Timesofummah.com – Today’s investment is increasingly attractive, there are lots of new investment assets that have sprung up, one of which is Non-Fungible Token assets or commonly known as NFT. The presence of NFT itself has attracted a lot of attention from various circles of society in Indonesia, such as big investors, crypto lovers, art collectors, and even game fans.
NFT is basically a digital asset that resides in a blockchain technology network. Recently, NFT has been hotly discussed in the crypto world, this is because NFT has succeeded in providing very high profits to artists, creators, musicians, and influencers. Their work, which had previously been converted into digital assets, succeeded in attracting investors and did not hesitate to buy this asset in the form of NFT at a very fantastic price.
Secara singkat, NFT dapat dipahami sebagai bagian dari konten aset digital yang berhubungan dengan blockchain. NFT sendiri merupakan inovasi terbaru dari pemaksimalan penggunaan jaringan blockchain pada ethereum dan bitcoin serta lainnya. Hal ini menjadi alasan utama bagaimana NFT dapat bernilai hingga sampai puluhan juta dollar Amerika Serikat. Nah, untuk memahami lebih lanjut tentang NFT dan perbedaannya dengan aset kripto yang lain, berikut ini adalah penjelasan tentang NFT dan aset kripto lainnya.
A. Know the Non-Fungible Token (NFT)
The increasing popularity of various game industries and digital artworks today has given birth to many new innovations in the world of technology. This is also supported by the increasing number of people who are connected to the internet. Some of the progress that has been achieved has led to an increasingly uncontrolled distribution of data, one of which is distribution to digital asset transactions.
When plunging into the virtual world, sometimes many people feel confused in determining which works are original and which are the results of duplication or duplication. Although many people can easily plagiarize artwork on the internet, works that have been produced in digital form can have intellectual property that will be protected. In overcoming these problems, Non-Fungible Tokens are present as digital tokens or crypto assets that are founded on a blockchain technology network.
The key word for the NFT name itself is Non-Fungible, both words are derived from the terms Fungible and Token. Fungible can be defined as the ability of an asset to be exchanged for similar assets of the same value. It can be analogous to when someone wants to exchange Rp 100 thousand banknotes for five pieces of Rp 50 thousand banknotes. So the two banknotes in concept have the same value. Meanwhile, tokens can be interpreted as a digital asset that can be used to represent goods, services, to various objects that have value.
In simple terms, NFT has almost the same function as a certificate of authenticity that is exclusively owned by a person in the real world. The asset will also show information about who the initial owner, ultimate owner, and issuer of the token or digital asset are. NFT assets have a different form from Bitcoin or other crypto assets, this type of crypto asset can be classified as a unique asset because each NFT has a different value according to the value given by the buyer. This uniqueness ultimately makes NFT unable to be exchanged for other cryptocurrencies.
In 2017, NFT has only begun to be known by many people due to the release of an NFT game called Crypto Kitties. Crypto Kitties is the first game to stand on the Ethereum blockchain network. By using the Crypto Kitties game, users can adopt, maintain, and trade cats digitally or virtually. After this success, starting at the end of January 2021, NFT is back in popularity and can grow very rapidly so that it can attract many people into the crypto world.
From 2021 until now, NFT has grown very rapidly and has become a medium for digital collections for many people. NFT has succeeded in becoming a new solution or way that can support artists such as artists, musicians, and athletes. With the development of blockchain with NFT, artists no longer need to market their works through third parties. Even though it is very popular in the community, NFT is still only very limited to several industries such as arts, hobbies, to entertainment.
NFT can be regarded as an asset that has enormous potential in the future. As an asset that develops from a cryptocurrency system, NFT has a different purpose, form, and way of use from other crypto assets.
Thus, this is the reason for the process of selling crypto assets called Non-Fungible Tokens using an auction system. If you want to register a product as a digital asset, the Non-Fungible Token itself includes pictures, music, videos, games, and even electronic books.
B. NFT in Artwork Industry
The emergence of NFT which has a very unique characteristic has become the material for re-evaluation of the digital art sector so far. NFT offers the security required for the work when it is published in digital form. So far, the very advanced development of the internet has not been able to guarantee that a published work of art is not duplicated by others. NFT has succeeded in providing guarantees to artists so that they are able to make a profit.
NFT technology that uses a blockchain-based system has succeeded in guaranteeing the artist’s artwork for its property. These innovations have helped artists in their fight against plagiarism and theft of creative ideas. In addition, the smart contract system in NFT makes artists feel more secure because they can write down the royalty percentage when the artwork changes hands.
At this time, NFT in the art industry has reached a price at a very fantastic figure. Beeple’s most expensive digital artwork is currently held by the artwork entitled Everydays – The First 5000 Days. This NFT, which was sold in March 2021, managed to reach a price of $69 million dollars. This success has proven opportunities for NFT assets as well as physical works of art sold through exhibitions.
C. NFT in a Business Context
1. Property, Assets and License Certificates
NFT in its use can be used to link physical assets such as proof of home ownership to other proof of property ownership. NFT can be a safer place to store physical property ownership deeds by utilizing a blockchain system that has a very fast verification process. Users don’t have to worry if valuable certificates are lost or stolen, the security provided by the blockchain is able to keep data on ownership of valuable certificates.
However, the implementation and development of NFT as a place for storing valuable assets or certificates has not been done much. However, seeing the potential that NFT provides, making the future of securing valuable assets easy to use.
2. Ticketing And Membership Industry
Until now, there are still many problems found in the ticket industry. The problem that most often occurs is that many brokers buy tickets in large quantities and then resell them at higher prices. Furthermore, the problem that is no less often encountered is fraud by brokers or various ticket sales services that sell duplicated tickets, this of course happens because the form of tickets so far is very easy to fake.
In an effort to support the optimization of the ticket industry, the NFT concept can be a solution to overcome these two problems. With NFT, ticket sales can be done more quickly and safely by using a verification and identification system that is not easily changed.
In addition to solving problems in the ticket industry, NFT can also provide innovations to manage membership or membership with a digital system. NFT can be a part to digitally identify a person’s proof of membership. This can be very beneficial for members because they don’t have to be afraid if their data is lost, changed, or used by others.
Companies that have used NFT as proof of membership cards are Kraken Kraton. The ticket company has registered five images into the NFT form and is providing lifetime discounts or special discount coupons to its members.
3. Sports and Fashion Industry
The first use of NFT in the sports industry was marked by the creation of collectible cards from NBA Top Shot. The existence of this collection of cards from NBA Top Shot allows basketball lovers to create a collection of important footage from the favorite games they watch. Not only that, the expansion of NFT in the sports world was also followed by the Belgian Football League and the Jupiler Pro League which collaborated with game companies Ubisoft and Sorare to create a fantasy football game using NFT.
In 2019, NFT was increasingly trusted in the sports industry when a sports company from the United States, Nike, created a patent with the Crypto Kicks authentication system. This Nike patent makes loyal purchases of special shoes that will produce NFT accompanied by complete information such as shoe material, place of manufacture, and various other unique things. Crypto Kicks owners can also make design modifications to some of their digital shoes into a new pair of shoes that can be purchased physically in the real world.
D. NFT In Hobby and Entertainment Industry
The existence of NFT has succeeded in creating a very potential market for transactions of various collectibles. Nowadays, NFT is increasingly dominated by many items that have the main function as collectibles.
As mentioned above, some collectibles that are hunted by many people are NFT from NBA Top SHot, virtual cats from Crypto Kitties, to many unique avatars from Crypto Punks. The three types of NFT have become collectibles that have a price of up to millions of US dollars.
2. NFT Games
The gaming industry that uses the NFT system and blockchain can be said to be one of the sectors that has enormous potential in the crypto world. This potential can be seen from the development of NFT games such as Crypto Kitties and Axie Infinity which are very popular in the world community. In the game Crypto Kitties, users are tasked with collecting, maintaining, and breeding digital cats.
While the Axie Infinity game actually has almost the same concept as Crypto Kitties, the difference is that Axie Infinity users must collect NFT-based digital pets called Axies. Later, the user’s Axies must fight other users’ Axies. Many NFT games use a pay-to-earn scheme, this scheme makes you have to play the game if you want to get benefits in the form of tokens or NFT.
Axie Infinity and Crypto Kitties are built on the same blockchain network, Ethereum. In the Axie Infinity game, there are two tokens that have the ERC-20 standard. That means one can earn money by playing NFT games. A user who plays NFT games and earns SLP tokens or AXS tokens can exchange them for any number of other crypto assets.
It is this reason that creates many job vacancies for playing NFT games. Because playing NFT games has proven to be very profitable. If users get tokens, then they can exchange them for other crypto assets. Some people also have the opinion that NFT games are an investment and can be used to fulfill the needs of human life.
E. List of NFT Coins By Market Cap
1. Axie Infinity (AXS)
Axie Infinity is a game that stands on a blockchain technology network that combines elements of NFT, DeFi, and games. This game is actually created and inspired by two famous games namely Pokemon and Tamagotchi. Almost the same as Pokemon and Tamagotchi, players will be given the task to collect, maintain, breed, and fight with other players. Not only that, players can also trade possessed creatures called Axies. Each Axies is actually an NFT and comes with a variety of unique attributes.
To date, when viewed on Coinmarketcap, Aixe Infinity as a coin with code AXS was able to collect a market cap of $5.70 billion dollars with the value of each coin being $93.69. In addition, Axie Infinity also occupies the first position in the category of NFT transactions worldwide.
2. Tezos (XTZ)
Tezos itself is one of the many cryptocurrencies that are in the blockchain technology network using a proof-of-stake (PoS) system. In addition, Tezos is also equipped with a smart contract program like Ethereum. This enabled Tezos to create its own DeFi and DApps ecosystem.
The Tezos ecosystem has a fairly large capacity, thanks to the PoS system, which makes transactions with Tezos much cheaper than transactions on Ethereum. Currently, the market cap of Tezos according to Coinmarketcap has touched $4.07 billion dollars and each coin has a value of $4.66 dollars. XTZ is currently in fourth place in the NFT category based on Coinmarketcap.
3. The Sandbox (SAND)
The Sandbox or simply the code, namely SAND is a game based on the blockchain network. This game was created to maximize the benefits of using NFT in a wide variety of game assets. In the Sandbox ecosystem, users can play and interact with thousands of other players in a new real world called the metaverse.
The Sandbox has actually collaborated with various large companies around the world such as Atari and also the well-known metal band Avenged Sevenfold. To date, the SAND tokens on Coinmarketcap have reached a market cap of $5.116 billion dollars with the price per SAND coin having a value of $5.57 dollars. In NFT competition, the Sandbox is currently in 8th place in the NFT transaction category on Coinmarketcap.
F. How to Buy and Sell NFT
For users who want to buy and sell NFT, there are many marketplaces that provide this service. Many digital marketplaces offer NFT in various forms. The crypto assets that users want to use to buy NFT can also be adapted to the chosen platform, such as CryptoPUnk, Opensea, to Rarible. The three NFT marketplace platforms can only accept payments using Dollars and ETH. On the other hand, sites like NBA Top Shot can provide users with the freedom to make payments of various types of crypto assets.