NFTs

All You Need To Know About NFTs in Nigeria

If you’ve never heard of cryptocurrency, you may be unaware of tech and finance discussions taking place on social media and around the world. But don’t worry; we’ve gone through the painstaking process of research to bring you verifiable information about this new frontier of technology. Cryptocurrency is all the rage right now, and it’s growing in popularity in countries like Nigeria, which has a burgeoning digital economy. Nigeria is the world’s number one crypto country, according to a Yahoo Finance article based on Statista data, implying that a large portion of the financially educated populace has engaged with cryptocurrencies in some way.

This is due to the flexibility it provides users, as it allows them to do business and save money in what appears to be a more secure commodity than the local currency [Naira], which is now experiencing inflation and foreign exchange issues.

What Are NFTs

NFTs, or non-fungible tokens, are unique and non-interchangeable units of data recorded on a digital ledger known as the blockchain, which is a digital database that underpins cryptocurrencies like Bitcoin and Ethereum. and serves as a public ledger that allows anyone to verify the non-fungible token’s legitimacy and who owns it.

Those assets, unlike NFTs, are fungible, which means they can be replaced or swapped for another identical one of the same value, similar to a dollar note.

NFTs, on the other hand, are one-of-a-kind and not interchangeable, meaning no two NFTs are alike.

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In unambiguous terms, NFTs transform digital works of art and other collectables into one-of-a-kind, verifiable assets that are easy to trade on the blockchain.

Although it may still be far from simple to a lot of people, the payoff has been huge for many artists, musicians, influencers, and the like, with investors spending top dollar to own NFT versions of digital images.

What Kind Of NFTs Exists?

NFTs can be used to buy and sell a variety of digital objects, including images, videos, music, text, animations, memorabilia, and even tweets.

Fans of sports can collect and trade NFTs linked to a specific player or team, while digital art has seen some of the most high-profile purchases.

On the Top Shot platform of the American National Basketball Association, for example, fans can purchase collectable NFTs in the form of video highlights from games.

People are paying the status of being the owner of a specific NFT, which is unique owing to the digital signature, while these highlights are available for free on other platforms like YouTube.

Patches of land in virtual world surroundings, digital clothes, or exclusive usage of a cryptocurrency wallet name are all examples of NFTs.

An NFT is basically anything with any worth or “one-of-a-kind” status that may be minted in the digital world. The list of what counts as a non-fungible token is limitless, including virtual fashion, memes, and domain names, to mention a few.

NFTs have become so popular that Fortune 500 firms and worldwide brands have begun to use them in their marketing campaigns.

How To Buy NFTs And What It Involves

Any digital image can be purchased as an NFT in theory. However, there are a few things to keep in mind before purchasing one, especially if you aren’t particularly tech savvy. You’ll need to choose a marketplace to buy from, a digital wallet to store it in, and the cryptocurrency you’ll need to complete the transaction.

First and foremost, you’ll require a cryptocurrency wallet. There are numerous Ethereum wallets available. However, MetaMask is by far the most popular (which is funded by Ethereum incubator ConsenSys). It allows you to store Ethereum and Ethereum-based tokens after it’s installed.

You’ll need to fund your new crypto wallet, however due to banking restrictions, you can’t buy tokens using Naira cards right now, but NFTs can be purchased with cryptocurrencies, and dollar and pounds dominated master/visacard. People can purchase and trade NFTs on specialized platforms like Mintable, OpenSea, Nifty Gateway, and Rarible, much like they can with cryptocurrencies. The blockchain keeps track of every transaction involving the token.

NFTs aren’t just for digital artwork. They can take many different forms, including music, films, photos, and text, among others. Even tweets can be bought and sold as NFTs if they are unique.

Because of their soaring pricing, NFTs have become highly popular among investors. They can keep it and sell it when the price rises. Some customers sell NFTs the same day, while others retain them for a few days to profit.

Related: How To Buy NFTs in Nigeria 2022

Some Companies That Have Leveraged NFTs

 

NFTs have become so popular that Fortune 500 firms and worldwide brands have begun to use them in their marketing campaigns.

Among the brands that have used NFTs for promotional purposes are:

  1. “Friendship Box” by Coca-Cola. Coca-Cola’s NFT is a multi-sensory experience that mixes metaverse and real-world elements into a single “treasure box.”

The brand released a one-of-a-kind NFT to commemorate International Friendship Day. It comes with four animated, one-of-a-kind digital artworks that unlock surprise goods for the first owner upon purchase:

  • In the Decentraland metaverse, a popular virtual reality platform, you can wear a “Coca-Cola Bubble Jacket Wearable.”
  • The “Coca-Cola Friendship Card,” based on the original artwork from the 1940s.
  • The “Coca-Cola Sound Visualizer,” which features familiar Coca-Cola noises.
  • The “Coca-Cola Vintage Cooler NFT,” a digital recreation of the company’s retro vending machines from 1956.
  1. Asics “Sunrise Red” digital shoe: Asics, a Japanese sports equipment company, was one of the first sportswear companies to jump on the NFT bandwagon.

Limited-edition digital shoes and a “Gold Edition” of one-of-a-kind goods sold directly on the brand’s website are part of the “Sunrise Red” line.

  1. Taco Bell “Transformative Tacos”: Through the NFT marketplace Rarible, the brand released a series of NFTs to celebrate the classic meal. The “Transformative Taco” work was limited to 25 copies and sold out in under half an hour.

Taco Bell blended the digital and physical worlds by awarding the owner of the first “Transformative Taco” a $500 electronic gift card to spend as they like.

Related: Things to consider before investing in NFTs

Possible Problem Of NFTs

Even though NFTs may seem to be the best technology that ensures profitability in art collection, because the sector is unregulated, there is no guarantee of consistent profit with NFTs. Another issue with NFTs is that no one knows how valuable they are. If the enthusiasm fades for whatever reason, investors could lose a lot of money. For many buyers, the technical processes involved in trading the tokens might be intimidating and confusing.

The method of purchasing non-fungible tokens entails paying fees to cover the costs of hugely energy-intensive computer transactions, or mining, required to verify each transaction. Environmentalists have criticized the mining method, claiming that the quantity of energy created by the operation releases a lot of greenhouse gases, causing the globe to heat up. 

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