NFT BOOK FOR BEGINNERS: Welcome to NFTverse: Deepdive into NFT Ecosystem, Metaverse, Decentralization, Web3, DeFi and Blockchain: NFT Book for Dummies 2023 Edition

Table of contents :
Chapter 1: NFT: Everyone need to know
Introduction
What is an NFT?
History of Non-Fungible Tokens
Colored Coins
Counterparty.io
CryptoPunks
CryptoKitties
What are the most significant issues NFT can solve?
How Is an NFT Different from Cryptocurrency?
What's the value behind NFTs?
NFTs Characteristics
What are NFTs Used For?
Use cases of NFTs
The most popular projects in NFTs
Roadblocks to Mass Adoption
How Does an NFT Work?
NFT Protocols, Standards and Properties
NFT Token Standards
NFTs Desired Proprieties
Opportunities
Challenges
Security and Privacy Issues
Governance Consideration
NFT Q and A
Summary
Chapter 2 - NFT Ecosystem, Market and Marketplaces
Understanding the NFT Ecosystem
The record was set!
NFT Ecosystem in details
Infrastructures, as well as game development studios
Games and Metaverse
Collectibles, Art, and Sports
NFT storage
NFTs and the IoT
More Than a Meme:
NFT Architecture and Providers
Blockchain Opportunities
NFTs and Digital Twins
Blockchain and NFT Ecosystem
NFT Market
NFT GOOGLE SEARCH VOLUME
NFT RELATED VIRTUAL CURRENCIES
NFT Collections
NFT Marketplaces
OpenSea.io:
Rarible:
Foundation:
Binance NFT
Domains
Introducing the Big Problem
Summary
Chapter 3 - How to Make, Create and Sell NFTs
Want to launch your own NFT?
Minting NFTs
Among the major Ethereum NFT markets are:
How to Create an NFT in 6 easy Steps
Step 1: Choose the work you want to tokenize
Step 2: Choose your blockchain and wallet
Step 3: Buy some Ether and setup your Digital wallet
Step 4: Choose a marketplace
Step 5: Upload your Art
Step 6: Pay the Transaction Fee
Marketplace
Creating an NFT collection on OpenSea
How to buy NFTs
Where to buy NFTs
How to sell NFTs
Is now a good time to buy and sell NFTs?
Chapter 4 - Make Money with NFTs
What Gives an NFT Value?
Possible way to make money with NFTs
How to Become a Crypto Artist
The 3 Best Online Tools for Designers and Artists
Top 10 software’s for the Most Effective NFT Design.
TEN BEST SOFTWARE TOOLS FOR NFT DESIGN.
The Best Ways to Make Money with NFTs
1. Invest in Promising New NFTs Early
2. Play-to-Earn (P2E) NFT Games
3. NFT HODLing
4. Flipping NFTs
5. Minting Your Own NFTs
6. NFT Trading
7. Staking NFTs
8. Generating Royalties
9. Earn Interest on NFT Gaming Rewards
10. Invest in NFT startups
11. Invest in Companies with Exposure to NFTs
12. Rent Out
13 Adopt NFT-powered yield farming
When is the best time to sell an NFT?
Summary
Chapter 5 – NFT Investing Made Easy
Overview
How to invest in NFTs
Step 1: Research Available NFTs
Step 2: Select a Brokerage or Exchange to Purchase Crypto
Step 3: Select a Marketplace to Purchase Your NFT
Crypto Wallets
NFT Projects based on Ethereum that investors should consider
Axie Infinity
Decentraland
CryptoPunks
Gods Unchained
The Sandbox
Silks
Doodles
NBA TopShot
Bored Ape Yacht Club
Remarkable Women
Cyber Cosmos World
CryptoKitties
Moonbirds
Women Rise
Cryptoon Goonz
NFT Worlds
Invisible Friends
Moon Boyz
Autograph.io
Top 10 NFT Cryptocurrencies (Coins) for Great Returns In The Future
What Are NFT Coins? Hint: They Aren’t NFTs.
Pros and cons of NFTs
Are NFTs the right investment for you?
FAQ
Are NFTs a good investment?
How do NFTs gain value?
Can you turn NFTs into cash?
How do I choose an NFT project?
What NFTs should I invest in?
Why are NFTs so expensive?
Summary
Chapter 6 - Understanding Metaverse, Decentralization, DeFi, Web3.0 Relation with NFTs.
Role of NFTs in the Metaverse
NFT Uses in the Metaverse
1. Virtual marketplace.
2. Art gallery.
3. New frontiers.
How to Implement a Metaverse with NFTs
Identity, Community, and Social Experiences Expanded
Virtual Real Estate: Property Ownership
What Is The Best Way To Invest In Metaverse?
How Can Metaverse Help You Make Money?
A Step-By-Step Guide to Purchasing Real Estate in the Metaverse
The Metaverse in the Future
Decentralization
What is Centralization?
Understanding Decentralization
What is DeFi?
GOVERNANCE
PEER-TO-PEER
NFTs and ICOs
INITIAL COIN OFFERINGS (ICOS)
What Are the Components of DeFi?
The Current State of DeFi
Advantages and disadvantages of DeFi
Three dApps you should know about UNISWAP
Web3.0: Introduction
What is Web3.0?
Web 3.0, Cryptocurrency and Blockchain
Evolution of the Web 3.0 Technologies
Web 1.0 (1989-2005)
Web 2.0 (2005-present)
Web 3.0 (yet to come)
Key Features of Web 3.0
Ubiquity
Semantic Web
Artificial Intelligence
Spatial Web and 3D Graphics
Web 3.0 Applications
Role of NFTs in Web3.0
How NFTs are Revolutionizing Digital Ownership Today
1. NFTs as Keys to Online Communities and Events
2. Productive and Exchangeable Game Assets
3. Redefining Digital Identities and Assets
4. Enabling Ownership in the Metaverse Economy
Summary
Chapter 7 - Future of NFTs and Real-time Applications
A glimpse into the future of NFTs
Real-time Applications of NFTs
Chennai’s wall art convert into a NFTs
Virtual worlds
Digital commerce
What Next? Oh Yes, Turning A Luxury Car into A Non-Fungible Token
NFT art: How the future of NFTs will empower artists
1.VFX artists are needed for the metaverse
2.NFT art will revolutionize the VFX industry
3.NFT artists can create a new kind of internet
4.NFT artists can take ownership of their work
5.NFT art has the power to disrupt
Eco-Friendly Blockchain Technology for NFT Ecosystem
Rubix BlockChain
Can NFTs go bad?
Final thoughts
References

Citation preview

NFT BOOK FOR BEGINNERS Welcome to NFTverse: Deepdive into NFT Ecosystem, Metaverse, Decentralization, Web3, DeFi and Blockchain. (New Edition 2023)

ARSATH NATHEEM S

Copyright © 2022-2023 by ARSATH NATHEEM S All rights Reserved. Imprint: Independently published Author Name: Arsath Natheem S 2023 Edition

This NFT beginner’s book is geared towards given that exact and reliable data in respects to the subject and issue covered. The publication is marketed with the concept that the publisher is not necessary to render or else, any qualified services. In no way is it valid to reproduce, duplicate, or spread any part of this book in either digital e-format, eBook means or in printed format. Make a Redocumenting of this text book is strictly prohibited and any storage of this manuscript is not allowed except with written approval from the publisher. All rights reserved. Respective authors own all rights not held by the publisher. The attributes that are used are without any consent, and the book of the trademark is without permission or backing by the brand owner. All trademarks and brands within this book are for descriptive purposes only and are the owned by the owners themselves, not associated with this textbook.

WHY I WROTE THIS BOOK NFTs took the universe by storm in 2021, causing a revolution in digital art and becoming one of the fastest-growing asset classes of the year. Do you remember the late 1990s, when you could go to the store and get a pack of Pokemon cards? NFTs are like trading cards but totally digital, so videos, art, and music may be bought and sold on NFT marketplaces. NFTs are unique,

irreplaceable, and enable exclusive ownership on the blockchain. NFTs open the door for the development of new business models that were not possible in the past; however, the potential of NFTs extends far beyond the scope of these industries due to the fact that they entirely disrupt the rules of ownership. NFTs' rising popularity is reflected in actual numbers. "Previously, only a small percentage of investor’s recognized potential in NFTs, but in 2021, the market opened up to enormous NFT pitches, resulting in a record $2.5 billion in global sales." According to Google Trends, global interest in NFTs grew by 426% in August 2021. Experts think this trend will continue. As more people start to use the metaverse, NFTs will become the thing to have. "Owning an NFT would give people access to some exclusive things in the metaverse... NFTs are a way for art collectors from all over the world to get their hands on unique and reliable digital assets. As a result of the robust growth of the NFT industry, many collectors are considering purchasing NFTs as a kind of long-term investment.

WHY YOU SHOULD READ THIS BOOK This book will teach you all about NFTs and how they can play a vital role in Web3, Metaverse, DeFi, and Decentralized spaces. This handbook is written for those who love modern technology, students (novice to expert level), and research scholars who are passionate about NFTs. The book is organized into seven chapters, which start with Understanding NFTs, then move on to the History, Evolution, and Technology behind NFTs. After that, you can explore the NFT Ecosystem, Markets, and Marketplaces. Then you can get started with NFTs and learn how to make, create, and sell your own digital assets. Chapters four and five cover how you can earn money through NFTs. You can then learn and understand concepts such as Metaverse, Decentralization, Web3, DeFi, and how they relate to NFTs. You will understand the impact NFTs will have in the future as well as its applications in real time. The development of NFTs, has become a big deal and could be worth millions of dollars. Artists and collectors are among the biggest beneficiaries of this global currency. The book looks deep into NFTs and shows investors how they can get started. There is nothing to worry about when entering the world of NFTs. This book answers many of the fundamental questions that are going through everyone's mind, and this book builds confidence while getting your feet wet in this new world-wide craze. In this book, we explore some of the most important dos and don'ts that can help you make millions with NFT. I believe this handbook will be helpful for all those who are interested in blockchain technology, and the book will be a wonderful start for newbies to the NFT spaces.

Table of Content Chapter 1: NFT: Everyone need to know Introduction What is an NFT? History of Non-Fungible Tokens Colored Coins Counterparty.io CryptoPunks CryptoKitties What are the most significant issues NFT can solve? How Is an NFT Different from Cryptocurrency? What's the value behind NFTs? NFTs Characteristics What are NFTs Used For? Use cases of NFTs The most popular projects in NFTs Roadblocks to Mass Adoption How Does an NFT Work? NFT Protocols, Standards and Properties NFT Token Standards NFTs Desired Proprieties Opportunities Challenges Security and Privacy Issues Governance Consideration NFT Q and A Summary

Chapter 2 - NFT Ecosystem, Market and Marketplaces Understanding the NFT Ecosystem The record was set! NFT Ecosystem in details Infrastructures, as well as game development studios Games and Metaverse Collectibles, Art, and Sports NFT storage NFTs and the IoT More Than a Meme: NFT Architecture and Providers Blockchain Opportunities NFTs and Digital Twins Blockchain and NFT Ecosystem NFT Market NFT GOOGLE SEARCH VOLUME NFT RELATED VIRTUAL CURRENCIES NFT Collections NFT Marketplaces OpenSea.io: Rarible: Foundation: Binance NFT Domains Introducing the Big Problem Summary Chapter 3 - How to Make, Create and Sell NFTs Want to launch your own NFT? Minting NFTs

Among the major Ethereum NFT markets are: How to Create an NFT in 6 easy Steps Step 1: Choose the work you want to tokenize Step 2: Choose your blockchain and wallet Step 3: Buy some Ether and setup your Digital wallet Step 4: Choose a marketplace Step 5: Upload your Art Step 6: Pay the Transaction Fee Marketplace Creating an NFT collection on OpenSea How to buy NFTs Where to buy NFTs How to sell NFTs Is now a good time to buy and sell NFTs? Chapter 4 - Make Money with NFTs What Gives an NFT Value? Possible way to make money with NFTs How to Become a Crypto Artist The 3 Best Online Tools for Designers and Artists Top 10 software’s for the Most Effective NFT Design. TEN BEST SOFTWARE TOOLS FOR NFT DESIGN. The Best Ways to Make Money with NFTs 1. Invest in Promising New NFTs Early 2. Play-to-Earn (P2E) NFT Games 3. NFT HODLing 4. Flipping NFTs 5. Minting Your Own NFTs

6. NFT Trading 7. Staking NFTs 8. Generating Royalties 9. Earn Interest on NFT Gaming Rewards 10. Invest in NFT startups 11. Invest in Companies with Exposure to NFTs 12. Rent Out 13 Adopt NFT-powered yield farming When is the best time to sell an NFT? Summary Chapter 5 – NFT Investing Made Easy Overview How to invest in NFTs Step 1: Research Available NFTs Step 2: Select a Brokerage or Exchange to Purchase Crypto Step 3: Select a Marketplace to Purchase Your NFT Crypto Wallets NFT Projects based on Ethereum that investors should consider Axie Infinity Decentraland CryptoPunks Gods Unchained The Sandbox Silks Doodles NBA TopShot Bored Ape Yacht Club Remarkable Women Cyber Cosmos World CryptoKitties Moonbirds

Women Rise Cryptoon Goonz NFT Worlds Invisible Friends Moon Boyz Autograph.io Top 10 NFT Cryptocurrencies (Coins) for Great Returns In The Future What Are NFT Coins? Hint: They Aren’t NFTs. Pros and cons of NFTs Are NFTs the right investment for you? FAQ Are NFTs a good investment? How do NFTs gain value? Can you turn NFTs into cash? How do I choose an NFT project? What NFTs should I invest in? Why are NFTs so expensive? Summary Chapter 6 - Understanding Metaverse, Decentralization, DeFi, Web3.0 Relation with NFTs. Role of NFTs in the Metaverse NFT Uses in the Metaverse 1. Virtual marketplace. 2. Art gallery. 3. New frontiers. How to Implement a Metaverse with NFTs Identity, Community, and Social Experiences Expanded Virtual Real Estate: Property Ownership

What Is The Best Way To Invest In Metaverse? How Can Metaverse Help You Make Money? A Step-By-Step Guide to Purchasing Real Estate in the Metaverse The Metaverse in the Future Decentralization What is Centralization? Understanding Decentralization What is DeFi? GOVERNANCE PEER-TO-PEER NFTs and ICOs INITIAL COIN OFFERINGS (ICOS) What Are the Components of DeFi? The Current State of DeFi Advantages and disadvantages of DeFi Three dApps you should know about UNISWAP Web3.0: Introduction What is Web3.0? Web 3.0, Cryptocurrency and Blockchain Evolution of the Web 3.0 Technologies Web 1.0 (1989-2005) Web 2.0 (2005-present) Web 3.0 (yet to come) Key Features of Web 3.0 Ubiquity Semantic Web Artificial Intelligence Spatial Web and 3D Graphics Web 3.0 Applications

Role of NFTs in Web3.0 How NFTs are Revolutionizing Digital Ownership Today 1. NFTs as Keys to Online Communities and Events 2. Productive and Exchangeable Game Assets 3. Redefining Digital Identities and Assets 4. Enabling Ownership in the Metaverse Economy Summary Chapter 7 - Future of NFTs and Real-time Applications A glimpse into the future of NFTs Real-time Applications of NFTs Chennai’s wall art convert into a NFTs Virtual worlds Digital commerce What Next? Oh Yes, Turning A Luxury Car into A Non-Fungible Token NFT art: How the future of NFTs will empower artists 1. VFX artists are needed for the metaverse 2. NFT art will revolutionize the VFX industry 3. NFT artists can create a new kind of internet 4. NFT artists can take ownership of their work 5. NFT art has the power to disrupt Eco-Friendly Blockchain Technology for NFT Ecosystem Rubix BlockChain Can NFTs go bad? Final thoughts References

CHAPTER 1 NFT: Everyone need to know Introduction As a result of Collins Dictionary's announcement that "NFT" will be its Word of the Year for 2021, many people are curious about the origins of "NFTs." In recent years, the Non-Fungible Token (NFT) market has grown like crazy. The idea of NFT is derived from Ethereum's Token standard. As their unique identifiers, virtual/digital properties can be associated to this type of token. NFTs allow all indicated properties to be freely traded with custom values based on their age, rarity, liquidity, and other factors.

However, the NFT ecosystem is still in its early stages of development, and NFT technologies are still in their infancy. Without systematic summaries, newcomers may get lost in their frantic progress. This one book will provide you with in-depth knowledge and comprehension of NFT. To the best of our knowledge, this is the first systematic analysis of the current NFT

ecosystems.

What is an NFT? NFT is a blockchain-based ownership record (such as the Ethereum blockchain). They are a one of a kind collectible digital asset that guarantees the authenticity and ownership of the artwork or digital assets. NFTs have a wide range of applications, including collectibles, digital art, and virtual assets, gaming and tokenizing real-world assets. In addition to this, they enable a versatile method of storing, controlling, and safeguarding the information that is associated to an individual's identification. NFT in early days Non-fungible tokens have a long history, beginning in 2012 with the introduction of colored Bitcoin coins. The first non-fungible token (NFT) ever created was CryptoPunks, which was released on Ethereum in 2017. This was quickly followed by CryptoKitties, which is widely regarded as the most successful and well-known NFT project ever. NFT activity in CryptoKitties triggered a big jump in activity during the Ethereum boom that occurred at the end of 2017 and the beginning of 2018. When the market crashed in 2018, however, interest in NFTs dropped and didn't pick up again until late 2020. Despite their advantages, the adoption of NFTs remains minimal compared to the tens of millions of people who possess cryptocurrencies globally. NFTs aren't widely used because they are hard to get to, the technology is new, transaction fees change often, it's hard to link real-world assets to NFTs, and regulations are in the way.

History of Non-Fungible Tokens

Non-fungible tokens have been in existence for longer than you may believe. A lot of individuals were looking to innovate on blockchain technology after Bitcoin's founding in 2009 and the initial explosion of token types such as Litecoin and Ripple, in order to produce newer, more powerful tokens. We'll take you through a quick history of NFTs in this part.

Figure1.1: History of Non-Fungible Tokens

Colored Coins Colored coins, which were first proposed in a blog post by Yoni Assia in March 2012, are perhaps the first relatives of non-fungible tokens. These were very small Bitcoin units that had unique features programmed into metadata using Bitcoin's scripting language. In this approach, even one satoshi (0.00000001 BTC) can represent any item you can think of, like as a dollar, a company's stock, a home, or digital collectibles.

Despite the fact that colored coins seemed like a great idea, they were doomed from the start because of the following problems: 1. Colored coins were not officially supported by the Bitcoin network. As a result, it was up to wallet providers to recognize colored currencies. 2. At the time, the minimum transaction size for a Bitcoin transaction was 5,430 satoshis (0.000543 BTC), which was far too high for the deployment of colored coins. 3. Colored coins allowed for the development of any asset, not simply NFTs. So, when Ethereum's ERC-20 token standard was made in 2015, it made colored coins less useful because ERC-20 tokens are much more flexible (see our Token Standards article on Crypto.com University). While this was going on, platforms like Counterparty took over the NFT function of colored coins. As a consequence of this, colored coins gradually lost their value and disappeared. As a result of legal pressure and the Bitcoin network's inflexibility and slowness, Coinprism, the first wallet to allow colored currencies, was forced to shut down early 2018.

Counterparty.io Counterparty was formed in 2014 with the goal of issuing non-fungible and semi-fungible tokens based on colored currencies. As a result, the creators of

Counterparty realized that Bitcoin did not have the functionality necessary to create a sophisticated asset creation and trading platform. Spells of Genesis was the first mobile game to release in-game assets via Counterparty in 2015. Counterparty gained even more traction in 2016 when the popular trading card game Force of Will released cards on the platform. Force of Will, behind Magic: The Gathering, Pokémon, and Yu-Gi-Oh, was the fourth most popular trading card game in North America at the time. Despite the fact that blockchain-based in-game assets would continue to find applications, the most significant breakthrough occurred in 2016, when people started issuing limited edition Rare Pepes on Counterparty. These Pepes were modelled after the popular and, at times, contentious meme character Pepe the Frog. Obviously, the concept of a "rare" internet image is ludicrous given that they can be readily duplicated, but people have been discussing it since 2015. Rare Pepes represent the power of memes and the scarcity of digital resources.

Figure1.2: Source: Rare Pepe Directory

Even though you might think Rare Pepe cards are silly, they are actually a great example of

how much people want to own something that is rare and has some perceived aesthetic or collectible value. This is what made Rare Pepes an instant hit. The most expensive Pepe ever sold was an ultra-rare, one-of-a-kind Homer Simpson Pepe (shown above), which was purchased at a historic digital art auction in 2019 for the staggering price of $38,500. Rare Pepes sometimes sell for thousands of dollars, but the record-setting sale occurred in 2019.

CryptoPunks John Watkinson and Matt Hall came up with the idea for CryptoPunks in June of 2017, inspired by the success of Rare Pepes. It took some time, however, for true "NFT" enterprises to emerge on Ethereum, as this platform was long considered a playground for ICOs in 2016 and 2017. CryptoPunks are characters on the Ethereum blockchain that are generated algorithmically and have a size of 24 by 24 pixels. It is estimated that just 10,000 characters have been produced, each with their own distinct look. The CryptoPunks founders made it possible for anyone to claim the Punks for free; unsurprisingly, all 10,000 were promptly claimed. All of the avatars are different, and the project is now thought to be the first real NFT project on Ethereum. Each CryptoPunk has a unique appearance

Figure1.3: Source: CryptoPunks

There are a variety of Punk types and attributes, and each one has a unique

level of rarity. Certain combinations of rare and desirable traits can have a significant impact on the value of the Punk. Ape-types, for example, are the second most uncommon. Only this month did the world record for the most expensive Punk ever be set: an Ape Punk with a Hoodie sold for 150 Ether (US$71,403)! Punks with Different Types and Attributes

Figure1.4: Source: CryptoPunks

Even while CryptoPunks were already a viral phenomenon when they were initially released, they have recently captured the interest of the NFT community in a significant way. Those who hold Punk, the first "real NFT" to be released on Ethereum, are now being regarded as crypto pioneers because of their role as early adopters of the technology. In the previous three months, CryptoPunks have witnessed price increases to the thousands of dollars.

Seven qualities is the maximum for a CryptoPunk. On the other hand, #Punk 8348 is the only CryptoPunk in existence that possesses all seven characteristics. It sports a large beard, a pair of shades, and a top hat, a pair of aviators, a cigarette, an earring, a mole, and buck teeth. It is possible for a CryptoPunk to have no qualities at all, however typically they will have at least two. Overall, Cryptopunks are thought to be valuable because they are the first collection of non-fungible tokens to be made on the ETH blockchain.

Figure1.5: Source: Nonfungible.com, Crypto.com Research

Due to the fact that CryptoPunks was established before the ERC-721 nonfungible token standard was developed, the company's creators were forced to utilize a modified version of the ERC-20 token for the Punks (token address). Despite this, CryptoPunks were the driving force behind the development of the ERC-721 standard, which paved the way for the next really viral non-fungible token phenomenon, CryptoKitties.

CryptoKitties

In October of 2017, CryptoKitties was established. It was a virtual game where players could breed, raise, and trade virtual cats, each of which had a different genome that affected how they looked. As soon as CryptoKitties were released in the midst of the cryptocurrency boom that occurred in late 2017, their value began to skyrocket, with one CryptoKitty even selling for 600 ETH, which was equivalent to over $172,000 USD at the time. The undertaking was covered by numerous mainstream media outlets all over the world, such as CNN, CNBC, and the Financial Times, amongst others. CryptoKitties: The First Non-Fungible Token is exploding in popularity.

Figure1.6: Source: CryptoKitties

Although the volume of tokens exchanged in CryptoKitties has decreased over the past week, it still ranks #1 in all-time volume traded with over $38 million worth of CryptoKitties moved since 2017. Despite this, we cannot

emphasize how much of an influence CryptoKitties has had on the NFT environment. This success will then lead to a huge number of applications (games, collections, arts, etc.) that use non-fungible tokens. This new ERC721 standard will be called the Non-Fungible Token, or NFT.

What are the most significant issues NFT can solve? Non-Fungible Tokens (NFTs) are a completely innovative concept in the cryptocurrency and blockchain space, and this notion continues to soar to new heights every day. In the real world, there are people who keep their masterpieces in a safe place because they are afraid that someone will steal them someday. This is the point at which NFTs enter the market. It demonstrates your ownership all across the world and eliminates the possibility of any fraudulent activity. Because of this, a large number of investors and enthusiasts of cryptocurrencies started their own NFT marketplaces. Certain NFT marketing methods must be implemented in order to increase the visibility of this market. NFTs are the equivalent of conventional proofs of purchase, such as paper invoices or electronic receipts, in the world of cryptocurrencies. Verifiability and trustless transfer are two features that make NFTs appealing. Verifiability indicates that sales are recorded as blockchain transactions, allowing ownership to be tracked. Also, the NFT idea makes it possible for two parties who don't trust each other to trade digital assets, since both the crypto payment and the asset transfer happen in a single transaction. NFTs have the potential to be the next big thing! There’s no doubt about that. You've come to the right place if you've already made digital artwork and are seeking for a place to sell it. Grimes, William Shatner, the UFC, Paris Hilton, Shawn Mendez, and many

other celebrities and brands are among those that are active participants in the NFT space. When the artist Beeple sold the NFT for $69 million, the transaction made news all over the world. Furthermore, NFT sales have increased by 55 percent since 2020, from around $250 million to $389 million. How Is an NFT Different from Cryptocurrency? The term "Non-Fungible Token" refers to a token that is not fungible. The only other similarity is that it is typically constructed with the same kind of programming that is used to build cryptocurrencies like Bitcoin and Ethereum, but that is where the similarities end.

Figure1.7: Fungible vs Non-Fungible

Cryptocurrencies and physical money are both "fungible," meaning they may be traded or exchanged for one another. The value of one US dollar is always equivalent to the value of another US dollar, and the value of one Bitcoin is always equivalent to the value of another Bitcoin. If you give a friend a $10

note, they don't have to return it with the same $10 note; any $10 note will be fine. The fungibility of cryptocurrency gives it a reliable method of executing blockchain transactions. Non-fungible things, on the other hand, can't be swapped for fungible ones, and their individual characteristics can make them drastically different from one another, despite their superficial similarity. In the "real world," there are several examples of non-fungible items, such as paintings, concert tickets, and other similar things. Even while two paintings may appear to be very similar to one another, their levels of rarity may be very different. In the same way, tickets for the front row of a concert are worth a lot more than tickets for the back row. NFTs are distinct. Because they each have a unique digital signature, it is impossible for NFTs to be traded for or considered equivalent to one another (hence, non-fungible). Before you can understand what is "non-fungible," you need to know what is "fungible." Fungible indicates that a product can be replaced with another of the same or similar nature. On the other side, if something is non-fungible, it cannot be substituted for another product due to its unique properties. Each NFT has a unique code and information, so it can't be reproduced or have the same qualities as other products. Because unique data of digital assets is maintained on the blockchain, you can easily verify the initial owner of an NFT, ownerships, and transaction records. Because of these qualities, NFTs are used in many different areas, such as sports, art, games, and music, to name a few. What's the value behind NFTs?

A scarcity of supply could increase the value of a given asset if it is in demand, if it is limited and precious to the artist.

NFTs are a solution to the problem of digital scarcity. It is possible to collect natively digital artwork once its ownership is linked to an entry in a public, immutable ledger. This makes the artwork collectible. There is now a clear, provable technique to differentiate the true owner from right-clickers who chance to have a copy on their hard drive. NFTs Characteristics Each and every NFT is a unique. A Not interchangeable with other tokens The ERC-721 and ERC-1155 token standards are used. The limited availability (Scarcity) of NFT drives up their value.

What are NFTs Used For? Blockchain technology and non-fungible tokens (NFTs) give artists and content creators a new way to make money (Monetize) from their work. For the purpose of selling their work, for instance, artists do not need to rely on auction houses or galleries anymore. Instead, the artist can sell it as an NFT straight to the consumer, allowing them to keep a larger portion of the profit.

Royalties are another option for artists who want to receive a portion of sales when their work is purchased by a new owner. This is a great feature, since artists usually don't get any more money after their art has been sold. NFTs can be used for more than just art to make money.

Use cases of NFTs Ø

Ø Ø Ø

Ø

Ø

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DIGITAL ART Tokenize real-world artworks in order to enhance their authenticity and provide the artist a sense of ownership. With the introduction of the art marketplace Rarible and its yield farming incentive scheme, digital art that can be traded has become a topic of great interest. NFTs enable artists to monetize their work while still protecting their intellectual property. Additionally, NFTs make it possible for creators to collect royalties whenever their works are sold to a new owner. SPORTS Provides tokenized tickets to sporting events that are issued on blockchains and helps prohibit the sale of counterfeit goods FASHION Contributes to the validation of the ownership. Detailed information regarding expensive products and accessories LICENSES AND CERTIFICATIONS Tokenizes licences and certifications to authenticate and digitally reduce counterfeiting of these documentations in order to preserve their ownership. IDENTITY Users would have a greater ability to secure and control their personal information, such as their medical histories, birth certificates, and other documents, if they used NFTs. NAME SERVICE AND DOMAINS gives cryptocurrency addresses in the form of NFTs, where users can purchase and sell cryptocurrency. VIRTUAL ASSETS Users can own, create, and sell land and other things in the virtual world. NFTs have also been tokenized for use in

the acquisition of real estate in the virtual worlds of Decentraland and Cryptovoxels. Ø REAL WORLD ASSETS One of the original ideas for NFTs was to tokenize real-world assets that may be exchanged. Using the ERC721 token standard, OpenLaw developed a system to trade real estate, and Nike patented a method to tokenize shoes late in 2017. Both of these systems were released to the public in 2018. COLLECTIBLES offers a variety of one-of-a-kind collectibles, each of which has its own distinctive algorithm and identity, as well as additional value. With CryptoKitties and CryptoPunks, we've seen that NFTs can be used to make a new kind of digital collectibles that are very popular. Baseball cards and stamps, which have been around for a long time, are also being turned into tokens. Ø GAMING Provides the capability for in-game's collectable or elements to be tokenized and traded with other players. In-game objects that can be traded are another potential application for NFTs. The majority of current implementations are turn-based battle or trading card games, such as Axie Infinity or Gods Unchained. NFTs, on the other hand, could one day make it possible for games like Fortnite and CS:GO, which have thriving item economies, to facilitate on-chain item trading.

The most popular projects in NFTs NFTs have seen a rise in the number of projects since 2017. The Block Research estimates that there are currently at least 73 NFT platforms in operation; the following is a summary of some of the more well-known ones: Collectibles

CryptoPunks: Developed by Larva Labs, these collectible characters were constructed

Gaming

Virtual World

algorithmically. Avastars: Avatars can be minted and collected by users. Meme: Farming tokens can be redeemed for collectible NFTs. Axie Infinity: Axies are collected, raised, and bred for battle CryptoKitties: You can buy, breed, trade, and collect digital cats Sorare: Players can collect, trade, and field player cards in this fantasy football game. Decentraland: Ethereumbased virtual world where people can trade virtual real estate Cryptovoxels: In this virtual world, you can buy land, build stores and art galleries, and conducting an events.

Domain Names

Ethereum Name Service: Register a named .eth domain to receive payments Unstoppable Domains: Platform that enables you to register blockchain domains for use with your crypto

wallets Marketplaces SuperRare: Marketplace for digital art Rarible: An online market for digital collectibles. Trade on Rarible to acquire RARI OpenSea is a decentralised peer-to-peer marketplace for all NFTs. DeFi

Aavegotchi: On the DeFi lending platform Aave, you may own and trade avatars that are secured by interestbearing tokens representing loans. NFTfi: NFTs can be used as collateral for a loan on this platform.

Roadblocks to Mass Adoption It is evident that non-fungible tokens are incredibly potent and contain enormous potential for future applications. After all, they are extremely versatile instruments that appeal to a natural human need to own uncommon and unique assets. The possibilities are unlimited, limited only by the developers' creativity. Even though NFTs have a lot of potential, it is hard to deny that they are still a very niche market. Estimates from NonFungible put the number of active NFT Dapp addresses at around 70,000. Despite the fact that this number has increased by more than threefold since 2018 and by a factor of two since the

start of 2019, we believe that 70,000 is still a far cry from the estimated 71 million crypto owners worldwide (the methodology for our Crypto Adoption Index can be found here). How can one explain the fact that adoption rates are still relatively low for a technology that appears to have such great potential? The following are some of the potential stumbling blocks: Inaccessibility The most common applications for non-fungible tokens are in the collectibles, art, and gaming industries. Even though the market for these kinds of assets should be very big, NFTs are mostly only used by crypto users who have used them before and know how to use Dapps. In other words, not all people who collect things, like art, or play video games are also crypto traders. Novel Technology

NFTs are a relatively new technology, having been developed only a few years ago in their current form. NFT's safety and legitimacy are being questioned by many because of a lack of understanding of these assets. This probably means that most people who use NFT technology now are still early adopters or niche users.

Transaction Fees

Because NFTs are mostly used on the Ethereum blockchain today, the creation and transaction of NFTs is greatly dependent on network activity at any particular time. In September, at the height of the DeFi craze and simultaneously with the debut of

Uniswap's token and yield farming incentive, the price of gas price skyrocketed to an unbelievable 1000 gwei.. Difficult Real-World Linkage

Real world assets can be represented by NFTs but ensuring the claim of ownership of an actual real world object by an NFT holder is tricky. For example, how can a user be certain that an NFT purportedly tied to a physical asset actually grants him ownership of the physical item? Real-world enterprises will need to issue their own NFTs or work with crypto companies in order to do this. It is also unclear if NFTs would be better than a traditional database in any way.

Regulation

NFT initiatives run the risk of these tokens being considered securities and attracting the attention of regulators as a direct result of the ability of NFTs to be used to represent real-world assets. This may discourage developers who are on the fence about constructing new NFTs.

Source: Crypto.com Research

These hurdles are far from insignificant, but there are encouraging indicators that the industry is beginning to address them. Because NFTs aren't easy for users to use, blockchain-based games are starting to rethink how they handle the user experience. We believe NFTs have reached widespread adoption when millions of users interact with them seamlessly, without knowing they exist. However, as the

founder of Opensea points out in this post, "abstracting away the blockchain," while an exciting thought, is ultimately less appealing to the more committed population that comprises the early adopters that compose the NFT ecosystem today. On the other hand, it will take time to deal with the other problems. For the purpose of real-world linkages, we are observing an increasing number of businesses beginning to implement NFT technology. These businesses can be found in a variety of industries, including auction houses, consumer products, real estate, and others.

How Does an NFT Work? NFTs are stored on a blockchain, which is a decentralized public ledger that keeps track of transactions. Most people are familiar with blockchain as the underlying technology that allows cryptocurrencies to emerge. NFTs are most commonly kept on the Ethereum blockchain, although they can also be held on other blockchains. An NFT is "minted" using digital objects that represent both tangible and intangible commodities, such as works of art, GIFs, videos and sports highlights, collectibles, virtual avatars and online gaming skins, brand sneakers, and music. These digital objects are used to generate an NFT. NFTs are digital versions of physical collectibles. As a result, rather than receiving an actual oil painting to put on the wall, the customer receives a digital file.

Figure.1.8: Workflow of NFT Systems

They also retain unique rights of ownership. NFTs are only permitted to have a single owner at any given time. Because of the unique data that NFTs include, it is simple to confirm who owns them and to transfer tokens between different owners. It is also possible for the owner or the author to keep particular information within them. For example, creators can sign their work by putting their signature in the metadata of an NFT file.

NFT Protocols, Standards and Properties The protocols, token standards, and important aspects of two basic NFT methods are discussed in this section. NFT Protocols In order to implement NFT, you'll need a distributed ledger to store data and a way to trade between peers, as well as a way to exchange transactions. This report uses a distributed ledger to store NFT data. We assume, in particular, that the ledger provides fundamental security, consistency, integrity, and availability properties. On the basis of this, we are able to recognize two

distinct design patterns for the NFT paradigm. The first protocol is set up from the top to bottom in a very simple and traditional way. NFTs are built by the initiator and then sold to the buyer. On the other hand, the latter method (like Loot, which is analyzed in detail in Appendix D) inverts this path by first establishing an NFT template and then allowing each user to design their own unique on top NFTs. As seen in the following, each of these patterns has its own set of protocols. Note that when both of them are run on blockchain systems, they still follow a very similar workflow (see Fig.2), which means that different designs won't change the way they work. Top to Bottom. An NFT protocol for the very first creation (e.g., CryptoPunks) comprises of two additional roles: NFT owner and NFT buyer. 1. NFT Digitize. It is the responsibility of the NFT owner to ensure the accuracy of the file, title, and description. After that, he or she digitises the raw data and converts it to a usable format. 2. NFT Store. The raw data is stored in a separate database outside the blockchain by the owner of an NFT. Note that he or she is permitted to save the raw data within a blockchain, despite the fact that doing so requires a significant amount of gas to accomplish. 3. NFT Sign. The owner of the NFT signs a transaction, which also includes the hash of the NFT data, and then delivers the signed transaction to a smart contract. 4. NFT Mint & Trade. When the transaction with the NFT data is sent to the smart contract, the minting and trading process starts. 5. NFT Confirm. After the transaction has been validated, the minting procedure will be performed. NFTs will be permanently linked to a unique blockchain address as their persistence evidence using this method.

Bottom to Top. There are two roles in this concept (such as Loot): the NFT maker and buyer. When a buyer bids for an NFT product, he or she is simultaneously acting as a creator because the product is made using random seeds. This enables a greater degree of customisation on the part of the end user. Here, the superscript shows how this sentence is different from the one before it. 1. Template Create ∗ . The originator of the project launches a template through the use of the smart contract in order to set up a number of fundamental regulations, such as the varying characteristics (character style, weaponry, or accessories), that are present in the game. 2. NFT Randomize ∗ . Once a customer bids on an NFT, s/he can add features to basic lines. These extra features were chosen at random from a database that had been predefined at the beginning of the process. 3. NFT Mint & Trade. To begin minting and trading, the associated smart contract must be activated. 4. NFT Confirm. All of the operations are handled through the use of smart contracts. When the consensus procedure is finished, the created NFT will be permanently kept on-chain. Each block in a blockchain-based system has a finite capacity. When the capacity of a data block is reached, subsequent transactions will enter a next block that is linked to the original data block. Finally, a long-term record of all the blocks' interactions has been produced, and this record will not be erased. As previously stated, the NFT system is fundamentally a blockchainbased programme. To start the smart contract, a new transaction must be sent

every time an NFT is created or sold. After the transaction is made, the NFT's metadata and details about who holds it are added to a new block. This keeps the NFT's history the same and keeps track of who owns it.

NFT Token Standards This section clarifies token standards for NFTs, such as ERC-20, ERC-721, and ERC-1155 (see Algorithm 1). These guidelines have a significant impact on current NFT programmes. The following is a discussion of them.

Algorithm 1: NFT Standard Interfaces (with selected functions) interface ERC721 { function ownerOf(uint256 tokenId) external view returns (address); function transferFrom(address from, address to, uint256 tokenId) external payable; ... } interface ERC1155 { function balanceOf(address owner, uint256 id) external view returns (address); function balanceOfBatch(address calldata owners, uint256 calldata ids) external view returns (uint256 memory); function transferFrom(address from, address to, uint256 id, uint256 quantity) external payable; ...}

NFTs Desired Proprieties NFT schemes are fundamentally decentralized applications, and as a result, they take advantage of the benefits and features provided by the public ledgers upon which they are built. The following is a summary of the

important properties. Verifiability. The ownership of the NFT, as well as the token metadata, can be validated publicly. Transparent Execution. The minting, selling, and purchasing processes of NFTs are all open to the public. Availability. The NFT system is always operational, and it never goes down. On the other hand, you can always buy and sell tokens and NFTs that have been issued. Tamper-resistance. NFT metadata and trading records are constantly stored and cannot be changed once transactions are validated. Usability. Each and every NFT possesses the most up-to-date ownership information, which is also user-friendly and information-clearly presented. Atomicity. It is possible to trade NFTs in a single transaction that is both Atomic, Consistent, Isolated and Durable (ACID). The NFTs can all be in the same execution state at the same time. Tradability. Every non-fungible token and its equivalent assets may be arbitrarily traded and exchanged.

Opportunities The potential benefits of NFTs are discussed in this section. In this section, we will cover various typical fields that may benefit from NFTs. Improving the Gaming Industry In the gaming sector, NFT has enormous potential. CrytpoKitties, Cryptocats, CryptoPunks, Meebits, Axie Infinity, Gods Unchanged, and TradeStars are just a few of the many crypto games

now available. The "breeding" mechanism in these games is amazing. Users are able to personally grow pets and spend a significant amount of time breeding fresh offspring for those pets. They also have the option of purchasing limited or uncommon edition virtual pets, which they can then resell for a profit. The additional payout entices a large number of investors to participate in the games, boosting NFTs to popularity. Another great thing about the NFT is that it keeps track of who owns items in games and helps the economy of the ecosystem, which is good for both developers and players. Specifically, game developers who are also NFT publishers of the features (for example, weapons and skins) can receive royalties each time their things are (re)sold on the open market. This is a win-win situation for everyone involved. The players have the ability to acquire gaming things that are personal and exclusive to them. As a result, the secondary NFT market will be profitable for both players and developers. After then, the blockchain community expands NFTs to cover a wide range of digital assets, including cryptocurrencies. Virtual Events that are thriving. Conventional online events rely on centralised providers of technology and trust. The uses of blockchain technology are still limited to a narrow field of endeavours, despite the fact that the technology has already taken over a variety of tasks, such as the process of raising capital (through ICO, IFO, IEO, etc.). NFTs' extra features expand blockchain uses (uniqueness, ownership, liquidity). This allows each person to connect to a specific event, much like the patterns we see in our daily lives. We provide an example of the ticketing event. Consumers must trust a third party when purchasing tickets in a traditional event ticket market. As a result, there is a possibility that a customer will purchase fraudulent or invalid tickets, which may be counterfeit or may have been cancelled. Multiple copies of the same ticket may be sold or extracted from tickets.

Images posted online in an extreme case. NFT-based tickets are blockchain-issued tickets that prove a person's rightful entry to an event, such as a concert or sporting event. An NFT-based ticket is one-of-a-kind and limited, which means the ticket holder cannot resell it once it has been purchased. The smart contract built on blockchain technology enables a transparent trading market for event tickets, benefiting all parties involved, including the customer and the event organiser. Instead of relying on third parties, customers may transact directly with the smart contract to buy and sell crypto tickets in a manner that is both efficient and reliable. Protecting Digital Collectibles. There are many different kinds of digital collectibles, such as trading cards, wines, digital images, videos, virtual real estate, domain names, diamonds, crypto stamps, and other real or intellectual properties. As an example, consider the field of arts. First of all, traditional artists don't have many ways to show off their work. Due to a lack of attention, the prices of their works do not reflect their actual worth. Even worse, platforms and ads have charged them intermediary fees for their work that has been shared on social networks. NFTs convert their work into digital formats that include a unified identity. It is not necessary for artists to transfer ownership of their work or its contents to agencies. This gives them with a substantial profit boost. Mad Dog Jones's REPLICATOR (sold for $4.1 million) and Grimes's work (about $6 million) are typical examples. Furthermore, it is rare for artists to get compensated for future sales of their work through royalties. On the other hand, non-fungible tokens (NFTs) can be created in such a way that the artist will earn a fixed royalty fee each time his digital artwork is traded on the markets (e.g., SuperRare, MakersPlace, and Rare Art Lab VIV3). This is an effective method for managing and safeguarding digital treasures. Also, some platforms, like Mintbase and Mintable, have made it easy for regular people to create their own NFT works

by giving those tools. Inspiring the Metaverse. Metaverse is a virtual shared place that allows users to engage in a variety of digital activities. In general, it encompasses a collection of tools, such as augmented reality and the Internet, used to create the virtual world. The idea comes from the last few decades, and it has come a long way with the fast growth of blockchain. The virtual world that exists online can benefit greatly from the blockchain's ability to maintain its decentralized natuParticipants in this blockchain-powered alternate reality can engage in a variety of fascinating activities such as playing games, showcasing self-created artwork, trading virtual assets and properties (such as land, domain name, videos, and clothes), and so on. Moreover, users have the opportunity to profit from the virtual economy. They can rent out buildings (like offices) to other people to get the bond, or they can raise and sell rare pets to get the rewards. Decentraland, Cryptovoxels, Somnium Space, MegaCryptoPolis, and Sandbox are some of the most prominent blockchain-powered initiatives. In fact, all of these applications are covered by the metaverse environment. We put it on this on another chapter because it is so complicated that it is still in its early stages.

Challenges Like any emerging technology, there are a number of challenges to getting these above-mentioned NFT applications off the ground. We talk about some common problems from the points of view of usability, security, governance, and scalability. We talk about both system-level problems caused by blockchain-based platforms and problems caused by human factors like governments, regulations, and society. Usability Challenges

Users' effectiveness, efficiency, and satisfaction are all taken into consideration while testing a product or design. The vast majority of NFT systems are constructed using Ethereum as their base. Because of this, it is clear that Ethereum's main problems still exist. Here, we discuss two important issues that actually affect the user experience. Slow Confirmation. Transactions pertaining to NFT are often handled through the use of smart contracts, which ensures both dependable and honest administration (such as mint, sell, and exchange). Current NFT systems, on the other hand, are tightly connected with their underlying blockchain platforms, resulting in poor performance (Bitcoin reaches merely 7 TPS while Ethereum only 30 TPS). Because of this, the confirmation of NFTs takes an exceptionally long time. To solve this problem, blockchain systems must be redesigned, their structure optimized, and consensus methods improved. Such conditions cannot be met by current blockchain systems. High Gas Prices. High gas prices are a challenge for NFT marketplaces, especially when minting NFTs on a big scale and uploading metadata to the blockchain network. Smart contracts require computational resources and storage, therefore NFT-related transactions are more expensive. At the time of publication, mining an NFT token costs about USD 60 (approximately 5 102wei) . A typical NFT deal can cost anything from $60 to $100 to complete. The widespread adoption of this technology is severely hampered by the high costs associated with its complicated operations and heavy congestion.

Security and Privacy Issues The protection of user information is the primary concern of systems. On the other hand, the data (which is held off-chain but is linked to on-chain tags) faces the possibility of being abused or lost by third parties. The details are

provided below. NFT Data Inaccessibility. To conserve gas, most popular NFT applications will use a cryptographic "hash" instead of a copy of the file as the token's identifier. The source was calculated using information from coinmarketcap.com and ethereum.org because the original file may be lost or destroyed, the user loses faith in the NFT. Several NFT projects connect their system to a specialized file storage system like IPFS. IPFS addresses let users find a piece of content as long as it is being hosted somewhere on the IPFS network. Such systems will invariably contain some form of defect. There is no assurance that the users' data will be duplicated across all of the IPFS nodes when they "upload" NFT metadata to IPFS nodes. This happens when users "download" NFT metadata. If the data is stored on IPFS and the only node that can access it is detached from the network, it is possible that the data will no longer be accessible. DECRYPT.IO and CHECKMYNFT.COM both discovered this problem and reported it. In addition, an NFT may point to an incorrect file address. If so, a user can't verify NFT ownership. In a word, an NFT system is vulnerable if its most important part (storage) comes from a system outside of it. Anonymity/Privacy. There is still a lot of work to be done on NFT privacy and anonymity. The vast majority of non-fungible token transactions are dependent on their underlying Ethereum platform, which only offers pseudoanonymity rather than complete anonymity or privacy. If the public is unaware of the connections between their true identities and associated addresses, users can partially conceal their identities. Meanwhile, all user activity under the exposed address are visible. Due to their sophisticated cryptographic primitives and security assumptions, existing privacy-

preserving methods (e.g. homomorphic encryption, zero-knowledge proof, ring signature, multi-party computation) have yet to be applied to NFTrelated techniques. Privacy-promised methods can only be implemented by reducing high computing costs, as in previous blockchain systems.

Governance Consideration NFTs, much like the majority of cryptocurrencies, are facing challenges such as stringent management from the government. These challenges are similar to the challenges faced by cryptocurrencies. On the other hand, one of the challenges that needs to be addressed is how to appropriately govern this emerging technology and the market that it corresponds to. We address two common issues on both sides of the debate. - Legal Pitfalls. There are numerous legal and policy challenges that NFTs must deal with on a daily basis. Commodities, international transactions, Know Your Customer (KYC) data, and other types of information are examples of potential areas of risk. Before diving into the NFT tracks, it's essential to understand the regulatory scrutiny and litigation that come with them. The legal environment surrounding cryptocurrencies, as well as the purchase and sale of NFTs, can be quite stringent in some nations, such as India and China. The obstacles of governance must be solved while exchanging, trading, selling, or purchasing NFTs. To comply with the law, users may only trade derivatives on regulated exchanges, such as those that deal in stocks and commodities, or they may trade tokens directly with one another. Malta and France are trying to pass regulations to regulate digital asset services. In other countries, the legal system is used to settle problems. They have confusing or even contradictory rules that buyers have to follow. Before making a large investment in NFTs, it is essential to conduct thorough research.

Taxable property Issues. Under the current legal framework, IP (intellectual properties) related products are considered to be taxable property. This includes works of art, literature, and domain names, among other things. However, this does not apply to sales that are based on NFTs. Even though some countries, like the U.S. (through its Internal Revenue Service, or IRS), tax cryptocurrencies as property, most places around the world haven't even thought about it yet. This may increase NFT-related financial crimes. The governments would love it if the purchase and sale of NFTs were more reliable and had tax implications. To be more specific, the individual participants should be responsible for paying any taxes that are due on any capital gains that are associated with NFT properties. Additionally, exchanges of NFT for NFT, NFT for IP, and Eth for NFT (or vice versa) ought to be subject to taxation. In addition, high-profit assets and collectibles should be subject to a higher tax bracket. After these in-depth discussions, it is recommended that NFT-related trades seek additional counsel from specialized tax departments. Extensibility Issues There are two aspects to the NFT schemes' extensibility. The first is to determine whether or not a system is capable of interacting with other ecosystems. When a new version of a system is released, the second question is whether or not the present version can be updated. NFT Interoperability (cross-chain). Existing NFT ecosystems are completely separate from one another. Once a user has chosen a particular type of product, they will only be able to sell, purchase, or exchange that product type inside the same ecosystem or network. This is because the technology it is built on, blockchain, is what makes it possible. Widespread use of DApps is hampered by a lack of interoperability and cross-chain

connectivity. According to the findings of, it is only possible to implement cross-chain interactions with the assistance of third parties that can be trusted externally. In this way, the property of decentralization has lost some of its value. However, the majority of NFT-related projects utilise Ethereum as their underlying platform. Clearly, this means that their data structures are identical and that they can communicate using the same protocols. Updatable NFTs. Transitional blockchains change their protocols with soft forks, which are small changes that work forward, and hard forks, which are big changes that might not work with the old protocols. There has been a formal discussion about the difficulties and trade-offs of adding updates to a blockchain that is already in place. Even though a new version is based on the generic model, it still has to meet strict requirements, such as being able to handle certain hostile behaviours and remain online during the update cycle. NFT schemes are extremely dependent on the platforms they are built on top of, and therefore must remain consistent with those platforms. The most crucial logic and tokeId are still recorded onchain, despite the fact that the data are often saved in different components (such as the IPFS file system). It will be important to keep the system up to date with improvements.

NFT Q and A Can NFT be a good investment? Like real estate contracts, NFTs that are useful may be worth more in the future. If investors have a clear understanding of what the NFT is meant to accomplish, then they will be able to make legal investments. According to Donaraski, ensuring that you have something that genuinely has utility is a better approach for the long-term investment of an NFT. What is NFT Crypto? There are cryptographic assets on a blockchain known as non-fungible tokens, or NFTs, that have unique identifying numbers and metadata that separate them from each other. NFTs, they can't be traded or exchanged at the same value as cryptocurrencies. What does the NFT label mean? It's possible that the original recording of a song could be the subject of an NFT in the music industry. An NFT in the music industry gives the owner the exclusive right to music, album art, and videos developed to accompany the song. Why would anyone buy a NFT? There is an intrinsic demand for NFTs as a result of their rarity, which creates a wealth of opportunities to flip them for a profit on platforms such as OpenSea. NFTs, which are based on the same technology as Bitcoin, have become a popular topic of discussion in the year 2021. They make it possible for digital pieces of art to be sold on a market while simultaneously generating enormous speculation. A digital piece of art, a financial asset, or a patent are some examples of things that could be considered intellectual property.

Can I sell my paintings as NFT? Because it is clear, it is easy for everyone to see who "owns the Nonfungible token." It is important to note that these works of digital art can be edited without information loss and with complete openness regarding their transactions. Non-fungible tokens are tradable like other cryptocurrencies. Why are NFTs so expensive? A non-fungible asset is one that cannot be replaced by another. This is why they must be verified as authentic. For example, you could buy a Picasso painting. The usefulness, ownership history, underlying value, perception of the buyer, liquidity premium, and potential worth of NFTs are some of the other elements that contribute to their value as investments. Where can I sell NFT crypto? Today, OpenSea has the broadest and most comprehensive selection of NFTs on the market. The next step is to link your funded cryptocurrency wallet, pick "Mint an NFT" from the drop-down menu, and then upload your digital creation to the marketplace. What is NFT in music industry? A famous Canadian rock band is launching his next album as a "non-fungible token," a new digital commodity that gives creators more ownership over their work.

Can I sell music on NFT? It's quite exciting for musicians and bands to be able to monetise their work by selling it as a non-fungible token (NFT). It makes a unique token that gives the owner rights to the assets or a share of it. This gives fans a stake in

their favourite bands' success and makes them even more committed in their achievement. Is Bitcoin an NFT? Non Fungible Tokens (or NFTs) are one-of-a-kind and cannot be duplicated or replaced in any way. Bitcoin, on the other hand, is not a non-fungible token; but, a unique piece of artwork is non-fungible. How much does it cost to sell an NFT? First, you usually have to pay the gas fees. On the Ethereum blockchain, these will be worth about $70 on average. Fees for the site, such as those associated with listing the NFT for sale, may also be required. On some marketplaces, these can cost as little as a few cents, while on others, they can cost as much as $900. How much does it cost to create an NFT? The costs of developing an NFT vary substantially depending on the market. To enable the NFT to function for free, the developer needs write code. Depending on the project's complexity, this can cost anywhere from $7 to $150. The format of an NFT is entirely up to the developer. How do you make money with NFT? Some businesspeople and investors treat Non-Fungible Tokens (NFTs) like stocks in order to make a profit from purchasing and selling those assets. To sell your NFTs once you've purchased them, simply follow the same process as if you were to generate them yourself. The minting procedure is the only one you'll bypass. Can you screenshot NFTs?

Taking a screenshot of an NFT doesn't mean you own the artwork. Using NFTs, a digital artist can seed vector files and 3D files that are locked until a buyer purchases the NFT. You might want to rethink your decision before taking that screenshot of an artwork in the hopes of saving a few Ether. Why do NFTs have a future? NFTs not only produce new ownership opportunities but also reimagine existing ones... Additionally, NFTs are utilised for the purchasing of digital land in metaverse, as well as for the ownership of next-generation sound, licencing, and publishing. Some experts predict that in the future, NFTs will provide access to special deals or limited-edition digital assets. Are NFTs disruptive? According to blockchain experts, Non-fungible tokens, or NFTs, are more disruptive than cryptocurrencies because of their ability to be applied to a wide range of industries. When did NFTs become popular in 2021? When Christie's sold an NFT named 'Everydays: The First 5000 Days' by digital artist Beeple for $69 million in March 2012, it became the talk of the town. As a result, people all across became aware of what was happening. They have revolutionised fields such as art, music, and sports throughout the course of the year, making it possible to monetize digital creations. Can you mint an NFT for free? In most cases, in order to mint NFTs, you will be required to pay gas fee, which cover the cost of generating smart contracts and NFTs. However, if you use the Rarible and polygon blockchain that provides, you will be able to mint NFTs without spending any money.

How can I get NFT for free? Sometimes fresh NFT projects or startup will announce free NFT giveaways on social media platforms like Twitter, Reddit, and Discord in order to attract attention to their newly released collections. Projects can quickly build a fan base of enthusiastic NFT collectors if they do this, and NFT collectors can potentially receive a free NFT that may become valuable in the near future if they do this. How is Ethereum different from Bitcoin? The distinction between Ethereum and Bitcoin is that Bitcoin is only a currency, but Ethereum is a distributed ledger technology that firms are exploiting to create new applications. If Bitcoin was version 1.0, then Ethereum is version 2.0 since it enables the construction of decentralised apps on top of itself. Bitcoin was the first cryptocurrency. How do I invest in Ethereum? There are four ways to buy Ethereum right now. 1. Select a cryptocurrency exchange first. Because you can't buy bitcoin from a bank or an online brokerage like Fidelity or Vanguard, you'll need to use a cryptocurrency trading platform. 2. Make a deposit into your account... 3. Buy Ethereum in your crypto wallet 4. Keep your Ethereum safe. In addition, you can buy NFTs or once Ethereum Proof of Stake goes live, you could bound you’re ETH and get an annual percent return on your holdings. How do you make money with Ethereum? The strategy of "buy and hold" Investing over the long run is the most common approach to generate revenue with Ethereum. Long-term investing

is comparable to day trading in that you will monitor the market and exchange fiat currency for Ether at times when you think the token representing the crypto to be trading at a discount. Can I mine Ethereum? To mine Ether in the simplest method possible, join a mining pool. This is especially true if you don't have a lot of mining hardware. This is due to the fact that the mining of Ethereum has become considerably more difficult and time-consuming as more tokens have been released into circulation... Hash power is the amount of computational power in your hardware uses to help to fix crypto algorithms. Will Ethereum make you rich? Although Ethereum might be a powerful cryptocurrency, there is no assurance that it will be successful in the long run. If, on the other hand, you have a high threshold for risk and are willing to keep your investment for a number of years despite the fact that it may experience some volatility in the short term, you have the opportunity to make a significant amount of money over the long term.

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Non-fungible tokens integrate decentralized blockchain technology with non-fungible assets to generate unique, rare, and trustworthy tokens using blockchain. NFTs are useful for collectibles, gaming, digital creation and art, virtual assets, and tokenizing real-world goods. They can store, control, and secure personal info.

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Since 2012, when colored Bitcoin coins were introduced, nonfungible tokens have existed. Since then, NFTs have moved to Ethereum, where non-fungible token standards like ERC-721 and ERC-1155 may be created and traded effortlessly. Rare Pepes were the first NFT collectibles just to take off in popularity. The next initiative was CryptoPunks, and then CryptoKitties, which is arguably the most successful and well-known NFT project ever. CryptoKitties NFT involvement spiked during the Ethereum surge of late 2017 and early 2018. When the market plummeted in 2018, NFT popularity halted until late 2020. NFT adoption is minimal compared to the tens of millions of cryptocurrency owners. NFTs aren't widely used because they are hard to get to, the technology is new, transaction fees change often, it's hard to link real-world assets to NFTs, and regulations are in the way.

Summary An innovative technology that is now dominating the blockchain market is known as Non-Fungible Token. In this chapter, we look at the most up-todate NFT solutions that could change the market for digital creation/virtual assets in the future. We start with a technical analysis and then supply design models and properties. Then, we look at how safe the current NFT systems are and talk more about the opportunities and possible uses of the NFT concept. In conclusion, we discuss the current research issues that must be addressed and overcome in order to achieve mass-market adoption. We believe this provides a timely analysis and overview of potential solutions and projects, helping newbies stay up. To summarize, while the NFT area has shown indications of life, there is still a long way to go before this unique application of blockchain technology achieves widespread adoption. Since 2012, the technology has come a long way, but it will take time to prove that NFTs are more than a niche sector for early adopters.

CHAPTER 2 NFT Ecosystem, Market and Marketplaces Understanding the NFT Ecosystem The record was set! The digital painting "Everydays - The First 5000 days" was sold on March 11, 2021, for a price of $69 million. This enabled Beeple, the person who created the painting, to acquire one of the top three most expensive auctioned artworks ever created by any artist who is still alive at the time.

Figure 2.1: An overview of the current NFT ecosystem.

The emerging world of NFTs has grown swiftly in recent months, reaching new heights of success thanks to greater uptake from the blockchain community, creative artists, celebrities, and athletes from around the world

all hoping to leave their mark on this digital frontier. Binance and FTX, two of the most popular cryptocurrency exchanges, recently announced the debut of their NFT marketplaces. They show that NFTs are getting more accepted and gaining in popularity. Is this a "here to stay" trend and will NFTs become the breakthrough technology that delivers crypto and blockchain to a wider audience? NFT Blockchain Technology is entering a new phase, therefore let's take a look at the big picture of the current NFT ecosystem. As shown in Figure 2.1, an NFT is dynamic since it is made up of numerous sectors. Infrastructure: Restoring and transferring NFTs with the usage of blockchain technologies Gaming: The NFT standard-compliant games these are games like roleplaying strategy games, trading card games, and any other fun game that uses NFTs. Metaverse: Digital universes existing in parallel that provide consumers with a variety of one-of-a-kind experiences Arts & music: The creation of digital masterpieces by renowned artists and musicians Sports: This is a collection of well-known sports figures, many of whom have ties to actual teams and athletes in various sports such as Formula 1, football, and basketball. Collectibles: The major goal of this project is to create collectible goods that may be traded. Marketplace: Websites where you can buy, sell, and auction NFT

Domains: It comprises of one-of-a-kind domain names generated on the blockchain. Others: In addition to NFT Wallet and NFT Defi, there is also a fund devoted just to NFT. The accompanying infographic illustrates the wide range of NFT project categories that exist within the ecosystem. As a result of the implementation of cross-chain capabilities and the development of different chain NFT standards, we will soon be able to trade NFTs on a variety of different blockchains. The NFT train is still in the early stages of its journey.

NFT Ecosystem in details Infrastructures, as well as game development studios As of right now, Ethereum is now the most popular blockchain protocol for NFTs, with more than 50 projects running on it. WAX, a clone of the EOS blockchain, is in second position with more than 35 projects on the platform. BSC, Polygon, and Flow are three new blockchains that have recently entered the market. It is important to point out that Chiliz is completely focused on serving the needs of the sports fan token market. Despite the fact that Ethereum is the most popular cryptocurrency, transaction costs remain a constant issue since they rise far too frequently. Today, any transaction on the network might be quite expensive. Transactions on this blockchain network will cost users about $21, significantly more than other blockchains like Binance ($0.045), Flow ($0.02), Polygon ($0.001), and WAX ($0.001), which have no gas fees. They have a greater potential than any other form of section inside the NFT ecosystem to engage with regular people's lives and activities. It is now easier

for game developers to take advantage of blockchain technology because of the strong foundation provided by a number of different blockchain protocols. Dapper, Animoca Brands, LucidSight, and EverdreamSoft are among the major blockchain-focused gaming firms that have just entered the market.

Games and Metaverse According to the video game industry, this sector is an established one, but it still has a lot of potential for growth in the years to come. The NFT ecosystem's growth has been accelerated by this section, which is now wellcapitalized. Axie Infinity, Ethereum's most popular game, is rapidly getting a lot better as new features and game variants are introduced. As a result of Axie's development by Sky Mavis, a Vietnamese game studio, about 90,000 active wallets and about 22,000 daily users have been drawn from developing countries. God Unchained, on the other hand, has the greatest current sale value of $22 million, with a total of 569,561 transactions. The more famous Metaverse specializes on virtual world-building and ingame activities in addition to the gaming industry. Decentraland is currently the market leader in this area, with $62.2 million in sales accounting for 58 percent of the total market value. The Sandbox and CryptoVoxels pose a threat to Decentraland despite its dominant position. They provide the market with a wide range of supporting digital dassets, such as ERC-1155 tokenized names, wearables, and diverse things. There will be around 2.9 billion gamers in the world by the end of 2021, according to Newzoo's global video games market survey. NFTs, a form of blockchain technology, enable player’s ownership rights. Gamers now have

the ability to claim ownership of the digital assets they gain while playing games for the first time. This is huge because it marks the culmination of the free-to-play gaming era. Because video gaming is the most popular form of entertainment, NFTs may take advantage of this fertile ground to bring blockchain adoption to a worldwide audience that is nearly as large as the global population. Alice, Derace, the X World Games, My Defi Pet, and Ethermon are some of the names to keep an eye on.

Collectibles, Art, and Sports The most NFTs were sold in a single day on May 3, when $102 million worth were sold. The market for crypto-collectibles contributed $100 million to these sales. NFT collectibles like as CryptoPunks, Meebits, and CryptoKitties have shown themselves to be the most stable assets thus far, and NonFungible.com reports that they continue to be the largest of the seven marketplaces that they have listed. CryptoPunks is still the market leader, with sales worth approximately $400 million and an average Tran’s value of $25,532 The Sports section has all the signs of a developing platform in its early stages, with purchasers indicating rising interest in the coming years. The entire sales value of assets traded is increasing, having nearly hit $600 million, surpassing the Collectibles section. NBA Top Shot, Sorare, and Topps MLB are competing for first place in the Sports category as the top three competitors. According to NFT Arts, the market is still relatively small. At the moment, most buyers are building collections that they plan to keep for a long time. Hashmasks is the most well-known company in this portion, with sales worth $50.4 million. Art Blocks and Known Origin are next, with sales worth $20.5

million and $6.4 million, respectively. The traditional art industry is worth $50 billion in 2020, according to Art Basel and UBS. NFT art is still a small part of the overall art market, but there is a lot of possibility for growth in the future.

NFT storage NFT storage technology utilizes IPFS content addressing, which enables developers to store huge files off-chain and create immutable, permanent links for transactions. It makes it possible to secure and timestamp content without making it necessary to place the data on the blockchain.

Figure2.2: NFT storage pyramid Research Center of HUST and HashKey Capital

The easiest option to keep non-fungible tokens offline is to get a cold storage hardware wallet and transfer the tokens there. Because the wallet remains

offline, hackers and keyloggers will be unable to acquire access. In addition, for an additional layer of protection, each hardware wallet comes equipped with a unique ID and password.

NFTs and the IoT More Than a Meme: The true value of non-fungible tokens and blockchain technology lies in the ability to secure devices and supply chains. Blockchains, much like the internet itself, are decentralized, which means that anyone can take part in the operation of the network without restriction. Although the internet is stateless, blockchain records are safeguarded by cryptography... Non-fungible tokens (NFTs) can be used to transfer state and value, and smart contracts can be hosted on blockchains. When you add up all of these benefits, blockchains have a huge impact on business in the 21st century, from automating the insurance industry to radically improving the supply chain. TRUE MACHINE COLLABORATION WILL BE ACHIEVED WITH LOW LATENCY... The term "machine-to-machine" communication was commonly used twenty years ago to represent the goal of automation in all sectors of the economy. We often say "The Internet of Things (IoT)" today, which is a bigger and more general term, but the basic idea of machines working together in real time hasn't changed much. So has its major challenge, which is the miraculous combination of human senses and reaction speeds that enables people to achieve things in real time that machines are incapable of. The worldwide M2M market is expected to generate at least $1.5 trillion in

yearly income by 2030, therefore finding solutions to these automation issues is crucial from a societal standpoint. The most significant barrier that we have faced has been latency in our communication networks. Anyone who has used a computer keyboard with a lag knows that delays and limited throughput lead to mistakes. Networking has entered a new era, and everyone knows it. Robotic manufacturing, surgical robotics, and space programs are examples of safetycritical fields where the goal of zero latency has been a goal since the 1970s. The trend has been dubbed "5G" by the media, however it is merely a marketing term. After 5G, there will be 6G, and after that, marketers will come up with a new term. The true effect will be realized when real-time or time-sensitive networking (TSN) seeps down to every business and social domain, enabling manufactured gadgets the near-instant reactivity of the human CNS. In the near future, machines will be able to send and receive enormous amounts of data to each other almost instantaneously. If one of those robots makes a mistake, it will immediately self-correct in such a short amount of time that people won't even notice the hiccup. The world will finally have a true "digital nervous system," and the Internet of Things will become a reality.

NFT Architecture and Providers

Figure2.3: NFT Architecture and Providers

SMART CONTRACTS, ON THE OTHER HAND, WILL POWER THE IOT'S SOCIAL IMPACT. However, speed alone is not a sufficient indicator of intellect. It is still necessary for us to encode our social and commercial goals into these newly coming mega networks. As a result of this, "blockchain fad"—smart contracts in particular, and non-fungible tokens (NFTs) in particular—may prove to have a much deeper and disruptive impact than most casual onlookers today would think. Blockchains, which appeared for the first time in 2008, have had a level of public participation and creativity that much exceeds that of the Internet. The original blockchain was used to generate the first cryptocurrency, Bitcoin, and it is considered rudimentary in comparison to the networks that came after it. Second-generation blockchains, the most popular of which is Ethereum, contain powerful native languages which enable them to be programmed with self-executing "smart contracts." It is nearly impossible to go back and undo a transaction once it has been

recorded in a blockchain. Blockchains were often referred to as "trustless networks" because of this. Because of the immutability of their recorded transactions, both blockchain-native assets (such as coins) and digital assets created on a public blockchain and managed by smart contracts can be exchanged directly between users. There is an ancient proverb that dates back to the beginning of computers that goes, "the network is the computer," and at this point in time, it may be true. The smart contracts that "run" on the most recent blockchains bring the digital and physical worlds closer together in a very literal sense. The term "blockchain oracles" refers to the third-party services that supply smart contracts with authenticated information from the external world. This enables "on-chain" contracts to respond to "off-chain" (real world) events. A smart contract might automatically reduce your insurance cost, for instance, if your vehicle indicates that your driving is "safe" The ability to produce non-fungible tokens is a crucial feature of those platforms (NFTs). Although NFTs first gained notoriety in the art and collectibles industries, they are essentially a part of a broader trend toward distributed or decentralised computing, which encompasses blockchains, cryptocurrencies, and edge-computing technologies. It's a perfect example of "combinatorial technology," which Harbor refers to as "combinational computing." This alone will make decentralised finance (DeFi) a reality for everyone living everywhere on the planet, as NFTs transform social networks into places where individuals may trade and store items of value.

Blockchain Opportunities

Figure 2.4: Blockchain Opportunities, Source: Harbor Research

NFTs and Digital Twins An NFT can be used to represent and protect anything that has a unique identity. When it comes to purchasing uncommon items like artwork, trading cards, and other collectibles, these tokens have been most widely used. NFTs have been misunderstood by the general public because of this upper-crust applicability. In reality, the reverse is true. Transactions on the data which underlies the NFT have to be authenticated and exchanged for real-world value, so NFTs are digital representations of those transactions. Because of this, blockchains are able to automate the routine tasks that are performed in businesses. NFTs have the potential to revolutionize one of the world's most vital sectors, as demonstrated by the fact that software licenses are practically begging to be managed by them. NFTs let you prove that you have control over any type of digital asset, even the "digital twins" of any physical object or process. Cryptography makes it possible to prove that blockchains are reliable, so people who own NFTs can

be sure that their ownership of the underlying non-fungible asset is safe. Also, smart contracts let the seller of an NFT put conditions on the rights of a token holder, such as paying royalties to the NFT designer for the software licenses stated above. A REAL-WORLD EXAMPLE OF SUPPLY CHAIN OPTIMIZATION There are over 30,000 fungible components in a typical automobile. How much does it cost to bring back a car? According to one analysis, the expense of recalling just one product would be $8 million. Simply in 2018, the automotive sector was hit with a cost of $22.1 billion due to recalls. What would happen, though, if you were able to determine where a particular fungible piece came from that was flawed? It is now possible to tag physical components with digitally non-fungible signatures in the form of simple stickers such as QR codes or barcodes under new blockchain standards. Using this method in an automotive supply chain would help you identify car doors or fenders created from a faulty sheet metal roll. If you could find out where parts came from in this way, you could recall only the cars with the bad part. This would save the industry billions of dollars every year. Warehouse costs are also very high for a manufacturing company, and having the wrong amount of inventory can have a big effect on their ability to make money. Users often make mistakes when entering data into traditional databases, however and inventory entered into a blockchain can only exist in one spot, and its digital identity moves with the item. Databases often have a single point of failure, like relying on one vendor or one supplier, and one unusual situation could really affect a chain reaction of problems in the supply chain...

Blockchain and NFT Ecosystem

Figure2.5: Blockchain and NFT Ecosystem

Blockchains with smart contracts enable real-time visibility and the chance to intervene early in faulty activities. Smart contracts are organized, auditable papers that can replace expensive trusted intermediaries and enforcement costs, and traditional databases are much easier to hack than blockchains, where data is encrypted in a way that gets harder and harder to break. Hacking a single user merely allows the hacker entry to that person's data, reducing the chance of systemic catastrophe. Manufacturers are using NFTs to improve their supply chains for all of these reasons, especially those with high-end products or a good name to protect. Louis Vuitton, a lavish fashion brand, announced plans to launch a blockchain platform in 2019 that would use NFTs to verify the origin of expensive goods. The tokens track every product's supply chain path, guaranteeing its uniqueness and quality to customers. In another case, the Italian beer company Birra Peroni has said that they will use EY OpsChain Tracking, which will be hosted on the public Ethereum

blockchain, to track the supply chain. The problem is solved by minting NFTs, which are tokens that are specific to each batch of beer. NFT Market The demand for NFTs in the market has made investors more interested in funding new technologies, marketplaces, and other arenas related to NFTs, while entrepreneurs are now working together to bring appropriate solution to the market. We will try to keep track of the size of the market by looking at the following key indicators: NFT Marketplaces, number of active users, number of NFTs transactions, value of NFT-related transactions, funding raised by NFT-related startup companies, number of NFT-related virtual currencies, social media visibility, and keyword traction.

Figure 2.6: Market capitalization of transactions globally involving a non-fungible token (2018-2020) in million EUR

Since the year 2021, non-fungible tokens have become buzzword. The size of the market shows best how quickly it has grown and how much room there is for more growth, especially when compared to more traditional ecosystems like the traditional art market, which will be worth about 50 billion EUR in

2020. The market capitalization has increased steadily every year, reaching over 297 million EUR in the year 2020. (A whopping 845 percent increase from 2018) NFTs have the potential to be useful in many different industries by making transactions safer and cheaper to process and by giving the gig economy a new way to work. All of the contributors to Entrepreneur are responsible for their own opinions. NFTs have changed a lot since the days when only famous people made them and sold them for millions of dollars. "NFTs are gradually becoming an integral part of our daily life. NFTs are not only an excellent potential for business, but also a novel means by which individuals can have fun while simultaneously reaping financial gains.

Figure 2.7: For NFTs, Google Trends has tracked interest over time.

Experts say that the rise in the price of cryptocurrencies during the COVID19 pandemic is one catalyst for the development of the NFT market. This is because cryptocurrencies are often used as the currency of exchange in digital art markets. The NFT, however, may have value regardless of market conditions. In point of fact, a significant number of the most successful projects have seen their prices rise with just a weak association to the prices of cryptocurrencies.

Figure 2.8: NFTs have a market worth millions of dollars. Source: BNP Paribas

The first quarter of the NFT market began after NFTs worth $90 million were sold from October to December 2020. During the first three months of 2021, more than $2 billion was spent on tokens that could only be used once. This is a rise of almost 2000% from the fourth quarter of 2020. Since NFTs surged in popularity at the start of 2021, sales volumes have remained strong. In August 2021, the monthly sales volumes on OpenSea, which is a significant NFT marketplace, reached a record high of roughly 3 billion on Ethereum and approximately 50 million on Polygon. This was a new peak for both cryptocurrencies. NFT GOOGLE SEARCH VOLUME During the year 2021, the number of Google searches for the acronym NFT hit an all-time high. The range for search volumes is "between 0 and 100,"

with 100 representing the highest value that can be derived from a given time period. It is clear to see that there has been a surge in interest in NFTs during 2021, particularly during the first few months of the year. The trend continues to gain momentum over the months of October and November 2021, revealing the possibility of a new audience that has developed an interest in NFTs.

Figure 2.9: Google Search volume for the term NFT

It's important to note that the total sales of NFTs for 2021 (currently from November 15, 2020 to November 15, 2021) will be more than EUR 8.97 Billion. While NFT sales overall are up in 2021, not all industries have grown at the same rate. It is important to note that the Axie Infinity game and associated AXS money (published by Sky Mavis) have reached new heights as a result of this achievement. Axie's success is overshadowed by Pokemon and Super Mario, which have grossed 85 billion and 30 billion since July 2021.

Figure 2.10: Prices in USD of top 5 NFT projects on March 21 2021. Source: Coinmarketcap

The skyrocketing prices of NFTs, as well as the resulting hype, have undoubtedly piqued interest. As a result, the flow of new NFT projects into the ecosystem has exploded. The fact that Ethereum is still the most popular platform doesn't change the fact that the high gas fees have given other layer one blockchains a chance to house the expanding network token economy. Investors have taken note of the increasing number of projects incorporating some form of NFT. More than eight million Euros was made off the sale of many versions of a series of digital artwork referred to as Hashmasks in the beginning of October 2021. Seventy different artists were involved in the sale. Hashmasks are an Ethereum-based art project that uses a random number generator. As payment giants and tech businesses enter this industry, additional options and revenue streams will open. The Non-fungible Tokens Quarterly Report Q2 2021 says that 66 percent of all the volume traded during this quarter was made up of collectibles.

Figure 2.11: NFT Sales volume (monthly)

According to a survey by blockchain intelligence firm Chainalysis, total sales reached $37 billion by the first week of May, compared to $40 billion for all of 2021. Maintaining the average weekly sales volume seen since the beginning of the year suggests that NFTs might more than double to $90 billion by the end of 2022.

NFT RELATED VIRTUAL CURRENCIES Out of the 14198 cryptocurrencies that CoinMarketCap tracks, 420 of them are categorised as being related to NFT protocols and tokens. As of 15 November 2021, the monitored cryptocurrencies are worth about EUR 57 billion. These tokens have nothing to do with NFTs and simply refer to cryptocurrencies issued by the protocols; they can be used as utility tokens, governance tokens, or anything else. According to data compiled by CoinGecko during the same time period in question, the total market value of all NFTs was EUR 54 billion.

NFT Collections According to NFT data provider CryptoSlam.io, tracking the top 15 NFT collections as of November 15th, 2021 yielded significant analytics and insights.

Figure 2.12: NFT Collectible Rankings by Sales Volume Source: https://cryptoslam.io

Axie Infinity is at the top of the list because it is a blockchain metaverse game that has grown faster than any other game. There are essentially no transaction fees because the game is based on Ethereum's Ronin sidechain. One of the most valuable NFT collections, Axies has sold for more than USD 1.7 billion. August 2021 accounted for over 45%, which is nearly half of the total. Revenues totaling 355 million US dollars and sales volumes up to 765 million US dollars were earned by the Axie Infinity DAO. The game currently has over 800,000 individuals participating in its Discord server and 467,000 individuals following it on Twitter, both of which are

suggestive measures gauging the game's unprecedented growth. Eventually, Axie Infinity has nearly reached the top 50 most popular games on Twitch. NFT Marketplaces The marketplace is the backbone of any ecosystem, and its evolution reflects both the overall geography of NFT ecosystems and the specific parts. In particular, OpenSea beats the rest of the market, garnering $48.5 million in sales volume with more than 22,000 members over the course of the past 30 days. But Binance Smart Chain's low transaction fees and fast transactions have made it much easier for BakerySwap, AirNFTs, and Treasureland to push the limits of what NFTs can do. Not mentioning WAX, which is known as the "King of NFTs brand," is another oversight that should not be made. It is presently working toward an NFT ecosystem that is fairer and more equitable in order to make it possible for the general people to collect NFTs at prices that are affordable to them. There are almost 420,000 WAX users, which is a lot more than any other blockchain in the market. By comparing data from the data aggregator dappradar.com, we were able to figure out which NFT marketplaces had the most users. This was mostly based on two metrics: the number of wallets that used the marketplace and the total volume in US dollars. For the purposes of this study, we'll look at the top five marketplaces. There are many of NFT sites to choose from once you've set up and funded your wallet. The following are the list of largest NFT marketplaces at the moment:

OpenSea.io: Open Sea, which is compatible with the Ethereum as well as the Polygon Blockchain networks, is the most widely used and features a considerable

differentiation. OpenSea was the first decentralized peer-to-peer marketplace for NFTs. In August, there were 2 million transactions worth USD 3.4 billion on OpenSea. The marketplace will charge a fee of 2.5 percent on sales made by sellers and will accept payments in three different currencies. It can handle both timed auctions and fixed-price transactions. The maximum file size is 100 MB, and the most popular categories in the marketplace are creative work, digital art, utility, collectibles, trading cards, sports, metaverse, virtual worlds, and domain names. It was founded in 2018 and makes it possible for royalties to be distributed according to the artist's choice. This peer-to-peer marketplace claims to sell "rare digital products and memorabilia." To get started, simply create an account and browse the NFT collections. New artists can be discovered by sorting items based on sales volume.

Rarible: In terms of NFT marketplaces, Rarible is the second most popular. Both the seller and the buyer are required to pay a charge of 2.5 percent. Rarible is run by a Decentralized Autonomous Organization and is owned by the community. Rarible offers two forms of sales: auctions and fixed prices. It accepts a few more currencies than OpenSea, but it also has its own platform currency, the $RARI. The file size is limited to a maximum of 2GB. Rarible is a marketplace that operates in a democratic and open manner and enables artists and producers to issue and sell non-fungible tokens (NFTs). Holders of RARI tokens issued on the platform can vote on features such as fees and community rules. Among the most popular art forms are video games, trading cards, sports, music, and photography, along with metaverses, domains, and memes (all of which take up about 30MB in total). Rarible has been operational since the year 2020.

Foundation: The Foundation is ranked as the fourth most popular marketplace for NFTs. The transaction fee for sellers is 15%, and $ETH is the main currency that can be used. Its own sale methodology necessitates the payment of a reserve price before a 24-hour auction may begin. There is a limit of 50MB on the size of the files that can be used. A large portion of the marketplace's offerings are focused on exquisite digital art, with a focus on crypto art. Since the year 2020, the market has been open for business. To publish their work on this platform, artists need to obtain "upvotes" from other members of the creative community or be invited to do so. Because of the group's exclusivity and the high entry cost (artists must additionally purchase "gas" to mint NFTs), it is possible that the artwork in this community will be of a better standard. Chris Torres, developer of Nyan Cat, sold the NFT on the Base platform. The fifth-ranked NFT marketplace on the Tezos network is hic et nunc. Sellers are charged a 2.5% fee, and $XTZ is accepted as the platform currency. It only lets you sell files for a fixed price, and the largest file you can sell is 40 MB. Fine digital art, collectibles, trading cards, and photography are some of the most popular categories in the marketplace. In the year 2021, it was first established. On secondary sales, a royalty fee of ten percent is applied to each and every transaction. Protocol costs for each marketplace depend on the market's popularity, compliance expense, market positioning, community size, trade volume, and structure. Other NFT markets are owned and operated by corporations, while others are run by Decentralized Autonomous Organizations (DAOs). It could also lead to higher prices, which isn't always a bad thing for artists and collectors who want to make money, as long as the demand for NFTs

stays the same or grows over time. Be sure to do your homework before making a purchase even though thousands of NFT artists and collectors use these and other marketplaces regularly. An imposter has taken advantage of certain artists, putting their work up for sale without authorization. Additionally, the verification methods for creators and NFT listings aren't standardised across platforms; some are more severe than others. This might make it difficult for users to find legitimate listings. OpenSea and Rarible don't verify NFT ownership. Buyer safeguards appear to be limited at best, therefore it's wise to remember the old adage "caveat emptor" (let the buyer beware) when buying for NFTs.

Binance NFT Growth in the NFT industry on Binance Smart Chain has been steadily expanding and is closely observed by multinational corporations around the globe. On June 24th, 2021, the world's largest cryptocurrency exchange, Binance, will open its own NFT marketplace. According to what has been mentioned, this marketplace "will connect together artists, creators, and crypto aficionados from around the universe," and it will then "become the preeminent destination for NFTs and digital assets across mediums, from visual arts and gaming to music, games, and sports." Binance is expected to set a new trend in the market because of its prominence in the space. After such an interesting beginning, everyone is holding their breath to see how this brand-new ecosystem will develop over time.

Domains This segment has a wide range of projects and ways to use them. However,

the Ethereum Name Service, Unstoppable Domains, and Handshake are the ones that drive this segment the most. The background of these initiatives and their marketplaces, along with their sheer numbers and remarkable names, can explain their ongoing growth and expansion in NFT ecosystems. The estimated total of $7.01 million held by ENS at the beginning of June 2021 places it in first place. Despite this, Handshake has seen a greater increase in the number of names registered than the rest of the market as a whole, amounting to approximately 53.7 percent. These domains have a wide range of applications, from wallets and browsers to exchanges and more. Nonetheless, ENS once again demonstrates its supremacy and popularity with 231 integrations, which is over twelve times larger than Handshake and quadruples the number of integrations for Unstoppable. Global domain name registration is expected to reach 512.3 million by 2027, according to ReportLinker. According to the numbers in this article, the NFT domain market will rise by more than twenty times if only NFT domain names can take just 5% to 10% of the total market share. Where will it go and what awaits us? The industry of NFTs is still in its infancy, but it is already experiencing significant growth in terms of trading volume, the liquidity of assets, and the number of new users throughout the course of time. However, we are just beginning to discover how many industries can benefit from NFTs. Its development is about to pick up speed considerably, as evidenced by the massive acceleration that will occur during the second half of the year 2020. This acceleration will be accompanied by the adoption of a large number of use cases that have reached maturity and organized projects. A number of key

breakthroughs in the NFT ecosystem have made it possible for the ecosystem to progress into the next phase in 2021. That's why the future of NFTs is so much more than social status, memes, or profile pictures made from million-dollar works of art. This is just the start of a global revolution that has already changed the way banks work and will now change everything else. Virtual assets may now be validated and traded in a single click thanks to the introduction of NFTs. It's no longer just a speculative business; it's also a value creation business. Even while NFTs have a little share of the overall market, they're nonetheless making an impact. However, because to the inevitability of the digital revolution, there is no question that the world of NFTs may soon become mainstream and disruptive to both newly emerging businesses as well as those that have been there for a while. What major achievements can the NFT ecosystem look forward to in the future? The only way to know is to wait. Time will tell. Introducing the Big Problem

Okay. As a result, we examined the prices of several blockchains inside the NFT ecosystem. Prices and availability have both skyrocketed. Were there any specific items that necessitated creating the NFT? If we look at Jack Dorsey's Tweet as an example, nothing has really changed about it. Despite the fact that the Tweet now has an NFT, Jack is still the rightful owner. He has the ability to remove the $2.9 million Tweet, whether on purpose or by accident. It's associated with his account. I'm not a lawyer, but I seriously doubt that a NFTs made in a Tweet would be taken into account. But let's think about that: let's say that Jack actually sells the Tweet to the buyer. Even then, the Tweet would still be hosted on Twitter's servers, and the NFT would just be a way to get to that Tweet. If Twitter disappeared

tomorrow, would the NFT just lead to a page that no longer exists? Let's have a look at a different scenario: 5000 days of Beeple's daily life. It's a stunning piece of art. It took more than 13 years and shows the work that was done every day during that time. Consider, too, that it went for $69.3 million, making it the third-most expensive work of art ever sold by a living artist. It's a computer piece, not a traditional one like a painting or sculpture. However, this does not mean that the item is not worth the money that was spent on it. That very well might be the case. In the end, the argument becomes more difficult to make if we look at what Vignesh Sundaresan (Metakovan—the man who purchased NFT) received for his money.

Summary An Endless Revolution - In point of fact, the potential applications of NFTs in the future are beyond anyone's ability to imagine. An NFT might utilize "trackers" in the real world to demonstrate to a smart contract that a user was present at a particular location in the real world at a certain point in time. When a smart contract is activated, the digital world can then be triggered, such as minting a new NFT that leverages real-world data possessed by the device bearer as proof. IoTex, a firm that is striving to safeguard the Internet of Things, has come up with a scenario that they call "proof of presence." Their Pebble Tracker gadget has a built-in protected element equivalent to that used in smartphones for FaceID and bitcoin hardware wallets for secret keys that allows it to gather and cryptographically verify real-world data such as location, climate, motion, and light. Any data from wearables or cars that can be linked to smart contracts for insurance coverage counts as "proof of anything" in this new world of

"proof of presence." Zero-knowledge proofs (ZKPs) are being used by Aleo, a company that has recently been in the news, to verify information with a third party without disclosing the underlying data. ZKPs are based on a cryptographic method that makes it unnecessary to give personal information to providers in exchange for services. This is a major step forward in protecting personal privacy. Andreessen Horowitz, an investment firm, led a fundraising round for Aleo that brought in $28 million. We've rushed through a lot of big ideas here, but we think this analysis starts to show how big of a change blockchain, smart contracts, and NFTs will bring to business and society.

CHAPTER 3 How to Make, Create and Sell NFTs Want to launch your own NFT? The NFT market keeps growing as one of the most important parts of the industry. This section will describe how to create, purchase, and sell Nonfungible digital assets. NFTs are capable of representing almost any kind of tangible or immaterial asset, including the following types of things: Artwork Skins, virtual currency, weaponry, and avatars are all examples of virtual objects that can be obtained within video games. Music Collectibles (e.g. digital assets such as trading cards, digital scarcity items) Real-world assets can be tokenized, including everything from homes and vehicles to thoroughbreds and luxury footwear. Virtual land Video footage of iconic and rare sporting moments

Minting NFTs The process of minting an NFT involves transforming digital data into crypto collections or digital assets stored on a blockchain. You won't be able to make any changes to, or erase, the digital goods or files once they've been saved to a distributed ledger or decentralized database. The process of minting your own NFT, whether it be a GIF or a picture, is a procedure that is pretty simple and does not require an in-depth understanding of the cryptocurrency sector. Additionally, NFT artwork can be utilized in the production of collectibles such as sets of digital trading cards.

1. 2. 3. 4. 5. 6. 7.

Flow by Dapper Labs Tron EOS Polkadot Tezos Cosmos WAX

Every blockchain operates under its own native NFT token standard, with corresponding wallet services and marketplaces. For example, when you create NFTs on the Binance Smart Chain, you can only sell them on marketplaces that support Binance Smart Chain assets. Because of this, you would not be able to sell them on a platform such as VIV3, which operates as a marketplace powered by the Flow blockchain, or OpenSea, which operates as an NFT marketplace powered by Ethereum. Since Ethereum has the greatest NFT ecosystem, the following are the requirements for creating your own NFT artwork, music, or video on the Ethereum blockchain: 1. A digital wallet for Ethereum, such as MetaMask, Trust Wallet, or Coinbase Wallet, that implements the ERC-721 standard for Ethereum-based utility tokens (NFTs). 2. The required amount of ether (ETH) to cover the cost of gas fee. If you have a Coinbase wallet, you can use U.S. dollars, British pounds, or other fiat currencies to buy ether directly from the site. Otherwise, you'll have to buy ethereum on a cryptocurrency exchange. 3. After you have acquired these items, you can make use of any one of a variety of NFT-specific platforms, which will enable you to connect your wallet and upload the image or file of your choice that you wish to transform into an NFT.

Among the major Ethereum NFT markets are: OpenSea Rarible Mintable Binance NFTs Before you may create your own NFTs on Makersplace, you must register as an artist or creator and become listed on the platform. There is a "create" link in the upper right corner of OpenSea, Rarible, and Mintable.

How to Create an NFT in 6 easy Steps

Figure3.1: Create an NFT in 6 easy Steps, Image Courtesy: The Motley Fool

Step 1: Choose the work you want to tokenize Choosing the artwork is the first step. Non-Fungible Tokens are capable of representing any type of digital content. You can transform any visual or auditory work, such as a painting, prose, piece of music, or short movie, into an NFT. Actually, anything that could be played as a digital format. At the end of the day, the whole point of NFTs is to make digital works of art into "one-of-a-kind" pieces in an age where everything can be made over and over

again.

Step 2: Choose your blockchain and wallet There are a variety of wallets available for you to pick from that can serve as your public address and store your private key, but in most cases, it is best to rely on a hardware wallet. Trezor or Ledger. For whatever reason, you’ve decided to take advantage of the crypto boom while it lasts. You have the artistic skills to do it, but you don’t know enough about crypto to get your work out there where people who will pay hundreds of thousands of dollars for a GIF can see it and maybe give you some money. Luckily, I’ve streamlined the procedure so that you may have your strange cryptographic artwork permanently recorded on the blockchain in only a few easy steps.

If you’re just getting started with digital currencies, here’s a quick lesson on how crypto wallets operate: You can think of them as software or hardware that facilitates the management of a public address on the blockchain of your chosen cryptocurrency. This public address is where your cryptocurrency is stored, and while its ownership can never be traced, anyone may see it because it is published online (unless you do otherwise). To transmit money

to or from a public address, you’ll need the corresponding private key. Imagine it as a mailbox where everybody can access it, everyone knows exactly where it is, and they can send messages to it. However, only the person who has the mailbox key can open it and get the contents. Hot wallets, which are always online and offer greater convenience but lower security, and cold wallets, which keep your information offline and are inconvenient for frequent use but offer far higher protection, are the two main types of wallets. Most people use MyEtherWallet, which is an example of a hot wallet. Hardware-based wallets from Trezor or Ledger are the best examples of a cold wallet. Yes, pen and paper can also function as a cold wallet; however, you must construct your own public addresses, which might be problematic. If you’re new to cryptocurrencies and are just planning on selling your work, we suggest MyEtherWallet or MetaMask. If you’re keen in cryptocurrency storytelling in particular (or if you’ve made a significant sale and want to make sure your earnings are safe!), we recommend any of the Trezor / Ledger hardware wallets. It should be noted that Foundation only links to MetaMask.

Step 3: Buy some Ether and setup your Digital wallet

After making your selection, the next step is to go out and purchase some ether. NFT can be done on different blockchains, but for the sake of simplicity, we’ll just talk about Ethereum here. It is the most popular

network, and it is supported by the most prominent NFT marketplaces. It is possible that minting an NFT will cost you money. Because of this, you need an Ethereum wallet where you have at least some Ether (the cryptocurrency based on Ethereum). “MetaMask” is one of the most userfriendly. It’s available as a free app for your iPhone or Android device. The cost of producing NFT is unpredictable.

Having at least $100 worth of Ether on hand is recommended, with the understanding that the minting procedure could cost even more depending on the current price of Ether. Due to the nature of the tokens created by the platform during “minting,” the procedure is entirely free on OpenSea, one of the largest marketplaces. Even after signing up, you’ll need to link a wallet to

your account.

Step 4: Choose a marketplace Once you have everything in place, the next step is to select a marketplace in which you may physically (or virtually?) produce your NFT and then offer it for sale to customers.

Figure3.2: List of NFT marketplaces collage

You can’t go wrong with Mintable, Rarible, or OpenSea. In the sake of this lesson, we will use the third option because it is both cost-free and unrestrictive in terms of the kind of goods that can be sold. This indicates that in order to sell on the site, you do not need to first get approved as an artist. It also indicates that the market is flooded with useless digital content that no one will ever purchase.

Figure3.3: Connect your wallet on opensea NFTs Marketplace

To access your personal profile on OpenSea, click the user symbol, then select "My Profile." On this screen, you'll see your options for connecting your ETH wallet. Select "Use a different Wallet" and then click on WalletConnect to link your MetaMask to the platform. It's a pretty easy thing to do. After you have followed the instructions provided by the platform, you will need to confirm the Wallet Connect transaction using your MetaMask app by "signing in."

Step 5: Upload your Art After you have finished linking your ETH portfolio to OpenSea, you are ready to move on to the next step, which is the creation of your first NFT. Start by making a new collection by selecting "Create" from the main menu. Be sure to fill in all required fields before saving. You are now prepared to start the procedure of creating a brand new NFT. Simply select "New Item," then "Upload Artwork," and "Fill out the Details" to create a new product. When you are ready to move on, click the Create button.

Congratulations, you have been successful in creating a NFT that cannot be exchanged for another. However, in order to sell it on OpenSea, you will first need to open the item you just produced in your collection and then click the sell button within that item. On the following page, you can specify the Ethereum tokens you'll accept as payment, set a fixed price or hold an auction, and set the royalty rate for the initial sale and any subsequent sales.

Step 6: Pay the Transaction Fee Once your NFT creation is ready, all you want to do is pull the trigger on the gas fee. Then you can sit back and watch as your creation is submitted to the blockchain and becomes a unique entity on the network that can't be changed and isn't affected by a server crash. If an Ethereum miner withdraws your contract, your NFT will be mined and the miner will receive a transaction fee in exchange for their trouble.

After that, it shouldn't take more than a few minutes for your freshly created NFT to be on the market and ready to make the day of the smart customer who sees it first.

Marketplace If someone were interested in trading an NFT, they have the most variety of options. Open Sea, an Ethereum-based marketplace, promises to be the largest NFT marketplace and is the most user-friendly option. In order to make or purchase NFTs on the site, an Ethereum wallet is required. A popular cryptocurrency wallet called MetaMask is available for download on the site and installation as a Chrome plugin. After everything has been set up, you will be able to buy your first ethers (in actuality, this is a currency exchange operation where euro is converted to ether), which can then be used on non-fungible tokens. Instead, I can "produce" an NFT by purchasing it from Open Sea or another trading platform, such as rarible, where the smart-contract containing our work is sealed at a price that fluctuates with the transaction fees on Ethereum. Nifty Gateway is an option that handles "selecting" the artists who can show their work on the site. There are also many niche markets; for example, NBA Top Shot is the place to go if you want to buy a NFTs of a legendary event in NBA history, and Valuables is the place to go if you want to buy tweets. As an alternative, CryptoKitties is the place to go if you want to adopt one of the digital "kittens" that sparked the NFT craze in 2017. Main Marketplace The quality of the NFT marketplaces you use can make all the difference in whether or not you are successful in selling a new piece of art or discovering a new project to collect. Additionally, NFT markets are more than just a venue to purchase and sell digital artwork; they provide access to a vibrant network of creative professionals and art enthusiasts. Previously we studied

the major NFT marketplaces in 2nd chapter. For better comprehension, let's review those marketplaces. OpenSea. In 2017, it was established as a marketplace for the purchase and sale of NFT. Users can access it by signing in with a wallet such as MetaMask. NFTs can be bought and sold by anybody, with no restrictions, typically with the cryptocurrency Ethereum (Eth) as payment or with additional tokens. NFTs may be sold by auction, with each offer required to be at least 5% higher than the preceding one. When the seller is satisfied with the bid he has received, the auction can either remain open or be closed. On OpenSea, you can sell either a single NFT or multiple copies of the same work, or even an entire series. SuperRare. Before you can begin selling your works on this site, you will need to first go through an interview. The SuperRare staff verifies that the NFTs are unique and authentic, as well as the authenticity of the artists who made them. In this particular location, however, you can only sell individual works and not full series. Whoever makes a purchase is granted unrestricted access to the platform and simply needs to connect their MetaMask wallet in order to make purchases and take part in auctions. To make a payment, Ethereum is the currency of choice. The platform keeps 15% of the proceeds from sales on the primary market and 10 % from sales on the secondary market for artists. Collectors will be charged a fee (tax) to the Ethereum blockchain for each bid (offer), which currently ranges between $40 and $50. This charge is nonrefundable, so it goes out the window regardless of the outcome of the auction. Contains both non-art and art NFT. Nifty Gateway. When compared to other platforms, purchases made on this one can also be done with a standard credit card. Though Nifty Gateway does support MetaMask, it has also enabled payments in fiat currency to facilitate

onboarding. Instead, those who sell their products will have their earnings paid out in USDC stablecoins rather than traditional currency. Sotheby's works with digital auctions as a partner. Makersplace. Makersplace. Selling, collecting and investing: MakersPlace is the future frontier for digital artists and collectors. Makersplace, a marketplace established by Dannie Chu, Yash Nelapati, and Ryoma Ito, is expanding at a rate of 30 percent each month in terms of both sales and registered users. You can use your credit card here. Rarible. The first Non-fungible token-based art marketplace to implement a token that encourages trading. Named Rare, it gives Rarible's most dedicated artists and collectors a voice in platform decisions and improvements. It encompasses non-art NFT as well as art NFT. Decentraland. It intends to build a virtual world in which users will have full ownership over the information they produce and distribute, as well as all of the tools necessary for individuals to earn money from their own efforts freely. It's a 3D environment that can be explored in a web browser or with VR goggles. The earth is broken up into ninety thousand different lands, each of which is a digital place that users can buy, sell, or rent in order to share content with one another. Mana, the platform's native cryptocurrency, has seen its value increase by more than 180 percent in the past few weeks. König Gallery. König Gallery reproduced its gallery (St. Agnes in Berlin) on Decentraland by organising a group exhibition with paintings and digital sculptures in NFT. The gallery's opening marks the debut of the first brickand-mortar establishment powered by Ethereum, a popular blockchain-based platform. Palm. Joe Lubin, who helped start both Ethereum and ConsenSys, announced

the launch of Palm, which is a new network for NFT that uses 99 percent less energy. Damien Hirst is one of the blue chip artists who was one of the first to participate in the project with his "The Currency Project." This is a collection of ten thousand oil paintings on paper that were created five years ago and have been changed into NFT. There is no information available at this time concerning the initial price that will be set for the sale. Profit (?) Okay. So, you've developed an NFT and published it on the OpenSea trading platform. Therefore, what should we do now? If you sit about and hope that somebody will notice your valuable token, you won't get very far. You'll need to promote yourself and the product to attract buyers, perhaps among an already-existing group of art-lovers. This is without a doubt the most difficult aspect, because it has absolutely nothing to do with the actual creative process. Yes, the online art industry is every bit as competitive and picky as its brick-and-mortar counterpart. Unless, of course, you're a participant in a meme or some other form of internet phenomenon. If this is the case, then you should be congratulated on the likelihood that you have discovered a way to generate money off of that awful photo that has always been used to make fun of you.

Creating an NFT collection on OpenSea The following is an explanation of how the process works on OpenSea, which is the most prominent Ethereum-based NFT marketplace at the moment. Step1: When you click the blue "create" button, you will be taken to a screen where you will be prompted to connect your Ethereum-based wallet. When

you input your wallet password when prompted, your wallet will be automatically connected to the marketplace. Digitally signing a message in your Ethereum wallet to verify ownership of the wallet address is optional, but clicking through will take you to the next step.

Figure 3.4: OpenSea NFT marketplace built on Ethereum

A digital signature is used to verify the sender is the owner of the associated wallet, but does not cost anything. Step 2: The very next step on OpenSea is to move your mouse over "create" in the top right corner and click "my collections." Once you are there, click the blue "create" icon that is displayed further down.

Figure 3.5: Creating an NFT collection on OpenSea

Step 3: You'll see a window that lets you upload your artwork, give it a name, and write a description. Basically, all you have to do in this step is make a folder for your newly made NFTs to go in.

Figure 3.6: OpenSea NFT collection creation window

Step 4: Once you have selected an image to represent your collection, it will appear in the format indicated below (blue). After that, you'll need to add a banner image to the website by selecting the pencil icon located in the upper right corner of the screen (red)

Figure 3.7: Add a banner image to NFT collection on OpenSea

Your page's final appearance should like the image below. Step5: You are now at the point where you can make your first NFT. Sign another message with your digital wallet by clicking the blue "Add New Item" button.

Figure 3.8: Creating NFT collection on OpenSea

After you have navigated to the new window, you will be able to upload your NFT image, audio file, GIF, or 3D model.

Figure 3.9: NFT traits on the Ethereum-based OpenSea platform.

You can boost the rarity and distinctiveness of your NFT on OpenSea and other marketplaces by giving it unique characteristics. The creators even have the option to offer locked content that can only be accessed by the buyer after they have made the purchase. Everything from contact details and promotional codes to passwords for restricted areas of a website falls under this category. When you are done, click "create" at the bottom of the page, and then sign another message in your wallet to validate the formation of the NFT. If all went well, the artwork would then be added to your collection. How much does it cost to make NFTs? Although creating NFTs on OpenSea is free of charge, this is not the case on all exchanges. This cost is denoted by "gas" in Ethereum-based platforms. The term "Ethereum gas" refers to the quantity of ether that must be spent in order to carry out a specific action on the blockchain. In this scenario, that action would be the addition of a new NFT to the marketplace. Depending on traffic levels, the price of gas might rise or fall significantly. The price of gas fees goes up as more people use the network to send and receive money at the same time, and vice versa. Top tip: On average, Ethereum gas fees are much lower on the weekend, when fewer people are using the network to send and receive money. This can assist reduce expenses if you are selling many NFTs.

How to buy NFTs There are four things to think about before you run out and buy NFTs. 1. From which online marketplace do you intend to purchase the NFTs? 2. Which wallet should you download in order to login to the site and make purchases of NFTs? 3. In order to successfully execute the transaction, which digital currency should be deposited into the wallet? 4. Are the NFTs you want to buy only available at certain times, such as in a pack or art drop? If you're eager to create your own NFT collection, you'll need to obtain the following essentials: To begin with, you must acquire a digital wallet that can hold NFTs and cryptocurrencies. Depending on the currencies your NFT provider accepts, you may need to invest in some cryptocurrency such as Ether. On services such as Coinbase and Binance, you are able to buy cryptocurrency with a credit card. Then, you will be able to transfer it from the exchange to your preferred wallet. Costs should be factored into your decision-making process. When you buy bitcoin through an exchange, most of them will charge you at least some percentage of the total transaction.

Where to buy NFTs Here is a list of the most popular marketplaces for NFTs in 2021, which should be helpful for cryptocurrency traders whose primary focus is in purchasing NFTs: OpenSea

Rarible

SuperRare

Nifty Gateway

Foundation

Axie

Marketplace BakerySwap

NFT ShowRoom

VIV3

As you might have guessed by now, some NFTs can only be bought on certain platforms. As an illustration, if you want to buy packs in NBA Top Shot, you'll need to sign up for an NBA Top Shot account, make a snazzy wallet, and load it up with either the USDC stable coin or supported fiat money alternatives. You'll also need some luck to get your hands on one of the card pack drops before they're all gone. Rare NFTs can be sold to an eager audience through pack and art drops, which have recently become increasingly common. Users are typically required to join up and add funds to their accounts in advance of these drops in order to ensure that they do not lose out on the chance to purchase NFTs when they become available. Since pack and art drops can end at any time, being prepared is important.

How to sell NFTs Find the NFT you want to sell, click on it, and then click the "sell" option on the marketplace page. Clicking this will send you to a pricing page where you may determine the circumstances of the sale including whether to run an auction or sell at a fixed price. While most exchanges will accept Ether or another ERC-20 token in exchange for your NFTs, certain exchanges will only accept the native currency of the blockchain upon which they were constructed. For instance, VIV3 is a Flow blockchain marketplace that solely accepts FLOW tokens.

Royalty payments and your choice of ERC-20 token for the sale of the NFT can be programmed in by clicking the "edit" button next to the collection image on OpenSea, signing the message with your wallet, and scrolling down. Royalties enable the creators of an NFT to receive a commission each time the asset is sold to a new buyer. With the help of smart contracts, this might provide musicians and other creators with a steady source of passive income for the rest of their lives.

Figure 3.10: Selling NFTs on OpenSea

There may be a charge associated with listing NFTs on a marketplace. Although this is not always the case, it is important to keep in mind when designing NFTs.

Is now a good time to buy and sell NFTs? The interest in NFTs isn't going away anytime soon. Even Elon Musk's girlfriend, Grimes, has gotten in on the action, selling roughly $6 million

worth of digital artwork in minutes. This includes major businesses and celebrities like the UFC and Shawn Mendez. NFTs are still popular, and sales of NFTs on OpenSea broke $700 million in the first five days of 2022. This was mostly due to the Bored Ape Yacht Club (BAYC) and Mutant Ape Yacht Club (MAYC) collections. Now is a fantastic time to get involved in the field, since there are more blockchains than ever before, each trying to provide better NFT services. Does the fact that you are able to purchase NFTs imply that you should do so? Yu says, "It depends." It's risky to invest in NFTs because their future is unclear and there isn't much data available on their past success, she says. Because NFTs are still relatively novel, it could be beneficial to invest only modest sums initially in order to test the waters. In other words, the decision to invest in NFTs is very subjective. It's something to think about if you have the means, especially if the item has personal significance. But remember that the value of an NFT is completely based on how much someone else is willing to pay for it. Investor demand is based mostly on fundamental factors, although stock prices can also be affected by technical analysis and macroeconomic data. What this means is that the value of an NFT may decrease after purchase. If no one is interested in buying it, you might not be able to resell it at all. Do your homework, know the consequences (including the possibility of total loss), and proceed with caution if you still want to dive in.

CHAPTER 4 Make Money with NFTs What Gives an NFT Value? The value of an NFT is determined by consumer interest, just as it would be for a work of art at our hypothetical collection. Like trading cards, their value depends largely on how rare they are and how many people are interested in buying them. The value of NFTs is also determined by demand and supply

Figure4.1: NFT Demand Supply Curve

Even though an image can be transformed into an NFT, there is no restriction that stops the image from being replicated or distributed. On the other hand, the blockchain records and displays indisputable evidence of the asset's true owner, making it impossible to pretend to be the rightful holder of a nonfungible token. The pride of ownership is a major factor in its high market value. NFT are typically resold as a means of making money and increasing

their value.

Possible way to make money with NFTs Making money with NFT can be done in three main ways. According to the NFT 2020 Annual Report, these are the three types of business models that have the potential to generate a reliable and adequate source of revenue, which is necessary to turn it into a full-time endeavor. Business models that, according to the NFT 2020 Annual Report, can provide a stable and sufficient source of income to make it a full-time business. 1. Artist (digital content creator). 2. NFT project development 3. Trading NFT (investing in NFT)

How to Become a Crypto Artist An example of a crypto artist is someone who creates works exclusively for the digital medium, displays them exclusively in digital galleries, and accepts bitcoin as payment for those works (cryptocurrency). This (very) short guide will help you become the next crypto artist: 1. Either produce a physical work of art and then digitise it, or bring a work that was created entirely digitally to life. Processing is a language that was specifically intended for generative art. The web library p5.js is written in JavaScript and can perform the same functions; 2. If you didn't have a (good) story to tell, you wouldn't have been able to create that work of art in the first place. Write it on Medium; 3. Create a wallet for your digital cryptocurrency. Due to the fact that it involves financial matters, this is the most difficult component (digital and real). I suggest using MetaMask on a computer or

cypher on a mobile device. You will be provided with both a public key, which is analogous to an IBAN in terms of a current account, and a private key (a kind of PIN to access your account). Never give out your private key to anyone; instead, only write it down on a piece of paper and store it in a secure location (that you will be able to locate!). If you lose your private key, it's the same as losing your wallet because no one but you knows it. As an alternative, you can share your public key to receive digital assets like payments or artwork; 4. Create an online gallery to showcase your work. Currently, my two favourite categories are "Known Origin" and "SuperRare." It is necessary to own a digital wallet in order to enter these galleries; nevertheless, this alone is not enough. It will take some time before your work is seen in a gallery because galleries are quite selective about the artists they show. Make yourself recognised first by using their social media platforms; 5. If you have been published, which means that your work has been displayed in a gallery, cross-link your work on Medium to the gallery where it was displayed. The story or the artwork that inspired it would pique my interest. 6. On a regular basis, check to see whether anyone is interested in purchasing your work; if you are content with the offer, go ahead and sell the work (remember that offers can be withdrawn). You will find it hard to give up a piece of work that you worked on with so much passion and feel is yours, even if it is digital and will be gone soon. This reinforces my notion that digital art is authentic. Donating your artwork is another option to consider (and receive artwork as gifts). Give freely;

7. Don't just sit on your digital currency; put it to good use by starting a little art collection or giving back to the community. You will contribute to the growth of the digital art market and provide support to artists in this way.

The 3 Best Online Tools for Designers and Artists There are some online software that can greatly simplify the work of artists, from the management of works to social content. Let's find out which ones! On the web every day, software, applications and start-ups are born that aim to simplify one or more activities, even related to the art world. For an artist, however, it can be easy to get lost in this magnum sea, and you risk wasting a lot of time figuring out which tools can be truly functional. However, there are some great software, easy to use and affordable, that help artists in their daily activities. Let's see which the 3 best ones are: Canva: this tool allows you to produce graphics, content and short videos/animations for social media but also for marketing material. It's very easy to use thanks to a drag & drop system, starting from a series of present templates. For the artist, not skilled in more complex tools like Photoshop or Indesign, this app is very useful to create posters for exhibitions and events, or content for social media, or even to easily customize your resume or portfolio. Canva also allows you to share your project with a team of users, for example in the case of an exhibition or an exhibition event, with the gallery owner and his staff; Ilovepdf: very useful software for merging pdf files into a single document,

but also for converting jpg or excel into pdf and vice versa. For an artist, this tool can be useful for the creation of documents such as curriculum and portfolio, but also business plans for exhibitions or events; Art Rights: is the first platform for the management and certification of works of art to support artists, collectors and professionals. Thanks to Blockchain technology and Artificial Intelligence, the software allows artists to enter information about their artworks by creating an Art Rights Certificate, which becomes the "passport of the artworks". The artist will be able to share this information with other gallerists, collectors, and other professionals, who can confirm it, increasing the value of the artwork and allowing it to be tracked throughout its history. Art Rights is also a management software, which allows you to catalogue and digitize an unlimited number of works of art, creating a true digital archive. Then there are other software such as Trello, which supports the organization of daily activities, and Hootsuite useful for scheduling and managing social media content. Being a professional artist also means being attentive to technological innovations, as apps and platforms can significantly reduce the time spent on certain activities, allowing you to devote more resources to real artistic research.

Top 10 software’s for the Most Effective NFT Design. One of the most important parts of the NFT business is making NFTs that digital art fans will want to buy. All the top NFT design programmers are included here. TEN BEST SOFTWARE TOOLS FOR NFT DESIGN.

1. Adobe Illustrator 2. SketchAR 3. Adone Photoshop

4. Corel

5. NFT Creator

6. PixelChain

7. Krita

8. Nifty Ink

9. Fotor

10. NightCafe

With these tools, you can make large-scale digital art that looks like it was made by a pro. Here are some of the most useful commercially available resources for developing NFTs. There are both free and paid options among the tools available. Let's jump right into the list and ratings.

Figure4.2: NFT Creator Design Software sample images from iPhone

Adobe Illustrator Among graphic design programmers, Adobe Illustrator is often considered to be the best option. Designers can do their jobs better with Adobe Illustrator.

It has many features that will help your design stand out from the crowd. Icons, logos, and other web visuals are just some of the things you can make. As far as digital art goes, Illustrator is the best programmer to use for design. Also included are NFTs. As you've seen, NFT can take the form of any digital media file, including photos, music, videos, and animations. When conceptualizing NFTs, it's important for the artwork to have its own distinct feel and look. It also needs to have a businesslike appearance. If this is not done, no one will ever want to buy the artwork. For this reason, it is recommended that you familiarize yourself with Illustrator. Then, you won't be limited to just making NFTs with it. Adobe Photoshop The industry standard for photo editing is Adobe Photoshop. With its wellknown tools, you may create stunning visuals and detailed artwork for your photographs. NFTs are often creative photographs, making this a perfect time to learn Photoshop's many features. An NFT can take the form of any digital media, as you have seen. To build an image NFT, simply alter the image in Photoshop and then mint it into a blockchain. Like Illustrator, Photoshop is a serious programme, and knowing how to use it is an asset in today's competitive employment market.

NFT Creator The NFT Creator app makes it simple to create NFT artwork on an iOS smartphone. The process of using this instrument is easy. Using this programme, you can quickly and easily transform any photo into an NFT work of art. Using this programme, you can publish and sell your NFT

artwork on the most prominent NFT marketplaces, such as Axie Infinity Nifty Gateway Superrare The fact that it's easy to use is a big plus for me when it comes to this software. Being a Crypto or NFTs expert is not required. Krita Krita is a graphic editor that works well for those who make NFTs. As a digital artist, you can take advantage of its many tools that improve the design and creation of your artwork. In addition to the standard drawing and animation functions, this programme also includes a storyboard feature. SketchAR When it comes to smartphone apps for making, selling, and exploring NFT arts, SketchAR offers the complete package. The biggest advantage of using SketchAR is that it is completely free to directly transform your digital artwork into an NFT. The capacity for artists to share their work with one another is also a significant element. Finally, as icing on the cake, SketchAR features the best digital artwork they've seen on their feed. This provides excellent exposure for the artist concerned. Fotor One of the most well-liked places to edit and draw images online is the Fotor website. Fotor can be used for a variety of photo-related tasks, including editing, collage creation, and design creation.

Fotor is a powerful web editor that also allows you to make NFTs. This programme uses AI (Artificial Intelligence) to rapidly transform your photos into NFT works of art. The bulk of the effort is taken care of for you by this AI-powered tool. As a result, there is virtually no "learning curve" associated with using Fotor. Corel It's no secret that Corel is widely regarded as the best NFT authoring software available. This programme offers a wide variety of brush options. These brushes can be used to create custom styles for your NFT artwork. If you're having trouble getting started with the design process, you can take advantage of the many helpful templates available. Corel Painter is compatible with both Windows and macOS computers. The tool utilizes AI to improve efficiency and streamline the creative process for you. Due to the regular updates, this tool can be relied upon to continually evolve and become more useful.

PixelChain With PixelChain, users may make on-chain 32x32 pixel art via a decentralised app. PixelChain is the first cryptocurrency initiative to enable the creation of pixel art and its subsequent storage in a blockchain, making it accessible to both collectors and artists. The software is extremely user-friendly. Even if you've never used a pixel art tool or created pixel art before, you can use this to your advantage and make amazing works of art. In addition, technological expertise is not required to use this tool.

Nifty Ink Nifty Ink is an easy-to-use, comprehensive tool for making NFTs, from initial concept to final release. The user-friendly interface makes it possible to create NFT artworks even for those with no prior design knowledge. Then, even if you don't know anything about blockchains or how to code, you can get your NFTs into circulation. NightCafe NightCafe is NFT design software that speeds up the process of producing NFTs as mass creatives and makes it possible to generate NFTs. This tool is driven by the latest breakthroughs in AI. With NightCafe, you have two options: You can make an image by giving it text. Transform your photographs into works of digital art. After utilizing the programme, you have the option of putting your artwork up for sale as a NFTs Note: It's important to stay up-to-date on everything NFT-related. It's not just about making art. There's a lot more to it than that. You must know how to buy and sell NFTs to receive the greatest deals for your artworks. Also, research how to mint your artwork in the blockchain. The best software for making NFTs is shown in the list above. These are the greatest blockchain platforms. By choosing one of the options, you'll be on your way to becoming a professional NFT artist. How to Make Money with NFTs in 2022 – Top 10 Methods The exponential growth of the NFT market over the course of the past 18 months has presented investors with a variety of interesting new options to produce a return on their investment. Investing in digital assets has become

an attractive strategy for portfolio diversification, and this practice is only expected to grow in the coming years.

This lesson will explore how to earn money with NFTs in depth, showcasing the most effective strategies before revealing the finest marketplaces for investing in NFTs from the comfort of your own home.

The Best Ways to Make Money with NFTs If you are interested in learning how to make money with NFTs, it is vital that you have a good understanding of the tactics that give the most potential for financial gain. This will allow you to make the most informed decisions possible. Next, we'll go through ten of the best ways to make money with NFTs. 1. 2. 3. 4. 5. 6. 7. 8.

Invest in Promising New NFTs Early Play-to-Earn (P2E) NFT Games NFT HODLing Flipping NFTs Minting Your Own NFTs NFT Trading Staking NFTs Generating Royalties

9. 10. 11. 12. 13.

Earn Interest on NFT Gaming Rewards Invest in NFT startups Invest in Companies with Exposure to NFTs Rent Out Adopt NFT-powered yield farming

A Closer Look at How to Make Profit with NFTs Researching NFTs to buy requires careful consideration of the strategy you will employ to make a profit. Since the NFT market is expanding, there are a variety of active and passive strategies for making money with NFTs. Due to the fact that the NFT market is so competitive, many projects are now providing the most generous NFT giveaways possible in an effort to entice new users to interact with a wide variety of NFT collections. So, let's dive in and examine the best ways to earn NFT tokens so that you can start making money right away:

1. Invest in Promising New NFTs Early Investing in potential new collections before their value skyrockets is one of the finest ways to make money on an NFT. The greatest NFTs to invest in are often those that were issued at a modest price but have since appreciated rapidly.

Figure4.3: Investing NFTs source: CryptoPunks

In 2017, you could buy CryptoPunks for anywhere from a dollar to 34 dollars, which is a perfect example of this phenomenon. These "Punks" were ahead of the curve when the NFT craze hit in 2021, making them extremely expensive. As a result, famous people and celebrities started buying these NFTs, with one Punk for $24 million. You need to know before investing Ø

There is no organized market for investing in NFT because they are perishable goods. It's like putting money into real estate or art. Ø There's no doubt that the art market can be a good way to make money for people who know how to use it, but it doesn't have the same level of transparency as a well-run market. Ø Traders and investors in these initiatives adhere to the standard guidelines for trading, which state that they should "buy cheap and sell high." But how can you decide if an NFT project has potential for growth? Ø The NFT market is similar to the art market or the cryptocurrency

market in that it is challenging to determine an asset's true value. It is

Ø

Ø

Ø Ø

Ø Ø

possible, however, to argue that investment in NFTs is even riskier than cryptocurrency. This market is too young to evaluate if short-term investments are conceivable. However, the conventional art market shows that returns on investments are slow to materialize. It's unusual for an artwork's worth to skyrocket in a matter of years. Despite the fact that, looking at how the market has evolved, it is feasible that the initial expectation will produce surplus demand, which will cause assets to increase swiftly; however, it is also possible that the waters will return to flow (the market always regains its sanity over the long term). As a result, inflation can affect returns on NFTs if they are treated like other forms of art investment. This is something to think about. Just like you study a company's stock price, you may analyses NFT's creators, industry, community, personal brand, and other statistics. Similar to the real estate or art markets, you need to have a thorough awareness of this market. If you were to look at the market capitalization of all the NFTs and assume that the largest ones had the best projects, you'd be wrong.

2. Play-to-Earn (P2E) NFT Games Participating in play-to-earn (P2E) NFT games is one more way to get money off of NFT tokens if you are wondering how to make money off of NFT tokens. P2E elements, which allow players to produce rewards through skilled gameplay, are currently being implemented in a significant number of the finest non-fee-to-play games. These prizes are typically valued in the native token of the platform, which indicates that they can either be spent on

in-game products or traded in for fiat currency.

Figure4.4: Source: Axie Infinity play-to-earn game

Using NFT games to make money is widespread, with several platforms offering a way to produce steady income. Due to its emphasis on user-to-user "combat" and the prizes it offers, Axie Infinity has quickly become one of the most popular games of its kind. Since most vital game assets are NFTs, players can "reinvest" their acquired digital currency in stronger assets, boosting their performance. Investors can also acquire indirect exposure to the P2E space by purchasing Axie Infinity tokens (AXS) on cryptocurrency exchanges. Axie Infinity's success has sparked a wave of similar initiatives, including Silks, The Sandbox, Decentraland, and many more. This tendency is not going away any time soon, since the widespread use of such platforms is expected to increase as crypto acceptance speeds up.

3. NFT HODLing When looking for ways to make money with an NFT, one of the most effective tactics to implement is known as "invest and HODL." Hold On for

Dear Life is what the phrase "HODL" refers to, and retail traders popularized it during the GameStop short squeeze in 2021. For those who have not come across the term before, we will explain what it means. Since then, the phrase has been used to refer to a method for making financial transactions in which the investor merely refrains from selling their holdings, irrespective of the market conditions.

Those who buy cryptocurrency as an investment will know that this strategy has both pros and cons. Yet, if done so with forethought, HODLing can be a highly profitable approach to invest in NFTs. To continue with our illustration of CryptoPunks, investors in 2017 might have decided to sell their Punks due to the fact that the value of their Punks was not increasing. Those who made the decision to HODL, however, will be well rewarded when prices spike in 2021. Obviously, this method won't always work, since some NFT collections won't get the interest needed to get the price moving. On the other hand, the majority of the projects that are featured on our NFT calendar have already started to gain traction from social media, which indicates that there may be some excellent chances for investment in the weeks and months that are to come.

4. Flipping NFTs In addition to investing, "flipping" NFTs can be a lucrative way to profit from them. According to Fortune.com, "flipping" is described as "purchasing low

and selling high to make a profit." When compared to the HODL technique outlined above, which is designed for the long run, "flipping" is typically a fairly short-term approach.

There is a lot of competition in the market right now, so it can be difficult to find the best NFT to generate money and then flip it for a profit. But it's not impossible, and there are many things to think about when researching how to make money by selling NFTs. Keeping the token's utility in mind is essential, as this is likely to be a major factor in determining whether or not other investors will be interested in buying it. The backing of the community should also be taken into consideration, in addition to the development team that is driving the project. Lastly, it's important to think about how the NFT looks, since most investors will want to use their digital art as their profile picture on social media or show it off in a digital art gallery. Assuming your own NFT has been successfully created and "minted" to the blockchain, all that remains is to wait for it to be purchased. Successful promotion is crucial in this regard, as most collections will remain unseen by potential investors otherwise. After the successful sale of your NFT, you will get the funds from the sale (less the fee charged by the marketplace), which you will then be able to withdraw to your cryptocurrency wallet.

5. Minting Your Own NFTs

The process of minting one's own NFT is a popular strategy for people who are interested in making money using NFTs. The term "minting" is used to describe the act of adding a digital asset (such as a piece of digital art or a piece of digital music) to the blockchain. You will be able to get revenue from your creation once the asset has been added to the blockchain and can be traded on the top NFT marketplaces after it has been "minted."

The production of NFTs is a pretty simple procedure, and leading exchanges such as OpenSea, Binance, and NFT LaunchPad make it simple even for newcomers to the industry. Since the NFT market has expanded so rapidly, there is a lot of competition between designers to come up with fresh ideas for collections. Therefore, if you want to go this route, you need to make sure your product is truly unique. Assuming your own NFT has been successfully created and "minted" to the blockchain, all that remains is to wait for it to be purchased. Here, marketing is very important, because most collections won't be seen by potential investors if they aren't advertised well. After the successful sale of your NFT, you will get the funds from the sale (less the fee charged by the marketplace), which you will then be able to withdraw to your cryptocurrency wallet.

6. NFT Trading In addition to selling NFTS, you are also able to trade them. Some business owners and investors trade NFTs like stocks, buying and selling the assets in

order to generate profits. If you already have a bunch of NFTs and don't need them anymore, you can sell them easily just like you would if you made them yourself. The one step you won't be skipping is the minting of the coins.

Investing in NFTs can be profitable if they are bought and sold. Pablo Rodriguez-Fraile, an art collector from Miami, sold a piece of digital art by Beeple for almost 1,000 times what he paid for it. Contrarily, not all NFTs are the same. Others are nearly worthless while others are worth millions of dollars. As a collector, you have to look at an item carefully to see if you can sell it for a profit in the future. But when it comes to trading NFTs, it's important to know when to sell. Some people might think it's risky to trade NFTs to make money, but the payoff can be well worth it. NFT trading resembles NFT HODLing and flipping. Instead than trying to time the market, this method focuses on building a long-term portfolio for steady growth. Investors who want to trade in NFTs usually buy and sell an NFT for a small profit and then do this over and over again. Buying inexpensive NFTs and selling them at the proper moment demands more patience and market expertise than HODLing. But in the long run, this can lead to huge capital gains, which is why this method is so popular among experienced investors.

7. Staking NFTs Those who have an interest in crypto staking will be glad to learn that the staking process can also be connected to NFTs. Different mechanisms exist for staking NFTs, but the most common one involves users "locking up" their digital asset on a DeFi platform in exchange for rewards. The owner is rewarded with the network's native currency if this occurs on a Proof-ofStake (PoS) blockchain, which is the most common type.

In the end, this procedure helps validate transactions that occur on the network, much in the same way that cryptocurrency holders staking their tokens helps validate transactions. Since the NFT staking business is so young, only a select number of platforms support it, mostly in the P2E gaming industry. MOBOX and Zookeeper are a couple of examples of these kinds of systems. If you're trying to figure out how to make money with NFTs without actively trading them, this strategy may be the best option. The annual percentage yields (APYs) will differ from platform to platform and will be determined by the specific NFT that you stake. On the other hand, given that more NFT initiatives are starting to catch on to the lucrative potential of this sector of the market, we anticipate that this method will continue to gain popularity throughout the year.

8. Generating Royalties

One of the most interesting aspects of the market is royalties, which are a natural part of the process of selling NFTs. The creator has the ability to determine their own royalty percentage during the minting process. This means that any sales made on marketplace will result in a payment being made to the original NFT's owner. Royalty rates for NFTs are typically between 5 and 10 percent, however some are higher.

Most high-priced NFTs will include a royalty percentage that will be paid to the developer anytime the item is resold. Certain NFT marketplaces will put a limit on royalties, often at around 10 percent, in order to guarantee that these assets will continue to be appealing to prospective investors in the future. However, in order to get the most out of the royalty process, creators have a responsibility to guarantee that their NFT collections are valuable investments. To generate a sustainable revenue stream from NFT ownership, it is essential to incorporate distinctive use cases or benefits into the licensing agreement.

9. Earn Interest on NFT Gaming Rewards

You can make money indirectly with NFTs by earning interest on the rewards you earn in a P2E game. These token awards can be saved in a cryptocurrency savings account with fiat currency to earn interest each year. Because there is such a strong demand for cryptocurrencies, these rates are frequently far greater than those offered by conventional banks. AQRU is among the most beneficial places to start accruing interest on cryptocurrency rewards. AQRU is a platform that lets people deposit cryptocurrency and earn up to 12% interest on it with no lock-up period. In addition, new users of AQRU have the opportunity to receive a welcome bonus of 10 USDT, which may either be withdrawn or invested right away. BlockFi is yet another fantastic alternative to consider. To its more than a million customers, BlockFi provides annual percentage rates (APY) of 11 percent or more on a variety of digital currencies. Using BlockFi does not require users to maintain a minimum amount or pay any hidden fees, and investors are eligible to earn interest payments on a monthly basis.

10. Invest in NFT startups

Investing in companies that deal in NFTs is a smart move if you want to make money from Non-fungible Tokens. If you invest in companies that issue NFTs, you have the potential to gain money from those investments. Non-Fungible Tokens have proven, if there's one thing they've accomplished in the world of cryptocurrency, it's that they are not a passing fad. They can be used in a lot of different ways in a lot of different industries and could change the world. On the crypto market, there are a lot of promising NFT startups that are making great progress. It would be great if you could help fund their early efforts as they pioneer a new and better future. To profit from NFTs without taking on direct market risk, NFT startups are an excellent option.

11. Invest in Companies with Exposure to NFTs Investing in companies that have some form of exposure to non-fungible tokens or related asset is the third and last option you should examine if you are interested in making money with NFTs. By purchasing shares in these firms, investors can gain indirect exposure to the NFT market and profit from its expansion.

Since the market didn't really start to grow until 2021, there aren't that many companies that offer services related to NFTs. Probably the most well-known corporation associated with these digital assets, Coinbase is working on an NFT marketplace that will shortly go live. Investment opportunities in NFTs will also provide access to some of the greatest metaverse stocks. Although Meta Platforms is the industry leader in NFT, other firms such as Roblox and Nike have entered the space. In general, it is expected that this strategy will gain more popularity as the industry continues to expand, which will give stock investors with an exciting chance.

12. Rent Out

NFTs are digital properties that can't be copied. However, are you aware that you may rent them out? The process of renting is not complicated at all. It works the same way you rent out a house and get rent. In exchange for payment, you can lend someone your NFT for a specified amount of time. It is possible to profit from NFTs without giving up ownership by renting them out.

13 Adopt NFT-powered yield farming The concept of yield farming has direct ties to a paradigm known as the Automated Market Maker (AMM). Liquidity providers, also known as LPs, and liquidity pools are frequently involved in this process. Let's see how it works. Providers of liquidity contribute money to a common pool. This pool runs a marketplace where people can lend, borrow, or trade tokens. These platforms charge fees, which are distributed to liquidity providers based on their pool share. This is the fundamental operation of an AMM.

NFT-driven AMMs are now available for users to farm for yields, and NFTs will soon be an important part of AMMs in general. By combining multiple DeFi protocols, you can maximise the return on your digital investments. The practise is referred to as "Yield farming." We will use the example of the Uniswap platform in order to explain how the LP-NFT tokens that are issued on Uniswap as liquidity provider tokens can be used as collateral or staked on other protocols in order to earn additional yields. These options are available on Uniswap.

When is the best time to sell an NFT? When it comes to trading, the rule of thumb is to "sell high and buy low." NFTs follow the same rule.

Never sell your NFTs until you have confirmed that their aggregate worth (expressed in USD$) has increased, allowing you to make a profit that is satisfactory to you. Make sure the NFT you intend to offer is in demand and that you can really sell it. Many NFTs' "inflated" prices can be attributed to gas expenses or the fact that their authors have bought and resold the tokens multiple times in separate wallets. Checking the history of a non-fungible token (NFT) is something you should do before investing in one so that you can determine if its value has naturally "increased." To sell an NFT, one must alert the market to the fact that one is willing to do so (which is in demand). Only make a sale if you expect to make a profit (this includes any gas costs) It depends on the item, the motivation for the purchase, and the level of interest in similar products. You can learn the answer to this question by conducting a quick search both on the internet and in the marketplace. You'll also need to think about how much the price has gone up or down. When figuring out how much you could make or lose, don't forget to include extra costs like gas, listing fees, and royalties paid to the original owner. In the end, these expenditures will reduce your disposable income. If you want to do more advanced NFT trading that requires you to know a lot about the cryptocurrency market, you should talk to a professional. You might be able to locate someone to help you through freelancer websites due

to the fact that NFTs are still in their early stages of development.

Summary In conclusion, this chapter has covered all the bases for making money using NFTs and has highlighted the top strategies for doing so. Since the NFT craze doesn't seem to be going away, investors have a lot of ways to make money, making it a good alternative to traditional asset classes. Even though some digital creators are said to be making a lot of quick money by making a NFTs, keep in mind that this movement is still in its early stages. The capacity to passively monetize work long after the initial sale might be a major game-changer for artists, singers, content creators, video game developers, and other professionals in the online creative economy, which was an early adopter of NFTs. However and making and selling NFTs shouldn't be seen as a way to get-rich-quick scheme. Selling your digital assets in this way will involve some upfront fees, and there is no assurance that anyone will be prepared to pay for your creations. Still, turning your digital work into a blockchain-based asset is a promising field that could (in the long run) completely change how creators get paid. The NFT universe is definitely worth examining if you're a creative entrepreneur or artist.

CHAPTER 5 NFT Investing Made Easy Overview There are many reasons why people buy NFTs. Some people may have a strong desire to actually own the underlying asset, while others may place more value on the NFT that represents that asset. Some people may want to invest in NFTs in order to gain exposure to blockchain technology. Speculating on the value of an asset because it has been tokenized as an NFT is unwise. Before buying an NFT, make sure you understand the value of the underlying asset. NFTs, often referred to as crypto collectibles, highlight the concept of digital rarity even more so than bitcoins did since they are one-of-a-kind and have a limited supply. Bitcoins were the first cryptocurrency and trust less (digital rarity) was the concept that they presented. Developers have been able to solve the problem of who owns digital objects because of this. NFTs can be used in a wide variety of contexts, and statistical analyses show that they are typically: v v v v v v

41% - gaming industry 29% - collectibles 13% - real estate 7% - collectible card games 6% - domain names 4% - art

CryptoKitties was one of the first successful NFT projects. It clogged up Ethereum's blockchain in 2017 by letting players collect and trade virtual

cats. The idea has established a multimillion dollar market and is the first entertaining use of blockchain technology for gamification rather than currency. In 2021, there was a boom not only in the gaming industry, but also in the art industry. The main types of NFT are gamified collectibles that can be played back (like CryptoKitties), pure collectibles, images, and sports and art-themed collectibles. Images that go with Ethereum-based NFTs change based on algorithms, and their prices depend on how rare they are and what special features they have.

How to invest in NFTs Step 1: Research Available NFTs You should pick an NFT that you believe has the potential to appreciate in value in the future. The NFT can be any work of creative expression, such as visual or auditory media or a virtual good. You may look for NFTs on either Google or Twitter. Rarity. Tools and NFTcatcher.io provide a list of upcoming Ethereum and Solana NFTs that will be published in the near future.

When looking at the future NFTs, make sure to take note of when the sale

will be held, how much cryptocurrency will be required, and how many NFTs will be put up for auction. This gives you a better idea of how rare the one you are choosing is. The following are some facts regarding the NFT that you will want to verify: 1. The team that is working on it: you want to make sure that it is a reputable team that is contributing to an increase in the value of the NFT. 2. Whatever the case may be, on-chain or off-chain: Off-chain systems rely on a small number of centralized servers, which increases the risk of data loss in the event of a server outage. 3. Take care with NFTs that are stored off-chain, as they may be compromised. You need to be sure that you can put your faith in the person who will be custodian of your valuable NFT. 4. You can also consider joining the NFT's Discord and Telegram discussions in order to gain further insight into the topic at hand and get a sense of what other people are thinking with regard to this specific series of NFTs.

Step 2: Select a Brokerage or Exchange to Purchase Crypto If you want the NFT, the next step is to acquire some cryptocurrency. Most NFTs can be bought with Ethereum, but there are a few that can't be. For example, Coinbase (COIN), Robinhood (HOOD), Gemini, Binance.US, and Kraken are all excellent places to purchase Ethereum and other cryptocurrencies. A firm or individual that facilitates the purchasing and selling of cryptocurrency.

The term "exchange" refers to a digital marketplace where buyers and sellers interact and conduct business in real time in response to fluctuations in the underlying market. When purchasing cryptocurrencies, you should keep in mind that costs are something that you should take into consideration. For transactions under $10, Coinbase, for instance, imposes a flat fee of $0.99. The greater the value of the transaction, the higher this fee will be. When trading cryptocurrencies, SoFi Active Invest may charge 1.25 percent. Fees can be a flat rate per trade or a percentage of how much an account trades in a 30-day period. Examine costs based on the transaction sizes you intend to undertake to obtain an idea of how much you'll spend.

Step 3: Select a Marketplace to Purchase Your NFT The NFT can be bought and traded in the market. When you've settled on a market to sell your NFT, you may sign up and link your cryptocurrency wallet. Each cryptocurrency exchange has its own wallet specifications. The token can be purchased outright or through an auction process on an NFT marketplace. Popular marketplaces include: OpenSea Axie Marketplace Larva Labs NBA Top Shot Marketplace Rarible Verify that you have sufficient cryptocurrency on hand to cover the whole

cost of the transaction. The prices associated with purchasing and transferring cryptocurrencies, as well as the costs associated with changing one cryptocurrency into another, as well as gas fees, can all be considered fees. Gas fees are the payments that are given to miners in exchange for the computational power they utilize when recording transactions on the blockchain. Gas fees are sometimes referred to as transaction Gas fees are the payments that are given to miners in exchange for the computational power they utilize when recording transactions on the blockchain. Gas fees are sometimes referred to as transaction when miners use their processing capacity to record transactions on the blockchain, they are compensated in the form of gas fees. Tip: An NFT's final purchasing price may differ from its published price or the current highest bid. For instance, the total cost of an NFT with a price that is similar to $40 worth of Ethereum could end up being somewhere between $150 and $200 due to the cost of gas.

Crypto Wallets When you buy NFT, you can store it in a crypto wallet on the same blockchain, another blockchain, or in decentralized storage. The NFT can only be seen on a screen, usually as an integral feature of a website, due to its digital nature. You are the owner of the NFT, but the person who created the NFT is the one who owns the copyright on the original asset. This means that you are unable to recreate the original asset and that you cannot bring a lawsuit against another party for copyright infringement. Examples of crypto storage wallets for NFTs include: Cybavo Trust Wallet

Alpha Wallet MetaMask These wallets provide a secure place for you to keep your cryptocurrency and any NFTs you may have acquired.

NFT Projects based on Ethereum that investors should consider Major progress is being made in the financial and economic markets because to these Ethereum NFT applications. The new force that is shaking up the financial and economic markets is called NFTs. They are the segment of the cryptocurrency market that is simultaneously revolutionizing the financial sector and the art world. Crypto enthusiasts have likely come up with a thousand different methods to invest in art, music, and sports with the assistance of NFT by this point.

In NFT initiatives, blockchain technology is utilized to establish the one-of-akindness and ownership of a work of digital art, which is subsequently distributed to buyers via various channels. Sales are recorded on the blockchain, making the entire digital economy immutable. Although Cardano, Solana, and other blockchains are gaining traction, Ethereum is

quickly becoming the dominant NFT platform. Investors are worried that the ETH 2.0 upgrade might be delayed, but the Ethereum NFT projects are drawing attention away from this conflict. We have compiled a list of the best Ethereum NFT projects for you to keep an eye on in 2022 and upcoming years included it in this chapter.

Axie Infinity Axie Infinity is well-known in the NFT industry as a profitable coin in addition to being one of the most well-known NFT games. Since its 2018 release, the game has attracted around 2 million players from every corner of the globe. In reality, Axie Infinity is a well-known Ethereum NFT project that enables users to take part in a trading battle game in which they can cultivate and level up animals such as Axies. Players can also battle against other players in the game.

Decentraland You can think of Decentraland as a completely virtual, online, thirddimensional world. Since its debut in 2020, the Ethereum blockchain-based platform has seen tremendous growth. The MANA token, the platform's native cryptocurrency, can be used by participants to purchase individual parcels of land. Players can buy land, travel throughout Decentraland, and ultimately govern the platform with the help of smart contracts.

CryptoPunks CryptoPunks was established in 2017 and is currently one of the earliest and most successful Ethereum NFT ventures currently available on the market. Only 10,000 of these Punks will ever be made, and they are all uniquely produced by an algorithm. Although Human Punks have the greatest level of popularity among investors, there are also other species to consider.

Gods Unchained There have been a number of highly successful Ethereum NFT initiatives over the past year, and Gods Unchained is one of them. If you want full control over your virtual assets in the NFT game, you may do it without spending any money. Players in Gods Unchained will be able to buy, sell, and trade cards as part of the game's deck-building mechanics.

The Sandbox The Sandbox is another well-known NFT project, and it is primarily famous for the virtual world and video game that it has constructed on the blockchain. It's a virtual metaverse game where players and creators work together to earn money off of the blockchain.

Silks Silks is a play-to-earn metaverse, which means that collectors can earn prizes by playing the game. The game is a simulation of the thoroughbred horse racing industry and features thoroughbred racehorses that can be purchased as non-fictional tokens (NFTs). The team that is working on the project is very large, and its founders include people like Dan Nissanoff, Troy Levy, Benjamin (Binny) Plotkin, and Michael Lira. These individuals have a great deal of experience in the fields of entrepreneurship, software development, and managing projects. The thoroughbreds depicted in the NFTs are based on genuine horses. In the event that a horse competes in a race in the real world and wins, the owner of the horse's NFT in the Silks metaverse will be rewarded with a prize.

Doodles The Doodles NFT collection was created by Evan Keast, Jordan Castro, and

Scott Martin, and it currently houses 10,000 distinct NFTs with hundreds of various attributes. Every NFT in the set is a cartoonish representation of an animal, alien, humanoid, or spaceship drawn in bright primary colours. Collectors of Doodles NFTs are the first to get their hands on brand-new merchandise and invitations to special events. The Doodles ecosystem is managed on a decentralised governance model, wherein users have a voice in shaping the future of the platform through voting on features, goods, and events.

NBA TopShot NBA TopShot is a trading platform for NBA Moments trading cards (NFTs). NBA Moments is a video series that showcases exciting moments from NBA games. NBA TopShot enjoys worldwide recognition among basketball fans. It was determined that one of the most influential Ethereum NFT initiatives of 2021 was NBA TopShots, which made it possible for widespread adoption of NFTs and increased awareness of them.

Bored Ape Yacht Club When it comes to NFT projects, the Bored Ape NFT collection is both highly regarded and fiercely debated. Since it was first introduced, the value of Bored Apes has exploded; in fact, some of the NFTs are now valued millions of dollars. The worth of the collection even managed to surpass that of CryptoPunks, which stunned those working in the crypto and NFT industries.

Remarkable Women The Remarkable Women NFT initiative is a tribute to the influential women who made the conscious decision to trust in the power of collective action and so sped up the process of cultural shift. The Canadian illustrator Rachel Winter is responsible for these NFTs. These NFTs are the perfect synthesis of

cultural feminism and winter’s expertise in fashion and the arts and experience in pattern creation.

Cyber Cosmos World When it comes to empowering women, Cyber Cosmos World is poised to make its imprint in the metaverse. The NFT project is made up of ten thousand digital personas, or avatars, that are intended to symbolise female cyberwarriors working in the technology sector. The initiative has resulted in the creation of a number of Cyber Warriors and is based on the blockchain technology of Ethereum.

CryptoKitties Another successful Ethereum NFT game that makes use of blockchain technology is CryptoKitties. The project has seen enormous success and is currently regarded as one of the top Ethereum NFT projects currently available. In this game, players were tasked with taking care of virtual cats through activities such as breeding, collecting, and management.

Moonbirds Moonbirds was created by the company Proof Collective, which was founded by Kevin Rose and Justin Mezzell. The company made the collection with the idea that it would be useful and help the community. Each Moonbird grants access to special gatherings and announcements of planned endeavours. This collection of over 10,000 NFTs shows cartoon owls, each of which has distinctive characteristics that set them apart from the others. In some of the pieces, there are even owl skeletons and robot owls.

Women Rise

The Women Rise project was started by Maliha Abidi, a Pakistani-American artist and author who is known all over the world. The NFT industry will hopefully benefit from the increased diversity and inclusiveness that this project intends to bring about. Women Rise is an online exhibition that aims to achieve this objective by showcasing 10,000 original works of computer-generated digital art, each of which highlights a female subject. The women working on the project come from a wide variety of backgrounds and professions. Possession also comes with a number of benefits. For example, the owners of the 100 Women Rise NFT get a free copy of the book "RISE: Extraordinary Women of Color Who Changed the World," which tells the amazing stories of 100 women from all over the world. It also features illustrations created by the same artist who was responsible for hand-drawing more than 450 characteristics that were used to build the Women Rise collection. VeeFriends The VeeFriends concept was created by Gary Vaynerchuk, an ambitious businessman. In addition to that, he has a strong interest in the creative process, and he brings both of these interests to the metaverse through NFTs. VeeFriends collectors possess more than simply crypto-collectibles. To get access to the VeeFriends group and to VeeCon, an invitation-only convention held once every three years, you must first obtain an NFT. The collection includes a variety of abstract drawings of animals, such as birds, cheetahs, bats, fish, and even ladybugs, each with a whimsical touch and a colourful background.

Cryptoon Goonz Cryptoon Goonz was built by an undoxxed coder who goes by the handle of

"@SeanTat2s." There are 6,969 NFTs in the collection that portray cartoon goon characters, who are essentially wicked counterparts to well-known and beloved cartoon characters. The goal of the project is to facilitate the coming together of members of the NFT community and to show appreciation to those members of the NFT community who have supported the initiative.

NFT Worlds ArkDev and Temptranquil are the only names attached to the founders of NFT Worlds, as they have chosen to remain anonymous. The project consists of a non-fungible token game and a metaverse in which owners have the ability to verify their rights to digital land. Users build their own version of the metaverse with Minecraft-style tools and resources. Owners of NFT Worlds are able to shape the future of their NFTs through shaping the metaverse. When the game first loads, the worlds have the appearance of pixelated panoramas of forests, waterscapes, and rolling hills.

Invisible Friends The Invisible Friends app was created by Markus Magnusson and offers 5,000 invisible animated creatures. The characters look as though they are walking, and each one has a different ensemble of characteristics, such as background colour and garment colour. New playable characters and features, such the ability to transform 2D NFTs into 3D packages, are planned for the project's future.

Moon Boyz The Moon Boyz collection is another one that wasn't doxxed. It was made by

Swan Kenzo, Maitre Fritz, Tesserakt, and Komet, who all worked together. This collection includes 11,111 one-of-a-kind, 3D NFTs that were generated at random and portray figures from outer space. If you own Moon Boyz NFTs, you can join a growing online community and attend in-person events. The creators of the project have high hopes that it will one day become a pioneering initiative in several subfields of the metaverse.

Autograph.io Autograph.io is well recognized as being the NFT platform used by Tom Brady. The project's major focus is sports, and it offers a new opportunity for fans to demonstrate their support by selling NFTs of famous sportsmen. The ownership of digital playing cards allows members of the community to build up their collector scores.

Top 10 NFT Cryptocurrencies (Coins) for Great Returns In The Future

Figure5.1: Source: coingecko updated on June 2022

NFT cryptocurrencies are currently in the early stages of development, but they are projected to skyrocket in the future. Non-fungible tokens have seen a quick and exponential rise in popularity during the last two years. The NFT tokens make it possible to tokenize

anything from a picture file to a song to a tweet. NFTs are unique and can't be replaced. Numerous NFT cryptocurrencies are now for sale, and every day hundreds of fresh initiatives enter the market. Their widespread use has brought them to nearly all of the most important cryptocurrency exchanges on the market. Even though the NFT cryptocurrency area is still young, the top NFT cryptocurrencies dominate the crypto market.

What Are NFT Coins? Hint: They Aren’t NFTs.

To avoid confusion with actual non-fungible tokens (NFTs), "NFT coins" refer to any cryptocurrency coins that are used to sustain ecosystems for NFTs. Axie Infinity, for example, is an NFT blockchain game that leverages its native currency, AXS, to support staking and voting in order to preserve the play-to-earn economy. As a result, the NFT token used by Axie Infinity is called AXS. NFT coins like as AXS, SLP, and SAND assist decentralized apps with a range of key features, such as acting as a currency within the game and allowing users to vote. In addition, NFT tokens can be bought, sold, and invested in just like any other cryptocurrency. The fungibility of NFT coins is the primary way that they differ from NFTs. NFTs indicate ownership rights to unique digital or real-world assets, whereas NFT coins can be traded for another NFT coin of the same value. As was previously noted, NFT coins are the token currencies that fuel the

economy of NFT initiatives. Many major companies, such as Budweiser, Adidas, and others, are projected to enter the NFT industry in 2022. With the increasing popularity of successful NFT cryptocurrencies, the market's trading volume, asset liquidity, and volume of new users will grow. The development of NFTs is also expected to benefit from the Web 3.0 architecture. Some of the best NFT cryptocurrencies to invest in for 2022 are discussed here. Flow (FLOW) Flow is an efficient, decentralized, and user-friendly blockchain that is intended to serve as the basis for a new generation of games, apps, and digital assets that may be used to fuel the remaining virtual items. Flow is a layerone blockchain that was initially developed by a team that has a proven track record of providing excellent consumer blockchain experiences to the platform's users. Decentraland (MANA) Right now, investing in NFT cryptocurrencies like Decentraland is one of the best options available. In terms of market capitalization, MANA is also among the most important NFT coins. Decentraland is a platform that provides 3D virtual plots of land that are secured by ERC-721 tokens called LAND. This platform is based on the Ethereum network. Next, the owner can rent out or sell their virtual property on the Decentraland market for a profit.

Axie Infinity (AXS) Axie Infinity is a popular NFT cryptocurrency to invest in in February 2022. The main goal of AXS is to make gaming more popular. For many in the

NFT community, Axie Infinity is the Holy Grail because of the shared ownership it grants its users through the Axie protocol. The asset has continued to work on making its protocol scalable and cost-effective, and it just put out a layer-two protocol called Ronin. The Sandbox (SAND) As the cryptocurrency market grows, investors may want to consider The Sandbox, another NFT currency. The Sandbox NFT is another leading challenger in the emerging metaverse sector; it aims to change the face of the gaming business by facilitating the development, distribution, and monetization of game assets. In just the past few months, the value of one token known as SAND has skyrocketed. Theta Network (THETA) For those looking for a long-term investment, the Theta Network blockchain is yet another excellent option. The goal of the Theta Network is to completely change the way that content and video are streamed online. In addition, it facilitates decentralized, user-to-user sharing of both network capacity and computational resources. The decentralized structure of Theta makes it simple to stream video while sidestepping centralized control, which can be a challenge. Tezos (XTZ) The developers of the Tezos blockchain claim that their platform offers a superior user experience because of its increased scalability, lower energy consumption, and lower cost. Tezos is attractive because it has one of the first automatically upgradable pieces of software in the blockchain ecosystem. According to the Tezos development team, their protocol makes it simple to scale without resorting to a network hard fork.

Enjin Coin (ENJ) In addition to its gaming-industry-centric focus, Enjin Coin has a wide range of practical uses. The NFT coin aims to revolutionize gaming by enabling a player-driven economy and tokenizing and transferring in-game assets across platforms. This Ethereum-based network is planning to grow into a different network called Polkadot to avoid the high gas fees of the ETH network. My Neighbour Alice (ALICE) My Neighbor Alice is a blockchain-based multiplayer building game that presents itself through an entertaining, player-driven plot that is replete with blockchain-powered features. The game's main draw, however, is its blockchain-powered features. The narrative of the game is a great place for players to connect with one another and express their individuality. WAX WAX, short for the Worldwide Asset Exchange, is a decentralized exchange that facilitates a secure and equitable market for the trading of NFT-tokenized digital assets. Its extensive network uses its blockchain to verify and authenticate digital assets. It has also grown to be one of the most popular NFT exchanges, with the full collection quickly selling out.

Chiliz (CHZ) Chiliz is the most widely used cryptocurrency in the sports and entertainment industries. Users are given a voice in the management of their favorite sports businesses through the platform's subsidiary, Socios, a blockchain-based sports entertainment platform. This network also distributes fan tokens in order to generate additional revenue streams.

Pros and cons of NFTs In the last few years, the value of some NFTs has gone through the roof, which has gotten a lot of attention from investors. When it comes to the purchase and utilization of NFTs, there are surely certain benefits to take into consideration: The prices of some tangible items, such as works of art, have a long history of rising, and it is possible that the prices of digital artwork will follow a similar trajectory. When digital assets are traded using NFTs, buyers and sellers have access to a potentially much larger pool of possible buyers and sellers than in the past. "Smart contracts" can ensure artists and producers are rewarded for future use and resale of their work. Some NFT platforms may choose to "blacklist" certain NFTs or their producers in order to protect their users from potentially harmful content. Even though content moderation goes against the idea of immutable blockchains, most NFT marketplace users like it when fake or otherwise illegal NFTs are taken off the market.

But there are also some reasons not to invest in and use NFTs: Because the vast majority of NFTs are static assets that do not generate any income on their own, the primary metric that is used to value them is buyer demand. As a consequence of this, sky-high prices might not persist indefinitely, and the value of NFTs might decrease significantly.

The costs associated with creating and selling NFTs can exceed the market price of the asset they represent. NFTs, along with the blockchain technology on which they are based, have an effect on the environment because the process of creating and verifying transactions requires a substantial amount of energy. It is possible that the rights to the digital asset itself will not be guaranteed by some NFT projects. As a result, you should ensure that you do your research in order to determine where the digital asset is located (at a web address, in storage in a central cloud location, etc.) and whether you have the ability to control moving the asset to a different location.

Are NFTs the right investment for you? The NFT movement is fresh, and it's an early example of how cryptocurrencies may help the digital economy benefit more people. It's possible that it would make a lot of sense for creators to create and sell digital assets. Collecting NFTs, on the other hand, is a risky business because of their uncertain future value as collectibles. The value is undetermined and will shift depending on how much demand there is for the actual work. When trying to predict which collectibles will rise in value and which will fall, there is no hard and fast rule. However, detecting a new NFT trend early on can yield substantial returns in the future. Some digital works of art that were once sold for small amounts of money are now being sold for tens of thousands of dollars. Investing in NFTs could be a good fit for you if you have an appreciation for the finer things in life, such as art, music, etc., and you have a penchant for

collecting. Some things to look for when buying an asset are who made it, how unique it is, who has owned it in the past, and whether it can be used to make money once you own it (for example, payment to view a piece or relicensing fees). The claim that NFTs are a "bubble ready to pop" is unconvincing because bubbles are normally seen only after the fact. It is important to keep in mind, however, that this does not change the possibility that the value of digital assets will decrease at some point in the future. Even as the stock market began to decline in early 2022, so did several cryptocurrencies and NFT initiatives. Think about the risks and spread out your investments. For example, you could add cryptos and stocks of companies working on blockchain technology to your NFT portfolio. NFTs are still in their early stages. Investing in the early stages of any movement has a number of challenges, but this emerging market in the field of technology holds a lot of potential. Be cautious as you gain knowledge of NFTs, and remember to maintain a diverse portfolio to reduce the likelihood of having your wealth wiped out by fluctuations in the value of a single holding.

FAQ Are NFTs a good investment? Because NFTs are still relatively new to the market, many industry professionals are unsure exactly how beneficial of an investment they are. In spite of the fact that they make use of blockchain technology, it is not clear whether or not the NFT will keep its value over the course of time. Investors should proceed with caution.

How do NFTs gain value? The price is determined mostly by the following four aspects: Utility: the manner in which it is utilized, such as a token utilized in gaming Ownership history: if the token was made by a famous person or a well-known brand. Future value: It speculates about how the NFT will evolve in the future Liquidity premium: With NFTs with higher traffic, there is more demand for the art yielding higher premiums

Can you turn NFTs into cash? An NFT may be exchanged for fiat currency or digital currency when purchased on the market. The right to ownership of the NFT is protected by the public ledger of all transactions. Intelligent investors are purchasing nonfungible tokens (NFTs) that they feel will increase in value in the future so that they may later sell them at a market for a profit.

How do I choose an NFT project? NFT initiatives' levels of success, or lack thereof, can be attributed to a number of different reasons. The most successful initiatives are backed by sizable communities and have substantial levels of trade volume. It is also a good idea to investigate the team that is responsible for the project in order to establish whether or not it has sufficient experience in the rapidly developing cryptocurrency market.

What NFTs should I invest in? Because every NFT project is different, the rate at which its value increases or decreases will be variable. Some of the most promising 2022 NFT

investments are presented up top. However, before putting their money into anything, including cryptocurrencies, investors should do their homework.

Why are NFTs so expensive? The value of NFTs will fluctuate dependent on a number of factors that are connected to supply and demand. While some NFTs can cost millions, others can be purchased for considerably less. If an NFT seems to be incredibly expensive, it's probably because it's a unique piece of art that's in high demand.

Summary Overall, if you have an interest in the art world and want to take advantage of current investment trends, NFTs may be a good choice for you. There has been a tremendous increase in their worth over the past five years due to their rising popularity. In order to increase the likelihood of making the desired profit, it is best to get on the bandwagon as soon as possible. Even if non-fungible tokens (NFTs) are popular at the moment, this does not guarantee that they will continue to be in demand in the years to come. If you are looking for a collectible but don't have a lot of time or money to put up, they can be a simple investment option and also a terrific method to get your hands on original digital artwork. To start purchasing, trading, and making NFTs, all you need is a digital wallet and some cryptocurrency. Since the method is straightforward, anyone can participate in NFT investing. NFTs can be made, bought, and sold by anyone. They are not just for professional artists or investors. As a result, they are an excellent approach to ease one into the business of investing for the first time. To get you started,

you can make a modest investment of fiat currency in order to acquire cryptocurrency and then use that cryptocurrency to purchase an NFT.

CHAPTER 6 Understanding Metaverse, Decentralization, DeFi, Web3.0 Relation with NFTs. Introduction: The concept of a vast virtual online world is definitely intriguing, and hundreds of organizations, including Microsoft, Meta Inc. (previously Facebook Inc.), Google, and others, have already placed their bets on the opportunities that the metaverse presents. However, considering how much has already been said and written about the metaverse, the question that arises is whether or not we as humans actually require the metaverse, and whether or not the future of mankind is congruent with that of the metaverse. To that end, let's have a look at what this chapter has to say. What is METAVERSE?

For those who don't know, the metaverse is a mix of the real world and the virtual world. The metaverse can be comprehended most easily by first gaining an understanding of what it is not. There is no new technology or software or app involved. It is more of a way to put together technologies that already exist to make something called a "digital space."

The idea of digital space is not a recent one by any means. It was first described by Neal Stephenson in his science fiction novel Snow Crash in 1992. In that book, he defined it as "a computer generated virtual world made conceivable through softwares and a worldwide fibre optic network technology." This concept dates back to 1992. Simply expressed, the term "Metaverse" refers to a shared virtual environment where users can experience augmented and virtual realities to a high degree of realism and interactivity. This virtual world is being built to look and feel like our real world, with all the same possibilities and advantages. On the other hand, its purpose is not to totally supplant the physical world; rather, it seeks to improve the digital environment that we are already familiar with. Entering the metaverse To enter the metaverse, you will need to have access to the internet as well as a virtual reality headset. However, a specialized VR setup is not necessary for all metaverse systems. Some of them can be accessed from your home computer or portable device. There are many other metaverses, but the ones that are most well-known and widely recognized include Sandbox (SAND), Axie Infinity (AXS), Decentraland (MANA), and Enjin (ENJ). The most well-known metaverse project on Decentraland consists of 91k plots, whereas the Sandbox contains 167k individual territories. Not users, but Avatars Avatar is a term used to describe those who participate in the Metaverse. In the metaverse, a user's constructed avatar is more than just a digital representation of themselves. This is the cornerstone of who you are. Every

single avatar is one of a kind, and the possibilities are endless. Avatars are digital representations of people that exhibit humanoid characteristics, such as movable limbs, upper and lower torsos, and faces that are capable of expressing emotion.

Figure6.1: Image Courtesy: Microsoft, 3D avatars are coming to Microsoft Teams in 2022.

It's not important that your avatar look the same or different from how you look in real life. But you can definitely make your own avatar that looks like you in terms of face and body, and you can also change things like your hair, outfit, and glasses. In the realm of virtual reality (VR), avatars can either be simplified representations of real-world people or they can have a full human physique. Virtual reality avatars are great at recreating your upper-body motions, but they fall short when it comes to your legs and feet. Full-body avatars, on the other hand, represent a more advanced level of development. Moreover, this avatar may imitate the actions of the whole body. Shaping the future through metaverse

The metaverse is here to stay, and its ramifications have a connection to everything we do in our daily lives. The following are some examples of how the metaverse can be used. Zoom meetings without Zoom: Metaverse will improve your regular business calls. Imagine being in a virtual world with your coworkers where you can feel present together in real time rather than just seeing one another onscreen like you can with existing video calling apps. This would be a step forward from the current technology. Live virtual events: Because of the travel restrictions imposed by Covid-19, we are unable to participate in large-scale events like concerts, sporting events, gallery openings, and other cultural and recreational activities. But now, thanks to the metaverse, everything is feasible; you and your friends can get together, interact, dance, and even meditate together - all without leaving the convenience of your own home. Online shopping: When you go shopping in the metaverse, you will be able to virtually try on clothes and test out appliances before making a purchase. This means that there will be fewer returns of things, particularly apparel that does not fit properly or that does not match its description. Customers are allowed to handle items and examine them from every angle before making a purchase. Games: Metaverse will make blockchain and Web3-powered multiplayer games even more realistic. A digital avatar is all that is required to participate in immersive video games that take place in the metaverse. In addition, players have the opportunity to accumulate non-fungible tokens (NFTs) as prizes for their participation, which will contribute to the expansion of the game economy.

Fueling metaverse through NFTs NFTs are an important part of the metaverse ecosystem because they make it possible for people to own virtual goods like real estate, cars, boats, accessories, and paintings.

However, why only NFTs? This is because NFTs are made with blockchain technology, which gives the people who own NFTs the right to own them. For example, if you own land in the metaverse, which is entirely feasible, you will be provided with an NFT to serve as the title deed to your virtual property. This demonstrates that you are the legitimate owner of the property, and as such, you are the only person who can enter the area in the metaverse while also granting access to other people. Access that is managed by NFT could also be helpful in ensuring that VIPs have access to events taking place in the metaverse. In addition, NFTs play an important role in the process of airdropping branded items to followers and allowing users to have sole ownership of their metaverse avatars. Users can create avatar that can move from one metaverse to another. These avatar are created on the blockchain and can be used in any metaverse. You should know that your NFT-based avatar is unique to you

and cannot be copied or altered by anyone else. So, it's clear that NFTs and the metaverse go well together. Final word People are able to do things in the metaverse that might not be so simple to do in the real world because the metaverse's possibilities are virtually endless. Imagine being able to stay in one location and still have complete and total connectivity to the rest of the world without the need to deal with the trouble of travelling or the expense of purchasing plane tickets to go there. It's possible that in the future there may be employment opportunities in this portion of the metaverse for the creation of a revenue system. The metaverse is a popular place for people to make financial investments, particularly in non-fungible tokens and virtual real estate, in the hopes of achieving a high return on their money. In reality, the future we're heading into is the Metaverse; it's not simply a theory.

Role of NFTs in the Metaverse Two hot topics, two areas of huge potential for businesses. That is how NFTs and the metaverse can be described. While these concepts have generated a lot of media buzz, headlines and interest, they have created just as many questions. With many businesses still trying to grasp what these things mean and what their role is, I am here to give you the lowdown based on my company's experience in building these types of solutions. Strap in and prepare to navigate the quirky and promising world of NFTs and the metaverse. The metaverse. This is a theoretical concept of a digital 3-D world that you enter via a virtual reality (VR) headset. In this virtual world, you have a "body" (avatar) that you can customize, a home to fill with the stuff you like

and hundreds of spaces to visit. You can interact with other users, do work, play games and basically perform most of the activities that you do in everyday life. The metaverse is useful because it greatly reduces our need to travel and use physical resources. In a 3-D world, we can visualize and interact with any object without putting in much effort and time. We can cycle between activities, chats, locations and data with a simple gesture. Instead of switching between apps and a web browser, everything is connected and accessible in this digital world.

NFT Uses in the Metaverse As a result of the fact that NFTs are typically connected with websites and transactions that take place through web browsers, and as a result of the fact that the metaverse is predominately VR-based, there may be some confusion regarding what the two have in common, and whether or not they even share any similarities at all. Even though both ideas are fairly new, it's good to know that some companies have already found creative and profitable ways to use both at the same time.

1. Virtual marketplace. With apps like VRChat, VR communication spaces are growing, and it's not a stretch to think they can also function as a trading ground for NFTs. Sellers are able to quickly and easily provide links and previews to assets that are hosted on the web or mint assets immediately within the VR environment.

Figure6.2: NFT Virtual Marketplaces

VR and NFT marketplaces have the potential to attract a wide variety of companies across a variety of industries; Nike is a good example of this. It already has its own virtual world called "Nikeland," and now it has bought a company (RTFKT) that is known for making NFTs of products. Maybe it's only a matter of time until the two ideas come together in "Nikeworld."

2. Art gallery.

Figure6.3: NFT Art Gallery in Metaverse

Virtual reality (VR) is quickly becoming the medium of choice for experiencing art, even surpassing the quality of an actual gallery. You'll be able to examine it thoroughly from all directions and in exquisite detail. This method varies from a marketplace since the prices are predetermined (not negotiated), the assets are all the same (art compositions), and the environment is more casual. For instance, numerous museums are in the process of transferring works of non-fungible token art into metaverses such as Cryptovoxels, which are driven by the Ethereum blockchain. The Art Newspaper says that Cryptovoxels is home to "art galleries and museums, such as the San Francisco Museum of Modern Art and the FC Francisco Carolinum Linz, Austria."

3. New frontiers. In the real world, real estate can be a pretty profitable business, and the same could be true in the metaverse. However, we are not speaking about the sale of actual houses, but rather the sale of digital land and territory for the purpose of user expansion.

Figure6.4: NFT Real-estate 3D virtual land, Source: Decentraland

An example better clarifies this situation. Decentraland is a 3D virtual land where plots of land can be bought and sold using non-fungible tokens. This "nation" already has its own cryptocurrency and is planning to enter the metaverse in 2022, which would open up the entire world to users of virtual reality technology.

How to Implement a Metaverse with NFTs You may have noted that the metaverse is still a relatively new concept, and only a select few businesses have already produced actual solutions in this field that make use of NFTs. Consequently, if you find a use case for the combination in your organization and have the resources to implement it, you could be among the first businesses in your market to capitalize on these two developments. Because the majority of businesses do not currently have any VR developers working for them on a full-time basis, we could suggest trying to collaborate with a company that has many years of experience in the field of developing immersive application software. Even if a company has a few local developers, they might want to go this route because those developers might not know how to build with Unity and Unreal or use movement tracking. If you're not comfortable handling the technical details on your own, familiarity with blockchain technology and NFT minting will be useful. It is my hope that you now understand the basic ideas included inside the two concepts and have a general grasp of the direction in which the market is moving. If you want to differentiate your company from others in its industry and present itself as one that is focused on the future, embracing the metaverse and NFTs could provide you with an excellent opportunity to do so.

Identity, Community, and Social Experiences Expanded In addition, NFTs will play a crucial role in identification, community, and social interactions in metaverse. For example, a user can show their support for a project or share their thoughts about the virtual and real worlds by holding certain NFT assets. This makes it possible for people with similar NFTs to get together, share their experiences, and make things together. The avatars of popular NFTs are an example of such NFTs.

Figure6.5: NFT community, and social interactions in metaverse.

The NFT avatar represents the player's actual or imagined self. You can use NFT avatars as access tokens to get into and move around the metaverse. In this situation, NFT avatars serve as an extension of who we are in real life, giving us full control over and independence from our virtual identities in the metaverse. Avatar NFTs facilitate social connections and community building by giving users a virtual identity within a wide range of distinct metaverse and real-

world activities. NFT avatars are already helping to shape the experiences and environments of the metaverse by making content and starting new businesses. For example, the holders of the Bored Ape Yacht Club and CryptoPunks collections are granted unique rights and access to gated groups of wealthy people with protected content and even offline special events, respectively. Both of these collections are available only to those who purchase them. Furthermore, private events with NFT-related entry fees draw attention to the role of NFTs as value carriers connecting the digital and physical worlds. Go to the Binance NFT Marketplace if you want to locate and acquire NFT avatars. This marketplace provides a large variety of reasonably priced options for NFT avatars.

Virtual Real Estate: Property Ownership Using NFTs, users are able to exert full authority over their respective virtual lands and spaces within the metaverse. In addition, the blockchain allows individuals to demonstrate ownership and develop their virtual property as they see fit.

Figure6.6: Virtual Real estate NFT, Source: Decentraland

In the metaverse, virtual real estate can be used to make money by selling it or by renting it out. It can also be used to build things like online shops or social gatherings on land that already exists. The digital real estate scene in the metaverse includes places like Decentraland, which recently put on a virtual fashion show with Adidas and auctioned off pieces as NFTs. Musicians have a unique and compelling interest in the concept of virtual real estate due to the fact that they can now host concerts and sell NFT tickets and merchandise online.

What Is The Best Way To Invest In Metaverse? As metaverse became a standard system that runs on the blockchain, people were introduced to different kinds of entries. Consequently, investors can invest in the virtual world both actively and passively, depending on how it operates. The user was deeply immersed in both playing the game and taking part in the activities taking place in the virtual setting. Metaverse was a whole world with several categories and applications. Anyone who plays the game and joins the Metaverse can get both real-world currency and NFT tokens (that the Metaverse runs on). These acquired tokens have real-world monetary value and can be exchanged in markets across all metaverse. In addition, users have the option of swapping tokens for major cryptocurrencies such as bitcoin and ethereum. Users have the option of investing in the Metaverse on a passive basis while maintaining their focus on active investment strategies. The NFT currency, which may be used anywhere within the Metaverse (also known as the NFT Metaverse), carries a monetary value in the world of cryptocurrencies. As the project develops, it will be possible to list it on multiple exchanges and

platforms. Because it is a component of multiple IDOs and launchpads, investors are able to pool their funds across the exchange or platform in order to increase their chances of making a profit. This means that investors can no longer take part in the Metaverse without doing anything. The acquisition of exposure through the purchase of a Metaverse exchangetraded fund (ETF) is yet another method of investing in Metaverse that may be acknowledged. ETFs are collections of securities and assets that trade like stocks. Metaverse stock ETFs let investors invest in crypto-friendly companies.

How Can Metaverse Help You Make Money? One of the user's reasons for how they generate money in the Metaverse that is easily understood is that they do it by participating in games. You can make a considerable amount of money simply by playing the game in these metaverse since they use the 'Play-to-Earn' strategy.

Figure6.7: Play-to-Earn Games in Metaverse

Investing your money in a way that generates passive income is yet another way to profit from metaverse. Before investing, do your research.

Discovering the projects excellent use cases and road map will certainly provide you with tremendous benefits in a short period of time. The Metaverse is getting ten times better as a technology. There is a lot to show because these systems have no limits and can do many different things in the virtual world. We may create a wide variety of use cases due to the unlimited nature of metaverse. It is important to work on developing your conceptual understanding if you want to make money off of the metaverse. This will lead to the incorporation of more ideas and characteristics into metaverse. Putting some of your own money into technological advancements could help your business become very profitable. Virtual worlds and the Metaverse have given us a way to connect the digital and real worlds that makes sense. Blockchain was a major component in breaking the relationship. Moreover, metaverse gives consumers with a wealth of options and the system benefits immensely.

A Step-By-Step Guide to Purchasing Real Estate in the Metaverse Metaverse combines AR, VR, and video to digitize reality. Users can work, play, and interact using virtual avatars. The metaverse is a vast and diverse place where one may do anything from have a meeting to travel the world without ever leaving their chair. However, it seems that real estate is attracting the interest of investors. The volume of property acquisitions in the metaverse have been making news recently due to the exceptional number of million-dollar purchases that have been recorded every other week.

You have to sign up with a metaverse platform like Decentraland, The Sandbox, or Axie Infinity before you can buy virtual property. Then, all you need to transact in the metaverse is a digital wallet with sufficient funds. After that, you will want to convert your dollars into a cryptocurrency like as ether or the native currency of the metaverse in which you are conducting business, such as MANA or Sandbox, so that you may store them in your digital wallet. With the metaverse's virtually complete ecosystem, you can buy, rent, flip, or sell digital dwellings using non-fungible tokens (NFTs). Here is a step-by-step guide on how to buy property in the metaverse. 1. Decentraland, Axie Infinity, and Sandbox are just a few of the metaverse property marketplaces you can visit. 2. Check out the pricing of the many different pieces of land that are now on the market. 3. Clicking on the digital piece of property that you've decided you want to acquire will provide you with additional information about it. Keep in mind that some metaverse property platforms will only accept payments in a certain cryptocurrency. Users of the virtual world Decentraland can only purchase and sell real estate using the company's native cryptocurrency, MANA. 4. The following step is to link your electronic wallet to the account you already have on the real estate website. In order to accomplish this goal, you will first need to acquire an appropriate digital wallet. The most widely used cryptocurrency wallet nowadays is Metamask. It also works with just about every metaverse property platform. 5. It is essential to fund your digital wallet with a cryptocurrency supported by your chosen digital property platform. Then, it will be

easy for you to buy it on different exchanges and keep it safe in your digital wallet. After you have selected the piece of land you want to buy and deposited money into the digital wallet linked with it, all that is left for you to do is press the "buy" button. 6. Your acquired digital land is kept in your digital wallet as NFTs once the transaction is complete. You may check out the property you just purchased in your virtual wallet on the 'NFTs' tab. What you need to be aware of when purchasing real estate in the metaverse In contrast to investing in real estate, where the land you buy will always exist, digital land in the metaverse will disappear if the platform you bought fails and shuts down. Additionally, keep in mind that the cryptocurrency utilized for transactions in the metaverse real estate market is quite volatile. The value of the digital currency you possess, the metaverse property you own, will change in a manner that is proportional to this fluctuation. In addition, due to the fact that digital real estate is still a relatively new asset class, many aspects of it have not yet been investigated. Consequently, investing in the digital real estate market of the metaverse is a highly speculative endeavor; consequently, it is recommended to conduct exhaustive study into the benefits and drawbacks of the situation before making any judgments.

The Metaverse in the Future Metaverse are still in their early stages, but the use of NFTs opens up a lot of social and financial opportunities, as well as new ways for people to play, interact, get together, earn money, and do business.

Metaverse and NFT blockchain gaming will be important parts of Web 3.0, a time when real-world businesses move into the digital world and users find out how flexible these settings can be by adding VR, video games, social networking, and parts of crypto. We believe that having your own NFTs is going to be a huge deal and will lead to exciting new opportunities in the future metaverse. Users who want to learn more about the metaverse can use the Binance NFT Marketplace to find, buy, and sell different NFT assets. The Infinite Machine, The founder of the crypto news site The Defiant, Camila Russo, writes, "Bitcoin wanted to be money that people could send to each other." To paraphrase, "Ethereum aimed to be a decentralized, distributed system."

Decentralization DeFi (Decentralized Finance) is a subset of cryptography, finance, and software development, with its own language and lexicon. So, let's analyses it step by step.

Centralization and decentralization are two types of structures that can be found in organizations, governments, management, and even purchasing. When power is centralized, it means that only the top management has the power to plan and make decisions. It means that all the powers come together at the top level.

What is Centralization? Centralization is a sort of organizational structure in which decision-making authority resides with the highest level of management. A few hand-picked individuals are authorized to develop strategies and establish the aims and objectives upon which an organization will operate. In a centralized organization, top management sets rules and procedures that lower-level employees must follow without questioning authority. The good thing about this kind of structure is that it gives employees a clear idea of how their work should be done. The drawback of having such a structure is that it makes it take more time to come to a conclusion about something. Since only a few people in top management have the power to make decisions, decisions may be made in a biased way.

Understanding Decentralization Decentralization is another type of organizational structure that works by giving the power to make decisions to several teams in different places.

At this kind of organization, those in the middle and lower levels of management are the ones who do the majority of the planning and strategy, as well as the decision-making to put it into action.

The employees are given the authority to make their own decisions that will be to the organization's interest as a consequence of decentralization. This leads to a high degree of satisfaction among employees and increases the amount of work that is produced by an organization. In the long run, decentralization can help a company succeed because it gives lower-level employees more opportunities to exercise their natural leadership abilities.

Figure6.8: A bank is a good example of centralization, yet in a decentralized system, there is no bank to function as an intermediary.

And why is this important to keep in mind when discussing NFTs? To assure authenticity and security, the decentralized marketplace provides buyers and sellers with a new way to trade. Users like that most virtual markets are not regulated, but decentralized currencies and trading give these same users the safety and trust they need to keep using these markets. Let's look at the table below to see what the most important differences are between centralization and decentralization.

One of the most popular topics these days is the difference between centralization and decentralization. There are those who believe in the benefits of centralization, while others prefer decentralization. People used to run their organizations in a centralized manner in earlier times, but that has completely changed as a result of the rise in competition, which requires

quick decision making, and as a result, many organizations have opted for decentralization. The reason for this is because of the rise in the cost of centralization. As a result of the impossibility of achieving complete centralization or decentralization at this time, the majority of organizations possess both sets of characteristics. Complete centralization of an organization is impractical since it indicates that the highest-ranking members of the organization are responsible for making each and every decision that affects the organization. On the other hand, full-fledged decentralization indicates that there is no control over the operations being carried out by subordinates. Therefore, it is important to strike a balance between the two of these. As additional digital currencies and e-commerce platforms join the NFT boom, more possibilities for further decentralization emerge. Most recently, Filecoin storage services were linked with the Flow Blockchain. The goal is to connect more content and make it easier for both people who make and buy NFTs to access and store these digital works in a safe way. Another online exchange that offers its own NFT marketplace is Coinbase. Decentralization is a big part of all of these marketplaces. For example, peerto-peer trading makes it easier and safer to buy digital art and do other online transactions.

What is DeFi? Decentralized finance (DeFi) is defined by the fact that it is not controlled by one person or group. For example, bitcoin, the first cryptocurrency, is essentially a distributed ledger called the blockchain, and all of its transactions are maintained in databases spread across a wide variety of machines. That one record, which is dispersed among several databases, is

protected using cryptography, and the computers maintain track of each other to ensure that it has not been hacked in any way.

Figure6.9: Traditional Financial System vs Decentralized Financial System, Source: stably

Decentralization is a key feature of Bitcoin that contributes to its durability. There is no central authority over virtual currencies, thus it is extremely difficult for one to violate the rules and cause widespread disruption. Even if the government were to shut down a portion of the Bitcoin network's nodes, the digital currency might still be able to function as other nodes on the network would have a complete record of all transactions. The concept is developed even further with the use of DeFi. Ethereum, a blockchain-based platform for online smart contracts developed by CanadianRussian computer engineer Vitalik Buterin in 2013, is utilized in decentralized financial markets and credit networks. Whereas bitcoin's blockchain was created to record bitcoin transactions, Ethereum's blockchain was designed to run applications. Ethereum can be thought of as a distributed computing platform on which blockchain-based applications can be built

(dApps). The computational power of Ethereum is rewarded in ether, which is currently the second-most valuable cryptocurrency behind bitcoin. Like bitcoin, the Ethereum network is difficult to disrupt or manipulate.

GOVERNANCE Decision-making within DeFi organizations, also known as governance, is usually decentralized, and this applies to everything from the fees they charge customers to the products they provide. If the United States' political system is a representative democracy, then DeFi can be thought of as direct democracy. At first, a decentralized programmer may be run by one person or a small group of people. However, when the initiative gains popularity, they often look to step back and hand it over to the community. This transformation could take the form of a decentralized autonomous organization, also known as a DAO. This type of organization has its rules and regulations encoded in computer code and may issue governance tokens, which give holders of currency a voice in decision-making.

PEER-TO-PEER One of the most important developments that bitcoin brought about was enabling its users to directly transact digital payments with one another. Naturally, in the real world, this is easily accomplished with metal or paper currency. On the other hand, prior to the invention of bitcoin, the only way to carry out such a transaction digitally was by using a financial institution or a payment service such as PayPal. Going through third parties leaves a digital trail that may be followed, and the government may "censor" these corporations, forcing them to reject transactions for political or other reasons. Bitcoin, a digital currency designed for use in payments between individuals, was developed as an alternative to

this.

Figure6.10: How to peer-to-peer (P2P) platform works

P2P functionality can also be included in DeFi applications. A typical transaction involving the trading of stocks, for instance, involves the participation of a number of intermediaries, such as a broker and an exchange, in the processing of an order. The shares are also maintained at a custody bank to avoid loss or theft. On the other side, a DEX (DeFi Exchange) eliminates the need for intermediaries. Let's assume you're interested in trading crypto tokens on the Ethereum-based decentralised exchange Uniswap. In that instance, Uniswap's smart contracts will automatically transfer the funds to your cryptocurrency wallet. As a direct consequence of this, a smaller number of parties will take a cut of your transaction.

NFTs and ICOs In the 13 years since its debut, blockchain technology has enabled multiple digital gold rushes. Nonfungible tokens (NFTs) and initial coin offerings

(ICOs) are examples of two of these types of tokens:

INITIAL COIN OFFERINGS (ICOS) Initial coin offerings (ICOs) are a form of fundraising that has found widespread application in supporting open-source software projects. Investors in an initial coin offering (ICO) get a one-of-a-kind token in exchange for their money. This token may or may not provide them access to the special capabilities of the software, or it may give them nothing at all. Initial coin offers (ICOs) may lack the safeguards, such as auditing and disclosure, that an initial public offering (IPO) is expected to provide in the regulated stock market. According to CB Insights, initial coin offerings (ICOs) raised more than $7 billion in 2018, but that number dropped to $371 million in 2019, the most recent year for which data is available, as a result of regulatory crackdowns.

What Are the Components of DeFi? The parts of DeFi are similar to the parts of other financial ecosystems in that they need stable currencies and a wide range of use cases. Stablecoins and services like cryptocurrency exchanges and loan services are examples of components that make up DeFi. Smart contracts make it possible for DeFi apps to run because they contain the conditions and behaviors that make these services possible. The code for a smart contract may contain, as an illustration, a personalized code that details the precise terms and circumstances of a particular loan. If particular conditions or circumstances are not met, collateral may be liquidated. This is done by a code instead of a bank or other business doing it by hand. A decentralized financial system is made up of many different parts, all of

which are included within a software stack. The building blocks of a DeFi system are organized in layers, with each one designed to fulfil a unique task. Composability is one of the things that makes the stack what it is, because the parts from each tier can be put together to make a DeFi programme.

Figure6.11: Components of DeFi: Different types of layers

The DeFi stack is divided into four tiers, as indicated below: • The Settlement Layer, which is often referred to as Layer 0: All subsequent DeFi transactions are built on top of the settlement layer, which acts as their basis. It consists of a digital currency or cryptocurrency as well as a public blockchain. This cash is used to settle transactions that take place on DeFi applications, and it might or might not be traded on public exchanges as well. Ethereum and its native coin, known as ether (ETH), are both part of the settlement layer. Cryptocurrency exchanges are where ETH is traded. At the settlement layer, it is possible to utilize tokenized forms of assets, such as the United States dollar, as well as tokens that are digital representations of assets that exist in the physical world. Protocol Layer: Software protocols are pre-defined sets of norms and

guidelines that are used to regulate particular procedures or activities. This would be a set of rules and regulations that, like in real companies, are a prerequisite for doing business in a given field. Many different companies can utilize the same set of DeFi protocols to create the same service or app at the same time since they are interoperable. For the DeFi ecosystem to function, liquidity must be provided via the protocol layer. A DeFi protocol is something like Synthetix, which is a platform for trading derivatives that is built on Ethereum. It is used to make digital reproductions of real-world objects. Application Layer: The application layer is where all of the applications that interact directly with the end user are stored, as suggested by the layer's name. These apps simplify complex underlying protocols into easily consumable services for end users. The majority of the applications that make up the Bitcoin ecosystem, such as decentralized cryptocurrency exchanges and loan services, are included under this layer. Aggregation Layer: The purpose of the aggregators in the aggregation layer is to provide a service to the investors by integrating a number of the applications from the layer below. One possible benefit is that they facilitate the transfer of funds between various financial instruments. In a physical setting, these kinds of trades would need a lot of paperwork and coordination. However, a technological framework should make trading more seamless, enabling investors to easily switch between service providers. One example of a service provided by the aggregate layer is the ability to borrow and lend money. Additional examples include cryptocurrency wallets as well as financial services.

The Current State of DeFi

The growth of decentralized financial systems is still in its infant stage at this point. There will be around $41 billion in DeFi contracts by March 2021. The total value locked is found by multiplying the number of tokens in the protocol by their USD value. It is essential to understand that the total value for DeFi is merely an estimate, despite the fact that it may appear to be a big sum. This is due to the fact that many DeFi coins do not have sufficient volume or liquidity to trade on cryptocurrency exchanges. The DeFi ecosystem is still being affected by infrastructure problems and hacks. Scams are also very common in the rapidly developing infrastructure of decentralized networks. DeFi "rug pulls," in which money is taken out of a protocol and investors can't trade, happen often, but there are well-established ways to reduce the risk by a large amount. It is possible that the distributed and open character of the ecosystem of decentralized finance would generate problems with the existing financial regulation. The current legal framework is predicated on the idea of separate financial jurisdictions, each of which is governed by a different established canon of rules and customs. Because DeFi's transactions are not centralized, there are serious questions about how to regulate them. Who is responsible, for example, when a financial crime happens across protocols, borders, and DeFi applications? Smart contracts are another area where DeFi regulation needs to pay attention. DeFi is the best illustration of the "code is law" theory, which holds that law is a collection of rules that are generated and enforced by immutable code. Bitcoin's success is the other prominent example of this concept. The algorithm behind a smart contract already has the basic framework and service conditions programmed in. But software systems can go wrong for a number of reasons.

What will happen if the incorrect input causes the system to crash? Or if an error occurs in the compilation or execution of the code. Who is to blame for the developments that have taken place? Before DeFi can become a widespread system, these questions and a great number of others need to be solved.

Advantages and disadvantages of DeFi The power of DeFi might also be its downfall: DeFi is harder to censor or get rid of because it is not centralized, but it needs a lot of processing power. Transactions will take longer to complete, and the expenses associated with each transaction may go up as a result of maintaining a database and records across a network of multiple machines. Ethereum is the most widely used blockchain for DeFi applications, but the high volume of transactions is slowing down the network and driving up the fees associated with using it. Despite this, alternative chains such as Solana and Avalanche are gaining popularity at a time when developers working on Ethereum are trying to figure out how to make it more scalable. According to Emin Gün Sirer, a computer scientist at Cornell University and an adviser for Avalanche, "It's very tough to get performance out of blockchains." DeFi gets rid of the need for middlemen like custody banks, which are in charge of keeping assets (usually digital tokens) safe. You won't have to worry about a bank failing and snatching your tokens or the government grabbing them. However, no one except you and your passcode knows where your assets are. If you lose that passcode or someone steals it, you will never get it back. The newcomers to DeFi often say that they are open to everyone. Even if you don't have a credit score or proof of identity, you might be able to get a loan

or trade virtual coins. This independence may make it possible to provide banking services in areas of the world where they have not been available before, or where doing so would be prohibitively expensive, risky, or repressive. But the problem is clear: if no one knows who is using a service or where they are, criminals could use the systems or break the rules. The tightening of regulatory oversight has already begun. Despite the security of blockchains, the intelligence of the smart contracts and apps built on top of them is limited to the minds of the developers. The code is usually open-source, which means that anyone can look at it and change it. This makes it easier for hackers to get into. In today's world, there is a far more emphasis placed on testing programming code for vulnerabilities and defects. Formal verification is becoming more and more important to more and more people (a process that uses algorithms to analyses other algorithms for flaws). But Cornell's Sirer says that a lot of money is still being spent on code that hasn't been strengthened in this way.

Three dApps you should know about UNISWAP Uniswap is a decentralized exchange that was established by Hayden Adams, a New York-based mechanical engineer (DEX). The idea originated in a series of blog posts that Ethereum co-founder Buterin wrote on his own website about developing a decentralized and automated market maker. A website for crypto data called CoinGecko says that Uniswap now let’s more than $1 billion worth of crypto trades happen every day, and that its governance tokens, called UNI, are worth about $12 billion on the market. In 2017, AAVE was founded by Stani Kulechov, a law student. To begin with, this was known as ETHLend. Users are able to lend and borrow cryptocurrency tokens on the platform, and according to DeFi Pulse, users have pledged approximately $14 billion in collateral for loans obtained

through the network. MAKERDAO MakerDAO is a decentralised marketplace for lending and borrowing that utilizes the dollar-backed stablecoin Dai. Rune Christensen was one of the co-founders of MakerDAO when it was established in 2014. Its website boasts that MakerDao is the first DeFi programme to gain significant popularity and one of the largest decentralised apps on the Ethereum blockchain. The users of the system have contributed around $6 billion worth of collateral.

Web3.0: Introduction Imagining a new kind of internet where all content you consume is more personalized to you than ever before, one that not just accurately reads what you input but truly understands everything you say through text, speech, and other media. The web is about to enter a new stage of its evolution. A few trailblazers have labelled it "Web 3.0."

Figure: 6.12, Evolution of Web3.0, Source: Fabric Ventures

There may already be a few Web 3.0 applications in their early stages, but their true potential can't be seen until the new internet is fully integrated into the web infrastructure.

What is Web3.0? The term "Web 3.0" refers to the upcoming third generation of the internet, in which websites and applications will be able to process information in a smart and human-like manner by utilizing technologies such as "machine learning" (ML), "big data," "decentralized ledger technology" (DLT), and many others. Tim Berners-Lee, who made the World Wide Web, first called Web 3.0 the Semantic Web. Its goal was to make the internet more independent, smart, and open. Web 3.0 will interconnect data in a decentralized form, which is a major jump from Web 2.0, where data is held in centralized repositories. Data will be intractable by humans and machines. However, for this to happen, programmes must understand information conceptually as well as contextually. Keeping this in mind, the two fundamental components that make up Web 3.0 are the semantic web and artificial intelligence (AI).

Web 3.0, Cryptocurrency and Blockchain As Web 3.0 networks will run on decentralized protocols, which are the building blocks of blockchain and cryptocurrency technology, we can expect to see a strong convergence and mutually beneficial relationship between these three technologies and other fields. They will be used to power anything from micro-transactions in Africa to censorship-resistant P2P data file storage and sharing using applications like Filecoin to a total shift in the

way businesses conduct and operate. The few DeFi protocols we have now are just the tip of the iceberg. Web 3.0 Technologies When considering Web 3.0 technology, there are a few specifics that must be kept in mind. To begin, it's hardly a brand-new idea. Once of the pioneers of Web 1.0 and 2.0 applications, Jeffrey Zeldman, endorsed Web 3.0 in a 2006 blog post. However, discussions on this subject began as early as 2001.

Evolution of the Web 3.0 Technologies Web 3.0 will emerge from the inevitable convergence of existing web technologies, cutting-edge innovations like artificial intelligence and blockchain, and the growing number of people who regularly use the internet. Internet 3.0, it would seem, is a step higher from web 1.0 and web 2.0.

Web 1.0 (1989-2005) Web 1.0, also known as the Static Web, was the earliest and most reliable

internet in the 1990s, while offering restricted access to information and minimal user involvement. Creating user pages or even making comments on articles were not possible in earlier versions of the site. In Web 1.0, users had a very hard time discovering the information they were looking for because there were no algorithms to sift through the sites. In layman's terms, it was like a one-way highway with a limited pathway, where only a small group of people were responsible for generating content and where most people got their facts from directories.

Web 2.0 (2005-present) The Social Web, also known as Web 2.0, increased the interactivity of the internet with the development of web technologies such as JavaScript, HTML5, CSS3, etc., which allowed companies to create interactive web platforms such as YouTube, Facebook, Wikipedia, and many more. This made it possible for social networks and user-generated content to grow, because data can now be shared and spread across different platforms and apps. Many early online pioneers, including the aforementioned Jeffrey Zeldman, were responsible for the development of the toolkit that is used in the modern era of the internet.

Web 3.0 (yet to come) The next stage in the evolution of the internet is known as Web 3.0, and it is intended to make the internet more intelligent or to process information with near-human levels of intelligence. This will be accomplished through the utilization of artificial intelligence (AI) systems that are able to run intelligent programmes that are designed to assist users.

According to Tim Berners-Lee, the Semantic Web is intended to "automatically" interface with systems, people, and home gadgets. As a result, both humans and machines will be involved in the content development and decision-making processes. This would enable intelligent content production and dissemination to every internet user.

Key Features of Web 3.0 Taking a close look at these four characteristics of Web 3.0 will help us comprehend the next generation of the internet:

1.

Ubiquity

2.

Semantic Web

3.

Artificial Intelligence

4.

3D Graphics

Ubiquity Being ubiquitous refers to having the ability to be present everywhere, especially simultaneously. In other words, they are everywhere. Web 2.0 is already pervasive since a Facebook member can instantaneously capture an image and post it, making it available to anybody with access to the social media platform. The Internet will be available to anybody, at any time, from any location thanks to Web 3.0, which simply advances this concept one step further. At some point, smart devices that connect to the internet won't just be computers and smartphones like they were in Web 2.0. This is because IoT (Internet of Things) technology will make a lot of new smart devices possible.

Semantic Web

The study of the connections between different words is referred to as semantics. According to Berners-Lee, the Semantic Web makes it possible for computers to sift through massive amounts of information gleaned from the World Wide Web, such as articles, purchases, and relationships. How would this work in real life? Let's look at two sentences as an example: I love Bitcoin I