NFT & CRYPTOART

The Complete Guide To Successfully Invest In, Create

And Sell Non-Fungible Tokens In The Digital Art Market

Daniel L. Bray
 Copyright © 2021 by Daniel L. Bray
All rights reserved.
No part of this book may be reproduced in any form on by an
electronic or mechanical means, including information storage and
retrieval systems, without permission in writing from the publisher,
except by a reviewer who may quote brief passages in a review.
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 TABLE OF CONTENTS

Introduction
Chapter 1: What Is An Nft?
Chapter 2: The History Of Nft
Chapter 3: What Is Digital Art And What A Digital Creator Does?
Chapter 4: What Cryptoart Is And The Future Of Digital Art
Chapter 5: Principles And Terminology Of Cryptoart
Chapter 6: Nft And Blockchain
Chapter 7: Nfts As Collectibles And Digital Assets

Chapter 8: Common Nft Marketplace
Chapter 9: How To Create Nft
Chapter 10: How To Buy Nft
Chapter 11: How To Sell Nft
Chapter 12: How To Invest In Nft And How Nfts Can Be An Addition To Crypto
Asset Portfolios
Chapter 13: Understanding Nft Stocks
Chapter 14: Nfts For Gaming, Digital Identity, Licensing, Certificates And Fine
Art
Chapter 15: Problems Or Controversies Surrounding Nfts And Cryptoart
Chapter 16: Climate-Positive Cryptoart
Chapter 17: The Real Downsides Of Nfts And Cryptocurrency
Chapter 18: Environmental Issues With Cryptoart
Chapter 19: Nft & Cryptoart: Bubble Or Revolution?
Conclusion
 INTRODUCTION

N
FTs are causing a stir in the art and gaming worlds, so
what are they? You may have recently seen the word
NFT in the news, often in connection with large amounts
of money. However, you might be wondering what all the fuss is
about.
This guide will help you understand what an NFT or non-fungible
token is and how they function. It will teach you everything you
need to know about NFTs, including what they are, how they
operate, why they've sparked debate, and how you can help.
An NFT is a non-financial transaction. In essence, an NFT is a
collectible digital asset with monetary value. Like architecture, NFTs
are now regarded as a long-term investment.
NFT stands for a non-fungible token, a digital token similar to
Bitcoin or Ethereum, a form of cryptocurrency. However, unlike a
regular Bitcoin coin, an NFT is one-of-a-kind and cannot be traded
for another (hence, non-fungible).
NFTs can be anything from digital artwork to a music file,
anything original that can be stored digitally and considered
valuable. They work similarly to any other physical collector's piece,
but instead of an oil painting on canvas to hang on your wall, you
get a JPG file.
NFTs are individual tokens that are part of the Ethereum
blockchain. The important part is the extra material, which enables
them to be portrayed as art, music, video (and so on) in JPGs,
MP3s, images, GIFs, and other formats. They can be purchased and
sold like other forms of art because they have value primarily
determined by market and demand, much like physical art.
That isn't to suggest that there is only one digital edition of an
NFT art on the market. Copies of NFTs are still legitimate parts of
the blockchain, much as art prints of originals are made, used,
purchased, and sold. However, they may not have the same value
as the original.
Don't think that by right-clicking and saving an NFT picture,
you've hacked the system. Since your downloaded file does not
contain the details that make it part of the Ethereum blockchain,
you will not become a millionaire. Does that make sense?
NFTs can be purchased on some sites, depending on what you're
looking for (for example, if you're looking for baseball cards, you
can go to a site like digital trading cards but other marketplaces
offer more generalized items). You'll need a wallet that's unique to
the platform you're buying on and cryptocurrencies to place in it.
Some pieces are starting to appear at more mainstream auction
houses, so keep an eye out for these as well. Many forms of NFT
are often published as 'drops' due to high demand (much like in
events, when batches of tickets are often released at different
times). This means that there will be a frantic rush of hopeful
customers when the drop begins, so be sure to register and get
your wallet filled up ahead of time.
NFTs are also becoming common as in-game purchases in
various video games. Players can buy and sell these properties,
including playable items such as exclusive swords, skins, and
avatars.
NFTs are certainly having a moment, with artists, gamers, and
brands from all walks of life contributing to the trend. In reality, it
appears that a new player joins the NFT market every day. Are you
ready to explore it?
Let's get the ball rolling.
 CHAPTER 1

WHAT IS AN NFT?

W
hether it's digital sports cards or digital artworks, NFTs
have taken the internet by storm, with their total
amount in USD more than doubling in just the month
of February. So, what are these digital properties selling for billions
of dollars on anything from niche marketplaces to Christie's, the
world's most prestigious auction house?
What does NFT stand for?
An NFT is a blockchain-based non-fungible token. A token is a
representation of an asset's ownership. A concert ticket, for
example, denotes possession of one concert space.
A Bitcoin is the title of ownership for the Bitcoin's underlying
value. On the blockchain, a token is a digital asset. Since the
blockchain is transparent, it is simple for everyone to see who owns
which token.
A fungible commodity can be readily traded. A dollar is very
fungible; you can give it to me in exchange for something and I can
re-exchange it for something else. My neighbor lends me a bowl of
sugar to bake a nice cake and then buys me another one when he
goes to the store in a few days. It makes no difference that the
sugar is different; it can be quickly substituted and exchanged.
A non-fungible token is a one-of-a-kind token that cannot be
traded for another. The most common use is for artworks. On the
blockchain, artworks have been selling for millions of dollars (or in
this case a blockchain native currency, Ethereum).
 There are many examples, but the most well-known NFT artist is
Beeple, who sold 21 pieces of artwork for $3.5 million in the digital
marketplace Nifty Gateway. He sold his masterpiece "THE FIRST
5000 DAYS" for $6.5 million at Christie's. Mike Winkelmann, a
retired graphic designer from Charleston, South Carolina, is the guy
behind Beeple.
In these marketplaces, art isn't the only thing that's traded.
Digital sports trading cards are producing a growing amount of
volume in the NFT space. Basketball players have now invested
more than $230 million exchanging NBA Top Shot cards.
These cards commemorate key moments in the sport's history
and only a limited number of each are available. The Ethereum
blockchain guarantees the ownership and scarcity of these cards. A
rare LeBron James highlight recently sold for a cool $200,000 to the
highest bidder.
Why would anyone pay for anything like this?
The most bizarre part of these purchases is that anybody can
download Beeple's artwork or LeBron's highlight. It's as simple as
pressing the ‘save image' button on your laptop.
The evidence of ownership for that artwork, not the artwork
itself, is what buyers are after. The buyers are close to art
collectors who display their prized possessions in museums. NFTs
are a way for art lovers to support their favorite artists financially
via the internet.
As humans advance, especially in lockdown, it seems only
normal that we will begin to purchase art in the digital world as
well. Certain sites, such as Decentraland, go even further, allowing
users to purchase land or real estate in the digital world.
Although this has always been a niche aspect of the internet, it
has truly burst into mass media in the last six months and seems to
be here to stay. Although the first NFT trials took place in 2013-
2014, the sector appears to be maturing and gaining mainstream
appeal in 2021.
However, there are still a few problems with the NFT market.
Transaction fees are very high since Ethereum is the main currency
of trade and the network on which marketplaces are established
and it is normal to have to pay $50 to move the property title of an
NFT from its creator to the buyer.
On platforms like Rarible or OpenSea, the current market
leaders, each transaction (creation of the NFT, bids, and transfer of
ownership) costs users a lot of money and contributes to the
Ethereum network's terrible carbon footprint.
However, there is reason to be optimistic, as Ethereum plans to
update its architecture to be even more environmentally friendly by
the beginning of 2022. Meanwhile, some marketplaces have
devised technological solutions to these constraints.
Drops is a new NFT project that allows you to do a lot more than
just buy and sell NFTs. It allows users to build NFTs, bid on them,
stake them and borrow money using them as collateral. It also
utilizes a Layer 2 approach based on the Polygon network,
decreasing transaction costs to a few cents (protected by the
platform) while also minimizing major environmental costs.
The most promising aspect of the NFT revolution is that digital
artists can be paid for their work for the first time. Because of
digital art's essence and its infinite reproducibility, it has been
difficult for artists to monetize their work until now. True fans of the
artists will now be able to fund them directly without any
middlemen or platforms.
 The Grammy-winning Kings of Leon released their new album as
an NFT, suggesting that mainstream artists have caught on to the
trend. Grimes, Lindsay Lohan, and even Soulja Boy, for example,
have all released NFTs that reflect music, digital artwork, or even
ownership of a limited-edition vinyl.
However, NFTs aren't just for artists; the demand for digital
sports cards, for example, has already exploded. So rare, a soccer
trading card website, recently sold a one-of-a-kind Kylian Mbappé
card for $65,000.
Profiting from at-home sports fans has proven to be immensely
lucrative for these sites, attracting the attention of gaming giant
Ubisoft, which has now partnered with Sorare for potential
ventures.
NFTs are the hottest thing in the recent crypto craze and as
more mainstream artists become aware of them, they will only rise
in popularity, with a digital market near you soon to follow.
 CHAPTER 2

THE HISTORY OF NFT

A
non-fungible token is nothing more than a one-of-a-kind
digital asset. Bitcoins are fungible, which means that they
are all the same and can be used interchangeably. A work
of art is an example of a non-fungible token. I can have two similar
pieces of digital art, but each one is completely different.
Two NFTs from crypto-artist Josie are seen in the example
below. While her two parts, "Choose" edition #4 and "Choose"
edition #5, appear to be identical, they are both unique to the
blockchain.
Colored coins may be claimed to be the first NFTs ever
produced. Colored Coins are small bitcoin denominations, often as
small as a single satoshi, the smallest bitcoin unit. Colored coins
can be used to display various properties and have various
applications, including:
Real estate
Vouchers
Possibility of creating your cryptocurrency
Shares in a business are given.
Subscriptions are available.
Tokens of access
Collectibles on the internet
Colored Coins represented a significant advancement in Bitcoin's
capabilities but their drawback was that they could only represent
specific values if everyone agreed on their meaning. Colored Coins
were only as strong as their weakest participant since Bitcoin's
scripting language was never intended to allow this form of activity
inside its network.
Three individuals, for instance, agree that 100 colored coins
equal 100 company shares. The entire scheme collapses if even one
participant decides that Colored Coins no longer reflect company
shares.
Colored coins were first mentioned in a blog post by Yoni Assia in
early 2012, titled “bitcoin 2.X— initial specs.” he mentions Colored
Coins in his post but not concerning them representing different
properties or use cases. Instead, he argues that Colored Coins are
distinct and recognizable from standard bitcoin transactions
because they were part of the "Genesis transaction."
These new assets' potential did not appear to be explored until
4th December 2012, when Rosenfeld Meni published a paper titled
“Colored Coins Overview.” A few months later, in 2013, another
paper titled “Colored Coins — BitcoinX” was published, with authors
you may recognize: Vitalik Buterin, Yoni Assia, Lior Hakim, and
others.
The shortcomings in Colored Coins are obvious; the system
performed best in a permissioned setting, which means that it's
easier to use a database in certain situations. Colored Coins, on the
other hand, allowed for further innovation and laid the groundwork
for NFTs.
The tremendous potential of placing physical assets on
distributed ledgers was apparent but implementation needed a
more malleable blockchain.
2014 is the year of the Counterparty
 Many people realized the massive potential for issuing assets into
blockchains after the development of Colored Coins. People also
realized that Bitcoin, in its current form, was not designed to
support these additional features.
Counterparty, an open-source Internet protocol built on top of
the Bitcoin blockchain, was created in 2014 by Dermody Robert,
Krellenstein Adam, and Evan Wagner. Counterparty allowed asset
development and even had a crypto token with the ticker XCP. It
had a trading card game and meme trading among its many
projects and properties.
Spells of Genesis on Counterparty, April 2015
Spells of Genesis' creators were among the first to issue in-game
assets on a blockchain via Counterparty and launch an ICO. ICOs
were initially referred to as "crowdfunding" because they were
released too early. Spells of Genesis raised funds for production by
releasing BitCrystals, a cryptocurrency that served as the in-game
currency.
More Playing Cards on Counterparty in August 2016
Counterparty collaborated with the famous trading card game
Force of Will to launch their cards on the platform in Aug. 2016. In
North America, Force of Will was the fourth best-selling card game,
behind only Pokemon, Yu-Gi-Oh, and Magic:
The Gathering. Since Force of Will was a large mainstream
organization with no previous blockchain or cryptocurrency
experience, this event was important. Their entry into the
ecosystem illustrated the importance of putting such assets on a
blockchain.
Rare Pepes on Counterparty, October 2016
Memes were just a matter of time before they made their way to
the blockchain. People started issuing "rare pepes" as properties on
the Counterparty network in October of 2016. This frog character is
featured in a rare Pepe, which is a form of a meme.
These memes have a broad following. There's also a meme
exchange known as Rare Pepe. The Uncommon Pepe Meme
Directory has experts who certify the Pepe memes' rarity by putting
aside the oddness. This example demonstrates that people want
exclusive digital objects.
Counterparty now has a slew of projects running on its website,
many of which include NFT-like properties. On Counterparty, you
can look at the different projects.
Rare Pepes on Ethereum, March 2017
With the emergence of Ethereum in early 2017, memes began to
be traded there as well. Peperium was announced in March 2017 as
a “and trading card game (TCG) and decentralized marketplace that
allowed everyone to build memes that live forever on Ethereum and
IPFS,” similar to Counterparty.
Peperium had an associated token, Uncommon, which was also
used for meme development and paying listing fees, similar to
Counterparty.
Cryptopunks, June 2017
As the trading of rare pepes on Ethereum became more popular,
two "creative technologists" decided to launch their own NFT
project. John Watkinson and Matt Hall discovered they could use
the Ethereum blockchain to produce unique characters.
The number of characters would be limited to 10,000 and no two
would be identical. Their project was dubbed Cryptopunks in honor
of the Cypherpunks who experimented with Bitcoin precursors in
the 1990s.
 Surprisingly, Watkinson and Hall decided to give a Cryptopunk
away for free to anyone with an Ethereum wallet. All 10,000
Cryptopunks were quickly claimed and a flourishing secondary
market for buying and selling them arose.
Cryptopunks, interestingly, did not adopt the ERC721 standard
because it had not yet been invented but they were also not
entirely ERC20 because of its limitations. As a result, Cryptopunks
are best represented as a cross between ERC721 and ERC20.
What is the Ethereum Token Standard and how does it work?
(ERC)
The Ethereum blockchain has various technical standards for
different types of tokens on its network to allow its interactions to
function properly. The term "ERC" stands for "Ethereum Request
for Comment."
The most widely used standard is ERC20, which contains rules
that enable tokens to communicate in predictable ways. When it
comes to developing tokens that need to communicate with other
tokens or applications on Ethereum, this standard framework is
extremely useful.
ERC20 tokens are useful for various functions on Ethereum but
they aren't ideal for generating unique tokens. ERC721 was created
specifically for this purpose. Although the ERC721 is similar to the
ERC20 in many respects, it was developed explicitly to be the
technical standard for non-fungible tokens on the Ethereum
blockchain.
The key distinction between the two standards is that ERC721
keeps track of individual tokens' ownership and movements in the
block, allowing the chain to identify non-fungible tokens.
CryptoKitties was the first project to use the new NFT technical
standard.
CryptoKitties — October 2017
NFTs have become mainstream thanks to CryptoKitties. Players
can adopt, train and exchange virtual cats in CryptoKitties, a
blockchain-based virtual game. From CoinDesk to CNN, this
incredible project was featured on almost every news outlet. Maybe
it was because the game was slowing down and clogging up the
Ethereum blockchain. After all, people were making insane amounts
of money selling them.
Axiom Zen, a Vancouver-based company, ingeniously released
CryptoKitties in October 2017. The team worked on the project for
a few months when the alpha version was released during the ETH
Waterloo Hackathon, the world's largest hackathon dedicated to the
Ethereum ecosystem.
It was the ideal location and time to unveil the game, with over
400 developers in attendance. The team behind CryptoKitties took
first place in the hackathon and the game quickly became famous.
CryptoKitties' meteoric rise coincided with the 2017 crypto bull
market, adding fuel to the boom. People were going nuts buying,
breeding, and selling virtual pets. Many people's eyes were opened
to the possibility of non-fungible tokens as a result of this.
Axiom Zen then spun off a Dapper Lab company, which raised
$15 million from top investors such as a16z and Google Ventures.
People started to understand the true power of NFTs after seeing
the operation inside the CryptoKitties group and seeing top
investors pour money into Dapper Labs.
NFT Cambrian Explosion 2018–2019
The NFT ecosystem has seen massive growth in 2018 and 2019.
There are now over a hundred projects in space, with more in the
works. NFT marketplaces are booming, with OpenSea leading the
way and SuperRare gaining traction. While the trade volumes are
small compared to other crypto markets, they are rapidly increasing
and have come a long way.
As Web3 wallets, such as Metamask, develop, integrating into
the NFT ecosystem has become easier. Dapper Labs have recently
released a Dapper wallet that does not require gas payments.
Nftcryptonews AND Nonfungible.com (shameless plug) are two new
websites that delve into gameplay guides, NFT market metrics, and
general knowledge about space. The current ecosystem is depicted
well in this graphic from The Block.
CryptoKitties blazed the NFT trail but they couldn't have done it
without the efforts of previous ventures that built unique digital
assets to lay the groundwork. The importance of CryptoKitties to
the existing NFT ecosystem is shown in a fascinating graphic
published by nonfungible.com.
This graph shows that people who own CryptoKitties are more
likely to play NFT games, while people who play NFT games are
less likely to do so. CryptoKitties serves as an excellent introduction
to the world of NFTs.
CryptoKitties may have grown rapidly due to the ability to breed
various cats, resulting in creating an entirely ERC721 OR new cat
token. Character names, virtual property plots, virtual clothes,
event entrance tickets, asteroid mining tools, and other features are
now available for NFTs.
The various NFT games and projects collaborating to make
things interoperable are perhaps the most exciting development in
space. For instance, a player in one game can have a sword
transferred to another game and used as a rare clothing piece. The
possibilities of interoperability are truly limitless.
What's Next?
Non-fungibles have a much longer history than most people
know. The first attempts at NFTs were made during the Colored
Coin period in 2012–2013 but I believe we were still early in 2019.
Despite the tremendous growth we've seen in the last two years,
the industry is still very young and growth will only continue.
In reality, I believe that the NFT ecosystem will continue to
expand as more people and businesses recognize the value of NFTs
and begin to adopt them. Developers will continue to come up with
new applications and interoperable products will be a game-
changer. I expect the NFT space to look drastically different in five
years than it does now.
 CHAPTER 3

WHAT IS DIGITAL ART AND WHAT A DIGITAL

CREATOR DOES?

N
FTs have become an inevitable subject for someone who
makes a living as a creative individual online, sparking a
rush to grasp a term that is engulfed in cryptocurrency
and blockchain jargon. NFTs, according to others, are part of a
digital movement that will democratize fame and allow developers
more influence over their fates.
Others worry about the effect of cryptocurrencies on the world
and the unrealistic expectations generated by recent reports that
digital artist Beeple sold a JPG of his works for $69 million at a
Christie's auction.
However, as the movement is reshaping what is considered
“valuable” digital art, it is also resurrecting some of the same issues
that have troubled artists for centuries: perplexing hype, the whims
of affluent collectors, and fraud.
If newcomers want to join the fray before the current wave of
interest fades, they must solve practical, logistical, and ethical
problems and as some artists transform their digital creations into
lucrative products for a new audience of friendly, enthusiastic
customers, a question lingers in the background
After speaking with Foundation some months ago, Ellie Pritts, a
photographer, and animator from Los Angeles, heard about NFTs.
Another artist approached her about the site's digital print market
but she later spoke with Foundation's founder, Kayvon Tehranian,
who discussed the site's NFT sales.
“I was like, 'I'm not sure what's going on here.' “However, it
seems to be very intriguing,” she notes. “And there wasn't much
detail about it, but it piqued my curiosity. He was the one who
taught me about it.”
Non-fungible tokens are one-of-a-kind pieces of data that are
part of a blockchain that can be purchased and sold using the
blockchain's currency. The ones you've been reading about are
almost all Ethereum-based.
You've already heard of Bitcoin if you haven't heard of Ethereum.
The concept is the same, but the blockchain is different. Although
Bitcoin is primarily used to exchange currency, Ethereum is best
suited to the exchange of properties.
In principle, any blockchain could support NFTs but this one was
designed specifically for them. NFTs can be bought and sold in
various online marketplaces, where users can "mine," or make one
for any digital purpose.
An NFT does not imply that you own the work of art. Instead,
you're simply purchasing metadata that gives a bragging right and
the freedom to resell the NFT for a higher price later.
“The people who purchased my pieces did many tests before
they bought them. They agreed to invest in me after conducting
research and concluding that I was promising.” It's a lot to take in
and it sounds odd.
Pritts was cynical until February when she minted and sold her
first NFT Animation time-consuming and costly to make. It has
traditionally been difficult to sell for an affordable price on the
internet. She reasoned that NFTs could allow her to do so. Sale, on
the other hand, was always pleasurable.
 “It's awesome to feel like something I made only because I like it
has value,” she says. “The people who purchased my pieces did
many tests before they bought them. They weren't people I was
familiar with. They agreed to invest in me after conducting research
and concluding that I was promising.”
Buyers aren't embracing creators as "cash grabs instead, she
sees NFTs as a new way for writers to reach out to their audiences.
Purchasing an artist's work early on gives you a feeling of
ownership, similar to seeing a now-famous band perform at their
first show. “
Pritts now feels like she's part of a group: she's collaborating on
a half-dozen collaborations with other NFT-mining artists she'd
never met before joining a month ago. In principle, she claims to
have doubled her monthly salary. She hasn't cashed out yet
because the money is all in Ether rather than dollars.
“You have to put in the effort.”
The jargon barrier is one of the most challenging aspects of
understanding NFTs; all of the words used to describe how they
work are only familiar to those already familiar with cryptography.
As a result, much of the knowledge about NFTs comes from its
most enthusiastic supporters: the marketplaces that sell them, the
investors who back them, and the artists who build them. To the
rest of the world, it's a problem. However, many artists have turned
into guides for others amid the explosion of interest in this new
avenue for their work.
Over the past few months, Pinguino Kolb, an artist, and longtime
cryptocurrency supporter has been inundated with questions about
NFTs from other musicians. “I get many inquiries about why people
are so enthusiastic about it. “I've heard it from a couple of my
programmer friends who are familiar with crypto space,” she says.
“They're baffled as to why people are buying it.”
Artists have found it more difficult to create their finest work due
to monopolistic technology firms' growth. According to William
Deresiewicz in this extract from his book "The Death of the Artist,"
the fundamental problems go far beyond art but they can be solved
with bold action.
Her simple response is that it's enjoyable. “I believe it helped to
break up the monotony of the pandemic. We're not going to any
parties or anything like that. “We aren't going to any art shows,”
she declares. “Last month, my whole Twitter account was packed
with artwork, which was not the case before.”
In mid-March, Kolb held a Zoom seminar where she explained
everything to artists who had never bought cryptocurrency before.
She hopes that knowledge will help people determine whether or
not getting involved is a good idea for them. However, this will not
be the case for all.
“I don't think that asking an already busy artist to drop
everything and get on this train because they're going to miss out is
something they can do,” she says.
“You can't just make an NFT expect someone to buy it,” she
says. “You must publicize it. You must put in the requisite effort.
You know, you have to be more involved with the culture much of
the time. Much of this needs time and if that isn't your main
audience, it's probably not something you can do.”
“It was immediately morally indefensible.”
Kimberly Parker, a Canadian design artist, first heard about NFTs
a few years ago when one of the artists she follows started to sell
his work.
 “I checked in on some of the top artists and was pretty surprised
by the amount of money they were earning from these sales,” she
says, “because much of it was just 2D pictures, JPGs, the kind of
work that many of my peers and I were selling for pennies by
contrast, if at all.”
Even more perplexing was that the art was of varying quality:
bad meme art was sold alongside stunning, time-consuming
animations, which the same investor often bought.
People purchase NFTs for various reasons, one of which is that
they believe they will resell them for a higher profit later. However,
this did not deter her from studying NFTs; rather, as she continued
her studies, she became increasingly concerned about their
environmental effects.
There are a few different ways that blockchains can extend.
Ethereum, like Bitcoin, employs the “proof of work” process, in
which computers must solve complicated math problems to add
new information to the blockchain.
This necessitates computing power, which is scarce and
expensive and one factor that adds to the value of
cryptocurrencies. It's also why minting an NFT costs money up
front, known as a "gas tax."
This processing capacity necessitates the use of electricity, which
produces greenhouse gases. Ethereum's pollution production rises
in tandem with its development. Bitcoin has a carbon footprint
comparable to Switzerland, while Ethereum's is comparable to
Tanzania, according to the website Digiconomist's energy
consumption tracker.
“It became morally indefensible for someone like me, who is
fortunate and willing to support myself already,” Parker says.
 Anna Podedworna is conscious of NFTs' environmental effects,
which is why she is reluctant to start minting them. She, on the
other hand, has another reason to think about them.
Podedworna is a Pole who is concerned about Poland's
increasingly right-wing, nationalist government. “Having some
cryptocurrency-based alternative income sounds better and better,”
she says. “I mean, I see what's going on in my country and I have
a family to think about.”
Ethereum has long vowed to turn to an energy-efficient scheme
known as proof of stake but in the meantime, some creators
purchase carbon offsets to offset the NFTs minted. A filmmaker and
animator, Ellie Pritts thinks it is unfair to single out artists for
contributing to emissions because there are so many other things
that do as well.
Even Ethereum's plans to reduce its carbon footprint, according
to Andres Guadamuz, a senior lecturer in intellectual-property law
at the University of Sussex who studies cryptocurrencies and
copyright, can intensify the inequality that already exists between
wealthy early Ethereum investors and everyone else.
Proof of stake replaces the mining process with one that
essentially binds mining power to your financial stake in the
cryptocurrency, removing the need for massive computing power.
“It reinforces the existing inequity,” Guadamuz says. “As a result,
the people who make all the decisions are already very wealthy in
the system.”
“That's a lot of money to put on the line.”
While it may appear as if NFTs have suddenly become popular,
the trend has been building for many years. Cryptokitties, a
blockchain game based on Ethereum in which players buy and sell
digital cats, debuted in 2017 and rapidly became so popular that it
slowed down the entire network's transactions.
Cryptokitties, on the other hand, did not produce nearly the
same level of interest as NFTs do now. Essentially, NFTs, according
to Guadamuz, have developed in tandem with the ever-increasing
buzz surrounding cryptocurrencies in general: an attention economy
inside an attention economy.
"You will never be able to match people who started this 10
years ago, no matter how much money you put in right now." But
now NFTs are in the news because Ethereum is in the news. After
all, is Bitcoin in the news because of the pandemic or low-interest
rates?
What are Elon Musk's tweets about?
Whatever the case may be, Guadamuz believes it is crucial to
acknowledge the connection between the two. He believes that
although artists profit from NFT sales, Ethereum stakeholders
benefit even more.
“No matter how much money you put in now, there will always
be people who started this ten years ago who you will never be
able to match,” he says. All of the newcomers are merely earning a
portion of a large amount of cryptocurrency that these individuals
have amassed over time.
 CHAPTER 4

WHAT CRYPTOART IS AND THE FUTURE OF

DIGITAL ART

C
ryptoart refers to the process of creating a permanent and
exclusive digital signature on a digital file of an artwork
(tokenizing) and then transferring it to a virtual block to
preserve the artwork's scarcity.
As the token holder, you have the option of keeping, selling, or
gifting your artworks to other potential buyers, but the original file
of your artwork remains yours, safely helmed within your block.
Cryptoart can address issues in the digital art environment by
using this newly developed technology: by using blockchain, artists
can ensure the scarcity of the artwork they tokenize, preventing art
theft and forgeries; the technology can also allow faster and more
secure transactions between clients and creators.
The world's understanding of visual art is evolving. It's no
wonder that as the world becomes more digital, the way we make,
consume, and collect art has changed as well.
The emergence of rare digital art, also known as cryptoart, which
combines technology and art to create a new market and medium,
has exemplified this paradigm shift in the art world.
The unusual digital art market has sold over $7 million in sales
since its launch in 2017 (give or take), with explosive growth in
recent months. This movement has spawned online galleries and
marketplaces, such as our MakersPlace, that use blockchain
technology to secure, authenticate and apply scarcity to digital
artworks, which was previously impossible.
Art's Progress
Since the beginning of time, human beings have valued beauty
and visual stimulation. Indeed, paleoanthropologists claim that our
aesthetic instincts were a core characteristic of humanism in our
forefathers, dating back well before the homo sapiens species we
now belong to.
For millennia, our universal culture has been characterized by a
love of beauty, also known as art. In all of its forms, art has
inspired and represented religion, politics, and much more in
culture. Across cultures, many scholars attribute the roots of art
collecting to religion.
Visual art commissions were most often undertaken by religious
figures and organizations in the (relatively) early days of human
civilization, with “art collections” mostly housed in places of
worship. Visual arts gradually spread through all facets of human
culture, giving rise to the “art patron,” who gathered purely for the
love of art (or the hope of later profit).
The vast majority of the world's population now engages in some
kind of art patronage, whether it's personal collecting or viewing
the collections of various art institutions worldwide. The world we
live in today is nothing like it was a few decades ago. Technology
has a tremendous influence on every aspect of our lives.
It would be illogical to leave art out of this evolution. Our ever-
evolving encounters with art have culminated in a paradigm shift
that has ushered in the next phase of art consumption: the rare
digital art revolution, which brings with it a slew of new possibilities
for artists and art lovers.
 CHAPTER 5

PRINCIPLES AND TERMINOLOGY OF

CRYPTOART

W
e assume that one of the internet's most valuable
industries will be fuelled by boundary-pushing and
verifiably scarce digital works over the next decade.
Cryptoart is a natural progression from the age-old question, "What
is art?"
On the other hand, art takes on a more expansive role in a
natively interactive medium, intersecting with decentralized finance,
virtual worlds, and social experience.
To grasp the potential of cryptoart, it's necessary to place it in
the sense of previous art movements. Legacy art movements can
be seen as responses to (1) previous art movements, and (2)
related cultural phenomena across history.
In the mid-nineteenth century, if you asked "what is art," you
would answer realism: the more accurate and practical the art, the
better. However, this movement evolved into impressionism.
Artists responded to accuracy by experimenting with conceptual
concepts and expressionism and abstract expressionism. Artists
manipulated their work for effect, concentrating more on emotional
intensity than a literal depiction. (Please note that we are
condensing 20,000 Ph.D. dissertations into sixty terms and we
recognize that art history is much more complex and nuanced.)
The type of art piece may also be ephemeral and intangible,
depending on the cultural context and the artist's viewpoint of
street art or performance art.
Although it's impossible to pinpoint an art movement's period
while it's occurring, we do know that in modern history,
technological developments have had a greater impact on artistic
speech.
The artistic work we create and share with the world has become
increasingly digitized as our lives have become increasingly
digitized. Although “digital” art has been around for nearly four
decades, many artists have not reaped the same financial rewards
as those who create physical works.
One of the reasons is that most monetization capacity around
artistic expression has been predicated on the physical scarcity that
moves with art throughout history. A one-time live performance
artwork cannot be purchased and resold in the same way Cézanne's
The Card Players or Damien Hirst's formaldehyde shark can be
purchased and resold for $250 million and $12 million, respectively.
The limitations of temporary art production have also afflicted
the digital world. Still, for the opposite reason: the features of a
digital original can be perfectly replicated and exchanged. Digital
GIFs and MP3s are quickly copied without attribution or reference
to the author. There hasn't been a native way to build and monitor
digital scarcity that moves with
innovative digital property outside legal compliance.
Bitcoin has shown that digital scarcity is possible in the field of
money over the last decade. BTC has developed into a commodity
money store of value, with a market capitalization of over $100
billion as of this writing.
Ethereum took the idea of digital scarcity beyond commodity
currency, allowing any digital good (music, 3D objects files, GIFs,
memes) to be made scarce programmatically. These objects are
also one-of-a-kind or non-fungible in nature. CoinFund's Jake
Brukhman wrote an excellent piece about this concept earlier this
week.
ERC 721 is an Ethereum standard interface for non-fungible
tokens (i.e., tokens with a unique identifier). We can see any
address where it has ever been stored, bid on, or moved, to put it
another way, flawless provenance.
We must not confuse an object's reproductive capabilities with its
underlying rights regarding blockchain-based art today. The
developer of a digital work will imbue it with programmatic scarcity,
which is a first step toward demonstrating authenticity.
Property lawyers (including IP lawyers) also think of property
rights as a "bundle of rights," similar to how a bundle of sticks is
thought of. For a property's lifecycle, all of the different sticks in the
package (e.g., use rights, leasing rights, publishing rights, film
rights, distribution rights, and so on) may be owned by one person,
many people in various combinations.
The first building block for digital artists to begin enjoying
property rights and transferring those different rights for their
sovereign digital creations is a token's verifiable scarcity over
standards like ERC 721. ERC 1155 is based on this concept,
allowing owners to establish licenses and model each exclusive
right granted by the Copyright Act. Teams like Open Law are
expected to continue to innovate in this field.
As a result, cryptoart would be as subversive to conventional art
as Bitcoin has been to traditional finance. BTC and cryptoart are
more similar than dissimilar, as we'll see below.
Art is a common means of storing value in today's society. Sales
of traditional fine art hit $64 billion in 2019 and the overall value of
traditional fine art is estimated to be over $3 trillion, but these
estimates just scratch the surface.
The wealthiest segment of society powers a significant portion of
the existing art market. Still, as cryptoart merges with the markets
for collectibles, games, and investments, it promises to introduce a
new wave of market investors into art.
Measuring the demand for cryptoart using only data from
passengers on private jets is close to measuring the aggregate
market for air travel using only data from passengers on private
jets.
 CHAPTER 6

NFT AND BLOCKCHAIN

I
n layman's terms, an NFT is a new type of digital collectible
object imprinted with a specific bit of code that acts as a
permanent record of its validity and is stored on a blockchain.
This distributed ledger framework underpins other cryptocurrencies
and bitcoin.
These collectibles can be sold and bought like trading cards and
since the nature of blockchain technology, a token cannot be
counterfeited or removed once it is formed. Artists, artists, and
those who want to produce limited-edition digital products can find
it useful.
As cryptocurrency enthusiasts and early adopters try to cash in
with the trend, the NFT market is exploding. Mike Winkelmann, a
South Carolina-based digital artist known as Beeple, recently sold
“Everyday: The First 5000 Days,” a tokenized compilation of his
work for more than $69 million online auctions at Christie's. Other
NFTs, such as depicting Homer Simpson as Pepe the Frog, have
sold for hundreds of thousands of dollars each.
Since its inception in 2019, NBA Top Shot, the collaboration
between the NBA and blockchain startup Dapper Labs that
transform basketball highlight videos into one-of-a-kind crypto-
collectibles has produced $230 million in revenue. Also, well-known
musical acts, such as Kings of Leon, are participating in the NFT by
selling millions of dollars’ worth of music in the form of digital
tokens.
 There's no denying that some of the NFT buzzes are inflated.
Scammers and get-rich-quick hustlers abound in the cryptocurrency
community, with many of their ventures failing. (Do you remember
the ICO craze?)
NFTs and other cryptocurrency-related ventures, according to
critics, need enormous quantities of energy and processing power,
rendering them a growing environmental threat.
There are also legitimate concerns about what NFT buyers are
getting for their money. If these tokens become broken links if the
marketplaces and hosting services that house the underlying files
go away.
However, there is something genuine here that deserves to be
taken seriously. Artists, musicians, and other creators have
struggled for decades because copying any digital item is trivially
simple on the internet.
Since someone who downloaded a file could copy and paste it an
infinite amount of times without losing quality, scarcity, the quality
that gives offline art its value was difficult to reproduce online.
Blockchain technology changed that by allowing digital goods to
be stamped with a cryptographic signature and a permanent record
of ownership to be kept.
You can copy the file stored in an NFT as much as you want, but
you can't fake the digital signature that protects rare digital goods
collectors. NFT supporters believe that in the future, technology
could be used to monitor a wide range of items, including property
titles, company contracts, and wills.
Creators may also apply a royalty arrangement to their NFTs,
entitle them to a portion of the income when their properties are
resold. (I tried to make this NFT royalty-free but I couldn't get the
Foundation to drop the built-in 10% royalty on secondary sales, so
any potential royalties would be donated to the Neediest Cases
Fund.
NFTs are quick to ignore, but I'm cautiously positive about them
because they represent a new way for creative people to make
money online.
Traditional media firms have fought modern, internet-based
distribution strategies for years because they saw them as a
challenge to their business models, which they were mostly right
about. The bulk of what could be found on the internet was free
and couldn't be easily copied or pirated.
If you wish to get paid for your work, you have three options:
put yourself at the mercy of a licensing service, build a paywall, hire
an army of lawyers to enforce your copyright or a large social
media network, which, if you were fortunate or exceptionally
successful, could share some of its advertising revenue with you.
Digital subscriptions are one way for artists to reclaim the power
of their careers. Another possibility is the use of non-fluorescent
transistors (NFTs). NFTs could erode social media middlemen's
economic supremacy by allowing artists, musicians, and, yes,
journalists to transform individual works into one-of-a-kind digital
collectible pieces.
 CHAPTER 7

NFTS AS COLLECTIBLES AND DIGITAL

ASSETS 


N
FTs are now used in some projects as collectible and
tradable objects. Let's take a look at a few of the more
well-known ones.
Decentralization
Decentraland is a decentralized virtual reality environment where
players can own and trade virtual land and other NFT products in-
game. Cryptovoxels is a game that allows players to create, build
and trade virtual property.
Gods Unchained
Gods Unchained is a blockchain-based digital collectible card
game in which cards are released as NFTs. Since each digital card is
one-of-a-kind, players can own and trade them in the same way
they can physical cards.
My Favorite Crypto Heroes
My Crypto Heroes is a multiplayer role-playing game (RPG) in
which players level up historical heroes by completing quests and
fighting in wars. On the Ethereum blockchain, the heroes and in-
game objects are issued as tokens.
Binance Collectibles is a set of Binance tokens.
Binance Collectibles are NFTs released by Binance and Enjin in
partnership on special occasions. If you want to get your hands on
one, follow Binance on Twitter and keep an eye out for our
upcoming giveaways! If you'd like to join an NFT giveaway, just
follow these simple instructions:
Install an Ethereum-compatible wallet, such as Trust Wallet.
Copy your Ethereum address and enter it into the giveaway
according to the rules. You may have to fill out a form or leave a
Twitter message. Double-check the rules and make sure you know
what you need to do to join.
Stamps in Cryptocurrency
The Austrian Postal Service issues Crypto Stamps, which connect
the digital and physical worlds. These stamps, like any other stamp,
are used to transport mail. However, they are also saved on the
Ethereum blockchain as digital images, making them a tradable
digital collectible.
Outside of traditional financial applications, digital collectibles
opens blockchain technology to a whole new set of possibilities.
NFTs can be a crucial part of the blockchain community, and the
broader economy, by representing tangible assets in the digital
environment.
The possibilities are infinite and many developers are sure to
come up with fresh and exciting applications for this promising
technology. According to a 2020 study from software monitoring
company L'Atelier BNP Paribas and nonfungible.com, non-fungible
tokens or NFTs - items that act as digital assets - have risen to
encompass a $250 million industry.
 CHAPTER 8

COMMON NFT MARKETPLACE

N
on-fungible tokens are FTs. They're one-of-a-kind things
that can't be replaced with anything else. A one-of-a-kind
trading card, for example, is an NFT since another card
cannot replace it.
You get something different if you swap your card for another
card. These are distinct from fungible objects, which are often
interchangeable. If you exchange one bitcoin for another, for
example, you will be in the same place as when you began.
On the other hand, if you exchange a virtually useless mass-
produced baseball card from the late 1980s for a 1909 American
Tobacco Company T206 Honus Wagner card (worth over $1
million), you've done incredibly well for yourself.
The majority of NFTs are now digital. This makes it especially
simple for creators to offer something special and unique to their
fans. Some NFTs, for example, are digital artworks, which are now
being collected in the same way that collectors have been collecting
physical paintings for years and some of these NFTs have fetched
astronomical sums. At Christie's, an NFT artwork by Beeple, a
digital artist, sold for $69 million.
NFTs are identical to other cryptocurrencies and Bitcoin in many
respects, with the difference that they are non-divisible and non-
fungible. The first NFTs were part of the Ethereum blockchain,
which stores additional electronic data to differentiate them.
NTFS is now supported by other blockchains as well. Since
different NFTs use different blockchain technologies, not all NFT
marketplaces buy and sell all NFTs. Creators often choose NFT
marketplaces based on whether they accept a particular NFC token
standard. ERC-721 and ERC-1155 are the two Ethereum
specifications that have been published so far.
Binance, a competitor, has since published BEP-721 and BEP-
1155 standards. Since they allow many NFTs to be transacted and
bunched together, the two "1155" standards vary from the original
"721" standards. Most NFT platforms enable customers to have a
digital wallet and pay for their transactions with cryptocurrencies.
1. OpenSea
OpenSea boasts of being the world's biggest NFT marketplace.
Art, virtual worlds, censorship-resistant domain names, sports,
trading cards, and collectibles are among the non-fungible tokens
available. ERC721 and ERC1155 properties are included. Unique
digital assets such as Axis, ENS titles,
CryptoKitties, Decentraland, and more are available to purchase,
sell and discover. They have over 700 projects, ranging from
trading card games and collectible games to interactive art projects
and name systems such as ENS (Ethereum Name Service).
With OpenSea's item minting tool, creators can build their
blockchain pieces. It allows you to create a set and NFTs without
writing a single line of code. You can easily join OpenSea if you're
working on a smart contract for a game, a digital collection, or
another project involving unique digital objects on the blockchain.
If you're selling something on OpenSea, you have the option of
selling it for a set price, a declining price listing, or an auction
listing.
2. Rarible
 Rarible is a community-owned NFT marketplace that uses the
ERC-20 RARI token as its "ownership" token. Rarible rewards active
users who purchase or sell on the NFT marketplace with the RARI
token. Per week, it distributes 75,000 RARI.
Art assets are given special attention on the website. Rarible
allows creators to "mine" new NFTs to sell their works, whether
they're books, music albums, digital art, or movies. The developer
can also show a sneak preview of their creation to anyone who
visits Rarible but only the purchaser will access the entire project.
Rarible is a website that buys and sells NFTs in some categories,
including photography, art, games, metaverses, music, domains,
memes, and more.
3. SuperRare
SuperRare is primarily a platform for people to sell and buy one-
of-a-kind, limited-edition digital artworks. Each piece of art is
created by a network artist and tokenized as a crypto-collectible
digital object that you can own and trade. They identify themselves
as a cross between Instagram and Christie's, providing a new way
to engage with art, culture, and collecting on the internet.
Each piece of art on SuperRare is digitally collectible, a digital
item that is encrypted and tracked on the blockchain. On top of the
marketplace, SuperRare has created a social network. Digital
collectibles are suitable for a social setting because they have a
simple record of ownership.
The Ethereum network's native cryptocurrency, ether, is used in
all transactions. SuperRare only works with a select group of hand-
picked artists; Also, you can use a form to apply your artist profile
and be considered for their upcoming full launch.
Foundation is a niche forum that brings together digital
developers, crypto natives, and enthusiasts to advance culture. It's
called the "new creative economy." It is primarily
4. Foundation
Concerned with digital art.
In August 2020, they revealed an open call for developers to
experiment with crypto and play with the idea of value in their first
blog post on their website. "Hack, subvert and exploit the value of
artistic work," they encouraged artists.
When an NFT trades on Base, the artist receives 10% of the
secondary transaction value, i.e, when a collector resells their work
to someone else for a higher price, the artist receives 10% of the
sales value.
5. AtomicMarket
AtomicMarket is an NFT market smart contract with mutual
liquidity that is used by many websites. Anything listed on one
market appears on all other markets, which is known as shared
liquidity.
It's a marketplace for Atomic Properties, a non-fungible token
standard built on the eosio blockchain. The Atomic Asset standard
can be used to tokenize and build digital assets and purchase, sell
and auction assets in the Atomic Assets marketplace.
On the AtomicMarket, you can both list your own NFTs for sale
and search for existing listings. NFTs from well-known collections
are marked with a verified checkmark, making it easier to identify
genuine NFTs. Collections that are malicious are put on a blacklist.
6. The Myth Market
Myth Market is a set of user-friendly online marketplaces that
appeal to a range of digital trading card brands. GoPepe. Market,
GPK.Market, Heroes. Market, KOGS.Market and Shatner. The
market is the featured markets at the moment
7. BakerySwap
BakerySwap is a decentralized exchange (DEX) and Binance
Smart Chain automated market maker. It makes use of a
BakerySwap token that is native to the platform (BAKE).
BakerySwap is also a multi-functional crypto hub that includes a
crypto launchpad and (NFT) a non-fungible token supermarket and
some decentralized finance (Defi) services.
Its NFT supermarket sells digital art, meme contests, and NFT
games, all of which can be purchased with BAKE tokens. You can
win bonus BAKE tokens by using NFTs in 'combo meals.' It's also a
simple and clear method to mint and sell your artwork.
8. KnownOrigin
KnownOrigin is an online marketplace where you can find and
purchase exclusive digital artwork. Every piece of digital art on
KnownOrigin is genuine and one-of-a-kind.
Creators may use the forum to show off their work and sell it to
collectors who value authenticity. The Ethereum blockchain protects
it. Creators can upload digital artwork to the KnownOrigin gallery as
a jpg or Gif file, with all files stored on IPFS.
9. Enjin Marketplace
Enjin Marketplace is a forum for exploring and exchanging
blockchain properties. It is the official Enjin-based NFT marketplace.
To date, it has allowed the spending of $43.8 million worth of Enjin
Coin on digital assets, totaling 2.1 billion NFTs. There have been
832.7K trades. The Enjin Wallet makes it easy to list and buy
gaming goods and collectibles.
 From game item collections like the Multiverse and games, The
Six Dragons, like Age of Rust, gamified reward programs like
community-created collectibles, Microsoft's Azure Heroes, and NFTs
by companies like Swissborg and Binance, the Projects page
showcases Enjin-powered blockchain projects.
10. Part
A portion is an online marketplace that uses Blockchain
technology to link artists and collectors to easily sell, invest in, and
own art and collectibles while maintaining total transparency. It
involves the Artist Collective, a decentralized global network of
artists and creators.
Anyone can be a collector thanks to Part. You can keep track of
both your physical and digital collections in one place, making it
simple to swap cryptocurrency for art and collectibles.
Portion Tokens are Ethereum Blockchain ERC-20 assets used to
decentralize governance and vote on the platform's future. Liquidity
mining, artist awards, collaborations, and potential team members
all receive new tokens. When artists create new NFTs, they are also
given new Portion Tokens, which are currently worth 500 PRT.
Async Art is a type of art that is created in real-time.
Async Art is a blockchain-based artistic movement.
Programmable art can be made, collected, and traded. Both
"Layers" and "Masters" are available for purchase. While Layers are
the individual components that make up the Master image, A
Master is a 1/1 edition art piece.
Layers are endowed with unique abilities determined by the
artist. When you alter something on a Layer, the Master image will
represent this regardless of who owns it.
Artists pick the parameters of their art and give exclusive control
over every aspect to individual collectors. For example, they could
let someone change the state of the background, the location of a
character, or the color of the sky. Since February 2020, the site has
seen over $6 million in bid value and over $1.5 million in artist
sales.
 CHAPTER 9

HOW TO CREATE NFT

I
know you’ll have questions about whether or not NFTs are
worthwhile. Consider, for a moment, the world of traditional
art. You see art galleries and people paying hundreds of
thousands or millions of dollars for artwork and then reality hits
you. Under the right conditions, only a very few will make a living
doing it. Even then, they must divide the benefits with other parties
involved in the deal.
NFTs live in a special environment. You, the artist, have
complete control over all of the strings that make up your work.
NFT marketplaces are foreign marketplaces that display your work
to the entire world. To sell your work, you don't need to go to a
gallery or an agency. You are not forced to share a portion of your
earnings with middlemen.
NFT marketplaces, in reality, keep you updated on the selling of
your artwork at all times. You can earn a reasonable commission
from your artwork's NFT once it is traded.
You may also prove the validity of your work at any time and
that there is only one true owner of your artwork at any given time.
Overall, the NFT artwork ecosystem makes it easier for anyone to
purchase and sell art.
Creating your NFTs requires little or no technological expertise,
contrary to popular belief. You can create NFTs for your artwork in
minutes using NFT marketplaces like OpenSea, Rarible, or Mintable.
You must first link your crypto wallet to the NFT marketplace of
choice before you can begin building your NFT. You'll never have to
share any other information because the wallet address would be
your login information. After that, go to the marketplace's "Build"
area, upload your artwork and complete the process by pressing
the necessary buttons.
That is the end of the discussion. You'll get your NFT artwork
ready to sell before your mother summons you downstairs for
dinner, your baby begins to weep or your better half misses you.
Fungible means that it can be quickly replaced. A 1 of 1 Mickey
Mantle rookie card is not just any baseball card, rather it's
irreplaceable and non-fungible. Oil is fungible because any barrel is
as good as the next.
When non-fungible assets are tokenized, the token becomes a
digital representation of the asset's important data. Tokens are
stored in wallets, each of which has its address. Token IDs link to
wallet addresses on the blockchain, a massive, publicly accessible
database that allows anyone to verify digital ownership.
The most common sites for NFT development are OpenSea and
Rarible. Although Rarible has the most overall sales, OpenSea offers
additional services, such as the ability to build your own NFT
website using the OpenSea exchange. Users can upload their
artwork and build collections on both platforms without knowing
anything about blockchain technology.
Remember that there will be some initial costs before you begin.
A blockchain, usually Ethereum's blockchain powers NFTs. To
tokenize your art, you'll need to pay a network fee known as gas.
During the development process, Rarible allows artists to mint
NFTs on the blockchain (on-chain). As a result, the prices will be
lower in the future. Rarible is your best bet if you intend on selling
a few NFTs for astronomical prices. You can use OpenSea's
Collection Manager, on the other hand, if you want to make a large
number of inexpensive NFTs.
Users can create a new set with OpenSea Collection Manager for
a one-time fee. The OpenSea centralized team can build and store
an infinite amount of NFTs off-chain before a sale is made using
that set. Your NFT will be put on the chain and transferred after the
buyer pays the transaction's gas tax.
This chapter will guide you through the steps to make your own
NFTs in an OpenSea set.
1st Step - Setup MetaMask
Setting up a software wallet is the first step in creating your own
NFT. You'll need to use this wallet to store your NFTs and to pay
blockchain gas fees.
Go to metamask.io to get the software or install the chrome
extension. It is fast and free to create a MetaMask wallet. Only
keep hold of your seed phrase in case you need to retrieve the
wallet in the future.
Keep in mind that wallets do not store cryptocurrency or NFTs;
rather, they store your private key, which is needed to approve
transactions. Both cryptocurrencies and NFTs are stored on the
blockchain and the wallet ID is used to identify who owns what.

2ND Step - Tokenize your art

You'll be able to make your NFTs once you've set up a MetaMask
wallet. Go to opensea.io and pick Build from the menu bar. You can
now use OpenSea to link your MetaMask wallet.
Click the Add New Item button after giving your NFT set a name.
You can now upload the file you want to tokenize and allocate its
properties and statistics to set it apart from the rest of your array.
Establish a retail price after determining how many copies of
each item you need.
3rd Step - Make a marketplace listing.
You must first authorize OpenSea to sell products from your
account before you can sell your first NFT. You would have to pay a
gas tax since this is a blockchain purchase. You're good to go if you
send any Ether to your MetaMask. This fee is only needed when
you create an NFT collection for the first time.
You can buy Ethereum on Coinbase or Gemini and send it to
your MetaMask wallet if you don't already have any. Start with
Benzinga's guide to buying Ethereum if you're new to
cryptocurrencies. Anyone can find and buy NFTs on the OpenSea
marketplace now that you've granted OpenSea permission to sell
them. It's over!
There are three key ways to generate NFT gains in the industry:
scalping, investing, and trading.
For most people, investing in a platform like Nifty Gateway,
OpenSea or Rarible is their best bet for cashing in on the NFT
bubble before it bursts. The majority of miners went home empty-
handed during the California gold rush, but those who sold picks
and shovels made a fortune.
It could be worthwhile for you to build your own NFTs for your
fans if you're an artist or influencer. Logan Paul, a YouTuber, and
professional boxer made $5 million in one day by selling 3,000 NFTs
for one Ether each. NFT FOMO has hit new heights. If you have a
knack for forecasting resale demand, pick up a $300 Nifty Gateway
bot from Upwork and get scalping!
NFTs also represent real and digital objects. The NBA, for
example, is tokenizing clips of the greatest basketball plays in
history and selling them for a fortune — and they get a 5% share
of all secondary market sales — another advantage of NFTs for
makers.
Tokenized pictures of 24 x 24-bit avatars make up the crypto
punks. There are 10,000 crypto punks, each one special and selling
for an average of $15,000 each.
There are 9 aliens, 24 primates, 88 zombies, 3,840 females, and
6,039 males, each with their characteristics and rarity. Just 44
crypto punks have the "beanie" trait, making them immediately
more valuable than one of the 332 crypto punks with VR goggles.
The blockchain is changing the way we think about art and
collectibles, but it's just the start. Tokenization is a versatile
technique with a multitude of applications yet to be explored.
NFTs seem to have a long life ahead of them. Another issue is
which NFTs would be able to withstand the test of time and
maintain their value. Each NFT set has its value proposition but in
the end, they are only worth what someone is willing to pay for
them.
Given enough time, the vast majority of all NFTs produced will
become virtually useless. Some, on the other hand, can rise in
value and popularity.
 CHAPTER 10

HOW TO BUY NFT

N
on-fungible tokens are somewhat distinct from other
investments in cryptocurrencies. Like other
cryptocurrencies, these tokens do not have value based
on their usefulness. Instead, the media attached to NFTs gives
them meaning –– the most popular types of media on NFTs today
are art and music, but NFTs can tokenize any real-world asset.
NFTs are Ethereum-based tokens that are used to validate
ownership of the asset associated with the token. Although NFTs
are costly, you are getting more than a JPEG file. Make an account
on the NFT Marketplace in the first phase.
NFTs can be bought and sold on various websites. You'll be able
to buy various styles of art or collectibles depending on the
marketplace you want.
Some of the most well-known NFT marketplaces are as follows:
Opensea is known as an Ethereum-based market for non-
fungible tokens. Users can swap non-fungible tokens for
cryptocurrencies through the network. It sells everything from video
game pieces to digital artwork.
NFTs have their social network called SuperRare. Each piece on
the platform is one-of-a-kind and users can purchase and sell these
one-of-a-kind pieces through the platform's website. To make a
purchase, you'll need to finance your account with Eth tokens since
the platform runs on the Ethereum network.
The famous cryptocurrency exchange Gemini owns Nifty
Gateway, an NFT marketplace. Famous artists including Steve Aoki,
Grimes, 3LAU, and others collaborate to release artwork in the
primary marketplace.
Collectors may resell their artwork on the company's secondary
market. You can use Ethereum to finance your Nifty account or you
can use the website to add a credit card.
NBA Top Shot is a website where you can buy and sell officially
licensed NBA memorabilia. These digital basketball cards are more
interactive than traditional trading cards and are a new take on
basketball cards. In-game clips of the featured teams, for example,
are included on the cards.
A LeBron James Dunk card, which featured a clip of James
dunking on the Houston Rockets and sold for more than $200,000,
was the most expensive card sold on NBA Top Shot.
Step 1
Sorare is an online store where you can buy and sell limited-
edition soccer NFT cards. There are currently over 125 clubs listed,
with more being added every week. Connect and trade with other
fans in Sorare's open marketplace or play the Global Fantasy
Football Game, where you can build your lineup and earn points
based on real-life results.
Step 2: Deposit into your bank account.
You can buy Ethereum on a cryptocurrency exchange and send
your crypto to your marketplace account if you already have an
account with one. eToro and Coinbase are decent choices for
beginners if you don't have a crypto exchange account already.
Step 3 - Purchase your NFT
After your account has been funded, buying an NFT is a simple
operation. You'll need to make an offer for the NFT you want to buy
because most marketplaces are set up as auctions. For NFTs with
many prints, some marketplaces function more like an auction,
using the highest bid and lowest ask.
The future resale value of an NFT purchased directly from the
primary marketplace is a bonus. Some high-demand NFTs will sell
for 5 to 10 times their initial price shortly after their release. The
disadvantage of purchasing NFTs on the open market is that it is
difficult to predict demand. You can equate your purchase to
previous purchases in the secondary marketplace.
 CHAPTER 11

HOW TO SELL NFT

D
igital trading cards, art, virtual real estate and gaming are
all examples of NFTs. NFTs, unlike common
cryptocurrencies such as Bitcoin and Ether, cannot be
directly traded and are distributed through some platforms. Most
NFT platforms demand that customers have a digital wallet and use
cryptocurrencies such as Ethereum, WAX, or Flow.
The majority of digital-art trading platforms allow artists to
collect royalty. Some art platforms cater to a select group of artists,
while others allow everyone to create and sell their work.
NFTs also provided a windfall of benefit for professional digital
artists. Last week, Trevor Jones, an NFT artist, told Insider that
digital art trading platforms could prevent the need for more
traditional art markets.
NFTs have also piqued the interest of many conventional auction
houses. Christie's, a 1766-founded auction house, auctioned a
Beeple piece in February, marking the company's first foray into the
digital token market. With two days left in the auction, the piece is
currently valued at $9.75 million.
Platforms like Super Rare, Nifty Gateway Foundation allow
buyers to choose from carefully curated work by multimillion-dollar
digital artists like Griffin Cock Foster and Beeple. Duncan, co-
founders of Nifty Gateway, told Insider that their firm deals with
artists one-on-one.
"One of the best things about Nifty Gateway is that there are all
these artists who essentially just existed on Instagram or Twitter
doing all this very special work but never had a way to make money
off it," Griffin Cock told Insider. "They began selling cryptoart and
they're still reaping the rewards and gaining popularity."
Names like Grimes and digital comic artist Chris Torres have
appeared on Nifty Gateway, Super Rare, and Foundation platforms.
Artists will earn up to 10% royalties for all potential sales of their
work across these channels.
Although Nifty Gateway aims to make its platform more open to
buyers by encouraging them to pay with a credit card, other
platforms place a greater emphasis on lowering the entry barrier for
developers. Zora and Rarible are invite-only platforms, while
Mintable and Rarible allow users to upload and sell images and text
as NFTs.
Artists can still receive royalties on these pages but they aren't
as well-curated. Rarible allows users to upload everything from
blank pictures to their interpretations of well-known works of art.
NFTs can be bought for as little as $10 or as much as hundreds of
thousands of dollars on these websites.
OpenSea bills itself as the world's largest non-traditional
marketplace, with everything from art to virtual reality, sports, and
trading cards available. About 200 categories and 4 million products
are available on the website.
On OpenSea, either can be used to purchase common NFT
products such as CryptoPunks, CryptoKitties, and virtual real estate.
OpenSea has been dubbed "the eBay of the blockchain" by
DappRadar, a blog that monitors and analyzes decentralized apps.
Decentraland, a popular virtual real-estate website, is one of the
marketplaces that runs on OpenSea. According to DappRadar,
OpenSea sold nearly $24 million worth of NFTs last week.
NFT revenues are strongly affected by sports.
NBA Top Shot has a wide variety of sports clips for sale, ranging
from $20 to thousands of dollars. NBA Top Shot has a wide range
of sports clips for sale, ranging from $20 to thousands of dollars.
Top Shots in the NBA
According to CryptoSlam, NBA Top Shot, a website where people
can purchase video highlights as NFTs, has sold over $260 million
worth of NFTs in the last month. In February, a LeBron James dunk
set the record for the most expensive Top Shot, selling for
$208,000 in Flow.
Fantasy sports have impacted NFT revenues. So rare is a fantasy
soccer game that allows users to purchase, sell and manage virtual
teams using digital player cards. According to CryptoSlam, one of
the top ten most popular crypto-collectible platforms is Axie Infinity,
which sells cartoon characters designed to battle, similar to
Pokmon.
According to CoinDesk, in 2020, the site had over 10,000
monthly active users, making it Ethereum's most popular game.
Looking Glass Factory, a platform that produces digital holograms
and sells them as tokens, is one of the many sites that have found
success in the niche NFT collectible sector.
 CHAPTER 12

HOW TO INVEST IN NFT AND HOW NFTS CAN

BE AN ADDITION TO CRYPTO ASSET
PORTFOLIOS

T
he idea of NFTs or non-flammable tokens that represent a
digital artwork or other digitally collectible item is the
newest investment craze. "Fungible" is a concept that
defines something that can be easily substituted for something of
similar value.
A non-fungible object is a one-of-a-kind item that cannot be
replaced. NFTs allow anyone to buy or sell a one-of-a-kind work of
digital art, with the buyer being the sole owner. Although NFTs are
a new type of investment, some have already sold for millions of
dollars, illustrating their value, but, are they the right investment
for you?
NFTs are blockchain-based tokens that contain details about a
single digital work of art. There are almost no limits to the types of
art that can be bought as NFTs. Twitter's CEO, Jack Dorsey, made
headlines recently when he sold the first tweet as an NFT for $2.9
million. Nyan Cat, a ten-year-old meme, was the star of a $500-
thousand-dollar animated GIF. A digital painting by Beeple, a digital
artist, was sold for $69 million.
Similar to physical fine art sales, buying art isn't what brings in
the big bucks; it's selling art to the highest bidder. Like physical
art, you can buy a Mona Lisa print, but there will only ever be one
original Mona Lisa.
 Since NFTs are such a recent investment, there is still a lot to
learn about them. Furthermore, valuing digital art can be difficult,
making NFTs a high-risk investment. When you invest in stocks, the
stock price decides how much your investment is worth. Buying a
stock at a low price and then selling it at a higher price can be
profitable.
The worth of digital art, on the other hand, is measured by how
much someone is willing to pay for it. Since there are no set
guidelines for assessing the worth of a meme, GIF, or tweet, it's
anyone's guess how much you'll be able to get for it — whether you
can sell it at all.
A set of gold coins
If you're serious about investing in NFTs, set a budget and just
buy what you can afford to lose. Since NFTs are so speculative,
don't expect to make any money from them. Investing the rest of
the money in safer investments like index funds or exchange-traded
funds is also a good idea (ETFs).
NFTs are a modern type of investment but they aren't for
everybody. It's not a bad idea to get your feet wet if you're
interested in NFTs and have some cash to spare. Otherwise, it's
preferable to stay on the sidelines and watch this phenomenon
unfold from a safe distance.
Mega-cap companies like Sotheby's and Christie's, and online
companies like eBay and Etsy, now help us sell and benefit from
our collections. To cover themselves from fraud and injuries, people
spend a small fortune on insurance. Many who are well-informed
will amass significant capital.
NFTs are treated in the same way. Many people will want to own
the original, even though digital artwork is easier to copy and
distribute. A mixture of love and pride inspires many people;
Brunei's Sultan is said to own 7,000 vehicles.
On the other hand, others wish to express their gratitude to the
original artist for creating something they want. On Etsy, tens of
thousands of independent digital artists sell their work for under
$100 and if you like a specific artist, I strongly advise you to buy a
cheap piece or two, even if it's just to keep the creators doing what
they're doing.
Investors must have a unique understanding of the assets
represented by NFTs to profit from them. Basketball fans who can
correctly forecast future NBA superstars can buy low-cost highlight
reels now and profit millions when the stars break out in a few
years. Both Steve Nash and Kobe Bryant had disappointing rookie
seasons (Kobe scored 7.6 points per game at 18!)
Both, on the other hand, would go on to become superstars in
the future. Any team that bet on them early would have made any
money. Those who buy NBA one-hit wonders as NFTs during their
15 minutes of fame, on the other hand, are unlikely to succeed.
Similarly, in the art world, there have always been duds and
stars. Most early works of Banksy were painted over by officials
who mistook them for graffiti. Meanwhile, his later works will sell
for as much as Rembrandt's at auction, ordinary people have
trouble telling the difference between masterpieces and standard
works of art.
To put it another way, focus on your area of specialization if you
want to make any money in NFTs. Check out Decentraland, a
virtual world operated by Ethereum, if you enjoy video games
(CCC: ETH-USD). If you're a sports fan with a keen eye for talent,
the NBA's NFTs may be for you. Make art or music your area of
expertise if you're talented in those fields.
Investing in NFTs requires two leaps of confidence. The first is
self-evident: the underlying asset must be valuable and growing to
be profitable. If you think the artist can make an infinite number of
copies of a digital art piece, it's pointless to purchase it.
The second leap of confidence is a little more difficult: NFT
buyers must trust the entire cryptocurrency framework. You are
issued a token when you buy an NFT that marks you as a specific
asset owner.
This is done often on the Ethereum network, which runs the
Ether cryptocurrency. Cardano (CCC: ADA-USD) and Polkadot (CCC:
DOT1-USD) are two new coins that have recently entered the fray.
So, what can you do to boost your chances?
When purchasing an NFT, you must ensure that the property is
not owned by someone else. In the real world, title insurance is a
multibillion-dollar industry that guarantees you don't purchase a
property where the seller has lied about ownership. However, if you
want to stop receiving a tampered with or copyrighted object, you
must do your homework in the world of NFTs.
As a result, investors should avoid putting too much money into
any one NFT. Even if you expect an asset to double or quadruple in
value, you can limit your gross investible portfolio to 5% to 10% of
your total investible portfolio to cover yourself if something goes
wrong. In the worst-case scenario, all the best assets would be
rendered worthless.
Simultaneously, don't overextend yourself. If you buy a thousand
pieces of low-quality digital art, a 10x champion will not move the
needle.
 CHAPTER 13

UNDERSTANDING NFT STOCKS

W
hen you consider the art's resale value, NFTs become
a compelling investment opportunity. It's close to
purchasing physical works of art. If you just want to
keep the art, having possession of it will not benefit you.
Of course, staring at the work of art can provide you with a
sense of fulfillment. Big money, though, comes from selling pieces
of art to the highest bidder. To put it another way, if you can buy a
one-of-a-kind NFT and then sell it for more than you paid for it, you
will benefit handsomely.
The strength of blockchain is that it eliminates the possibility of
fraud and theft. There will be codes and authentication to confirm
and validate the authenticity of the work of art you own. Others can
also create copies of an original digital art piece but only one
original remains. The original belongs to the person who owns the
NFT for that art piece.
If anyone asked you in January what NFT stocks were, you'd
probably stare at them blankly. The enthusiasm has sparked Wall
Street rallies in a slew of tech stocks this week. As I previously said,
some of these have little to do with the NFT niche. However, based
on speculation, investors believe these companies will gain
exposure to NFTs.
It's difficult to tell if NFT stocks will take off in the long run at
this stage. Examine cannabis stocks and cryptocurrencies from
2017 to 2019. If history is any guide, the excitement surrounding
NFT stocks will likely fade away soon.
With all of the hype, it's easy to dismiss it as science fiction that
will never come to pass. However, if we look closely, we can see
that something is going on behind the scenes and why am I saying
this?
Last year, according to Nonfungible.com, the overall volume of
NFT transactions increased to $250 million. NFT transactions
totaled more than $220 million last month alone. It seems that we
are experiencing something that is rising at an unprecedented rate.
Traditionally, any digital art that is shared, saved, or downloaded
on the internet can be easily shared, saved, and downloaded.
However, since anybody can use it, there isn't a clear sense of
ownership. Assume you're an artist, a particularly talented one.
You also produce some of the most stunning works of art, but
what about putting your imagination to good use?
You seem to have had little success with it so far, at least with
most citizens. However, there is a way to give digital art a sense of
individuality using NFTs. It also provides an opportunity for good
artists to continue doing innovative works.

The art industry has many scopes for NFTs. However, first and
foremost, the market must be regulated. There is currently no law
dictating who is allowed to build NFTs and who is not. Before then,
I wouldn't invest in NFT stocks without first waiting for the dust to
settle but, don't get me wrong: I love art.
I genuinely believe that this has the potential to change the way
art is perceived in our culture. Maybe it's just me, but before
investing in NFT stocks, I'd like to see more concrete developments.
However, this is merely my opinion; the final decision is yours to
make. Make sure you do your homework and study.
The hunt for stocks linked to non-fungible tokens (is heating up
and then investors are frantically looking for opportunities. The fact
that crypto-assets are starting to stir up mainstream knowledge is
behind the interest in NFT stocks. Celebrities such as Jack Dorsey
and Elon Musk have experimented with offerings and brands are
following suit.
Are you the sort of investor who is willing to take on a high level
of risk in exchange for the possibility of a high return?
NFT stocks can be erratic. As you'll see below, many businesses
are experimenting with NFT offerings. Others use a mix of online
sleuthing and social media gossip to reach new heights. As a result,
the early-stage trend is extremely hot but also extremely risky.

When evaluating these businesses, make sure to weigh the risks

and do your research into what makes them special.
Do you think it's great that they're associated with NFT targets
or blockchain technology?
Are their companies ripe for potential cryptocurrency deals?
Do they have any NFT services that produce revenue?
There is money to be made in the room as digital artist Beeple
made nearly $70 million for a single piece, but there is also money
to be lost.
With that in mind, here are the top ten NFT stocks that
InvestorPlace is currently tracking.
Takung Art is a form of martial art (NYSEMKT: TKAT)
Jiayin Group is a Chinese conglomerate (NASDAQ: JFIN)
Group of Oriental Culture (NASDAQ: OCG)
Media in Liquid Form (NASDAQ: YVR)
Hall of Fame Resort & Entertainment is a resort and
entertainment complex located in Las Vegas, Nevada
(NASDAQ: HOFV)
Funko Pop! (NASDAQ: FNKO)
Cinedigm is a film production company that specializes in
(NASDAQ: CIDM)
Color Star Technology is a technology that allows you to see
colors (NASDAQ: CSCW)
WiseKey is a program that allows you to create a (NASDAQ:
WKEY)
KBS Fashion Group is a fashion company based in Korea
(NASDAQ: KBSF)
 CHAPTER 14

NFTS FOR GAMING, DIGITAL IDENTITY,

LICENSING, CERTIFICATES, AND FINE ART

C
ollectibles, art, games, and virtual worlds are the key
categories of existing NFT use cases. Other categories,
such as sports, fashion, and real-world properties, are,
however, increasingly growing.
Terra Virtua is one of the world's first immersive digital collectible
networks, with some of Hollywood's biggest names, including
Topgun, The Godfather series, Pacific Rim, Sunset Boulevard Lost in
Space, among others. It also has a relationship with Paramount
Pictures.
1. Antiques and collectibles
Collectibles are currently one of the most common applications of
NFTs in terms of sales volume, accounting for about 23.6 percent of
all sales in the previous month. CryptoPunks, which debuted in
June 2017 and has since sold for thousands of dollars, is one of the
first collectible NFTs on Ethereum.
They were created before ERC-721 was launched and a wrapper
had to be created for them to be traded on exchanges such as
Opensea. CryptoKitties have become well-known collectibles, with
sales reaching more than $38 million since their launch in
November 2017,
2. Playing video games
Gamers, as previously said, are an ideal target market for NFTs
since they are already acquainted with virtual worlds and
currencies. The gaming industry is booming thanks to NFTs, which
enable in-game objects to be tokenized and easily transferred or
traded using peer-to-peer trading and marketplaces.
On the other hand, traditional games forbid the selling or
transferring in-game objects such as uncommon weapons and
skins.
Since players have full control of their digital properties, NFTs
make the gaming experience more tangible and satisfying. They're
also spawning a new economy, as players can now benefit from
their in-game properties by constructing and improving them.
3. Artpiece
One of the most challenging problems for digital artists is
copyright infringement, but NFTs are a remedy because they
provide evidence of ownership, authenticity and eliminate
counterfeiting and fraud concerns.
As museums and galleries close due to COVID-19, many artists
have switched to NFTs and online showrooms, according to a
Coindesk post, and “just as Bitcoin paved the way for peer-to-peer
transactions by establishing a public events ledger, cryptoart has
provenance built-in.”
In July, “Picasso's Bull” set a new record for the NFT highest-
valued art auction sale, selling for more than $55,000. “These
ventures can also boost and streamline artists' income by linking
them directly to customers via blockchain-based payment and
exchange solutions,” according to Cointelegraph.
4. Interactive universes
Digital worlds are another application for NFTs. Users can build,
own and monetize virtual land parcels and other in-game NFT
products on decentralized virtual reality platforms including
Decentraland, The Sandbox, and Cryptovoxels.
Decentraland's LAND is permanently owned by the group, giving
players complete ownership of their virtual properties and creations.
Given Gen Z's experience with virtual worlds and how their
understanding of valuable assets varies from that of previous
generations, virtual world assets provide them with the versatility
and option that they value: “
5. Properties and documentation from the real world
Real-world properties such as property and bonds, and
documents such as credentials, licenses, medical records, birth and
death certificates, can be tokenized.
However, this category is still in its early stages of growth, with
few applications but, as the crypto world and NFTs grow and
expand, who's to say you won't be able to own a vineyard in
another country thousands of miles away one day (perhaps soon)?
Your digital wallet can soon contain proof of every certificate,
license, and asset you own, for all we know.
 CHAPTER 15

PROBLEMS OR CONTROVERSIES
SURROUNDING NFTS AND CRYPTOART

I
n the NFT market, there's no money to be made. However,
you might have heard that NFTs are the subject of some
debate, especially regarding their effect on the environment.
Artists may contribute by attempting to produce carbon-neutral
artwork (Beeple has already promised to do this going forward as
the above tweet explains). However, because of the way
cryptocurrency systems are constructed, the problem is even more
severe.
To keep its users' financial records safe, Ethereum, Bitcoin, and
other cryptocurrencies depend on a 'proof-of-work mechanism
(similar to a complex series of puzzles), which consumes a
tremendous amount of energy. Ethereum, in reality, consumes
about the same amount of energy as the entire country of Libya.
Oh, no.
ArtStation was so concerned about the effects on the
environment that it recently reversed its decision to sell NFTs in the
face of widespread opposition. However, organizations are working
to make a difference, so it might not be as divisive in the future.
Here's a look at what Blockchain for Climate is doing to help the
situation.
Is it possible for someone to make an NFT?
You've made it this far, so you're probably wondering if anyone
should participate. Ok, given that someone drew this Gucci Ghost
(above) and sold it for an eye-watering $3,600, one would think so.
Yes, legally, anyone can sell an NFT. Anyone can build work,
convert it to an NFT on the Blockchain (a process is known as
minting,'), and sell it in their preferred marketplace.
You can also add a commission to the file that will cost you any
time anyone buys the piece, including resales. You'll need a wallet
set up, as much as when buying NFTs and it'll need to be packed
full of cryptocurrency and this demand for money upfront that
causes the problems.
The secret fees can be exorbitant, with sites charging a 'gas'
charge for each sale (the cost of the energy used to complete the
transaction) and a fee for selling and purchasing. You must also
account for conversion fees and price changes based on the time of
day.
As a result, the payments will also be much higher than the price
you get for selling the NFT. However, different sites charge
different fees and some are better than others, so do your
homework.
Whether or not NFTs are here to stay, they have undoubtedly
become a new toy for the ultra-wealthy and there is real money to
be made if you can pull it off. NFTs offer digital art a whole new
significance and the prices seen at auction suggest it's a real part of
the future of art and collectibles in general.
 CHAPTER 16

CLIMATE-POSITIVE CRYPTOART

N
on-fungible tokens (NFTs) have been hailed as a panacea
for everything from selling il-liquid assets like real estate
properties to combating counterfeiting.
Digital art, described as NFTs, can combat climate change and
drive a more sustainable digital economy, according to the most
recent use case being advanced. Will we look back on this time as a
collective madness fueled by crypto collectors with more money
than sense?
NFTs as a Constructive Power
NFTs have emerged as the solution to various problems as the
environment goes digital, with virtual displacing physical. NFTs are
capable of aligning rewards between fans and artists, transforming
e-gaming, promoting probable scarcity, and powering a burgeoning
economy for digital collectibles, according to their architects.
Can NFTs genuinely support climate change, which they are
accused of exacerbating?
NFTs are directly responsible for environmental destruction,
according to the statement, because they are issued and
exchanged on energy-intensive blockchains that consume large
quantities of electricity.
For the smart contracts used to mint and exchange, the NFTs,
energy-intensive blockchains like Ethereum (though less so than
bitcoin) are used, resulting in a direct carbon intensity that is
climate culpable.
 Not everybody believes that NFTs are the sole cause of the
planet's demise. According to one group of musicians, the opposite
is real. NFTs' carbon footprint has been greatly underestimated.
Still, when released on low-energy blockchains, they can be a force
for good, promoting a flourishing market for digital art while also
offsetting carbon consumption.
The Conscience Collective, Beeple and SAF
Those who stop scouring crypto chat groups for the new 'NFT
jewels' and collectives must know Beeple. One time, unknown
digital artist was on his way to becoming a household name,
following his work 'Everyday: The First 5000 Days' sold at Christie's
for a record $69.3 million. As a result, Beeple became the third
most expensive living artist to be sold at the auction.
Beeple is collaborating alongside numerical performers such as
Andres Resigner Sara Ludy Refik Anadol and Kyle Gordon in an
even more audacious NFT project: The NFT artist's collective work
is being auctioned off (SAF) by the Social Alpha Foundation, a
charity based on blockchain.
The revenues will go to the Open Earth Foundation (501(c)(3)),
a non-profit organization committed to state-of-the-art interactive
open science analysis and implementation for climate accounting
following the Paris Convention. The #CarbonDrop auction in the
NFT world is now trending.
The auction comprises 500 tonnes, represented by the RNDR
token, with the 'Octane' parent product driving most NFT graphics.
These carbon credits have been recorded as part of the program
and are used to conserve the Amazon rainforest and avoid
deforestation. The motive behind the environmental fundraiser is
hard to criticize. Will such efforts make a major difference in
combating climate change?
"It was exciting to work with these amazing artists to raise
awareness about the environment and funds for critical digital
public goods." Our work on global climate technology is typically
highly innovative for the traditional world but not for artists, who
broaden their field limits with technology,"
Investing in the prospect of low energy
Ethereum and Bitcoin have been made the world's most energy-
intensive blockchains by the revenue model in which miners
combine power-hungry ASICs with the crunch numbers in a race to
detect new blocks and claim awards.
While much of the energy used to mine cryptocurrency is from
renewable sources, proof of working blockchains is environmentally
sound would be misleading. No amount of money collected from
fundraisers for carbon sequestration will compensate for that. Other
networks may have the key to resolving the blockchain's energy
problem, especially attributed to the NFTs.
Proof of Stake, a low-energy approach to securing blockchains in
which validators lock or stock assets in an intelligent contract as an
incentive to ethically conduct, has been used by most blockchains
that have appeared since Ethereum. If the Network Consensus
Regulations apply, validators, including miners who support
evidence of work chains, are compensated with tokens.
Ethereum is switching to Stake Evidence but this is a long and
complicated process. In the meantime, miners continue to carry out
trillions of calculations per second to protect the Ethereum network
through proof of work.
It was still hard to convince crypto users to turn to low-energy
alternatives. Users, however, now have a more tangible incentive to
turn to Stake Proof chains: money. Simply stated, the use of
Ethereum is prohibited.
Demand for block space, powered by Defi and NFTs, has
increased gas prices to ever highs. Proof of stake chains previously
dormant or under construction is starting to gain traction as retail
customers payout online purchases that now reach $100 per
transaction regularly.
The most popular of these is Polygon (formerly Matic), a low-
cost and scalable blockchain connecting to the Ethereum network.
Polygon's decentralized application ecosystem (dApps) has proved a
fertile breeding ground for low-energy, low-cost NFTs.
Hundreds of NFT-focused companies have set up a shop on
Polygon, many of the buildings into the metaverse of Decentraland
– a user-owned virtual universe. The latter include TradeStars,
Combat Racers, and Decentral Games, with virtual casinos that can
be visited worldwide.
Tezos is another intelligent contract chain that benefited from
the focus on the energy bill of Ethereum. Mike Tyka, an AI artist,
has selected Tezos to launch his NFT collection citing Proof of
Stake's environmental credentials.
"Mining Ethereum-based NFTs will spare years of trying to
minimize my climate impact by just one button" Tyka, who has a
doctorate in biophysics and is aware of the need to promote
sustainability, hypothesized. "After hearing about a few suggested
alternatives, I decided to embrace what I believe is the only
practical and ethical future for NFTs if I want to enter the vacuum.
The digital artist has also shown interest in other NFT
marketplaces focused on PoS.
As projects finding a way out of Ethereum's high costs step
towards the proof of stake systems like Polygon and Tezos and
users follow suit, the energy dilemma of NFTs can only disappear.
Digital enthusiasts are eager to trade the latest NFTs but
hundreds of dollars are unwilling to pay for this right. With Stake
chains proof, you can get the best of both worlds: low fees and
collaboration on climate change.
Use modern technologies to fix old issues
The idea of a blockchain that allows environmental changes can
seem far-reaching, if not ludicrous. After all, a quinquennial event
scheduled to begin in 2023 is the Paris Agreement and its net zero-
emission route independent of non-state actors such as
corporations and subnational governments.
The Open Earth Foundation seeks to complement GST by
supporting a new methodology – NFTs – by active people in solving
an old issue. As a result, affluent art collectors and celebrities will
indulge in the trendy new NFT craze while contributing to carbon
mitigation and climate accountability.
Naturally, self-awareness is important to recognize everyday
habits that lead to climate change. In that regard, NFT and crypto
stakeholders will be encouraged to minimize their carbon footprint
as much as possible through a public awareness campaign lasting
months.
Beeple already declared that his future work would be carbon-
neutral or negative and that NFT platforms, artists, and even
customers are likely to follow as environmental pressures increase.
This may include carbon credits, a commitment to more energy-
efficient blockchains, and financial incentives for artists who create
neutral carbon work, etc.
NFTs are still in their infancy, still accounting for a small
percentage of all Ethereum transactions in the context of
advertising. Given the industry's immaturity, it is encouraging that
efforts are still made to implement healthy environmental practices.
Perhaps we need to thank sensitive musicians or perhaps the
NFT craze draws attention to the long-standing question of energy
usage in the blockchain.
 CHAPTER 17

THE REAL DOWNSIDES OF NFTS AND

CRYPTOCURRENCY

Art Theft

Y
ou may have seen the Twitter blocklists to prevent the
tokenization of your work. This is particularly true in hyper-
capitalist economies, where there is little or no oversight
and it's a free-for-all. It's a serious problem that's putting many
artists' careers in jeopardy.
In the same way, that trust cannot be replaced in the real world,
trust cannot be replaced in NFTs. The fundamental bridge required
to persuade others that you are trustworthy and can be trusted
with their money is confidence.
There are already marketplaces like SuperRare and Nifty that
demand multiple authentication layers before allowing artists to list
their work. However, there are still many flaws, as other sites like
Rarible and Opensea allow everyone to upload work, allowing
thieves to steal content and benefit.
Manipulation/Money Laundering
I've been reading a lot about how Cryptoart can be used to
launder money. It's real and there's nothing you can do about it.
While many digital artists are outraged, fine artists are well aware
that this has been going on for centuries in the real world.
That isn't to suggest that there aren't real collectors who want to
buy cool art, but it's unknown how much money is used to collect
art versus laundering money genuinely.
A recent uproar erupted over the $69 million sales of Beeple's
work, which cemented his status as the world's third-most
successful living artist but may have exposed a nefarious
underhanded scheme.
Crime and Blockchain
Criminals have only passed on from the last non-traceable
currency) to the next non-traceable currency (crypto) (crypto). For
decades, people have used cash to commit tax fraud, make drug
deals and launder money.
I'm sure we've all heard of the drug war, but people still use
them regardless of your position. To execute drug deals in the past,
you had to meet up in person. This made it very risky since there
was a much higher chance of being hurt or duped. On the dark
web, cryptocurrency enables online marketplaces to work similarly
to free markets, except for narcotics.
These markets work like every other online marketplace —
reviews, storefronts, and so on — but they eliminate any of the
risks of meeting in person because the orders will be delivered and
your money will be sent automatically, with no risk of the
chargeback (Once bitcoin is sent, you cannot return it).

Business instability
Given its meteoric rise, Bitcoin has a long history of being
volatile. Its value fluctuates by the second and while this is valid for
almost every currency since it isn't commonly used and is often
valued on speculation, there's no way of knowing what it's worth. It
could happen today, tomorrow, next week, next month, or even
now and it has in the past.
 Its uncertainty is treated as an asset (like a stock) rather than
tangible capital for tax purposes. There are some claims to be made
that when large companies invest in it, the capital will end uprising
at the top — but crypto as a whole is now largely decentralized and
spread out to the point that no single organization has a majority
share.
The only way that could happen is if large mining farms or
institutions banded together and pooled their money, but that is
highly unlikely considering how dispersed the industry is and how
each group has its vested interests.
Contrary viewpoints
I believe it is important to discuss how to combat the negatives
since, as we have learned, cryptocurrencies and NFTs are unlikely
to go away, so you must be prepared.
Combating ArtTheft
There are already groups of artists who are afraid of being
tokenized if they post their work online; however, it has never
prevented people from printing your work and selling it at
conventions (which many of my friends have personally fallen
victim to).
Should conferences, then, be outlawed?
No, and, like conferences, NFTs are yet another marketplace
where the more legitimized it becomes, the more you as an artist
will need to learn how to protect your work and keep it out of the
wrong hands.
I'm not saying you should just embrace this thievery, but it'll just
worsen as long as the world continues to follow this new form of
economy. However, the more legitimized it becomes, the more
governed it will become.
 The current platforms that uphold a verification process (Nifty,
Raible, SuperRare, and so on) are well-established and growing.
There's also the fact that true collectors will only want to buy from
reputable vendors.
It's the same thing that happens when a trained art historian
verifies an original 18th-century painting's authenticity. Large
corporations may also partner with organizations to release their
properties as a confirmed brand.
There is also debate about the ramifications of copyright
legislation. Large media conglomerates (Disney, Marvel, etc.) may
(or already have) become interested in this space, making it much
more critical that artists have the necessary knowledge to navigate
this new terrain. The next time you create work, bear in mind that
it can be included in the NFT room, and be aware of your rights in
that space.
Fighting all of this as an artist is exhausting. I see your point.
We're constantly up against tshirt bots on Twitter, Etsy pirates,
convention art thieves, Instagram reposters, and even large
corporations like Urban Outfitters stealing our jobs and now this.
Since the dawn of time, criminals and con artists have existed.
Although they have invaded the NFT room, you must know how to
defend yourself as a digital creative. Many artists already use
techniques such as watermarks, low-res copies, anti-distribution
provisions in the event of a complaint, etc.
You may also ban any account you suspect of stealing artwork.
Unfortunately, this is unlikely to be sufficient, as the rate at which
bot accounts can be generated outpaces your ability to control
them.
That is all the more justification why artists must advocate for
better platforms and technological advancements to protect our
work. All of this suggests that this is not a direct negative of NFT
technology and we as artists must put pressure on existing outlets
to counteract it.
Money Laundering
One thing to keep in mind is that if you plan to put your work up
yourself, you will receive 100% of the money (and all the following
royalties). While the other party might be eligible to use it as a tax
deduction, the money from the transaction goes to you.
Multi-layered schemes (such as the allegations surrounding
Beeple) in which an individual lists a piece of work and then bids on
it as if they were two separate parties are the most troubling cases
of money laundering. This, on the other hand, has little effect on
you and, in fact, increases the value of your work when people
invest in ETH/NFTs.
Another thing to remember is that the vast majority of
cryptoartists and collectors truly believe in the idea of NFTs and
want it to succeed. This entails legitimizing it as a legitimate
marketplace and purchasing/speculating in the same way that a
real-world marketplace does.
There are many genuine art enthusiasts out there who genuinely
want to collect cool art. Similarly, most artists are genuine artists
who simply want to share and sell their work. They are aware of
money laundering and, like you, are likely to hate it.
I'd also like to point out that banks are responsible for a large
portion of money laundering in the fine art world (which is likely to
move to NFTs). The FinCEN files revealed many of this and it's a big
subject that everybody should be aware of. Many businesses and
banks set up "shell companies," which effectively operate as a
separate agency to move money under a legal transaction's pretext.
Another major explanation for the importance of
cryptocurrency/NFTs is that they avoid fraud since all transactions
are registered and cannot be tampered with on a blockchain
network. Decentralization prevents all of the money from
accumulating in the wrong hands.
 CHAPTER 18

ENVIRONMENTAL ISSUES WITH CRYPTOART

C
ryptoart is a piece of metadata (generally, an image or
connection to an image/file, the file's author, date stamps,
related contracts or text, and the piece's buyer) that is
attached to a "coin" (which has monetary value on a marketplace)
and stored in a blockchain.
An NFT is a one-of-a-kind piece of cryptoart. You may think of
each NFT as a collectible or trading card with its value, which is
influenced by the overall market value of NFTs, the Ethereum
network, and cryptocurrency in general. Without the beans, they're
like beanie babies.
Cryptoart is purchased and sold with and its value is measured
in, Ethereum, a 6-year-old cryptocurrency that was trading at 1
ETH = $1476.21 at the time of writing (2 pm March 2nd, 2021).
Some artists have written about the unique environmental costs
of cryptoart. The precise amount of energy used to mint artwork on
the blockchain varies but ranges from weeks to months to years
(and in some cases decades) of a typical EU or US citizen's energy
usage. (At cryptoart. wtf, you can see how much energy each NFT
uses and emits.)
This kind of gleeful wastefulness is a crime against humanity
during unparalleled temperature rises, sea-level rise, widespread
species extinction, the complete loss of permanent sea ice, endless
extreme weather events, and all the other hallmarks of total climate
collapse.
 While accounts vary on the degree to which NFTs are specifically
contributing to the issue, there isn't much disagreement that
"powering an art market with incredible quantities of burned oil" is
a bad thing. However, regardless of your general feeling that "okay,
there are some bad parts," if you received this article, it might be
because you asked a question like this:
But can cryptoart help us solve our ecological problems?
Is it only worth stopping because of the energy costs while other
crypto type parts are useful?
Is crypto type detrimental to the environment just as art fairs
and physical products are?
Can the cryptoart market instead be fuelled with offsets and
renewable energy?
Isn't it a good idea to allow individual artists to sell their work?
There is nothing special about the energy cost of cryptoart and
does not apply to something that can be "minted" or purchased and
sold with a currency based on the burning of fossil fuels in the
Ethereum blockchain.
What's the reason?
This is because major cryptocurrencies, especially Bitcoin and
Ethereum (with which NFTs are being traded), use the 'proof of
work protocol to assess their value.
In essence, job evidence is a way to ensure that "the prover" has
made the necessary calculation effort (the system doing a task).
The definition was designed in 1993 to deter spam and bots.
Evidence was meant for average users to be invisible, but that
makes things like launching a denial-of-service attack difficult. It's a
little puzzle version of the machine.
 Until 2009, when evidence was used to establish the Bitcoin
digital currency (in conjunction with another technology known as
the blockchain, a type of public ledger). Bitcoin "miners" use special
machines to solve proof of work puzzles and compete to verify
blocks on the blockchain for Bitcoin. to create a bitcoin.
If the solution is fine, which is very rare, the miner receives a
new coin. The more a computer "plays," the more competitive it
becomes. Consider it a gamble, with a ticket per kilowatt-hour.
Mining is this procedure's tag.
In 2009, mining started innocently as a background process that
could run on a laptop while it was idle. On the other hand, the
blockchain's mining blocks' sophistication is designed to develop
over time. This is because the relative rate of newly mined coins
remains constant as the network grows (for Bitcoin, about 1 block
is mined every 10 minutes).
The evidence of work jigsaw becomes harder to solve the
problem of further computer mining. Miners are improving GPUs
and more computers. The puzzles are getting more complex. Miners
switch to low-cost power areas. The puzzles are getting more
complex. Warehouses are upgraded and containers are air-
conditioned. The puzzles are getting more complex.
After a decade in which the cryptocurrency sector is rapidly
growing, we now have a financial network that consumes more
capital than Argentina, without a regulatory structure or federal
supervision. This is not a new issue; the environmental damage
caused by a proof-of-work out-of-control was known for as long as
there was crypto-currency.
Unless you assume that we are talking about intangible, this
devastation has a measurable, outsourced cost: according to a
recent study by the University of New Mexico, each $1 of bitcoin
value resulted in a loss of $0.49 in health, climate, and losses to the
USA in 2018.
The current ecological costs of cryptotyping and cryptocurrency
are very real and very high. While measures can be taken to control
energy expenses, the crypto-market still relies on a value system
that essentially binds worth spending physical resources. This
partnership is not undone, no matter how low the cost of mint
tokens is or the proportion of green energy.
A value system that can only understand itself as to what has
been burnt materially to produce investments up to now and what
will materially need to be burned tomorrow is unsustainable for the
future we have to create, which has decoupled value with waste,
where labor units are not purchased and sold for wages.
Also, the remaining qualities of the crypto type are profoundly
troubling.
Cryptoart reworks digital artworks mainly as tokens of currency,
material, and ideas secondary to a market value asset.
Cryptoart generates artificial scarcity for digital products,
generating an 'original' that can be owned for resale purposes.
Cryptoart re-creates some of the worst elements of current art
markets, creating the superstardom of those who have had success
or already wealth and ties to the realities of many those who will
see no such return.
Cryptoart has no intellectual property rights. No legal mechanism
exists to prohibit entry into and selling copyright materials as NFTs,
with or without the author's permission or the copyright holder. If
an NFT has been minted, the blockchain or secondary market will
no longer be withdrawn.
 Cryptotype of smart contracts does not have a legal defense.
Any talk of NFT contracts "requiring resales to cut the artist" or
"compensating gallery staff" is wholly dependent on the buyer's
goodwill.
Cryptoart enables a few early artists to become wealthy from a
scheme designed for rewarding investors, not artists.
The fully functioning value structure of a fully functioning NFT
economy is reprehensible. We can't let it go. The only way is to
refuse this whole towel. No "my plant is solar," or "we plant for
each coin a tree," or "we move to proof of interest" or "we are
liable to have a less destructive NFT" or "the viable alternative is
my smart contract."
This is ultimate liberalism, a reformist mentality that thinks that if
we can address the worst problems, eliminate the bad apples, get
better regulatory systems in place - then the system can only
operate rather than internalize the system which often causes harm
based on fundamentally broken, hateful, hyper-capitalist paradigm.
The only realistic alternative is complete moral refusal. Anything
less (sell, collect, post links with NFT artists, yes even try to find a
less ecologically devastating model) retains this site's worst
sections' influence. It grants a moral gray-zone— "Oh, maybe it's
not so bad if my favorite artist is involved?" Or "but I know this
person cares and contributes to the world- maybe they know
something I don't do?"
I am well aware of the desperation of trying to survive in a world
that has underestimated and underestimated the arts and how
convincing a vision of escape can be.
I just want to see a world, which rewards artists for their work
without requiring them to put their wellbeing, security, and artistic
integrity at risk. This isn't just my political conviction; it's a desire
that benefits me and those I love directly. It's a future I must
believe in every day.
Nevertheless, we have to do this by collective ownership and
strong social programs, such as universal basic income, universal
health care, divestiture from war and police operations, a controlled
property market that does not benefit from housing shortages and
rents, worker's unions, food services, environmental security, and
real wealth taxes.
It is not an individualist fantasy of a pyramid scheme that makes
investors reward artists and thieves directly from our common
future.
Many would call me unreal and naïve, unable to sacrifice the
world we are experiencing today due to our idealist vision of
tomorrow; and I would like to suggest to them that we have
invented an extra-sovereign monetary system that has produced
billions of dollars and is kept back by energy consumption in a small
country within ten years.
 CHAPTER 19

NFT & CRYPTOART: BUBBLE OR

REVOLUTION?

T
he interest in NFTs and Cryptoart has exponentially
increased in recent months. The art market is usually
inaccessible to common citizens because of the absurd
nature of such pieces. What if you could purchase just a portion of
the property and share it with others? Tokenization is feasible.
Tokenization is the development of blockchains of a fungible
token representing the underlying asset and its value. Tokenizing
can revolutionize creative disciplines, including the art sector.
So, why do art tokenize?
The benefit of using this method is that every asset can be
digitized while ensuring that its transmission between various
owners is smooth. Two NFTs will never be the same and
interchangeable, each with special features that distinguish it.
A Bound Bubble To Burst
First reaction (very common):
Why would someone buy cryptography, far less spending millions
on something just a JPEG file?
First of all, NFTs and Cryptoart must not be confused. Even
though they are closely related, they are two different things.
Cryptoart refers to art using the technology of blockchain.
It's a modern digital art category. This description is very general
and very logical since the discipline is relatively new and the
complexities and borders of this art have not yet been determined.
Cryptoart booms with modern digital aesthetics, offering a
solution to the challenge to unauthorized people who copy their
work to artists and depreciate them. A conceptual artist who pushes
the cryptoart limits.
NFT is a blockchain technology characteristic specified according
to the ERC-721 (non-smooth digital assets) and ERC-1155 (semi-
smooth assets) Ethereum specifications. The main properties of
NFTs are:
indivisible (not fractional), verifiable (a unique identifier that
specifies who owns NFTs), and indestructible (cannot be destroyed
or removed). NFTs may include any digital material including
sketches, graffiti, animated GIFs, songs, or video game objects.
NFTs in the blockchain world are the next big deal.
Cryptoart can easily be seen as a bubble, but I don't believe that.
It's not my opinion alone. This has already been seen on the
market with the most famous artists globally, including Banksy and
Beeple, for $69 million. The overall value of NFT trade in 2020
amounted to 250 million dollars, 299% up on the previous year,
and continues to rise in 2021.
Why do we take care of this?
Many people who participated in NFTs in the early stages and
started trade saw great returns. Still, we've formally entered the
cyberpunk era with a fully digitalized society and the art world is
heading for NFTs already and this is just the start.
NFTs generate digital scarcity of which none existed before. It
doesn't matter if you can, for example, screenshot them. Consider
this: is Van Gogh's perfect reproduction worth the same amount as
the original?
 However, what makes NFT art great? The Crypto Era
Why do many observers use the Internet in their metaphors of
Crypto World?
Our digital networks, built to enhance our basic connectivity, can
change anything and the blockchain causes a revolution, yes. It
looks like they kill the old and start something new.
NFTs will capture and appreciate the spirit of this generation in
the future. That's what makes NFTs relevant. It was not, however,
a revival. One of the main reasons people have become a possible
alternative to NFTs is the absence of numerical scarcity in the
creative economy. The curiosity has gone up.
Creators of Economy
It's hard to track the buyers who fuel this craze. NFTs can also
manage the license agreement process when integrated explicitly
with blockchain technology. The decentralized existence of NFTs is
an important factor in providing the creator economy with vital
digital capital.
For example, if a buyer of one of the parts sold it, the buyer
keeps 10% of the original purchase price. Notice that there can be
an infinite number of NFTs. Each creator's case of usage
determines the number of copies generated. NFTs can also manage
the license agreement process when integrated explicitly with
blockchain technology.
Falls and difficulties
In reality, NFT is far from user-friendly and open to the public,
even worse. In certain instances, you must set up an Ethereum
wallet and use it, buy products and pay transaction fees during the
purchase of NFTs.
Generally, people fear that we are in the midst of a bubble and
the appeal NFTs have created in recent years will easily vanish.
NFTs are expected to be old-fashioned speculative activities for the
near future by many observers.
Eventually, new ways to infringe copyright have arisen, but
artists can still make more money on the Internet. New forms of
piracy come with a new form of land. This is a new challenge.
Regulation
Since the NFTs continues to be a relatively recent invention, no
clear legal framework exists around them. Still, they are governed
by national and international law but regulators are working on
these systems and they are coming soon. Some countries in Europe
have released ICO-related guidelines or regulations, including
Switzerland, Germany, Estonia, and Malta.
The NFT can be added to the digital token. It's a digitally
intangible asset that reflects one or more rights: the NFT has its
worth. The owners may be identified and the pseudonyms or
addresses used are attached.
But should we legally regard CryptoPunks or CryptoKitties as a
work of art?
The issue is complicated. It is very difficult to include them in
this group or to exclude them. It is difficult to include them since
the NFT box is in a category separate from the listed works. Since
the law develops and the concept of work is highly subjective, it is
difficult to exclude them.
The NFT space will allow creators to capture a greater share of
the profits of everything they generate and sell. If creators use an
institution to distribute their material, they receive only a small part
of the benefit. Book writers signing agreements with big publishers
or artists with record labels are the clearest example of this.
 NFTs have exploded with designers, artists, and musicians
around the world who embrace digitally exclusive tokens. If broadly
applied, NFTs could be a transformer of digital scarcity. NFT mania
has the potential in many respects and in many sectors to
overcome previously unresolvable problems.
In recent years on-Fungible Tokens (NFTs) captured titles with
the sale of artists including pop star Grimes and EDM creator 3LAU
in millions of dollars. As part of the Crypto Kitties, NFTs joined the
market in 2017, a blockchain game that uses digital cat collectibles.
However, in October last year, Christie's New York Art Auction
House made history by selling the first-ever NFT related to physical
artwork — Portraits of a Mind: Block 21, sale over $130,000 by
London-based artist Benjamin Gentilli. Since then, the popularity of
NFTs has increased rapidly.
Another record-breaking NFT job was auctioned off at Christie's,
this time strictly digitally, for a current $3.25 million bid. This has
resulted in an increase in NFTs' overall market capitalization to over
$350 million in just six months.
 CONCLUSION

N
FTs have unlimited potential and possibilities and recent
record sales help the technology progress. One of the
current barriers to widespread adoption is the lack of
widespread awareness about the crypto world and blockchain
technology. "If you teach people to taste it, allow them to
experience it, they won't be overwhelmed by it," said the creator
John G Fields, Develop Your Base.
Security is part of this training since new users in the Blockchain
area need to know how to secure their wallets and private keys to
prevent hackers from being exposed to their valuable digital assets.
Many digital artifacts, collectibles, and investments, which will
undoubtedly be devastating, are highly valuable because of their
rareness and rarity. Developers and creators must ensure that
strong copyright and licensing are entered into intelligent contracts
to ensure digital assets' integrity.
The majority of currently available crypto wallets are extremely
complex and hard to use for inexperienced users and mainstream
beginners. Wallets like Coinbase Wallet, Pillar Wallet Enjin Wallet,
or WAX Wallet (WCW), to name but a few, are nevertheless
constantly being developed and published to improve this.
NGRAVE ZERO is another wallet to keep an eye on since it is the
"coldest" and most secure crypto wallet that is also incredibly user-
friendly and seamless to be used. ZERO's high-quality tactile screen
not only provides a safe and secure environment where users store
and exchange their virtual properties; it also has the interesting
potential to allow owners to show their virtual collectors and assets
from a tiny, portable device to others.
 Another part of mass education is to see how geeky, nerdy, and
scientific NFTs and blockchain technology remain. Further
simplification will be essential so that people who are not familiar
with blockchain can easily use and understand it.
Dr. Jesse Reich (CEO Splinterlands) explains how the challenge
"is in rendering blockchain invisible to an inexperienced user while
accessible to an advanced user." in the board The Future of Gaming
& Non-Fungible Tokens.
While projects such as CryptoKitties successfully launched new
blockchain users and growth and increased NFT use cases in recent
months, a long way remains to be gone. The passion of NFTs is
mainly in the gaming, art, and collectibles niche fields, but new
enterprises increasingly broaden NFTs into other aspects of our
physical existence.
We can see how NFTs become transférable between different
worlds, virtually and physically alike as more major brands enter
the battlefield (such as Nike, which has licensed shoes such as
NFTs, called CryptoKicks, that enable users to 'breed.' As CEO of
Animoca Brands Yat Siu puts it so aptly:
"How many game companies will say, let's use those Nike shoes
in our virtual games?" if millions of people have virtual Nike shoes
unexpectedly. Yat Siu, CEO of Animoca Brands
As more people become aware of the value and potential that
NFTs can offer, more major brands, big investors, and risk capital
firms take notice and become interested. The co-founders of
Morgan Creek Digital, Anthony Pompliano, and Jason Williams, have
made a "great gamble" on digital art NFTs that outperform the
physical art market.
Because of their exceedingly long product lifecycles and their
willingness to offer various monetization models, Indie blockchain
game designers have started drawing venture capital. New
governance tokens in the NFT sector, as they were in the Defi
sector, are creating interest and there is no evidence of the exciting
new NFT and Defi types.
However, the way ahead for NFTs is not barrier-free, as they will
face potential regulatory hurdles. The crypto space is still very
young and needs to continue as a community by producing many
new projects despite their coming and going projects.
Thanks for reading.