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nfts for beginners

Whats the real use case for them?

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yeah, alright buddy, please tell me about how the rich launder their money with these stupid jpegs.

If this is something you’ve said before or maybe you’ve made the face the little girl has made, I’m going to give you three real use cases of NFTs that are playign out and get me really excited about these little pictures.

Creators

Your favorite creator? Who is it? Tinx? How about Meek Mill? Maybe its Steve Aoki? Or is it some middl-tier creator on tik-tok,pinterest, twitter, or any of the number web2 platforms?

NFT’s are a revolutionary way to crack the problem plaguing creators - monetization. I’m not saying these creators in particular, but, more than 47.5M (of the 50M creators) are unable to monetize any amount of their efforts online. Why? Revenue Models are centralized and intended to bring a majority share to centralized companies like Tik-Tok, Youtube, and Twitter.

You’re probably like, why, though? Creators are responsible for all the traffic. Yes, that’s right. Creators grow the network yet have received the least historically. Not only that, but their content and profiles are the mercy of a platforms invisible hand

Companies like Patreon, Substack, and OnlyFans were the first to

Allow creators to create pay-walled and exclusive content for fans

Emphasize the need for community <> monetization for creators

Ownership of Content and Top Fans

Now, NFTs (let’s think of them as digital assets on the blockchain) allow for creators to authenticate their content as theirs and receive the pay they deserve. So instead of giving a platform 10-15% fees of their fans purchases, they’re able to receive it all or near 100%.

The most intersting use cases i’ve seen here are for knowledge creators (specifically writing) and music videos (artists). Starting with the former being

Mirror⁠

& the latter being

Glass⁠

Mirror allows writers to turn their writings into NFTs on the Ethereum Blockchain. Their fans or supporters can purchase and own these writings to resell or showcase. Every contributor and writer on the platform receives $write (native token of mirror). In either scenario, a creator receives payouts and royalties.

Similarly, Glass allows artists to turn their music videos into NFTs that fans can either auction or purchase as part of a collection. They’ve been able to score talent like A$ap Twelvvy from ASAP MOB & Marc E. Bassy.

These are two that i’m around more often than not and understand more or less. I know the ecosystem is vast so if you’ve found anything that im missing please send to:

tony@diffusion.me⁠

Communities

This is going to be a short & sweet breakdown:

These are expansion punks - they aim to expand the punk collection by making it more inclusive and diverse.

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You are only allowed to be apart of Expansion Punks if you own one of the NFTs. It is like a social club. Athletes like Paul George

Some NFT communities have royalties as part of their community. That means when one of the NFTs is sold a percentage of the sale goes towards a community endowment that is spent on the community, like to host in real life private events.

You can vote on any initiatives that the community uses these royalties towards

Gaming

Games fall into the intersection of NFTs and DeFi, with most games using a “Play to Earn” model.

Let’s break down the two components of play to earn Games:

NFTs

Games based on the blockchain use NFTs for characters, items, digital land, and any type of exchangeable asset within the game. When a player of a play to earn game owns an item in the game, the user knows that object is unique to them.

DeFi

With blockchain and crypto as the basis for a lot of these game, games can build their own micro-economies in the game. Users in the game can exchange the crypto currencies that they earn in the game for US dollars.

Example:

Axie Infinity⁠

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Axie Infinity combines traditional video game elements with the new play to earn style of gaming. Players can earn in-game cryptocurrencies that can be sold for US dollars by completing daily quests or battling monsters and other players, users can earn items and rewards that they are able to sell. To build initial traction in these games, developers will give away the in-game currencies for free to the players playing them. Just like a real currency, the price of Axie Infinity’s in-game currency changes based on the amount of people buying and selling it.

Example:

Star Atlas⁠

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Star Atlas is a virtual gaming metaverse based in the year 2620. In this distant future, three major factions have emerged; (1)The MUD Territory governed by humankind, (2)The ONI Region as a consortium of alien races, and (3)The Ustur Sector controlled by sentient androids. These factions are in an ongoing struggle for resources, territorial conquest, and political domination. You, a faction citizen of Star Atlas, will have the ability to influence the outcome of this intergalactic conflict while creating the opportunity to earn rewards for your contributions

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`Why are they so hyped up?`⁠

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Whats the real use case for them?

Creators

Communities

Gaming

Next ➡️ Why are they so hyped up?⁠

Next ➡️
`Why are they so hyped up?`⁠