The name, Non-Fungible Token, may seem confusing to many people because this term has been utilized to describe a multitude of different tokens that all have their own unique features. Early on in the creation of these tokens, they were mostly only very limited production “collectibles” on ethereum's blockchain. With the incredibly fast-paced nature of the blockchain and crypto space, I am quite amazed by how few people know about these NFT’s and their many uses. While I am sure many individuals who regularly read up on blockchain-related events have seen the incredible prices that various NFT artwork pieces have sold for. Where the unique nature of these tokens have only recently started being explored by quite a large amount of new and seasoned projects alike.
This article is a follow-up to and continuation of the recent article written by fellow Cryptowriter @losmontana9 on Voice or on Publish0x as Tavio-Cryptowriter in which he discusses the world of Virtual World of Property Ownership, and the platforms that offer such services. Since the utilization of NFT’s is spread far and wide and are continuing to find new uses within projects we both knew that it would take some extra effort and time to cover all the incredible possibilities. With my experience utilizing NFT’s in different DeFi projects and several gaming projects, this will be the focus of the article.
Decentralized Finance and NFT’s
The rabbit hole is just beginning when we take into account just how new decentralized finance is compared to cryptocurrencies in general, it is in its infancy and has a great deal of maturing still to do. However, with this maturing comes to the natural process of experimenting and failing, then more experimenting, learning, maturing, and evolving. This experimentation is occurring right now with the utilization of NFT’s in Decentralized Finance projects and the segment continues to grow. The launch of Binance Smart Chain was a saving grace for DEGO, Alpaca City, and Bounce Finance just to name a few DeFi projects that are structured around the use of NFT’s. The reason I say this is because without the ability to quickly launch on BSC the outrageous gas fee’s on ethereum would essentially make these projects pointless, especially considering the cost of using a smart contract for an NFT is far higher than just sending an ERC token. As some of you may have read before, I am a fan of the DEGO project and have been participating since they launched on the Ethereum network; Therefore I will be discussing my personal experiences with the DEGO and Alpaca City projects.
For those that haven’t read my DEGO articles (Project Overview, Project Collaborations) the project describes itself as a decentralized digital LEGO financial platform that utilizes limited NFT’s for mining their DEGO token. They have also been the go-to project for NFT mining by having collaborations with various other NFT based projects that have launched on Binance Smart chain. The most recent collaboration was with Alpaca.city Finance where you had the ability to use DEGO to cast ALPACA NFT’s that were then utilized in the special ALPA token mining pools on the DEGO platform. Before this, the project's first collaboration was with Bounce Finance, which is a DeFi project that has decentralized NFT auctions as its central purpose and utility. A statement directly from Bounce Finance states, “Bounce is a decentralized auction platform, creating a competitive swap environment based on the principle of scarcity of resources. The Bounce platform incorporates liquidity mining, decentralized governance and staking mechanisms.”.
While all three of the mentioned DeFi projects utilize Non Fungible Tokens, they also have three entirely different and unique methods in which the NFT’s are used in the project. For comparison, DEGO utilizes a pretty standard mining process in which mining picks are purchased with BNB or ETH (if you like high fees) and then you can stake your pick to mine DEGO tokens, Bounce is a bit more traditional in the sense of staking the BOT tokens and merely being an auctioning project for all NFT’s, and in my opinion, the most unique of them all is Alpaca City. The only reason I say that is because unlike DEGO where you cast new NFT’s, you actually have to have two Alpaca’s and breed them to have Alpaca babies. Once you have even just one Alpaca you can put them in your Alpaca squad and this is where your squad earns you ALPA tokens. Not only do you breed Alpaca’s but you can stake the ALPA tokens or recycle an Alpaca and earn WOOL tokens which can be used to purchase other Alpaca’s.
Although I only covered a couple of projects in this article, I prefer to write about something that I have had personal experience with to be able to provide the best possible information from multiple points of view. There are far more projects out there that utilize NFT’s in other unique ways that I did not cover, but a few examples are CryptoPick who you can find here @Cryptopick on Publish0x, or the Cryptopick Website, then there are KOGS (keys to other games), and even new old school Street Fighter Trading Cards. There is so much more out there that has yet to be discovered but for anyone interested in one of the best places to get started with NFT’s, the place to go is without a doubt WAX that is based on the EOSIO blockchain so minimal to no fee and a multitude of NFT’s and related Dapps.
Thank you for taking the time to read my article! Please comment if you have any questions or suggestions for me!
~ Trever Russell
I am not a certified financial, tax, or legal advisor, analyst, or planner. The above information should not be considered advice but as an opinion intended to share information and ideas for entertainment and independent research purposes. Cryptowriter and its writers are not responsible for any losses or damages incurred as a result of misinterpreting personal opinions for professional advice.
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