in conventional securities and futures, wash trading involving NFTs has yet to be the subject of an enforcement action…

More generally, wash trading in NFTs can create an unfair marketplace for those who purchase artificially inflated tokens, and its existence can undermine trust in the NFT ecosystem, inhibiting future growth.”

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Crypto Philanthropy Explodes in 2021 As Bitcoin Loses Most-Donated Digital Asset Crown to This Coin: Report

by Dailyhodl

Cryptophilanthropy exploded last year despite a lack of regulation, according to a company that helps nonprofits leverage crypto.

The Giving Block says in a new 2021 annual report that their total donation volume last year skyrocketed to more than $69.44 million, an increase of 1,558% compared to 2020.

The annual report examines fundraising data from more than 1,000 charities that accept cryptocurrency donations via The Giving Block.

Average donations on The Giving Block surged to $10,455, an increase of 236%. Donation volume also increased every quarter of 2021.

Additionally, the company notes that another crypto asset dethroned Bitcoin (BTC) as the donation of choice last year – the number two crypto by market cap, Ethereum (ETH).

“For the first time, Ethereum was the most-donated cryptocurrency in 2021, totaling $30.79 million in donation volume via The Giving Block.”

Bitcoin had more than $25.88 million in donation volume. The dollar-pegged stablecoins USD Coin (USDC) and Dai (DAI) were the third- and fourth-most donated crypto assets last year, with about $4.7 million and $2.2 million in volume respectively.

About 85% of the overall donation volume was donated in ETH, BTC and USDC.

The Giving Block also notes that the non-fungible token (NFT) sector was a “major force” in philanthropy in 2021, contributing more than $12.3 million in donation volume.

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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