NFT’s are the revolution this generation has been waiting for. If seen from an intellectuals’ eye, one can comprehend the importance it bears. They have been making fuss from 2013 and 2014, but nobody was stepping ahead and trying it out until 2020. Everything shifted online due to the pandemic, resulting in an across-the globe lockdown. It made people search more about digital assets, NFT ecosystem and cryptocurrency investments. Those sitting at home were left only with the internet, which made them realize its significance in this era.
Now, the NFTs have been boosted to the significance of a random token whose mechanism nobody seems to understand but has become a part of a bigger and better ecosystem called the NFT ecosystem. Anything that is one of a kind, like; games, digital art pieces, songs, and scripts, can be a part of the NFT ecosystem with Werewolf. These non-fungible tokens contribute to the economy in various ways. People have started to feel a lot more comfortable about them now, as they are rapidly acknowledged and talked about. Let’s talk about the NFTs from scratch and how they build up the appreciation they have now.
Werewolf is an ethereum based defi platform with an NFT marketplace. WOLF, an ERC-20 token, surrounds Werewolf’s NFT ecosystem. The token can be used to buy or mint werewolf assets, only Beta and Omega, or it can be staked in Werewolf’s yield farm to earn WWC as rewards. WOLF token itself can be bought from the IBCO (Initial Bonding Curve) that acts as AMM (Automated Market Maker). IBCo also helps with liquidity as it keeps more than enough Ethereum or token in reserve to facilitate buying and selling instantly.
WHAT IS AN NFT AND HOW IT WAS PIONEERED?
Non-Fungible Tokens are basically a unit of data stored on a digital ledger based on the principles of blockchain. They can be used to represent the soft copy of any audio, video, or photo. They are different from fungible tokens, I.e., bitcoins, and ethereum in a way that they cannot be exchanged with any other form of currency. The difference in the relation between the two can be described in these words that the NFTs are cryptocurrency’s stepsons.
HOW NFTS WORKS?
NFTs are individual tokens added to the Ethereum blockchain that store additional information. Those extra pieces of information allow that creative output to take the form of art, music, videos etc. NFT tokens primarily use ERC-721 or ERC-1155, which are two popular Ethereum token standards.
NFTs belong to their creator, who owns the copyright to them and can freely duplicate them. The value of these objects is determined by the market and demand, just like the value of any type of art that is sold. There are instances when creating an NFT will result in royalty payments, but there isn’t a universal system in place currently.
HOW IT WAS PIONEERED?
NFTs have been around as long as the first-ever cryptocurrency. Many believe Colored Coins (mentioned in 2012 blog) to be the very first NFT, it was made up of small BTC denominations and could vary in value ranging between 1 Satoshi to any number of Bitcoins.. Until 2013 hardly a few people knew or just heard the name Non Fungible tokens. It was 2014 when two artists collectively sold the first NFT at the Newyork museum, which failed to gather much attention. Later in 2015, NFT was taken onethereum network, and it finally started to gain prominence in the industry.
In 2017 NFT became a decentralized marketplace on the ethereum blockchain. Projects like CryptoPunks and crypto kitties also came forward in the same year. These days it has become a trend getting much-awaited attention, and we all know how gen-y and gen-z love to follow the trends.
RECOGNIZABLE PROJECTS IN NFT’S
NFTs generate more worth and revenues when they are raised to bid by some influencer or a celebrity. Examples like Jack Dorsey’s Tweet, Grimes digital artwork, Logan Pauls’ token that had his graphic art on the cards shows how they do wonders if you have a fan following. On Ethereum, the first NFT was CryptoPunks in 2017, proceeded soon afterward by the CryptoKitties, which is observed to be the most successful and well-known NFT project ever.
CRYPTO PUNKS
Crypto punks came forward as the first non-fungible token site by the larva labs. It had 10,000 cartoon characters that were distinct from each other. All of them are sold now, and so far, a few are up for bidding. The net worth of CryptoPunk, a decentralized marketplace, is around $2 billion a year. It played an important role in pioneering NFTs.
CRYPTO KITTIES
The same year a game was released by a Canadian studio that has kitties in it. It lets the players play by purchasing the kitties that are actually tokens, breeding them to produce more of them, and then selling the virtual cats. One can not only trade but also enjoy. You can make money while playing a game. Unlike Cryptopunks, it does not have a fixed amount of tokens; rather, it grows with the number of people joining the platform.
NFTs are assets that can be leased and collateralized to create additional cash flow. Their remarkable ascent in the world of art has accelerated the artist’s productivity rate. All around the world, art producers and admirers are happy that now they can trade the art pieces with the audience from across the globe. It has given well-deserved value to the things that were only praised with words until now. The bidding culture benefits the artist. It makes the world realize the importance of a certain art piece giving the artist exposure and contributing to the build-up of a reputation in the community.
CAN NFT ECOSYSTEM CHANGE THE GAME IN CRYPTO LIKE DEFI?
The potential in NFT is apparent. Comparison between the two systems is unnecessary because they are like the two poles of a magnet. Cryptocurrency is an old medium of exchange as compared to NFTs. The relatively new and unique unit of data NFT can do wonders now that it is rising. The tokenized version of assets is indirectly also the source of cryptocurrency investment. Upon bidding, the rate keeps increasing and serves the purpose of investment, that is, profit.
One such example is Werewolf that has become the latest establishment in the NFT ecosystem, giving a great opportunity to crypto investors in the decentralized marketplace. Just like Crypto kitties, it allows its users to play an addicting game. The players can purchase and keep the extra ammo and other such beneficiaries from the game. They will own those things and can sell further by bidding. Similarly, many new large and small-scale initiatives are coming forward that involve NFTs.
Non-fungible tokens are expected to change the game in crypto by many folds. They have created opportunities for new business models. People have got a unique means of earning especially, the artists community, from the ease of their couch. It is expected that NFTs will soon take over Defi crypto.
WHAT ARE THE MAJOR DRAWBACKS OF NFTS FOR INVESTORS?
In the previous year, if you have used the internet, you must have heard about NFTs. That is because they were hyped up enough and were rapidly rising. Just like anything, non-fungible tokens also have their pros and cons. The serious drawbacks for investors should be discussed because everybody is just diving in without putting a light on the drawbacks until now.
Trading your hard-earned money with a digital asset sounds all unique and outstanding, but it has certain risks that come with it. If you have bought a token with a plan of reselling it, then there is a risk if its price will surge high or not. Experts have noticed that only those with an influence have the power to generate profit out of the tokens. Commoners have fewer chances of the price getting higher.
The non-fungible tokens are booming for sure, but the hype is mostly feeding people. Many youngsters without having adequate knowledge jump into the trend just to see it dump afterward. In-depth research should be considered before the cryptocurrency investment because it might result in disappointment.
Unfortunately, NFT can be minted out of the file by anybody and can be sold by taking over its ownership. The risk of wash trading is also there. In it, people make multiple accounts and start trading with themselves. Old and experienced buyers of non-fungible tokens can easily get through this sniffing practice, and it is tough for newcomers.
HOW WEREWOLF ADDRESSES THESE PROBLEMS WITH ITS DEFI PLATFORM IN THE NFT ECOSYSTEM?
Werewolf NFT is a platform that is made to perfection. Its error-free Defi network has noticed and solved all such drawbacks that might affect its audience in any way. Producers with keen attention to detail build the NFT ecosystem. To cater to all prevailing NFT ecosystem related problems, Werewolf has come up with specific policies to assist its users. Some of them are discussed below;
WEREWOLF EXCHANGE
For the crypto investors, Werewolf has provided the opportunity of automated market-making. In this way, your account will be held and dealt with by you. Any involvement of a third party is not allowed as it makes it riskier for the future of your asset. It does not mean that you will have to be part of the hassle. Just give them your money, and blockchain technology will responsibly do the job. It increases the security from the risk of data breach and also gives you freedom. On the Werewolf exchange platform, everybody is allowed to enlist their tokens for trade, and investing in the initial staging of the token will help them generate potentially high returns.
DECENTRALIZED ASSET MANAGEMENT – WEREWOLF
Werewolf utilized a framework called ERC-721, which is extremely well-known. The assets are divided into three packages with the names alpha, beta, and omega. All three have different abilities. The decentralization factor is the fundamental component of a werewolf. It allows users to directly be a part of the wallet by minting the assets mentioned above.
It is a highly organized system that tones down the risks mentioned above. The whitepaper gives a keen look at how the whole system works so that the newbie users can dive in without any fear.
WEREWOLF – AN INNOVATIVE APPROACH TO NFTS
There are fascinating mythological theories surrounding werewolves. The Defi ecosystem will be enriched in this way by bringing the concept. To make the platform more interesting for its community, the Werewolf team created a connection between mythology and blockchain technology. People can stake their WOLF tokens on a Moon Pool of Werewolf Platform to earn Werewolf Coins (WWC) as a reward.
CONCLUSION
Many people still have question marks on their minds when it comes to adequate knowledge about NFTs. There are very few people out there who have used the right words and phrases to describe the mechanism of NFTs, which is also the reason why people are still afraid to tokenize their artistic creations. There is so much on YouTube and in the form of articles on the internet, but very few people have explained it the way it should be.
Werewolf NFTs’ goal is to make you a excellent crypto investor with their easy to use platform. The Werewolf’s NFT ecosystem is totally safe and allows you to thrive in life and enjoy life simultaneously. No one would have thought of this a few years back that one day they can earn profits by doing their favorite recreational activity that is gaming. The world is evolving, and so should you. Shifting to a decentralized marketplace will surely innovate your perspective for life. Werewolf is there at your service, improving and thriving every day to fall on your expectations.
Hopefully, you have enjoyed today’s article. Thanks for reading! Have a fantastic day! Live from the Platinum Crypto Trading Floor.
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