NFTs have become extremely popular following a digital artwork sale of $69 million. Now, they can be found in various industries, such as sports, music, and sneakers! It’s no surprise that the innovative cannabis industry has also taken advantage of this opportunity. Read on to learn how NFTs could potentially impact the cannabis field.
NFTs are a hot topic in the business world, but most people don’t even know what they are. This article will give you a crash course on everything you need to know about NFTs, from their value to their role within the cannabis industry. By the end of this piece, you’ll be an expert on all things NFT!
Cryptocurrencies: A Brief History
To truly understand NFTs, you’ll need to be familiar with cryptocurrencies, because the rise of cryptocurrencies established the technological foundations for NFTs to become a reality.
Cryptocurrencies refer to digital currencies that act as a means of exchange between individuals through a computer network, without needing approval from central authorities like governments or banks. The decentralised characteristic of crypto has drawn in people with varying political philosophies, such as anarchism and libertarianism. To ensure the safety and anonymity of users, crypto networks wee blockchains—a ledger of cryptocurrency transactions kept across numerous computers via a peer-to-peer network.
However, Cryptocurrencies have attracted a much wider user base than for only individual use because of their utility. They are accepted as means of tender by big businesses such as insurance companies, consumer staples providers, and watchmakers. But where did this all begin? See the key events in cryptocurrency history below:
- 2008: An unknown person using the moniker Satoshi Nakamoto publishes a paper describing bitcoin, which is a decentralized kind of digital currency.
- 2009: On January 3, 2009, Satoshi Nakamoto sent 10 bitcoins to a programmer in the first cryptocurrency transaction- thus making history. It was also around this time people started ‘mining’ bitcoin using computers.
- 2010: When someone purchases a pizza for 10,000 bitcoins (now worth about $196 million), the first trade in bitcoin and physical goods takes place.
- 2014: The first stablecoin, “Tether”, is launched. It is linked to the US dollar price and is based on fiat currency.
- 2015: The cryptocurrency Ethereum suddenly appears, along with the exchange Coinbase.
- 2016: The United States Securities and Exchange Commission (SEC) is one of the first governmental agencies to issue a warning about the risks of cryptocurrencies.
- 2019: Elon Musk begins to openly back Dogecoin, a meme currency, in public.
- 2021: Before tumbling to $1 trillion, the overall market cap of all crypto breaches $2.5 trillion and then falls to $1 trillion. Let’s take a look at NFTs and how they connect to cannabis now that you’re more acquainted with cryptocurrency and its history.
What Is an NFT?
NFTs, or non-fungible tokens, are a form of digital asset. They work similarly to cryptocurrencies in that ownership is recorded on a blockchain. A blockchain is effectively a digital ledger of transactions that gets recorded across computers that communicate with each other through a peer-to-peer network
NFTs can’t be swapped like-for-like the way cryptocurrencies can because each NFT has one-of-a-kind properties. All cryptocurrency coins have an equal value, but every NFT is valuable in its own right due to its distinctiveness.
NFT fans maintain that bykeeping ownership recorded on a blockchain, they avoid problems with things being copied and pirated– making NFTs sort of in-between physical property and digital files. An NFT could be anything that can exist as a file, like music, art, tweets, or even the varied items you get in online games.
Who Created the First NFT?
Even before the invention of Ethereum, Israeli Bitcoin Association Chairman Meni Rosenfeld created the concept of “Colored Coins” in 2012, an idea that aimed to represent real-world assets using a digital ledger. In 2014, software artist Kevin McCoy developed the first NFT. The proof of ownership for this digital picture, known as “Quantum,” was stored on the Namecoin blockchain.
When NFTs were first created, some people didn’t think they would be valuable. But now, many of these digital assets have made their creators a lot of money. For example, in 2021 the artist Beeple sold his collage “Everyday: The First 5000 Days” for $69 million.
OpenSea: Where NFTs Are Sold
OpenSea is the first and largest NFT marketplace that consolidates a wide range of categories, including art, collectables, domain names, music , photography , sports, and trading cards. It allows users to discover, buy , or sell any sort of digital asset they wish.
The Value of NFTs
NFTs appeal to both creators and collectors. They provide features that real assets do not, similar to bitcoin transactions. The ability to document proof of ownership on blockchains that are virtually impossible to hack or modify provides a significant safety net. Furthermore, the decentralized nature of exchange allows for a lot of personalization when it comes to swapping assets.
For Artists
Did you know that selling a musical album, piece of digital art, and even a house all have something in common? Yeah, third parties looking to make some easy money. In the non-digital world, record labels, art dealers, and real estate agents get rich quick by being the middleman between buyers and sellers. Artists and vendors may now take advantage of the decentralized nature of digital asset trading, which allows them to break away from third-party intermediaries and their recurring costs—or commissions—which are all too common. NFTs also allow artists to produce a certain quantity of their work, resulting in scarcity and increased profits.
For Collectors
Naysayers decry the intangible nature of NFTs, frequently contending that digital assets lack the physical element and, for example, may be hung above a fireplace. Well, say something to Beeple. The market’s statement speaks for itself.
The growth of cryptocurrency has demonstrated that consumers appreciate digital assets, in part owing to the technology that secures them, limits them (in most cases), and makes sending and receiving them simple. The same may be said about NFTs, but they come with a unique benefit for collectors. NFTs that are based on the blockchain have a limited supply and their ownership is recorded on the blockchain, which makes them many times more valuable than physical copies.
For Business
NFTs have disrupted the status quo for digital assets. With their emergence, new marketplaces are appearing and businesses are anxious to get a piece of the pie while it’s still relatively early on. NFTs not only establish proof of ownership but also proof of attendance; this has massive implications for events such as festivals where live audience engagement is key. Additionally, the smart contracts included in NFT creation can make sure that original creators get compensated if and when their work is sold to others down the line.
NFTs: How Are They Useful?
NFTs have a number of applications. Furthermore, cryptocurrency has already shown that digital assets aren’t only useful; they’re also quite valuable (although somewhat volatile). Check out some of the most promising NFT markets listed below to learn how NFTs are beneficial or feasible in today’s world.
1. Graphic Art
The second most popular NFT is still artwork. Sure, you can’t hang an NFT on your wall the same way a physical painting can, but they’re just as beautiful when displayed on one. You may not be able to steal, lose, or damage valuable art NFTs in this day and age! Valuable art NFTs now range from simple yet expensive cartoons of ape and cyberpunk artists to exquisite works of fine art and stunning digital masterpieces.
2. GIFs
NFTs (which stands for non-fungible tokens) are digital assets that cannot be exchanged or traded with other assets. They are unique and have a set value.Turning GIFs into NFTs offers graphic designers a new revenue stream, and businesses that want exclusive rights and ownership of these digital products a secure means of exchange.
3. Videos and Sports Highlights
Sports Highlights NFTs have a lot of potential. The NBA has just developed Top Shot–a blockchain-based trading card system that focuses on novel views of NBA highlights and digital artwork. A LeBron James highlight sold for over $200,000 recently. This market is expected to grow rapidly as more sporting organisations get involved.
4. Collectables
NFT collectables are, for the most part, immediately valuable following release because of their tight supply. Also, almost unbreakable proof of ownership means that those who purchase NFTs can keep them secure and avoid the threat of fake copies.
5. Virtual Avatars and Video Game Skins
Some NFTs attempt toOverride the value of physical items and assets, however others work well in existing digital marketplaces. For example, virtual avatars and video game skins have gained popularity among online gaming communities. To show you how far-reaching NFTs are likely to be online, Reddit has just introduced an NFT avatar marketplace.
6. Designer Sneakers
NFT sneakers aren’t held, worn, or carried in any way. Despite this fact, demand for NFT products has continued to grow. Much like playing cards and other collectibles, NFT shoes are selling for high prices on digital marketplaces. The average price of a pair of NFT sneakers is $6,000 to $10,000. If you want a pair of CryptoKicks (a Nike product), expect to pay upwards of $20,000 for certain versions.
7. Music
NFTs have the potential to change digital music for artists, whooos lost control over their product due to piracy. NFTs could help musical artists take back ownership and side-step distributors. Some might release one-off editions of albums while others provide audio or visual packages.
8. Authentication
NFTs, like most other blockchain-based technologies, have the potential to revolutionize and decentralize the world we live in. NFTs, for example, can be used as a more secure replacement for “real-world” paper certificates of authenticity because they may be used to prove ownership of digital assets. Sellers may use proof of purchase logged onto a blockchain ledger to demonstrate authenticity to purchasers by matching a wallet number with a specific product (such as a ring) and a corresponding serial number.
NFT Controversy
The NFT industry, like the cryptocurrency market, has faced its fair share of drama. The primary disputes are listed below.
Buyer Fees
Users who trade NFTs are frequently subjected to fees known as “gas,” which is the price it costs to execute a transaction on the Ethereum network. These fees, however, are considered far too expensive by some users, with some wondering if they might limit future growth in the industry.
Plagiarism
NFT artists have to pay gas fees when minting NFTs, and these prices are only rising. However, some platforms don’t take the security of their works seriously enough- recently, traders have found counterfeit NFTs being sold on various sites. This leaves artist feeling anxious and unprotected.
Fraud & Security
Scams are unfortunately very common in the NFT space. There have been many reports of people losing their digital wallet credentials and thus a lot of money. The digital asset space is still relatively new and unstable, which makes it easy for scammers to take advantage of people. According to Privacy HQ, 90% of survey respondents say they have encountered some form of scam before.
How Are NFTs and Cannabis Related?
The cannabis industry is expanding rapidly and becoming more innovative, so it’s no surprise that NFTs are also being embraced. Here are the most promising projects in this sector.
Crypto Cannabis Club
As the self-described “digital art capital” for cannabis enthusiasts, Crypto Cannabis Club has attempted to establish an online community that began in the metaverse. The site offers blockchain-based NFT art, metropolis property, and play-to-earn games related to marijuana.
This company is a shining example of how NFTs can succeed in the cannabis sector. They not only provide digital items, but they also help newcomers get started with both the herb and blockchain technology. There’s a Discord group open to everyone that provides easy access to newbies, and they’ll even assist you set up MetaMask cryptocurrency wallets if you’re an experienced NFT collector.
Blazed Cats
You’ve undoubtedly come across a lot of ape NFTs by now, but have you seen any high? Blazed Cats has taken a unique approach to NFT artwork with its 10,000-strong collection of hand-drawn and randomly generated cats, each with his or her own distinct traits and accessories. Among the many new works displayed in this virtual museum, you’ll find anything from cats smoking joints between their toes to those riding cartoon planes, as well as others who resemble classic hippies—circular frame sunglasses and bandanas included! Only one query remains: will you add these abstract pieces to your NFT collection?
BitCanna
BitCanna has established itself as the cannabis cryptocurrency, delivering much more than simply amusement. You see, transaction platforms such as PayPal and major credit card companies refuse to deal with cannabis-based firms, effectively shutting them out of certain sectors of the economy. BitCanna strives to avoid these problems by providing a platform for cannabis businesses and consumers to exchange goods and services.
The BitCanna project has not only expanded into the cryptocurrency market, but also the NFT space. The team behind this venture have minted digital collectables known as Buddheads—a total of 8,420 pieces with 420 available for free to anyone who wants them. However, these are more than just virtual trinkets; they act as passes that allow holders access to the BitCanna community and other relevant platforms. As of now, BitCanna is working alongside established brands in the cannabis industry like Royal Queen Seeds in order help those interested in shopping for cannabis-related items make a seamless transition into using crypto and NFTs.
Digi Strains
Pokémons cards are so last season. Why not own a legal, digitized weed strain instead? With Digi Strains, created by The Peakz Company, you can have just that! These three-dimensional creations made to inhabit the metaverse are far from shabbily drawn cartoon images. And once purchased, owners can put their favourite varieties on show in their digital homes. Right now, these pieces of art are selling for around 0.03 Ethereum—that’s approximately $50 US dollars!
The Future of NFTs in Cannabis
NFTs have, so far, been used mostly for artwork and games in the cannabis space. However, their potential application is much greater. For example: NFTs could help breeders secure and sell the rights to their genetic material; seed banks release NFTs alongside limited amounts of seeds to create super rare strains; companies track the origins of legal cannabis using blockchain technology via an immutable ledger system like an NTF. The possibilities are endless – only time will tell what further developments we see with this dynamic duo.