Web3Web3 & NFT’s for Newbies
Basics All Newbies Should Know & Understand
The Web3 community is filled with stimulating projects, beautiful artwork, and spirited teams. On the other side, there are con artists, "rug pulls," and pointless JPEGS made just to take advantage of you.
Remember that "Non-Fungible Tokens" may have various applications, but for now, they are primarily (ab)used as authenticity and proof of ownership which currently largely consists of PFP’s with light utility cases. Many brands are actively searching for a practical mainstream use, in an effort to gain mass adoption.
Here are some tips and advice that can help you stay away from scammers in this brand-new industry.
Stay Up To Date On NFT-Specific Social Media Channels
It is impossible to overstate the benefit of connecting via various social media platforms.
To remain updated on NFT news & impending NFT drops, you can join and monitor popular platforms (an NFT drop is described as the distribution of a non-fungible token.) An NFT usually has a limited supply when it drops, allowing purchasers the ability to buy only a certain amount. This amount is determined by the project and set within the minting contract. When you buy NFTs during the minting process, You are purchasing at the earliest stages and in most cases these NFT’s will be less expensive than what you could pay for them afterwards on secondary markets like OpenSea.
There are many locations where NFT fans can interact and receive instant notifications when a new NFT is released.
- Social media: Twitter, Discord, Instagram, and now we are seeing growing mentions on YouTube & TikTok
- Decentralized metaverses
- Marketplaces: OpenSea, Rarible, Magic Eden and others.
- Podcasts: Modern Finance and The Gary Vee Audio Experience
Joining social media channels will show you how frequently NFT projects are created and released. Although it's tempting to buy every item you see, 99% of all NFT’s will go to zero. Finding the 1% that actually produce something special, is why this fun hobby is one of such high risk. Remember most projects probably won't fit your interests, goals, budget, etc. Try to gather NFTs largely in accordance with the following criteria:
- Is the NFT affordable?
- Will you appreciate collecting it? “99% go to zero!”
- Can you help the brand, add something more to the community?
- Is the NFT more useful than just a collectible (does it come with utility or benefits)?
Make sure to start your research early. These inquiries can help you decide which kind of NFTs to focus on in addition to determining an NFT's true value to you.
Give The Project's White Paper And Road Map Some Thought
Examining the projects White Paper and Roadmap is one of the best things you can do to decide whether or not it is really worth your money to support the NFT project. Let's divide each of those important documents individually.
A white paper is mostly a projects sales pitch that explains why you should invest in the project. In the white paper, it will be clearly stated what the project hopes to accomplish and how it functions technically. White papers for professional enterprises typically take a lot of time and work to produce. If after reading a white paper you aren't completely satisfied, you should look for a new project.
A road map is a document that looks ahead and defines what the project plans to do in the future. Roadmaps should specify precise dates for when each component of the roadmap will be implemented. Analyzing a project's roadmap can be a great approach to determine how serious the team is about the endeavor and whether or not their goals are doable.
Tools for Monitoring Minting
To get a real-time feed of NFT mints, tools like https://whatsminting.live/ constantly keep an eye on all NFT contracts that are being created on Ethereum.
By using this strategy, you'll be right on the cutting edge of the NFT market when new projects are launched. You can utilize tools like this to identify good NFT projects before most average buyers, allowing you to take off with them before they become a huge success. Having said that, it's generally ideal to learn about projects before they've minted.
Detect Rare NFTs
The success of NFT projects is heavily dependent on rarity. You will definitely be on to something if you can find rare, unique NFTs.
The problem is that most people are unable to distinguish them from one another. Where tools like https://raritysniper.com/ are handy and allow you to search for NFTs based on rarity. This enables you to choose promising NFT’s in each collection you research.
Do Some Background Investigation On The Project's Creators And Team
By conducting some historical research on the founder/team responsible for the project, you can determine whether an NFT project has promise.
You should be on the lookout for a few things right away. You must first ensure that the core team has been "doxxed," as it is known. The names and contact details of project members are made available to the project’s community. When a project is doxxed, this can help validate its legitimacy by being Doxxed. It is highly unlikely that a doxxed project would pack up and bounce leaving their community holding the bag.
Second, you should research the team's experience and skills in the past. Do they possess the necessary knowledge and abilities to succeed in the field? Do they have any conflicts of interest that you should know about? All of these are worthwhile inquiries that you should know prior to investing your hard-earned money.
How NFTs are Transforming Web 3.0 and Digital Ownership
NFTs offer comprehensive records and proof of ownership for any asset that is represented by a non-fungible token, including virtual assets. This feature enables the introduction of specific digital goods and devices that anyone should be able to buy or sell on the open market.
NFTs have already developed in the present to offer expanded applications in a variety of industries:
- Digital group access codes
- Tradable leisure assets
- Your username and possessions in the metaverse.
NFTs are establishing the foundation for virtual communities, economies, and assets as the internet switches from Web 2.0 to Web 3.0
1. The Function of NFTs in Online Events and Communities
One of the initial trends in NFT use cases was the use of non-fungible tokens as "club passes" to a virtual network. Around the ownership of NFT profile photo collections “PFP” like CryptoPunks and Bored Ape Yacht Club. Which have grown into two of the strongest Web3 NFT communities.
NFTs have been utilized to provide exclusive access for PFP activities in addition to accessing online groups and events. The generation is ready to address significant issues in the world of event tickets, like counterfeiting and virtual robbery of these tickets. Since NFTs offer irrefutable proof of ownership on the blockchain their use case is undisputable in this industry.
2. Useful and Tradeable Game Assets
One of the largest current use cases is for the gaming industry. Games can be designed and run on the blockchain. Gamers can purchase NFT’s to access a game or an entire gaming platform which hosts multiple games. Gamers have the ability to purchase in game content like addons, skins or expansion packs. These NFT’s prove ownership and players may buy, sell, and employ them in an open market.
These NFTs not only grant access to the in-game asset but also may function as productive assets that can be sent on quests to reward the player with in-game things and cryptocurrencies. These items can be used to make other items to energize characters or traded for cryptocurrency.
Blockchain video games like DeFi Kingdoms, Axie Infinity, and Crabada have integrated NFTs, creating vibrant in-game economies where NFTs are valued entirely on the basis of their attributes and data, which determine the amount of cryptocurrency they earn. In some games, playing more is rewarded because leveling up NFT assets increases profits quickly and increases the likelihood that unusual and cherished object drops will occur.
3. Identities and Digital Assets are redefined
Are you worried that your login might be used by someone else in the metaverse? Users can now own customized "Eth" Ethereum wallet addresses thanks to the implementation of NFT’s for the Ethereum Name Service (ENS). More than 2.62 million specific "Eth" addresses have been registered as of this writing.
These customized wallet addresses, which are NFTs, are integrated into various decentralized systems and make complex wallet addresses more individualized and much simpler to remember.
The ENS allows for much shorter wallet addresses, such as
"🪐Marz.eth," as opposed to requiring a long string of characters like 0xEC72075231207b9c72B196915C19B810FB796ccC.
The adoption of NFTs by other projects, including NFT.Com, allows users to customize ownership of a private profile, such as "www.Nft.Com/yourname," where they can share and display their NFTs on a decentralized social network.
Conclusion
Given that we live in a digital age, the growth of additional virtual assets shouldn't come as a surprise. People are swarming to buy, sell, and trade digital artwork in the form of NFTs, which range from music and books to memes and photos. Even artificial intelligence and machine learning have advanced over time while still being affordable. Web 2.0 is quickly being replaced by its successor. Web 3.0 is made to satisfy the internet's demand for AI and accurate information, as well as to distinguish between real data and fraudulent transactions.
Socials:
If you enjoyed this or found it useful please follow the Socials below