Internet Revolution Web3: Meeting NFTs
Internet Revolution Web3: Meeting NFTs
We are witnessing the start of a revolution in the last couple of years. Web3 ushers in a new era. I closely follow the returns of this era and what awaits us. With this revolution, questions like “What is Web3? What is NFT, and how can you create a successful NFT project?” have appeared in our minds. Today, I’ll answer these questions from my side, and I hope I can make them clear throughout this article.
What Are Web 1.0, Web 2.0, and Web 3.0?
Before trying to understand what Web3 is, it’s essential to understand Web 1.0 and Web 2.0. Eventually, like the others, technology develops with an eclectic and cumulative discipline. So, how did this whole process start?
Web 1.0
Web 1.0 provides access to information as the first step on the internet. It was created to help people find information more easily. This version is focused on users looking for data. It’s sometimes called the "read-only Web" because it doesn’t contain the necessary forms, visuals, controls, and interactivity we witness on the Internet. In Web1.0, users are positioned as more "passive."
Web 2.0
We can say that Web 2.0 is the current internet order that we encounter in our daily lives.
This form of internet emphasizes user-generated content (UGC), ease of use, interactivity, and improved compatibility with other systems and devices. This Web form was meant to create communities, collaborations, dialog, and social media. As a result, Web 2.0 is a form that’s recognized as the primary form of web interaction for most of today's users. The internet has become a new communication and marketing environment and even a habitat with Web2.0.
Web 3.0
Firstly, I should indicate that Web3 still has a way to go. Of course, it’ll mature and develop. Web3 is built from core ideas such as decentralization, openness, and greater user utility. Web 1.0 is the "read-only Web," Web 2.0 is the "participative social Web," and Web 3.0 is the "read, write, execute Web." There are some fundamental differences between Web 2.0 and Web 3.0, but decentralization is both the most apparent commonality.
I’d like to convey the three evolutionary concepts that Web3 offers us:
Open - Open source software will become the foundation of content platforms.
Trustless - Network protection will expand to the broad ends, and usage will be replaced with Zero Trust by everyone.
Distributed - The interaction of devices, users, and services used will not depend on authorization by an authority.
Even if Web 3.0 couldn’t mature enough because of today’s technological limitations, we can say that Web3 is shaped by concepts like “owning, decentralization, and new world.”
All these concepts lead us to the internet's unique and unchangeable world of NFTs.
What Is a Non-Fungible Token (NFT)?
Before explaining a non-fungible token, it also helps to explain what a fungible token is. Fungible items are not unique. Their valuations are specific and can’t be changed. $1 is always equal to $1. Likewise, 1 Bitcoin is always equal to 1 Bitcoin.
In contrast, non-fungible items can’t be changed, and there’ll never be such an equation of 1 NFT = 1 NFT. For instance, would you trade a Madonna concert ticket with Metallica’s and appraise the same value? I don’t think so.
NFTs are built through blockchains. Imitating NFTs with blockchain technology is nearly impossible. Again, through blockchains, "buying and selling" can be done without being dependent on an institution. While crypto tokens are mainly used as currency, NFTs are used as proof of ownership over digital items. NFTs can appear in many areas such as music, art, in-game items, etc. Among these various fields, currently, the hype is around selling digital art. That’s one of the top reasons why NFTs are becoming popular in the digital art form.
Various digital goods like artwork, game items, and photos or videos from a live stream can be tokenized. Different marketplaces consist of those digital goods – for instance, Opensea is among the largest NFT marketplaces. According to the latest news, we learn that eBay has also purchased an NFT marketplace, KnownOrigin.
I’d like to mention NFT projects and their selling prices that made everyone ask, “What’s this NFT that everybody talks about?” If you recall, my journey started similarly.
Jack Dorsey, co-founder, and CEO of Twitter, Twitter’s very first Tweet ever = $2.5 million
Beeple’s Everydays: The First 5000 Days, = 69 million
Yuga Labs’s 101 Bored Ape Yacht Club = $24.4 million
CryptoPunk #7523 COVID Alien by Larva Labs- sold for $11.7 million
RAREPEPE collection = $500K
The Short Story of the Bored Ape Yacht Club (BAYC)
The story of the Bored Ape Yacht Club, a project of Yuga Labs, is one of the projects that’s an excellent example for the NFT world. I also closely follow their process. So, what’s that Bored Ape Yacht Club?
Yuga Labs was founded in February 2021 in Delaware, United States of America. The company is known as the owner of BAYC, the largest and most profitable NFT project to date.
Bored Ape Yacht Club (BAYC) is a collection where each owner gets a unique cartoonish ape character and access to a private community. BAYC is a collection made of 10K NFTs.
It’s evident that BAYC is a game changer. It has reshaped the way NFT creators present their promises for collections. The total sales value of this NFT project until today is worth over $3 billion.
I’ve already mentioned that BAYC consists of 10K unique artwork (Bored Apes PFPs). This uniqueness/proof of ownership is owed to blockchain technology, and no one can ever have your piece of art (unless you don’t authorize the transfer or get it stolen). In this context, BAYC aims to highlight this uniqueness to be used as profile pictures (PFPs) by the owners. Our profile pictures are a status symbol now in the NFT world. For instance, names like Justin Bieber, Jimmy Fellon, Paris Hilton, and Neymar have a piece from the Bored Apes collection and are showcasing them on various occasions. Also, the status symbol drives the price. Since it is a scarce asset, the more people hold the assets (don't sell), the higher the demand, and in parallel to that, the higher the price.
Hey Metaverse: Otherside
Yuga Labs, which received a $450M investment with the fantastic project I mentioned above, made a rapid entry into the Metaverse. They have implemented their new Metaverse project, Otherside. They will use their own tokens named Otherdeed NFT (OTHR Token). Here, each NFT represents a metaverse land token so that each one allows users to acquire land. As you know, there’s been considerable interest in token sales. Luckily, they reserved a place for people with NFTs from the company's other projects. Yuga Labs' NFT projects have become even more sensible with Otherside. If you follow Yuga Labs' projects closely like me, I think you won't regret it.
Additionally, I think the sense that “exclusive community” creates contributes to the success of Yuga Labs. People always care and look for a sense of belonging. Therefore, joining such communities has been important for hundreds of years. Twenty years ago, being in a golf club was a thing, whereas today, it's all the rage to be in the Bored Apes Yacht Club.
To Sum Up
I simply wanted to explain Web3, NFTs, how they are used, and why they are successful in this article. It’s a long story to explain all these topics. I’ll be more specific in the upcoming articles. Please comment below on the issues you’re curious about, and don’t forget to subscribe to my newsletter not to miss anything!