4-Ways to Earn Passive Income from NFTs.
-Is it Safe to Invest in NFTs
NFTs have taken over the world, especially the tech industry by storm. Be it gaming, music,
fashion, or even in the food industry, NFTs are everywhere! Meta, Reddit, and Twitter are also
stepping in with NFTs. However, it is not wrong to say that non-fungible tokens are yet to
explore their full potential.
With the new buzz and uncertainties in crypto, Investors are betting big on NFT as it creates an
opportunity for budding NFT startups. So, does NFT has safe growth in the future? Would
buyers be able to generate passive income using NFTs? Let’s Find out!
Blockchain technology is the main building block for NFTs. With the launch of Metaverse and Reddit, many businesses rolled into the bandwagon. However, the user’s fear of financial loss due to crypto’s volatile past was handled using Blockchain.
What new NFT trends we will see in 2022 and beyond?
NFTs can lead to endless potential applications; Legal firms can replace legal documents with smart contracts, with the inception of Metaverse, many tech giants like Facebook and Google are launching their virtual reality. Therefore, it is safe to say that NFTs have a definite future in the coming time.
How to make a passive income in 2022? Here are 4 top listed trends you can see and decide on how it is safe to invest.
1- NFT Gaming:
Blockchain technology with NFTs has massive potential for growth for the Gaming industry. Games like Blankos Block Party and Axie Infinity are making waves with the latest ‘Play to earn’ models, and are making real money for gamers. This trend has gained exploded popularity, especially in the third-world countries of course, who do like to play and earn.
Now, you may want to know that which gaming platform has the most aptitude? It is the Axie infinity, the P2E game inspired by Pokémon. What is the game about? It is based on buying, breeding, and training Axies for battle. The Axies are NFTs and in battle, winning a love potion means you are winning NFTs. What is the real deal here? Players can sell this love potion on the secondary market for real money. Yes! you can earn every day playing at home; just learn how to master this game.
Since Metaverse doubled user expectations, the gaming industry is levitating with the feature of not just playing outside the game but the player can now be ‘In the Game.’ Metaverse, being the new virtual world, this realm needs to offer safety, interoperability, and privacy.
That is where NFT steps in
Metaverse is as real as the physical world but has custom digital design as per consumers’ needs. You can create your own neighborhood in the digital world, interact with different users and even go shopping, NFTs will serve the same purpose for you in the virtual world as in the real world.
What drives the value of an asset, is its utility and scarcity. NFTs serve both Leading Metaverse companies, Sandbox and Decentraland is tokenizing everything for VR headsets to Real Estates buyers and by the look of it, Twitter is also preparing to launch a service for artists to sell their art in NFTs-becoming a new hashtag on Twitter
2- Digital Twin NFTs
All consumer products will have their digital twin in the next ten years – as claimed by Tether co-founder, William Quigley.
So what’s a digital twin and how does it belong on this list?
A digital twin is a digital copy of the physical asset or product. You might ask why you would need an NFT when you already have it in physical form OR are you sure that you have a real product? So, the answer is that NFTs or digital twins with any product are the guarantees that it is original.
For the year 2020 only, 3.3% of trade products were identified fake- in the world trade, even the paintings in 40% of museums are fake. The auctioning industry has had a special interest in its target audience, but the buyers do not know if they are paying for the real product or not!
When paying a hefty amount, you deserve to get an original product but the real world products are always doubted in that sense, especially when purchased by resellers!
Surely the Nike Luberto shoes you just got from eBay may look like Nike, but are you certain that they are? But now you can be sure of it because Nike is selling minted NFT with their shoes. Hence, If you buy a pair of Nike shoes, you will not only get the actual product but a digital twin too! If you want to resell the same shoes in the future at a good price, just show it’s NFT, and the buyer will know that they are paying for real Nike Luberto.
3- AI NFTs
AI has been a major disruption in the tech industry, alongside Blockchain. A combination of two should not be surprising for you.
The first trend that changed the perception of buyers is, AI creating NFTs. It is not a new phenomenon however gained recent recognition due to the biggest revenue generated in 2020 (over $6,00,000, for artwork created by AI called GAN at Christie’s). Introducing AI has supported the worldwide acceptance of NFTs. Imagine explaining this to an art lover, they will be mind blown that they never knew the authenticity of the artwork!
iNFTs is the second major contribution of Blockchain and AI. Realizing the lonely scenarios of pandemics, iNFTs are given an AI personality and they can be your companion without annoying you during the lockdown. You can even plan for a good weekend with an iNFTs, if you have no family or friends around.
Alethea AI is driving the iNFTs phenomenon. Though it may take a couple of years to become common, it could be useful for the elderly as well as patients with mental health issues.
4- NFTs and Finance
The sales volume for the third quarter of 2021 was an estimated $10.7 billion. This kind of revenue cannot be generated without getting the attention of the financial world. The value of NFTs is worth billions of dollars but it is not something like Real Estate property that you can hold on to for long durations. You need to keep selling and buying NFTs, to keep the assets fluid and thus increase your revenue.
Let’s say, you have million dollars in NFT but zero in your bank account and you identify an opportunity to invest in the real world. Services like ‘Drops‘, let you take a loan by putting NFTs as a mortgage. Think of it as leverage or as collateral.
The industry of cryptocurrency and decentralized industry is booming, NFTs have a seat at the table!
Scaling Blockchain, Scaling the Websites
Scalability is the emergent need in tech 2022. The way cryptocurrency and NFTs are becoming common and in demand, it is feared that Blockchain will not be able to handle the increased transaction volume and data storage. Just like Blockchain, websites, mobile apps, and servers are not designed for infinite scalability. Websites have a limited capacity, NFTs are soaring and need additional space to manage each data transaction.
The NFTs sites are flooding and people believing in safe and hassle-free solutions may never accept the downtime of the website. What is the probable solution.. virtual waiting room? When the website is receiving maximum users requests, the incoming requests can be redirected to the branded waiting room on another server using standard HTTP 302. Users are in sequence stacked back to the website, supporting websites to control the traffic and offering a seamless user experience.
The future of NFTs is bridging a gap between the consumers and creators, giving security and value to a digital asset, and this, either for better or for worse, will shape the economy.
The future of NFTs is promising, many people are looking for safe passive income to survive through pandemic crunch and stay safe using reliable remote services.
Interested to learn more about how to bootstrap your startup? Get in touch with us at DIVSYNC.