NFTs are a type of digital asset that use blockchain technology to verify ownership and uniqueness, and they are quickly becoming a hot topic in the tech world. In this article, we will explore the future of daily tech and how NFT technology will be a part of our daily lives.

Introduction

As we move further into the digital age, more and more of our daily lives are taking place online. From shopping to socializing to working, the internet has become an integral part of our daily routine. With the rise of NFTs, we are now seeing a new era of digital ownership and value, and this is set to have a profound impact on how we interact with technology in the future.

What are NFTs?

Before we dive into how NFTs will be used in daily tech, let’s take a moment to define what they are. Non-Fungible Tokens are a type of digital asset that is unique and cannot be replicated. They are created using blockchain technology, which verifies ownership and ensures that they are one-of-a-kind. NFTs can take many forms, including artwork, music, videos, and more. They can be bought, sold, and traded just like physical assets, and their value is determined by supply and demand.

How will NFTs be used in daily life?

The potential uses for NFTs in daily tech are vast and varied. Here are just a few examples of how NFT technology could be integrated into our daily lives:

1. Digital Ownership

One of the most significant ways that NFTs will be used in daily tech is through digital ownership. With NFTs, individuals can prove ownership of digital assets, such as artwork, music, and videos. This will enable creators to sell their work directly to consumers, cutting out middlemen like record labels and art dealers. Consumers will have the assurance that they are purchasing a one-of-a-kind item, and creators will have a new revenue stream.

2. Gaming

Gaming is one area where NFTs are already being used extensively. NFTs can be used to represent in-game items, such as weapons, armor, and skins. This means that players can buy, sell, and trade items with each other, just like physical assets. In addition, NFTs can be used to represent unique in-game achievements, such as completing a difficult quest or reaching a high level. This will give players a new way to show off their accomplishments and could lead to a more competitive gaming landscape.

3. Real Estate

Another area where NFTs could have a significant impact is real estate. With NFTs, individuals can prove ownership of digital assets, such as virtual real estate. This could lead to a new era of virtual property ownership, where individuals can buy and sell virtual real estate just like physical real estate. This could be especially appealing in the world of virtual reality, where individuals can create and own their own digital spaces.

4. Identity Verification

NFTs could also be used for identity verification. With NFTs, individuals can prove ownership of their digital identity, such as social media accounts, email addresses, and more. This could help prevent identity theft and give individuals more control over their online presence.

5. Content/File Verification

Verification is becoming increasingly important in the digital age, especially as we face challenges such as deep fakes and AI-generated content. These technologies make it easier than ever to create content that is indistinguishable from the real thing, which poses a significant threat to our ability to trust the information we consume online. One potential solution to this problem is the use of NFTs. Because NFTs are created using blockchain technology, they are virtually impossible to counterfeit. This means that NFTs could be used to verify the authenticity of digital content, such as photos, videos, and audio recordings.

6. Intellectual Property Protection

NFTs can also be used to protect intellectual property, such as copyrighted works or patented inventions. By using NFTs to establish ownership and authenticity, creators can protect their intellectual property and prevent unauthorized use.

7. Supply Chain Management

NFTs could also be used for supply chain management, which would help ensure the authenticity and traceability of goods. By using NFTs to track the movement of goods from production to consumption, companies could more easily prevent counterfeiting and ensure that goods are ethically sourced.

8. Ticketing and Event Management

NFTs could be used to create verifiable digital tickets for events, such as concerts or sports games. By using NFTs to represent tickets, event organizers could more easily prevent fraud and ensure that attendees have a seamless experience.

9. Education

NFTs could also be used in education, by providing a way to track the authenticity and ownership of digital credentials, such as diplomas or certificates. This would help prevent fraud and make it easier for people to verify their educational achievements.

10. Personal Finance

NFTs could have applications in personal finance, by providing a way to track the ownership and authenticity of assets such as stocks, bonds, or cryptocurrencies. This would help prevent fraud and make it easier for individuals to manage their investments.

11. Healthcare

NFTs could also be used in healthcare, by providing a way to track the ownership and authenticity of medical records and prescriptions. This would help ensure that patients receive the correct treatments and prevent fraud.

12. Social Media

Finally, NFTs could have applications in social media, by providing a way to verify the authenticity and ownership of digital content shared on social platforms. This would help prevent the spread of fake news and misinformation, and make it easier for creators to monetize their content.

Conclusion

The rise of NFT technology is set to have a profound impact on daily tech. From digital ownership to gaming to real estate and identity verification, NFTs are poised to become a ubiquitous part of our digital lives.

What is blockchain?

A blockchain is a growing list of records, called blocks, that are linked together using cryptography. Each block contains a cryptographic hash of the previous block, a timestamp, and transaction data (generally represented as a Merkle tree). The timestamp proves that the transaction data existed when the block was published in order to get into its hash. As blocks each contain information about the block previous to it, they form a chain, with each additional block reinforcing the ones before it. Therefore, blockchains are resistant to modification of their data because once recorded, the data in any given block cannot be altered retroactively without altering all subsequent blocks.

Learn more

What is a cryptocurrency?

A cryptocurrency is any form of currency that exists digitally or virtually and uses cryptography to secure transactions. Cryptocurrencies don’t have a central issuing or regulating authority, instead, they use a decentralized system to record transactions and issue new units.

Here is how you can buy your first cryptocurrency

What Are Crypto Tokens?

The term token refers to a special virtual currency token or how cryptocurrencies are denominated. These tokens represent fungible and tradable assets or utilities that reside on their own blockchains. Crypto tokens are often used to fundraise for crowd sales, but they can also serve as a substitute for other things. These tokens are usually created, distributed, sold, and circulated through the standard initial coin offering (ICO) process, which involves a crowdfunding exercise to fund project development.

What is a smart contract?

A smart contract is a computer program or a transaction protocol that is intended to automatically execute, control, or document legally relevant events and actions according to the terms of a contract or an agreement. The objectives of smart contracts are the reduction of the need for trusted intermediates, arbitrations, and enforcement costs, fraud losses, as well as the reduction of malicious and accidental exceptions.

Learn more.

What is an NFT?

A non-fungible token (NFT) is a unique and non-interchangeable unit of data stored on a digital ledger (blockchain). NFTs can be associated with reproducible digital files such as photos, videos, and audio. NFTs use a digital ledger to provide a public certificate of authenticity or proof of ownership, but it does not restrict the sharing or copying of the underlying digital file. The lack of interchangeability (fungibility) distinguishes NFTs from blockchain cryptocurrencies, such as Bitcoin.

Learn more.

What is Web 3?

Web3, also known as Web 3.0, is an idea for a new iteration of the Internet that is based on public blockchains. The term was coined in 2014 by Ethereum co-founder Gavin Wood, and the idea gained interest in 2020 and 2021 from cryptocurrency enthusiasts, large technology companies, and venture capitalist firms.

Learn more.

What is DeFi?

Decentralized finance (commonly referred to as DeFi) is a blockchain-based form of finance that does not rely on central financial intermediaries such as brokerages, exchanges, or banks to offer traditional financial instruments, and instead utilizes smart contracts on blockchains, the most common being Ethereum.[citation needed] DeFi platforms allow people to lend or borrow funds from others, speculate on price movements on a range of assets using derivatives, trade cryptocurrencies, insure against risks, and earn interest in savings-like accounts. DeFi uses a layered architecture and highly composable building blocks.

Learn more.

What is GameFi?

GameFi also known as Game Finance, is the gamification of financial systems to create profit from playing play-to-earn crypto games.

Learn more.

What is DeIn?

Decentralized Insurance also known as DeIn or DeFi Insurance is where rather than purchasing insurance coverage from one specific individual or company, you can purchase coverage from a decentralized pool of insurance providers. Interestingly, any individual or company can work as an insurance provider by locking up capital in the decentralized capital pool. The individual or company providing capital to the pool can qualify as a liquidity provider.

Learn more.

Conclusion

I am a follower of the above simply because of how much disruption of traditional methods blockchain can create. In one way or the other blockchain technology is the future of processing. Currently, as of writing this post, there are Decentralized Supply Chain Management, Decentralized Full Proof Voting, Decentralized Real Estate, Decentralized Data Protection, and Decentralized Loyalty + Royalty Programs.

Learn more here: The Importance and Benefits of Blockchain Technology

Blockchain increases trust, security, transparency, and the traceability of data shared across a business network — and delivers cost savings with new efficiencies. Blockchain for business uses a shared and immutable ledger that can only be accessed by members with permission.

One use for cryptocurrency that is often overlooked is online gambling. Due to the decentralized nature of digital currencies, there are no central authorities or banks that can block your transactions.

In addition, many online casinos accept cryptocurrency as a form of payment, which gives you access to exclusive bonuses and promotions. It’s a fast and easy way to play an online casino game without the hassle of bank transfers or lengthy registration processes.

Invest in Tech Start-Ups

Another way to use your cryptocurrency is to invest in tech startups. Many startups are beginning to accept digital currencies as a form of investment, which means you can get in on the ground floor of some potentially groundbreaking technologies.

Not only that but investing in tech startups is a great way to support emerging businesses and help them grow. And with tech start-ups, the potential for return on your investment is huge.

Take for example Amazon, early investors of their stock would have returns of over $200,000 on an initial investment of $1000.

Go to Space with Virgin Galactic

Virgin Galactic, the world’s first commercial spaceflight company, accepts Bitcoin as payment for their trips to space and has done since 2013. That’s right, you can book a trip to space with your cryptocurrency.

While the price of a ticket currently stands at $250,000, it is sure to go up as demand increases. If you’ve ever wanted to go to space, now is your chance.

Pay for Everyday Expenses with Cryptocurrency

One of the most practical uses for cryptocurrency is paying for everyday expenses. With Bitcoin, you can quickly and easily pay for goods and services online without the hassle of traditional payment methods.

Plus, many businesses are beginning to accept crypto as a form of payment, such as Whole Foods, PayPal, Microsoft, and Starbucks.

Travel the World

Another great way to use your cryptocurrency is to travel the world with crypto. With cryptocurrency, you can book flights, hotels, and rental cars without the need for a bank account or credit card.

Plus, there are no foreign transaction fees when you use crypto to travel. That means you can save money and enjoy your trip without worrying about hidden fees.

Get an Education

Last but not least, you can use even use cryptocurrency to get an education. More and more online courses and programs are beginning to accept digital currencies as payment.

So if you’re looking to learn new skills, change your career or expand your knowledge, you can do so with the help of cryptocurrency.

So there you have it, six innovative uses for your cryptocurrency. Whether you want to use it to gamble, invest, or pay for everyday expenses, there are plenty of ways to make the most out of your digital currency.

Invest and Grow Your Money

Thanks to features such as Stacking, Liquidity Farming, Savings, and Loaning, you can earn interest on any cryptocurrency you are holding and earn up to 100% annual yield per annum. With cryptocurrency, it is possible to double your money within a year just by stacking add that to the fact that cryptocurrencies are volatile and can easily increase in valuation and you can get good money.

1. Verasity

2. Green Life Energy

3. Veechain

4. Decentraland

5. Ethereum

To buy any of these cryptocurrencies I suggest you use Binance.

Binance is a cryptocurrency exchange that is currently the largest exchange in the world in terms of the daily trading volume of cryptocurrencies.

Register by visiting this link: Binance

Photo by Ferhat Deniz Fors on Unsplash

NFT Generator

1. Bitcoin(BTC): As you know from a previous article, I hold some bitcoin. In 2022 I’ll be buying more with the goal of reaching 3 BTC in my portfolio.
2. Ethereum(ETH): Same as Bitcoin. The goal is to reach 10 ETH
3. Solana(SOL): Named the Ethereum killer. Lots of interesting projects are being developed using its blockchain.
4. Ripple(XRP)
5. Stellar
6. Decentraland(MANA)
7. Enjin Coin(ENJ)
8. The Sandbox(SAND)
9. Star Atlas(ATLAS)
10. Metaverse Index Token(MVI): This is not really a cryptocurrency but definitely worth checking out. It contains all/most of the metaverse tokens.
11. Polkadot(DOT): Has potential
12. Chainlink
13. Polygon(MATIC): A must-buy for me. Amazing projects built and more coming.
14. Pancake Swap(CAKE)
15. Uniswap
16. Illuvium
17. Moonriver
18. Loopring
19. Cardano(ADA): I have some and want more
20. Veechain
21. Shiba Inu(SHIB)
22. Dogecoin(DOGE)

NFT domains are domains that live on a public blockchain and give users complete ownership of their stored data. The main benefits to owning one are simplifying crypto transactions by replacing long complicated wallet addresses with the domain name and easily creating and hosting websites on web3.

What is the Ethereum Naming Service?

Ethereum Name Service is a blockchain protocol for users who want to have their own unique and memorable usernames over Web 3.0. Using the service allows you to nail all of your wallet addresses and decentralized websites to a single unique name. For instance, “alice.ETH.” This makes you more recognizable and easier to find across the decentralized space.

The service also allows you to use your domain name to create a decentralized website or to link an existing domain to your Ethereum (CCC:ETH-USD) wallet.

How to buy an “.ETH” domain?

How to Register Your First “.ETH” Domain

1. Go to https://app.ens.domains
2. Use the search bar to find a domain you want.
3. Tap on your chosen name to see an estimate of how much it will cost.
4. Get a free Ethereum wallet. I recommend Rainbow or MetaMask
5. Buy enough Ethereum using the wallet to cover the cost of your domain (add a little extra just in case)
6. Go back to the ENS domain website, click the menu in the top right and connect your new wallet.
7. Once connected, you’ll be able to click the blue “Request to Register” button on the domain.
8. Open your wallet & confirm the first transaction request. The transaction may take a few minutes, and then you’ll see a 1-minute countdown begin on the ENS site.
9. After the 1-minute countdown is done, you’ll be able to finalize your registration. Click the register button to initiate a transaction in your wallet.
10. Confirm the transaction in your wallet, then wait for it to complete.
11. You now have your very own ENS name! Congratulations!
12. Lastly, go to your account on the ENS website and set your reverse record to the new name you’ve purchased.

You can now use your “.ETH” address to send/receive Ethereum and other crypto assets. In the future, it’ll be used for more things too!

If you’d like to learn more, go check out the previous article here.

First,

What is an NFT/WEB3 Domain?

NFT domains are domains that live on a public blockchain and give users complete ownership of their stored data. The main benefits to owning one are simplifying crypto transactions by replacing long complicated wallet addresses with the domain name and easily creating and hosting websites on web3.

If you haven’t heard yet, NFT domains are the newest kids on the block(chain) and they have the power to change what we know of as the internet today. But before we dive into all that goodness, let’s take a step back to run through what traditional domains are and define NFTs — that way, you can truly understand the superpowers behind NFT domains.

Typically, you interact with a traditional domain when you type the address (like Twitter.com) into your browser. But did you know traditional domains were originally built to do so much more on the internet? Think of functionalities like email and payments. Hard to believe, right?

But as we can see, traditional domains haven’t progressed much beyond displaying websites. This might be because traditional domains have been controlled by centralized servers since the internet was created. This made it much more difficult for developers to innovate on top of that technology.

Luckily for us, the tech that powers NFT domains (a.k.a. blockchains) opens up a whole new realm of possibilities for us on the web!

What is an NFT?

NFT (non-fungible token): a digital certificate of authenticity used to assign and verify ownership of a unique digital or physical asset. Unlike fungible tokens, NFTs are not interchangeable with one another.

How Do They Work?

Great question! NFT domains are essentially a suite of smart contracts, which is a fancy term to describe software written on a public blockchain. This means that instead of one company controlling your data online, the power is transferred back to you as the user. And by being built on blockchains, anyone can look at the data stored there, creating a level of ultimate openness and transparency.

On top of that, there is the benefit of enhanced security — only you hold the power to make updates to your NFT domain, which minimizes worries about servers getting hacked or domains getting stolen.

All that to say, blockchain superpowers give everyone a safer way to surf the internet while also giving control back to you over what gets shared and where it gets shared.

Cool, I’m starting to get the power of blockchain but am still not 100% sure what I can DO with an NFT domain?

Uses of an NFT Domain?

1. Simplify crypto transactions by replacing all your complicated wallet addresses with your domain name as your username.
2. Use your domain to receive 275+ coins and tokens across multiple blockchain networks.
3. Login to apps with your domain name as your universal web3 username.
4. Unlike traditional domains, fully own and control your domain. You buy it once, you own it for life!
5. Easily create and host websites, ranging from personal websites to NFT galleries.

Reasons to get one?

#1) Zero Renewal Fees

Unlike traditional .com domains, you fully own and control your Unstoppable Domain, so you never have to pay renewal fees. Ever. You buy it once, you own it for life!

#2) Seamless Crypto Payments

No longer fear your payments getting lost in the ether (pun intended). Instead of copy and pasting your wallet address (which is similar to a bank account number and can look like: 0xc6b0562605d35ee710138402b878ffe6f2e23807), use an Unstoppable Domain as your one-stop-shop username to store all of your wallet addresses for sending and receiving crypto.

#3) Multi-Chain Compatibility

Your NFT domain comes with the superpower to receive over 275 supported coins and tokens, with many more on the way! Now you can navigate crypto transactions with ease, regardless of the blockchain network. Browse the complete list of supported cryptocurrencies here.

#4) Decentralized Websites

Want to create a website on the decentralized web? Create one in just a few clicks with our pre-made templates. Own any NFTs? Create a gallery-style website to show off your favorite collectibles as your collection grows. We’ll be adding more features and templates in the future, so stay tuned here.

#5) Own Your Identity on Web3

As the world shifts to web3, it’ll be more important than ever to own your part of the new internet. By owning an Unstoppable Domain, you’ll not only help progress the digital world, you’ll ensure your identity is secured for the next wave of technology.

How to get one?

1. To buy one visit this link and follow the prompts: Register for Unstoppable Domains.

Alien Worlds

In this game, players join an alien universe consisting of several planets where they must fight for scarce resources and mine the game’s native cryptocurrency, trillium (TLM). Players can also battle each other, go on quests and earn additional income by renting out their land to others.

Alien Worlds was the first game to break through 100,000 users and currently boasts over 2.5 million players. This was, in part, due to its free-to-play nature and the fact its metaverse world spans multiple blockchains including WAX, Ethereum, and Binance Smart Chain.

• Native crypto token: trilium (TLM)
• Blockchains: Native WAX blockchain, but also runs off Ethereum and Binance Smart Chain (BSC)
• Monthly user base: 1,000,000
• The initial investment required: You are required to buy NFT game cards such as land in order to mine.

CryptoBlades

CryptoBlades is a web-based role-playing game that emulates traditional games like Skyrim or Dark Souls. Players can battle monsters or complete in-game raids to earn SKILL tokens. To help with battles, players can craft weapons to build an advantage over their opponents or boost their power. These items can then be traded in an open marketplace.

The gameplay itself is straightforward. There are four main components – fire, earth, lightning, and water – allocated to each character, weapon, attribute, and enemy. Each component will have its strengths and weaknesses, which players must then utilize and build strategies to beat their opponents.

• Native crypto token: cryptoblades (SKILL)
• Blockchain: Binance Smart Chain
• Monthly user base: 510,000
• The initial investment required: Users will need to purchase around 0.2 BNB to play and pay for transaction fees in-game.

Axie Infinity

A Pokemon-inspired universe where you can buy, take care of, breed, and trade digital monsters called “Axies.” Axie Infinity runs off its own specifically built sidechain so that it can optimize gameplay and scale effectively.

The game has a high earning potential but requires high involvement to breed, care for and trade rare or unique Axies. These monsters can battle each other to earn SLP tokens or be sent on quests for resource farming.

• Native token: axie infinity (AXS) and smooth love potion (SLP)
• Blockchain: Ethereum
• Monthly user base: 308,000
• The initial investment required: You need to purchase three Axies from the in-house marketplace before you can play.

Upland

Upland is an NFT metaverse made to parallel our world where players can buy, sell and trade properties linked to real-world addresses. Users can then play, run businesses and connect with other Uplanders across the world.

Players have an Upland avatar that can roam throughout a city to look for available properties for purchase. Or they can visit other players’ properties. To earn special UPX rewards and increase a property’s earnings, users can complete a Collection. This is similar to Monopoly; the more properties you have of a single color, the more valuable they are.

• Native token: upland (UPX)
• Blockchain: EOS
• Monthly user base: 155,000
• The initial investment required: To open an account, you need to first purchase a virtual property.

Splinterlands

This is a digital collectible card game where players build up a collection of cards with various abilities and stats and use them to battle other players. Each card is represented by an NFT and is tradable or can be exchanged on the open market. The game relies on one-on-one fighting where players are randomly assigned battle parameters.

Both players then have a limited amount of time to build a deck of cards they will use to fight each other.

• Native token: dark energy crystals (DEC) and splintershards (SPS), which is the governance token
• Blockchain: Hive blockchain
• Monthly user base: 120,000
• The initial investment required: You must buy the summoner’s spellbook for $10 if you want to unlock the play-to-earn features and receive DEC tokens.

Source: CoinDesk

Unlike many traditional online games, which operate on a “pay-to-win” model and allow players to purchase upgrades in order to gain an advantage over others, GameFi introduces a “play-to-earn” model. This concept involves giving players financial incentives to play and progress through games. In some cases, this has allowed gamers to earn a full-time income by doing so.

How it works

All objects in these types of games are expressed as NFTs – digital tokens used to prove ownership of scarce intangible items. Think of things like plots of land, avatars, costumes, weapons, and gold bars. Once players find and accrue these items through gameplay, many have the option to trade these with others in digital marketplaces for different NFTs or sell them in exchange for cryptocurrency.

Depending on which game is played, users can increase their earning potential by dedicating time leveling up and improving their characters, creating monetized structures on their land that other gamers pay to use, or by competing against others in tournaments.

In order to keep track of what every player owns, all NFTs and cryptocurrency transaction data are stored on a public blockchain. This is a type of distributed, digital record-keeping technology maintained by a global network of computers. Leveraging this technology in gaming provides a number of benefits, including:

• Players can easily prove ownership of their in-game items.
• There is no single point of failure, meaning players will no longer be at risk of losing track of what they own if the underlying gaming company experiences technical issues.
• Items accrued during gameplay cannot be counterfeited, removed, or destroyed.
• Game-native cryptocurrencies can be sent and received without the need for intermediary settlement, clearing, or custody.

Some games also include DeFi elements such as staking, where players can lock away certain tokens in order to earn annual interest, and other rewards they can save to purchase other in-game items or unlock new content.

What you need to play

In order to take part in any of these play-to-earn games, users will need to do the following:

• Create a cryptocurrency wallet: To store their virtual currency and NFTs, and make in-game transactions. Which wallet you need will depend on which blockchain the game was built upon. For example, MetaMask – an Ethereum-based crypto wallet service – will work with any GameFi game built on Ethereum.
• Purchase starter items: All GameFi games are free to download. However, many require players to first purchase characters, native crypto tokens, decks of cards, or upgrades in order to begin.
• Pre-funded crypto wallet: You will need to pre-fund your crypto wallet with a particular cryptocurrency in order to purchase starter items and proceed. Cryptoblades, for example, requires users to download MetaMask, purchase Binance coin (BNB) and exchange it for the game’s native cryptocurrency, SKILL.

Where did GameFi come from?

The emergence of GameFi comes from a combination of factors that dates back to 2017 and the emergence of the NFT phenomenon CryptoKitties. The digital collectibles economy proved a viral success, with CryptoKitties amassing over 14,914 users a day at its peak. CryptoPunks, a collection of 10,000 pixelated NFT characters also built on Ethereum, enjoyed similar success, surpassing $1 billion in sales over 2018.

Unfortunately, the success of these NFTs showed both the good and bad sides of the state of blockchain technology at the time. Games like CryptoKitties caused heavy congestion on the Ethereum network, leading to extreme spikes in transaction fees and much slower than normal transaction confirmation times. These technical issues highlighted a clear gap in the market for more efficient and scalable platforms that could handle the rising demand from online gamers and virtual asset collectors.

Since then, a number of new “Ethereum killer” blockchains have emerged that promise faster transaction speeds, greater scalability, and cheaper fees. These include the likes of Solana and Cardano, both of which have recently set new all-time highs as investors bet big on new dapp competitors.

The proliferation of decentralized finance (DeFi) platforms over 2020 was the next critical component enabling GameFi’s growth, introducing a range of blockchain-native financial platforms that run entirely using smart contracts. This provided the infrastructure for decentralized exchanges where in-game cryptocurrencies could be launched from and traded, as well as additional features like lending and staking.

In September 2020, Yearn.finance founder and DeFi developer Andre Conje tweeted about the gamification of monetary policies in a decentralized environment. He recognized the multiple benefits DeFi and NFTs could bring to the online gaming industry, and GameFi applications quickly started to form. Axie Infinity was one of the first play-to-earn games to take off in a big way, surpassing $1 billion in revenue on Aug. 9, 2021.

Coming Soon: Top GameFi Games

Source: CoinDesk

A typical way many try to make a return in crypto with little to no involvement is through buying and holding crypto – also known in the industry as “HODLing.” This means an investor is prepared to purchase a digital asset with the mindset that its price will hopefully rise significantly sometime in the future. Such investors are ready to go the distance as this long-term strategy might require them to hold their positions anywhere between six months to five years. Through the duration of this investment, an investor does not have to be proactive in the crypto market. They only need to buy the digital asset and store it in a secure wallet – preferably a non-custodial wallet.

• A wallet is a device or app where you can store a special key (private key) that gives access to your cryptocurrencies. The non-custodial variants let you store the private key in your personal devices, including a computer, mobile phone, or purpose-built wallet devices. With this, you have complete control over your private keys and, ultimately, your digital assets. By comparison, with a custodial wallet, a third party controls your private keys.

However, simply buying and holding a crypto asset for any length of time does not guarantee you will make a profit. In fact, it’s very possible you could lose money. As such, exclusively HODLing crypto cannot be considered a truly passive income generator.

Proof-of-stake (PoS) staking

Proof-of-stake is a type of blockchain consensus mechanism designed to allow distributed network participants to reach an agreement on new data entering the blockchain. Note that blockchains enable open and decentralized networks where participants contribute to governance and processes involved in validating transactions. This is critical because such a community-focused approach eliminates the need for central authorities like banks. In most cases, blockchains randomly pick participants, elevate them to the status of validators, and reward them for their efforts.

The systems used to pick validators vary from blockchain to blockchain. Some blockchain networks require users to deposit or commit their financial resources to the network. Here, the blockchain selects validators from a pool of users that have staked a specified sum of its native digital asset. In return, validators earn interest on the staked funds for contributing to the validity of the network. This validation mechanism is what is called proof-of-stake. It provides an opportunity for holders (those in it for the long haul) to generate passive income.

Knowing fully well that transaction validation might be technically tasking, you could opt for PoS blockchains that allow you to delegate your stakes to other participants who are ready to take up the technical requirements of staking. Understandably, the reward distributed to validators is slightly higher than that of a delegator. Some of the PoS blockchains you could consider are:

• Cardano
• Ethereum 2.0
• Polkadot
• Solana

For even more convenience, you could adopt one of the several staking services available today. With these platforms, you can deposit a fraction of the number of digital assets required by the blockchain. For example, you normally have to deposit a minimum of 32 ETH on the Ethereum 2.0 blockchain to become a validator. With a third-party Ethereum staking service, however, you could deposit as little as 5 ETH to start accruing interest.

Interest-bearing digital asset accounts

Holders can take advantage of interest-bearing crypto accounts to earn fixed interest on their idle digital assets. Think of this as putting money in an interest-earning bank account. The only difference is that this service supports only crypto deposits. Instead of holding digital assets in your wallets, you can deposit them in these accounts and receive daily, weekly, monthly or yearly earnings, depending on the predefined interest rates. Crypto service providers that offer such products include:

• Nexo
• Celsius Network
• SwissBorg
• BlockFi

Lending

Lending has become one of the most popular crypto services in both the centralized and decentralized segments of the crypto industry. As an investor, you can lend your digital assets to borrowers for a chance to earn interest. There are four main lending strategies you could opt for:

Peer-to-peer lending: Platforms that provide such services enable systems that allow users to set their terms, decide the amount they want to lend and the interest they intend to generate on loans. The platform matches lenders with borrowers, similar to how P2P (peer-to-peer) trading platforms match buyers and sellers. Such lending systems provide users with a certain degree of control when it comes to crypto lending. However, you have to deposit your digital asset on the lending platform’s custodial wallet beforehand.

Centralized lending: In this strategy, you rely solely on the lending infrastructure of third parties. Here, the interest rates are fixed, so are the lock-up periods. Like P2P lending, you have to transfer your crypto to the lending platform to start earning interest.

Decentralized or DeFi lending: This strategy allows users to execute lending services directly on the blockchain. Unlike the P2P and centralized lending strategies, there are no intermediaries involved in DeFi lending. Instead, lenders and borrowers interact with programmable and self-executing contracts (also known as smart contracts), which autonomously and periodically set interest rates.

Margin lending: Lastly, you could lend your crypto assets to traders interested in using borrowed funds to trade. These traders amplify their trading position with borrowed funds and repay the loans with interest. In this case, crypto exchanges do most of the work on your behalf. All you need to do is make your digital asset available.

Cloud mining

Unlike the proof-of-stake mechanism explained earlier, some blockchains, including Bitcoin, opt for a more computer-intensive approach where users need to prove the eligibility of their claim to become validators (more commonly called miners) by competing against each other to solve highly complex mathematical puzzles. This process is called crypto mining. Due to the competitiveness of this consensus mechanism, miners have to invest in powerful computers and pay exorbitant electricity bills.

Undoubtedly, this venture is time-consuming and technical. And so, investors often opt for an alternate approach called cloud mining. With this, you can pay third parties to take up the technical aspect of crypto mining on your behalf. In essence, you pay a platform that offers such services a lump sum to rent or buy mining machines from their mining facilities. After this first payment, you might have to pay a daily maintenance fee so that the cloud mining service provider can help you manage your mining rigs.

As exciting as this sounds, it comes with lots of risks. Cloud mining has been a subject of controversy ever since it became widely adopted. There have been several cases of scams due to the remote nature of this mining venture. Therefore, you should carry out due diligence before opting for this option.

Dividend-earning tokens

Certain tokens offer holders a fraction of the revenue of the company that issued them. All you need to do is hold the token, and you are automatically eligible to receive a certain percentage of the company’s revenue. The number of tokens you own determines the share of the revenue you would receive. An example of this is KuCoin Shares (KCS), where holders receive a daily share of transaction fees accrued by the KuCoin blockchain asset exchange. The amount received is proportional to the amount of KCS tokens each holder stakes.

Yield farming

Yield farming is another decentralized, or DeFi, method of earning passive crypto income. This is made possible by the dynamic operations of decentralized exchanges, which are basically trading platforms where users rely on the combination of smart contracts (programmable and self-executing computer contracts) and investors for the liquidity necessary to execute trades. Here, users do not trade against brokers or other traders. Instead, they trade against funds deposited by investors – known as liquidity providers – into special smart contracts known as liquidity pools. In turn, liquidity providers receive a proportional amount of trading fees from the pool.

To start earning passive income via this system you first have to take up the role of a liquidity provider (LP) on a DeFi exchange such as Uniswap, Aave, or PancakeSwap.

To start earning these fees, you have to deposit a specified ratio of two or more digital assets into a liquidity pool.

• For example, in order to provide liquidity to an ETH/USDT pool, you will need to deposit both ETH and USDT tokens into it.

Once you deposit liquidity, the decentralized exchange will transfer LP tokens representing your share of the total funds locked in the liquidity pool. You can then stake these LP tokens using supported decentralized lending platforms and earn additional interest. This strategy allows you to earn two separate interest rates from a single deposit.

The crypto passive income opportunities listed in this guide are just some of the many ways you can make extra profit with your idle digital assets. Note that none of these opportunities are risk-free. Hence, it is advisable to carry out your own research, seek professional guidance from a qualified financial advisor, and determine what best suits your investment goals.

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Source: CoinDesk

The original concept behind the invention of blockchain technology is still a great application. Money transfers using blockchain can be less expensive and faster than using existing money transfer services. This is especially true of cross-border transactions, which are often slow and expensive. Even in the modern U.S. financial system, money transfers between accounts can take days, while a blockchain transaction takes minutes.

2. Financial exchanges

Many companies have popped up over the past few years offering decentralized cryptocurrency exchanges. Using blockchain for exchanges allows for faster and less expensive transactions. Moreover, a decentralized exchange doesn’t require investors to deposit their assets with the centralized authority, which means they maintain greater control and security. While blockchain-based exchanges primarily deal in cryptocurrency, the concept could be applied to more traditional investments as well.

3. Lending

Lenders can use blockchain to execute collateralized loans through smart contracts. Smart contracts built on the blockchain allow certain events to automatically trigger things like a service payment, a margin call, full repayment of the loan, and release of collateral. As a result, loan processing is faster and less expensive, and lenders can offer better rates.

4. Insurance

Using smart contracts on a blockchain can provide greater transparency for customers and insurance providers. Recording all claims on a blockchain would keep customers from making duplicate claims for the same event. Furthermore, using smart contracts can speed up the process for claimants to receive payments.

5. Real estate

Real estate transactions require a ton of paperwork to verify financial information and ownership and then transfer deeds and titles to new owners. Using blockchain technology to record real estate transactions can provide a more secure and accessible means of verifying and transferring ownership. That can speed up transactions, reduce paperwork, and save money.

6. Secure personal information

Keeping data such as your Social Security number, date of birth, and other identifying information on a public ledger (e.g., a blockchain) may actually be more secure than current systems more susceptible to hacks. Blockchain technology can be used to secure access to identifying information while improving access for those who need it in industries such as travel, healthcare, finance, and education.

7. Voting

If personally identifiable information is held on a blockchain, that puts us just one step away from also being able to vote using blockchain technology. Using blockchain technology can make sure that nobody votes twice, only eligible voters are able to vote, and votes cannot be tampered with. What’s more, it can increase access to voting by making it as simple as pressing a few buttons on your smartphone. At the same time, the cost of running an election would substantially decrease.

8. Government benefits

Another way to use digital identities stored on a blockchain is for the administration of government benefits such as welfare programs, Social Security, and Medicare. Using blockchain technology could reduce fraud and the costs of operations. Meanwhile, beneficiaries can receive funds more quickly through digital disbursement on the blockchain.

9. Securely share medical information

Keeping medical records on a blockchain can allow doctors and medical professionals to obtain accurate and up-to-date information on their patients. That can ensure that patients seeing multiple doctors get the best care possible. It can also speed up the system for pulling medical records, allowing for more timely treatment in some cases. And, if insurance information is held in the database, doctors can easily verify whether a patient is insured and their treatment is covered.

10. Artist royalties

Using blockchain technology to track music and film files distributed over the internet can make sure that artists are paid for their work. Since blockchain technology was invented to ensure the same file doesn’t exist in more than one place, it can be used to help reduce piracy. What’s more, using a blockchain to track playbacks on streaming services and a smart contract to distribute payments can provide greater transparency and the assurance that artists receive the money they’re owed.

11. Non-fungible tokens

Non-fungible tokens, or NFTs, are commonly thought of as ways to own the rights to digital art. Since the blockchain prevents data from existing in two places, putting an NFT on the blockchain guarantees that only a single copy of a piece of digital art exists. That can make it like investing in physical art but without the drawbacks of storage and maintenance.

NFTs can have varied applications, and ultimately they’re a way to convey ownership of anything that can be represented by data. That could be the deed to a house, the broadcast rights to a video, or an event ticket. Anything remotely unique could be an NFT.

12. Logistics and supply chain tracking

Using blockchain technology to track items as they move through a logistics or supply chain network can provide several advantages. First of all, it provides greater ease of communication between partners since data is available on a secure public ledger. Second, it provides greater security and data integrity since the data on the blockchain can’t be altered. That means logistics and supply chain partners can work together more easily with greater trust that the data they’ve provided is accurate and up to date.

13. Secure Internet of Things networks

The Internet of Things (IoT) is making our lives easier, but it’s also opening the door for nefarious actors to access our data or take control of important systems. Blockchain technology can provide greater security by storing passwords and other data on a decentralized network instead of a centralized server. Additionally, it offers protection against data tampering since a blockchain is practically immutable.

14. Data storage

Adding blockchain technology to a data storage solution can provide greater security and integrity. Since data can be stored in a decentralized manner, it will be more difficult to hack into and wipe out all the data on the network, whereas a centralized data storage provider may only have a few points of redundancy. It also means greater access to data since access isn’t necessarily reliant on the operations of a single company. In some cases, using blockchain for data storage may also be less expensive.

15. Gambling

The gambling industry can use blockchain to provide several benefits to players. One of the biggest benefits of operating a casino on the blockchain is the transparency it provides to potential gamblers. Since every transaction is recorded on the blockchain, bettors can see that the games are fair and the casino pays out. Furthermore, by using blockchain, there’s no need to provide personal information, including a bank account, which may be a hurdle for some would-be gamblers. It also provides a workaround for regulatory restrictions since players can gamble anonymously and the decentralized network isn’t susceptible to a government shutdown.

Blockchain is in its infancy

Blockchain technology has only been around for a dozen years, and businesses are still exploring new ways to apply the technology to support their operations. With the growing amount of digital data used in our lives, there’s a growing need for the data security, access, transparency, and integrity blockchain can provide.

Source: The Motley Fool

More specifically proof-of-work solves the “double-spending problem,” which is trickier to solve without a leader in charge. If users can double-spend their coins, this inflates the overall supply, debasing everyone else’s coins and making the currency unpredictable and worthless.

Double-spending is an issue for online transactions because digital actions are very easy to replicate, which is what makes it trivial to copy and paste a file or send an email to more than one person.

Proof-of-work makes doubling digital money very, very hard. It’s much what it sounds like “proof” that someone has done a significant amount of computations.

How proof-of-work works

Bitcoin is a blockchain, which is a shared ledger that contains a history of every Bitcoin transaction that ever took place. This blockchain, as the name suggests, is composed of blocks. Each block has the most recent transactions stored in it.

Proof-of-work is a necessary part of adding new blocks to the Bitcoin blockchain. Blocks are summoned to life by miners, the players in the ecosystem who execute proof-of-work**.** A new block is accepted by the network each time a miner comes up with a new winning proof-of-work, which happens roughly every 10 minutes.

Finding the winning proof-of-work is so difficult the only way to provide the work miners need to win bitcoin is with expensive, specialized computers. Miners will earn bitcoin if they guess a matching computation. The more computations they churn out, the more bitcoin they are likely to earn.

What computations are the miners making exactly? In Bitcoin, miners spit out the so-called “hash,” which turns an input into a random-looking string of letters and numbers.

The goal of the miners is to create a hash matching Bitcoin’s current “target.” They must create a hash with enough zeroes in front. The probability of getting several zeros in a row is very low. But miners across the world are making trillions of such computations a second, so it takes them about 10 minutes on average to hit this target.

Whoever reaches the goal first wins a batch of the bitcoin cryptocurrency. Then the Bitcoin protocol creates a new value that miners must hash, and miners start the race for finding the winning proof-of-work all over again.

Source: CoinDesk

To put it simply: Proof of stake is basically a process used to validate crypto transactions through staking.

Both proof-of-work and proof-of-stake are what are called “consensus mechanisms,” the method by which a blockchain maintains its integrity. Consensus is what addresses the “double spending” problem of digital money. If there were any way the user of a cryptocurrency could spend their coins more than once, it would undermine the entire system. The currency would be worthless.

This is a tricky problem, especially with online currencies that have no central authority, such as a bank or a government, to keep track of how much money each person has, how they’re spending it, and whom they’re paying.

The Bitcoin network was the first to solve this problem with proof-of-work. Proof-of-stake has emerged as a possible alternative that some researchers think is both more energy-efficient and more secure, though there’s debate about this.

In PoS, the nodes of the network commit “stakes” of tokens for a set period of time in exchange for a chance at being selected to produce the next block of transactions. The node that’s chosen - referred to as the “validator” - will receive the block rewards in the form of the native token of the network.

How does proof of stake work?

To answer the question “what is proof of stake,” we must first define what it means for blockchains to achieve consensus.

Blockchain is a decentralized distributed ledger of transactions. Because there’s no single server controlling the network, there has to be some way for everyone to agree on which transactions are valid. Otherwise, it would be possible for people to create fake transactions.

The servers in a blockchain are called “nodes.” Nodes process transactions. Some nodes have the ability to add blocks of transactions to the chain, maintaining and growing the ledger. In Proof of Work (PoW) networks (which we’ll cover later) like Bitcoin, these nodes are referred to as “miners.”

For PoS, nodes commit funds to the network - a process known as “staking” - for a chance to be chosen as the next block writer instead of nodes competing with each other to be rewarded for solving cryptographic puzzles, as is the case with PoW.

In PoS networks, nodes that can add blocks are called “validators,” which are individuals who are responsible for verifying transactions on a blockchain. Each validator has a chance at being selected to write the next block and receive its rewards.

It’s kind of like a lottery - the larger the stake of tokens committed, the higher odds that node has of being chosen. “The choice of the next block writer, the next validator, is a pseudo-random process that’s determined by the size of the stake that you as the user have dedicated to the network,” says Daniel Gould, CEO, and co-founder of Nodamatics.

PoS can improve upon some of the biggest problems presented by PoW, namely:

Energy consumption: PoS requires less energy than PoW.

Transaction throughput: PoS networks can handle more transactions than PoW.

Scalability: PoS networks can scale more easily than PoW networks.

A quick tip: For a deeper understanding of PoW and how it first made digital currency possible, read the Satoshi Nakamoto white paper.

Which cryptocurrencies use proof of stake?

A growing number of the most popular cryptocurrencies use some variation of the PoS protocol. Here’s a partial list:

• Cosmos (ATOM)
• Cardano (ADA)
• Polkadot (DOT)
• Solana (SOL)
• VeChain (VET)
• Tezos (XTZ)

These networks aim to accomplish a variety of different tasks.

Cardano and Solana are focused on providing smart contract functionality, much like Ethereum.

Cosmos helps different blockchain communicate with each other.

Tezos is designed to allow for the creation and trading of security tokens.

Because there is no “mining” involved in PoS, PoS networks often start with a “pre-mine,” where the entire supply of tokens is brought into existence at once.

SUMMARY

• Proof of Stake (PoS) is a consensus protocol - or a set of rules or system of agreement - that’s used to validate cryptocurrency transactions.
• PoS redefines how blockchain nodes agree on which record of crypto transactions is accurate and improves upon the Proof of Work (PoW) system.
• PoS requires validators to stake tokens to validate transactions, while PoW requires miners to solve a cryptographic puzzle.

The code and the agreements contained therein exist across a distributed, decentralized blockchain network. The code controls the execution, and transactions are trackable and irreversible.

Smart contracts permit trusted transactions and agreements to be carried out among disparate, anonymous parties without the need for a central authority, legal system, or external enforcement mechanism.

Smart contracts are made possible by blockchains, a network of computers that work together to enforce rules on the network without requiring the help of an intermediary.

How smart contracts work

Smart contracts work by following simple “if/when…then…” statements that are written into code on a blockchain. A network of computers executes the actions when predetermined conditions have been met and verified. These actions could include releasing funds to the appropriate parties, registering a vehicle, sending notifications, or issuing a ticket. The blockchain is then updated when the transaction is completed. That means the transaction cannot be changed, and only parties who have been granted permission can see the results.

Within a smart contract, there can be as many stipulations as needed to satisfy the participants that the task will be completed satisfactorily. To establish the terms, participants must determine how transactions and their data are represented on the blockchain, agree on the “if/when…then…” rules that govern those transactions, explore all possible exceptions, and define a framework for resolving disputes.

Then the smart contract can be programmed by a developer – although increasingly, organizations that use blockchain for business provide templates, web interfaces, and other online tools to simplify structuring smart contracts.

With conventional contracts, a document outlines the terms of a relationship between two parties, which is enforceable by law. If one Party A violates the terms, Party B can take Party A to court for not complying with the agreement. A smart contract fortifies such agreements in code so the rules are automatically enforced without courts (or any third party) getting involved.

Benefits of smart contracts

• Speed, efficiency, and accuracy: Once a condition is met, the contract is executed immediately. Because smart contracts are digital and automated, there’s no paperwork to process and no time spent reconciling errors that often result from manually filling in documents.
• Trust and transparency: Because there’s no third party involved, and because encrypted records of transactions are shared across participants, there’s no need to question whether information has been altered for personal benefit.
• Security: Blockchain transaction records are encrypted, which makes them very hard to hack. Moreover, because each record is connected to the previous and subsequent records on a distributed ledger, hackers would have to alter the entire chain to change a single record.
• Savings: Smart contracts remove the need for intermediaries to handle transactions and, by extension, their associated time delays and fees.

What can smart contracts be used for?

Some common ways of using smart contracts are:

• Multisignature accounts: Funds can only be spent when a required percentage of people agree.
• Encoding financial agreements: Manage agreements between users. Say, if one person buys insurance from an insurance company, the rules of when the insurance can be redeemed can be programmed into a smart contract.
• Agreements based on the outside world: Pull in data from the outside world (financial, political, or whatever) with the help of oracles.
• Provide the third party: Similar to how a software library works, smart contracts can work with other smart contracts in a chain.
• Storage: Store information about an application, such as domain registration information or membership records. Storage in a blockchain like Ethereum is unique in that the data is immutable and can’t be erased.

Examples of blockchain platforms supporting smart contracts

• Bitcoin: Provides a Turing-incomplete script language that allows the creation of custom smart contracts on top of Bitcoin like multisignature accounts, payment channels, escrows, time locks, atomic cross-chain trading, oracles, or multi-party lottery with no operator.
• Cardano: A blockchain platform for smart contracts, using proof of stake
• Ethereum: Implements a Turing-complete language on its blockchain, a prominent smart contract framework.
• EOS.IO: A blockchain platform for smart contracts
• Tezos: A blockchain platform modifying its own set of rules with minimal disruption to the network through an on-chain governance model

What is an NFT?

An NFT is a digital asset that represents real-world objects like art, music, in-game items, and videos. They are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying software as many cryptos.

Although they’ve been around since 2014, NFTs are gaining notoriety now because they are becoming an increasingly popular way to buy and sell digital artwork. A staggering $174 million has been spent on NFTs since November 2017.

NFTs are also generally one of a kind, or at least one of a very limited run, and have unique identifying codes. “Essentially, NFTs create digital scarcity,” says Arry Yu, chair of the Washington Technology Industry Association Cascadia Blockchain Council and managing director of Yellow Umbrella Ventures.

This stands in stark contrast to most digital creations, which are almost always infinite in supply. Hypothetically, cutting off the supply should raise the value of a given asset, assuming it’s in demand.

But many NFTs, at least in these early days, have been digital creations that already exist in some form elsewhere, like iconic video clips from NBA games or securitized versions of digital art that’s already floating around on Instagram.

For instance, famous digital artist Mike Winklemann, better known as “Beeple” crafted a composite of 5,000 daily drawings to create perhaps the most famous NFT of the moment, “EVERYDAYS: The First 5000 Days,” which sold at Christie’s for a record-breaking $69.3 million.

Anyone can view the individual images—or even the entire collage of images online for free. So why are people willing to spend millions on something they could easily screenshot or download?

Because an NFT allows the buyer to own the original item. Not only that, it contains built-in authentication, which serves as proof of ownership. Collectors value those “digital bragging rights” almost more than the item itself.

How Is an NFT Different from Cryptocurrency?

NFT stands for non-fungible token. It’s generally built using the same kind of programming as cryptocurrency, like Bitcoin or Ethereum, but that’s where the similarity ends.

Physical money and cryptocurrencies are “fungible,” meaning they can be traded or exchanged for one another. They’re also equal in value—one dollar is always worth another dollar; one Bitcoin is always equal to another Bitcoin. Crypto’s fungibility makes it a trusted means of conducting transactions on the blockchain.

NFTs are different. Each has a digital signature that makes it impossible for NFTs to be exchanged for or equal to one another (hence, non-fungible). One NBA Top Shot clip, for example, is not equal to EVERYDAYS simply because they’re both NFTs. (One NBA Top Shot clip isn’t even necessarily equal to another NBA Top Shot clip, for that matter.)

How Does an NFT Work?

NFTs exist on a blockchain, which is a distributed public ledger that records transactions. You’re probably most familiar with blockchain as the underlying process that makes cryptocurrencies possible.

Specifically, NFTs are typically held on the Ethereum blockchain, although other blockchains support them as well.

An NFT is created, or “minted” from digital objects that represent both tangible and intangible items, including:

• Art

• GIFs

• Videos and sports highlights

• Collectibles

• Virtual avatars and video game skins

• Designer sneakers

• Music

Even tweets count. Twitter co-founder Jack Dorsey sold his first-ever tweet as an NFT for more than $2.9 million.

Essentially, NFTs are like physical collector’s items, only digital. So instead of getting an actual oil painting to hang on the wall, the buyer gets a digital file instead.

They also get exclusive ownership rights. That’s right: NFTs can have only one owner at a time. NFTs’ unique data makes it easy to verify their ownership and transfer tokens between owners. The owner or creator can also store specific information inside them. For instance, artists can sign their artwork by including their signature in an NFT’s metadata.

What Are NFTs Used For?

Blockchain technology and NFTs afford artists and content creators a unique opportunity to monetize their wares. For example, artists no longer have to rely on galleries or auction houses to sell their art. Instead, the artist can sell it directly to the consumer as an NFT, which also lets them keep more of the profits. In addition, artists can program in royalties so they’ll receive a percentage of sales whenever their art is sold to a new owner. This is an attractive feature as artists generally do not receive future proceeds after their art is first sold.

Art isn’t the only way to make money with NFTs. Brands like Charmin and Taco Bell have auctioned off themed NFT art to raise funds for charity. Charmin dubbed its offering “NFTP” (non-fungible toilet paper), and Taco Bell’s NFT art sold out in minutes, with the highest bids coming in at 1.5 wrapped ether (WETH)—equal to $3,723.83 at time of writing.

Nyan Cat, a 2011-era GIF of a cat with a pop-tart body, sold for nearly $600,000 in February. And NBA Top Shot generated more than $500 million in sales as of late March. A single LeBron James highlight NFT fetched more than $200,000.

Even celebrities like Snoop Dogg and Lindsay Lohan are jumping on the NFT bandwagon, releasing unique memories, artwork and moments as securitized NFTs.

How to Buy NFTs

If you’re keen to start your own NFT collection, you’ll need to acquire some key items:

First, you’ll need to get a digital wallet that allows you to store NFTs and cryptocurrencies. You’ll likely need to purchase some cryptocurrency, like Ether, depending on what currencies your NFT provider accepts. You can buy crypto using a credit card on platforms like Coinbase, Kraken, eToro and even PayPal and Robinhood now. You’ll then be able to move it from the exchange to your wallet of choice.

You’ll want to keep fees in mind as you research options. Most exchanges charge at least a percentage of your transaction when you buy crypto.

Popular NFT Marketplaces

Once you’ve got your wallet set up and funded, there’s no shortage of NFT sites to shop. Currently, the largest NFT marketplaces are:

• OpenSea.io: This peer-to-peer platform bills itself a purveyor of “rare digital items and collectibles.” To get started, all you need to do is create an account to browse NFT collections. You can also sort pieces by sales volume to discover new artists.

• Rarible: Similar to OpenSea, Rarible is a democratic, open marketplace that allows artists and creators to issue and sell NFTs. RARI tokens issued on the platform enable holders to weigh in on features like fees and community rules.

• Foundation: Here, artists must receive “upvotes” or an invitation from fellow creators to post their art. The community’s exclusivity and cost of entry—artists must also purchase “gas” to mint NFTs—means it may boast higher-caliber artwork. For instance, Nyan Cat creator Chris Torres sold the NFT on the Foundation platform. It may also mean higher prices — not necessarily a bad thing for artists and collectors seeking to capitalize, assuming the demand for NFTs remains at current levels, or even increases over time.

Although these platforms and others are host to thousands of NFT creators and collectors, be sure you do your research carefully before buying. Some artists have fallen victim to impersonators who have listed and sold their work without their permission.

In addition, the verification processes for creators and NFT listings aren’t consistent across platforms — some are more stringent than others. OpenSea and Rarible, for example, do not require owner verification for NFT listings. Buyer protections appear to be sparse at best, so when shopping for NFTs, it may be best to keep the old adage “caveat emptor” (let the buyer beware) in mind.

Source: Forbes

Once a transaction is carried out in a traditional banking system, its details are recorded in a private ledger owned and monitored by a financial institution. However, in DeFi, the financial transactions are stored in a computer code on a decentralized public ledger. All participants using DeFi applications and platforms have an identical copy of the general ledger.

This ledger holds the information of every transaction in encryption code. Since decentralized blockchain platforms and applications are immutable, the records of ownership cannot be modified or deleted by a third party providing security in verifying transactions and storing their data.

Decentralized Finance works on the traditional financial system and replaces the intermediaries or central authorities with smart contracts. A smart contract is an automated merger, enforces agreements without intermediary involvement, and is easily accessible by anyone with an established internet connection. Most of the protocols work on the Ethereum blockchain, and the decentralized applications are often created using Ethereum.

Ethereum(ETH)

With the advent of WEB 3.0 and Ethereum 2.0, Ethereum is set to become the most popular and most used cryptocurrency. Then there’s the Ethereum Naming Service. Look just own 0.01 of ETH. Please do. Ethereum is that crypto that has so much potential. It can be used for so many things. Most metaverse tokens are built on Ethereum. Most Defi tokens are built on Ethereum. This should tell you something about the coin. So just make an effort to own this. Even just 0.01 ETH. That’s enough.

Bitcoin(BTC)

Bitcoin is the biggest crypto right now and it still has the potential to grow. Buy it now and forget about it.

Metaverse Index Token(MVI)

The metaverse is hyped right now. I believe it’s going to continue to grow. Buy this and you should be good.

Others to include that have potential: Dogecoin, Solana, Decentraland, Binance Coin, Uniswap, Binance USD, and Shiba Inu

NB: This article is not financial advice. Do your research. I recommend you start with Web 3.0, Metaverse, and Defi.

To finalize, if you’d like to invest in the aforementioned cryptocurrencies then invest with Binance and get 5%: Buy and Trade Crypto With The Best Exchange: Binance

Have a great day everyone!

Photo by Executium on Unsplash

I believe these have the ingredients necessary to 10x or even 100x before the end of the year.

1. Ethereum(ETH) - Because of the Ethereum 2.0 upgrade
2. Bitcoin(BTC) - Gut feeling
3. Solana(SOL) - Speculation
4. Decentraland(MANA) - Specifically because of all this metaverse hype
5. Illuvium - Gut feeling
6. Pancake Swap - Speculation
7. Chainlink - Speculation
8. Metaverse Index Token(MVI) - Metaverse hype
9. Moonriver - Gut feeling
10. Dogecoin and Shiba Inu - Speculation paired with recent findings
11. Polygon
12. Sandbox
13. Binance Coin - Good to have if you are using Binance

Always research before applying any advice you read/watch online. Plus develop an investment strategy and allocate a percentage of funds that should go into speculations.

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Today I’ll be revealing my investment portfolio in a bid to encourage young people in their teens, twenties, and thirties to invest.

Starting up with stocks, mutual funds, crypto, and finally, my future “to invest in” list.

Stock Portfolio

Market Value: Ksh. 6,988

Total Cost: Ksh. 6,600

Profit/Loss: +358

Stocks: ABSA Bank, Britam, East African Cables, CIC Insurance, Co-operative Bank, Stanlib Fahari I-REIT, Sameer Africa, HF Group, KenGen, Kenya Re, Kenya Power, Scangroup, TransCentury, Uchumi, and Liberty Holdings.

Mutual Funds

Value: Ksh. 17,404

Cost: Ksh. 16,000

Profit/Loss: +404

GenCap Hela Imara Fund: Ksh. 6,250

Cytonn Money Market Fund: Ksh. 11,154

Cryptocurrency Portfolio

Market Value: Ksh. 14, 661.16

Total Cost: Ksh. 6,400

Profit/Loss: +8,261.16

Cryptocurrencies: Binance Coin, Ethereum, Bitcoin, Shiba Inu, Cardano, Dogecoin, Mines of Dalarnia, Manchester City Fan Token, Basic Attention Token, and Binance USD

Total Cost: Ksh. 29,000

Profit: +9,029

Time Frame: 7 Months

My “To Invest In” List

Stocks: MTN Uganda, Safaricom, Equity Bank, Kenya Commercial Bank, B.O.C, Kenya, Centum, Total Energies, NSE, The Remaining NSE 25 Share Index, Vanguard 500 Index Fund(US), ABSA NewGold ETF, Facebook/Meta(US), Google/Alphabet(US), and Tesla(US)

Cryptocurrencies: More Ethereum, Decentraland, Axie Infinity, Enjin Coin, Metaverse Index Token, Chainlink, Loopring, Polkadot, Solana, Polygon/Mantic, Illuvium, and Veechain

Others: Bonds, Bills, Vuka(From Qwetu), and Real Estate

The “metaverse” might be a new term for many, but it has actually been around for decades. The metaverse is the zenith of all science fiction fantasies that were played out in films such as ‘Ready Player One’, ‘Sword Art Online’ and ‘Tron.’

It’s therefore not a surprise that companies such as Facebook are investing heavily in the metaverse. But, what exactly is the metaverse, and what tokens should you know about if you are looking into investing in it?

Read on to learn more about the metaverse and what investment opportunities exist in the crypto markets that provide you with exposure to the growth of the metaverse.

What is the Metaverse?

Before we take a look at the metaverse investment options you can consider, let’s first take a look at what the metaverse is.

The metaverse is a convergence of both our physical and digital lives — a new phase of the Internet that will see the coming together of augmented reality (AR), extended reality (XR), and virtual reality (VR) with our physical world.

The world as we know it today will change greatly with the arrival of the metaverse. The metaverse will provide an alternative digital universe where human beings will not only be able to live and work in, but also play.

So, why should you care about the metaverse?

As an investor, why should you invest in it? According to Bloomberg, the metaverse’s market size is expected to grow to $800 billion dollars( 89 Trillion Kenyan Shillings) by the year 2024. This signifies how lucrative the metaverse could become in the coming years.

But, what metaverse investments can you make? How can you get started investing in the metaverse? What tokens should you consider investing in?

Decentraland (MANA)

A metaverse token you should know about is MANA, Decentraland’s token.

Decentraland is a blockchain-based virtual reality platform where users get to buy, sell, and develop land, all while playing games, creating content, and interacting with each other.

Decentraland is the biggest virtual universe in the NFT space and is represented as a non-fungible ERC-71 token known as LAND. Each parcel of LAND on Decentraland is unique and owners can choose what they get to do with their portion of land.

Users can purchase LAND on the platform using MANA. Besides being used to purchase LAND, MANA is the main token used in Decentraland. As a native utility token, it’s used to pay for goods and services. It’s also built on Ethereum and can be bought and sold for other cryptocurrencies or for fiat currency.

MANA’s total supply is fixed at 2.6 billion MANA. That means that there will never be more than 2.6 billion MANA at any given time.

Axie Infinity (AXS)

Axie Infinity is an NFT-based online video game that uses the Ethereum-based digital tokens AXS and SLP. In the play-to-earn game, players breed, raise, and battle their digital pets known as Axies. The Axie Infinity game uses the governance token AXS.

Token holders are able to vote and shape the direction of the game world. This is different from traditional games, where the game developers make all the decisions. AXS owners are not only able to stake their tokens and earn more, but they are also able to vote for different governance proposals.

The Axie universe also uses the Smooth Love Potion (SLP) token. The SLP token is primarily used for breeding purposes. Players can earn the SLP token by winning adventures and battles in the game. The main difference between the SLP and AXS token is that it’s not a governance token. Hence, it’s not used to vote. The AXS token has a total supply of 270 million.

Enjin Coin (ENJ)

Enjin Coin is another metaverse token that you could look into. It’s an Ethereum-based token that seeks to make it easy for individuals, brands, and businesses to use NFTs. However, NFTs that are built with Enjin use the ERC-1155 standard, which is different from the commonly used ERC-721 standard.

NFTs minted within the Enjin environment are directly backed by ENJ. ENJ is the native currency used on the platform. Whenever a new NFT is produced on the network, a certain amount of ENJ is minted into the token. These locked funds are what give the newly built tokens real-world value.

Additionally, Enjin recently raised close to $19 million that will be used to build Polkadot-based blockchain for NFTs. ENJ token has a maximum supply of 1 billion tokens.

The Sandbox (SAND)

With a maximum supply of 3 billion, SAND is another token that should be on your metaverse radar. The Sandbox is a virtual world that, like most platforms on this guide, is built on the Ethereum blockchain.

On the platform, players are able to build, monetize, and own their gaming experience. The platform uses the SAND token, which is an ERC-20 utility token that is used for governance, staking, and transfers.

Star Atlas (ATLAS)

Star Atlas is a huge online multiplayer game that occurs in a virtual gaming metaverse. The game is built on Unreal Engine 5 and features real-time, cinema-quality environments.

In the game, there are three major factions that exist and are competing for control and resources. The game is also partly a flight simulation and also allows for role-playing.

The Star Atlas game is currently being built on the Solana blockchain and players will use the ATLAS tokens. ATLAS tokens will be the in-game currency that will be used to purchase assets as well as buy NFTs in the NFT marketplace. The ATLAS token has a maximum supply of 36 billion.

Metaverse Index (MVI)

The Metaverse Index (MVI) token is another interesting example of a metaverse token. Represented by an ERC20 token, the token is built to capture the trend of business, entertainment, and sport migrating to virtual worlds.

With the MVI token, owners are able to get exposure to a wide variety of tokens from various crypto projects that encompass sectors like online gaming, NFTs, and virtual worlds.

Think of the Metaverse Index token as a metaverse ETF but for the crypto markets. The Metaverse Index token has a maximum supply of 39,602 tokens.

Source: 7 Metaverse Tokens By Trust Wallet Blog

To buy any of these cryptocurrencies I suggest you use Binance.

Binance is a cryptocurrency exchange that is currently the largest exchange in the world in terms of the daily trading volume of cryptocurrencies.

Register by visiting this link: Binance

1. Bitcoin(BTC)

2. Ethereum(ETH)

3. Dogecoin(DOGE)

4. TetherUS(USDT)

5. Ripple(XRP)

Go check them out, especially with Dogecoin. Implement the HODL technique. This drop and rise so don’t be afraid and only invest money you don’t mind losing.

To buy these I suggest you try Binance using this link, you’ll get 5%: Binance

See you next time. Stay safe!