Article number eight of a series of blog posts. As a heads up, I don’t claim to be an expert, I don’t have a Fidenza, nor a Bored Ape and at that I’m not a Cool Cat. I am a market participant who has been in a handful of discord servers, minted many cool NFTs, engaged with numerous artists, etc. At the end of the day, I identify as an artist, a designer, and somewhat of a marketer.
It’s through these lenses that I intend to shine some light on artists, developers and creators to provide some insight or behind the scenes into how their journey has been so far. Through learning from each other, by trial and error, I believe we can create an even better space for years to come.
This is where things get very exciting.
Ethereum is the second largest cryptocurrency network, right behind Bitcoin. With Ethereum, you have the ability to create decentralized applications using unstoppable code called Smart Contracts.
Smart Contracts adds a new dimension of what value on the internet can do, because money can be programmed to do whatever you want. The future of internet ownership will allow you to sell your video game assets for money, meaning the consumers of the content get to benefit, not just the creators. But it doesn't stop there…..
DAOS (Decentralized Autonomous Organization)
Ethereum & Smart Contracts allow the formation of DAOs, standing for Decentralized Autonomous Organizations. In a DAO, people pool their Ethereum together to act as a decentralized collective of like minded individuals, making decisions for the betterment of the collective. Some of them act as charities, non-profits, or even full blown companies. In recent news, a DAO was created to buy a rare copy of the United States Constitution. Within 72 hours, they raised $47,000,000 in ETH from people around the world, a crowdfunding record.
NFT's (Non Fungible Tokens)
Just like there's hundreds of Instagram accounts that speak to your interests, there will be hundreds of NFT projects that speak to your interests. What you spend your money on is a bigger show of who you are than what you post on Instagram, so the connection you make through purchasing NFTs can be deeper, quicker, than connections you make on current social media apps.
NFTs Will Change Video Games Forever
Another major use case we'll see play out over the next few years is NFTs in video games. Right now, items you unlock have to stay inside the game, and when the new version of the game comes out, your progress is lost and you have to start over.
Imagine you get to own the items you unlock, trade them with other players, or even sell the items for real money when you're done playing the game. This means you can earn money playing video games simply by unlocking items and selling them to other players. Additionally, an NFT you unlock can be ported into other games, giving the item totally different abilities in other games.
Metaverse
This digital ownership will translate into the metaverse, a virtual space where people spend time socializing, playing games, and hanging out with their friends.
Talk to any elementary school kid, and they're already doing this in Minecraft, Roblox and similar games. To see where the future is headed, look for what kids are doing. They fully understand the idea of buying virtual skins in video games and they already socialize with friends in role playing video games. In the metaverse you'll be able to own the digital items and show them off to your friends, or anyone across the entire world, finding 'your people' with similar interests easier.
POAPS (Proof of Attendance Protocol)
Digital ownership allows for real life achievement hunting, kind of like geocaching, but for online & physical events. One tool is called POAP, or Proof of Attendance Protocol. You use your Ethereum public address to claim your POAP and show that you attended an event, completed a quest in a game, or any other reason the creator of the POAP allows you to collect.
Since this is my very first article I've every written, I'm releasing a POAP that's free to claim! Think of it like a collectable that proves you read this far. It probably won't have any value in the future, but owners of the POAP might get something cool in the future…..
Fractional Ownership Of Physical Property Another example the Ethereum asset infrastructure allows is the digitization of physical property. If you own a rental property, you can raise funds through a crowd sourced token sale. The people who invest in your token gain a fraction of ownership in property, and in return, they get a token representing their ownership.
Anyone who owns a token gets a percentage of the rent money every month. When the landlord does this, they essentially do a cash-out refinance of the home via a worldwide pool of crowdsourced money, and they can use the funds raised to buy another rental and repeat the process.
This fractionalized ownership isn't limited to just real estate. ANYTHING can be fractionalized. A business, sports cards, collectables, physical art...
Ethereum allows the ownership of virtual private property on the internet. Ethereum and similar cryptos cut out the middleman. The artists that host their music on Spotify earn pennies on the dollar compared to the money Spotify makes from it.
With Ethereum, you can create an NFT of your album, sell it to your fans, and all that revenue is yours, and yours alone. From there, every time your NFT is resold, you can earn a cut of the resale forever. The best part is those that buy are your biggest believers. As you succeed, they directly benefit alongside you.
Earning Interest On Coins You Own
On Ethereum, there's websites that allow you to lend your Ethereum to anyone in the world and earn interest, anywhere from 5% APY, 20% APY, and even 6,000% APY. This form of interest bearing revenue has always been exclusive to high net worth individuals and banks, but now anyone can earn decent interest on the money they own.
Ok, so that's a lot of examples I listed off. Get up, drink some water, walk around and use that time to digest what the world of digital ownership can mean for you. These examples are the early examples of what a global, borderless, decentralized, permissionless asset infrastructure can do. Remember, we're still in the email era of this technology, and the social media era of online hasn't even been imagined.
If this article sparked your interest, and you're looking to take action, I would recommend buying some crypto of your choice. Start small, and see how you feel watching the price fluctuate up and down. Do more research, buy some more, and look for areas of the crypto space you can see yourself succeeding in.
If you’ve enjoyed this, feel free check out my website Prince of Cavan Creations or to follow me on the social medias, where I can be found under @princeofcavan. As always, let me know your thoughts!
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