NFTs: Economically Uniting The Real And Digital Worlds

in LeoFinance3 years ago

NFTs are getting a lot of attention within the cryptocurrency community. However, we still are in the embryonic stage concerning these assets. Few have toyed around with them much.

That said, there is experimentation occurring. Probably the biggest area is in gaming. This is an arena which is ideally suited for NFTs, providing ownership stake to in-game assets. Over the next couple years, we will see a great deal of innovation in this area as traditional gaming companies start to embrace what is being developed.


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This is but the tip of the iceberg. NFTs have the potential to tokenize any physical or real world asset. It is an individual token that represents that single asset. This would include anything that has a title, deed, patent or serial number associated with it. All of this could eventually be tokenized.

Recently, there was a project that was put forth on Hive utilizing this concept. Please note that this is being mentioned as an example of what can be done and not an statement for or against the project itself. That is up to each individual.

One of the simplest breakdowns of NFTs, in my mind, is they can relate to asset or income. Naturally, there are many other variables but this seems to encompass a lot of what it out there.

An asset based NFT simply means one has ownership or the rights to a particular asset. In gaming, one gets a NFT related to a particular weapon, that one is owned by the individual. The weapon is transferred when the NFT is moved.

Income based NFTs give an individual the right to some type of income stream that is being generated. Anything that is income producing, such as real estate, could have a NFT tied to it. This would give the token holder a stake in whatever income is generated.

We can see how, with real estate, both would apply. A property could have both an asset based token which pertains to the equity in the building. The income token could provide payouts from the rents that are taken in. Token holders could have both or they could be a completely separate pool of people.

The @c24 team put together another project that utilizes some of what was just described.

For those who are unaware of who this is, it is the team that is behind @cryptobrewmaster, @oceanplanet, and the @cryptex24 exchange. They are an active group on Hive, trying to build different projects that benefit the user base.

Their latest venture bridges the digital and real worlds. It uses NFTs as the basis for the project, enabling individuals to potentially get involved in a revenue stream.

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They have C24 Scooter Rentals. It is an enterprise that is based in Kiev that, obviously, rents scooters. This is a business that generates income, something that any business person or investor is interested in.

The basic idea is that each scooter has a NFT tied to it. Individuals are able to buy all or a piece of the NFT. This will entitle the token holders to
50% of the revenue generated off the scooter.

Here is the post with more details:

https://www.aeneas.blog/hive-167922/@c24/c24-representing-electro-scooter-investment-program

A lot of the dynamics are not clear exactly how this works. However, that is not vital for the sake of this example.

Here we see how the tokenization process can allow more people to be involved in the economic activity happening around the world. To start, how many of us ever would be exposed to the opportunity in scooter rentals in Kiev?

Secondly, we see something that is happening completely in the crypto world, in terms of the financial activity. Anyone getting involved will be utilizing one of three currencies, none of them tied to a central bank. Thus, people can apply what they received in rewards for their activity on Hive as payment for the NFT.

We also see the potential to take this even further. They could have a NFT tied to each scooter with 10 tokens that go with each NFT. Individuals will receive the tokens for each 10% unit purchased (get all ten if going in 100%). These tokens are then able to be traded on the open market, thus moving transferring the income stream as the token moves.

In this situation, the NFT is not tied so much to the scooter as an asset as much as to the business said scooter can generate. This makes sense since a scooter, unlike a piece of real estate, is a diminishing asset in terms of the value. Nevertheless, it does show the flexibility in the use of NFTs.


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All of this is showing the power of the economic system that is being created. It also exemplifies how it is inclusive rather than exclusive. Anyone can participate regardless of their financial status or where they are located in the world. Being online with the tokens needed to participate is all that is required.

The model is going to extend to every area of life we can think of. We already saw some projects put together on Ethereum that dealt with the distilling of whiskey and people buying ownership state in a run. Here on Hive, we saw the same team that is behind this project finance the brewing of beer through a similar model. The potential exists for the tokenization of energy, autonomous vehicles, and food production. Basically anything we can think of can have this model applied to it.

Of course, this brings up the question of value. That is going to be on an individual case basis. Not every idea is a profitable one. There are a lot of stocks that are basically worthless. Tokenization is no different. It is a buyer beware environment.

Nevertheless, it is easy to foresee a day when we each have a stake in hundreds of different projects around the world. The real and physical world is merging with the digital. Here we see another example of how this will unfold.

One of the keys to wealth generation is to develop streams of income. To do this usually requires some type of asset ownership. The wealthiest people in the world tend to own businesses which kick off income. Another popular method is investing which yields a ROI on a yearly basis.

For most of the population, neither of these is on the table. Without some upfront resources, in most instances, the dream is dead before it gets started.


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With cryptocurrency, we can see how this is changing. Anyone can start with nothing and begin building. Time and effort is all that is required. It is not an overnight situation but it does happen. The more that one accumulates, the greater the number of options presented.

Ultimately, one will get his or her fingers into many different things. The reason being is there is a risk and spreading it out, especially with the threat of scams, is not a bad idea. As they say, never invest more than you can afford to lose. Since these are passive opportunities that we are not going to be actively involved in, the best course of action is be intelligent with our approach.

In other words, these can be supplemental projects to the main ones we are focusing upon. While our time and effort is dedicated to those, getting passively involved in a few other projects to provide some "cryptoflow" could be worthwhile.

Over the next few years, we are likely to see thousands of projects popping up that present similar opportunities. With all that is possible in the real and physical worlds, the idea of digitization of it makes perfect sense.

After all, there are people all over the cryptosphere who are willing to get involved with worthwhile (profitable) projects.

NFTs are going to play a big role in all of this.


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2021 will also be the year of NFTs, continuing a path that has already been well defined since mid-2020.

It will be a very interesting sector with the possibility of acquiring three rare pieces at unique prices, before the market extends to all other investors.

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The wealth generated off this could be incredible.

Ultimately I foresee quadrillions in the crypto world; NFTs will be a large part of it. We will see so many things tokenized that it will allow for incredible wealth distribution.

A simple project like this could net people a nice return which could end up growing their holdings and provide resources to delve into other things.

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I think a lot of start ups will use this way plus businesses trying to raise capital for expansion. This does make sense and will create opportunities for those that pay close attention. Not all will be great but there will be some real peaches worth gambling on.

You are absolutely correct. We will see this model used to fund newer ventures. This is where the ability to accelerate our development as a planet is going to enter the picture. We will see those things funded that require it.

While a scooter business is not something that is life changing, it does show how money can be generated which, later, could fund things such as space exploration, cancer research, or longevity initiatives.

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pretty cool idea! i just recently joined the Nft world and i can't stop reading! Huge potentials! we have in Hive the showroom and basically from what i get a shop where people can share and sell their NFTs but i haven't dive into it more deeply yet! For now i read to understand what it is and see other platforms that utilize it!

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Basically NFTs are a clean slate for people to innovate. It is going to blow our minds what people come up with.

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From the perspective or image you painted with the scooter an NFt tied to the scooter will sort of function as an additional piece of tangibility that wouldn't depreciate since the scooter itself will depreciate with time but the NFT itself will maintain value thereby giving more, tokenizing the concept of the scooter, right? All in all its about giving projects the power to create tokens and tied them to real time businesses isn't it?

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It depends upon how the NFT is structured. Is the NFT tied to a particular scooter with a VIN for example or is the NFT representing the "business" of that scooter. If the later, the actual scooter can be replaced and the NFT is still tied to the proceeds from it.

As said, there were some things lacking in the presentation but all in all, it shows how the concept is capable of working.

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Yeah the concept is capable of working and seems achievable while I was even in thoughts thinking about it, it's amazing when you look at the possibilities, thanks for clarifying that out.

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The major breakthrough is when everyday people like us start to develop our own NFT projects. Then, not only will be we one to passively participate but also be an active creator.

It ultimately could be a great way to fund things.

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I agree with innovation and I believe this will reduce the control from banks. Currently, most businesses and ventures have no choice but to go to a bank to get funding for their ideas. In some cases, crowd-funding is a possible alternative but it also complicates things slightly. If we were to use the block chain, then not only would investments be more transparent, it would also be easier on both the lenders and the receiver. They could propose an idea and if people like it, they can choose to fund that tokenized idea on the blockchain. Of course there needs to be some guidelines or best practices otherwise people could just create scams.

Of course there needs to be some guidelines or best practices otherwise people could just create scams.

People need to be smart about what they are jumping into. They need to seek out solid projects.

I believe that is why establishing a reputation (not the rep number next to our username) as one who is genuine and upstanding.

People who do this will be able to keep building projects and see the number of people who join them growing. This is where those who are upstanding will stand out while being able to leverage it greatly.

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Nft's are game-changing. The first blockchain that grabs hold of it and runs with it will do really well. Good article.

Ethereum is in the lead...as always.

However, I imagine the fees can really be a hindrance on there.

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Agreed. ETH has grabbed the early lead because all the dev's are over there.

The fees are a barrier that leaves open a chance for someone to come in to vacuum it up.

Having the developers is certainly an advantage although more appear to be popping up/reemerging on Hive.

The fees have to be an hindrance for many applications. Even with DeFi, it is a big player game. Small transactions are not really possible due to the cost of transacting.

I can only imagine what it will be like when dealing with most NFTs.

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NFTs are revolutionary on their own and some even might contain code within the art and allows the end user to alter the art or even mint new art from it. It is simply crazy how this transforms the entire art world and simply transpose it into a future we have never dreamt off.

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That is true. It is going to be amazing to watch the technology evolve and what innovation people come up with.

As soon as something is digitized, it opens up an entirely new world without the constraints that exist in the physical world.

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Bang, I did it again... I just rehived your post!
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We already have a fund for new projects if tgey are voted high enough.
Can we use tgat fund as a community to bring some good developers team to build NFT/or whatever we require on HIVE. This would be great opportunity for us as a community. If we know a team or people with idea or atleast we have idea and give tgem fimunds to develope it.

NFTs are really game changers. We already see ehat splinterlands, dcity, nftshowroom.com and new upcoming games/ projects can do.