Non-fungible tokens (NFTs) are enjoying rapid adoption in the entertainment, media, and sports sectors as the largest brands, companies, and individuals seek a first mover advantage in creating their own digital collectibles.
These come in myriad forms, and similar to how blockchain technology has been touted as adaptable to the needs and problems of any industry, the only limit when it comes to NFTs being created and traded around the world is the imagination.
Social media has made people more connected than ever, and these different platforms have played a role in introducing and disseminating NFTs to different audiences.
However, industry-leading giants like Facebook and Twitter have not yet fully integrated blockchain technology into the inner workings of their underlying systems. Users can post about exciting new NFT introductions, but the end-user cannot buy or trade these items without clicking a link that leads them to the platform that the digital collectible is based on.
NFts Facebook project
Facebook in particular has undergone intense regulatory scrutiny over the past two years as its planned cryptocurrency wallet and native token and global payment system had far-reaching effects on the financial space. With an estimated 2.9 billion user base, the social media giant could disrupt the daily transactions of hundreds of millions of people with one another.
With its Novi wallet and Diem cryptocurrency nearing an official launch, the company hasn’t forgotten the popularity of NFTs. David Marcus, head of Facebook Financial, admitted this in August and said his Novi wallet is in a prime position to help its users with NFT assistance.
NFTs are becoming increasingly popular and social media platforms like Facebook are moving fast to keep up with the burgeoning space. It remains to be seen what a Facebook-powered NFT would look like and whether the company’s entry into the sector will be of mutual benefit to the social media giant and the crypto industry.
Integration is inevitable NFTs
There seems to be a consensus among industry participants that the integration of NFTs and social media platforms is only a matter of time. María Paula Fernandez, Advisor to the Board of Directors of the Golem Network, told Cointelegraph that this possibility has both positive and negative aspects:
“I am uncomfortable with the idea that Facebook is getting into NFTs, NFT marketplaces are largely transaction and profit-oriented. I would be more concerned about the integration of other web3 applications with Facebook. “
Markus Bopp, chief training officer and founder of the NFT multichain infrastructure platform Unifty, also commented on the issue, telling Cointelegraph that the nascent space could have some interesting use cases for social media platforms.
Going beyond trading digital collectibles, Bopp believes that the functionality of NFTs could be the solution to some annoying problems for various social media platforms, such as proof of identity and the need for verification:
“An NFT-based system could provide a remedy here with little effort and also combine it with a profile picture. Proof of identity is only a small possibility. What NFTs are really good at is gamification and value-added ownership. Social media companies will be able to use these powerful tools to explore literally thousands of new opportunities. “
With the integration of NFTs into social media platforms expected to become a reality, the next consideration is whether this will have a profound impact on the adoption of the broader cryptocurrency space and blockchain innovations.
3. Bopp believes that the reach of the largest social media platforms will be critical to driving the use of cryptocurrencies, especially if the functionality becomes seamless: “The user experience for the mass adoption of crypto has to be at a level that the user doesn’t even have to be need to know that they are connected to a blockchain. “
Fernandez offered an alternate take when highlighting the troubles Facebook faced when its plans for Diem, originally branded as Libra, were intercepted by various regulators. During this time, NFTs have found their way into widespread use: “Facebook has already tried and failed to integrate cryptocurrency, and yet crypto, blockchain and NFTs have become mainstream without them.”
NFTs are the biggest crypto trend in 2021. The acronym NFT stands for Non-Fungible Token. Tokens are the digital form of a deed of ownership. They are a way to secure ownership of something that only exists in the digital world. Company shares can also be works of art. Anything that has any value can be converted into tradable tokens.
Tokens are basic building blocks for operations with crypto values: only those who have a valid token are allowed to carry out a transaction on the associated blockchain. The most common use of tokens is cryptocurrencies, i.e. fungible tokens: a Bitcoin, for example, can be exchanged for any other Bitcoin.
Non-fungible tokens, on the other hand, represent assets that are unique and cannot be replaced by an equivalent like currencies. You certify unique items. NFTs can display almost anything: pictures, videos, music, but also domain names or virtual properties.
Buy NFTs – pay with ether
Most NFTs are based on the Ethereum blockchain, more precisely on the Ethereum token standard ERC-721. This was presented for non-fungible tokens in January 2018. Since almost all NFTs are currently issued via the Ethereum blockchain, this means: If you want to buy NFTs, you need the cryptocurrency Ether (ETH), which is based on the Ethereum blockchain.
You can purchase the crypto currency ether from various crypto exchanges or online brokers such as eToro. At eToro you buy ether without commission. You only pay the spread, i.e. the difference between the buying and selling price of a cryptocurrency. When you buy ether on eToro, the spread is 1.9 percent.
You can also buy Ether from JustTrade or Trade Republic. However, you cannot cash out the cryptocurrencies here, which is why you cannot use ether that you hold with JusttTrade or Trade Republic to buy NFTs.
Buy NFTs: The Platforms
The famous art auction houses Christie’s and Sotheby’s have already auctioned NFT. You can usually buy NFTs from online marketplaces as well. Well-known platforms are Binance, FTX, Nifty Gateway, OpenSea, Rarible or SuperRare. OpenSea is the largest marketplace for digital items, including digital art and other digital assets, traded on the Ethereum blockchain. The crypto exchange platform FTX has an NFT marketplace based on the Solana blockchain.
The crypto exchange Coinbase has also announced its own NFT marketplace, which will initially start in the USA. Interested users in Germany can sign up for the new service’s waiting list. As a peer-to-peer marketplace,
As mentioned above, you can buy the necessary ethers (ETH) from eToro if you want to use Ether to buy NFTs. The ETH tokens can then be transferred directly to the eToro wallet. To open an ETH wallet on eToro, first transfer an ETH position from the eToro trading platform to the eToro wallet. From there you can retransmit ETH for use on an NFT platform.
However, it is currently not yet possible to buy NFTs directly from eToro. That could change in the future. If you want to buy NFTs now, you still have to use other NFT marketplaces.
Buying NTFs for a good cause
While NFTs are stirring up the art market, the nature and environmental protection organization WWF wants to use the hype to raise money for the rescue of ten endangered animal species. For this purpose, the WWF created the Non-Fungible Animals, or NFAs for short. This is a very limited selection of crypto artworks.
Ten renowned artists have created limited NFA crypto artworks for ten endangered species. The edition of the works of art per species is chosen so that it corresponds to the current number of animals in the wild. The WWF uses the proceeds from the works of art to protect endangered animals.