Cannabis NFTs

NFTs are a very popular topic in the corporate world, but most people are unfamiliar with them. This essay will provide you a crash course on everything you need to know about NFTs, from their worth to their position in the cannabis business. After this article, you’ll be an expert on all things NFT!

Cryptocurrencies History

NFTs are a byproduct of the rise in cryptocurrencies. To understand NFTs, you must first be familiar with how cryptocurrency works.

Cryptocurrencies are digital currencies used to exchange goods and services between individuals through a decentralized computer network. Because cryptocurrencies don’t need approval from government authorities like central banks, they have attracted people with different political philosophies, such as anarchism and libertarianism. To ensure the safety and anonymity of users, most crypto networks use blockchains—a ledger of cryptocurrency transactions kept across numerous computers via a peer-to-peer network.

Utility cryptocurrencies have become widely accepted by both big and small businesses alike. These include companies in the insurance, consumer staples, and watchmaking industries. But where did this newfound love for digital tender start? See a list of key events that kicked off cryptocurrency history:

  • 2008: A paper written by an unknown individual under the pseudonym Satoshi Nakamoto is published, which describes bitcoin, a decentralized type of digital currency.
  • 2009: On January 3, 2009, Satoshi Nakamoto became the first person to ever use cryptocurrency when he sent 10 bitcoins to a programmer. Not long after, people started using their computers to ‘mine’ for bitcoin rather than purchase it outright.
  • 2010: After that, the first bitcoin and real-world trade occurs when someone purchases a pizza for 10,000 bitcoins (now worth about $196 million).
  • 2014: “Tether” is the first stablecoin to be launched. It is based on fiat currency and is linked to the US dollar price.
  • 2015: Ethereum, a cryptocurrency, suddenly appears on the exchange Coinbase.
  • 2016: The United States Securities and Exchange Commission (SEC) was one of the first government institutions to issue a warning about the dangers of cryptocurrencies.
  • 2019: In public, Tesla CEO Elon Musk begins to openly promote Dogecoin, a meme currency.
  • 2021: NFTs become more valuable as cryptocurrency falls to $1 trillion. Let’s explore the connection between NFTs and cannabis now that you have a better understanding of cryptocurrency and its history.

What Is an NFT?

NFTs, or non-fungible tokens, are a type of digital asset. They function similarly to cryptocurrencies in that their ownership is recorded on a blockchain. A blockchain is a digital ledger of transactions that gets updated across numerous computers linked by a peer-to-peer network.

Unlike cryptocurrencies, which can be swapped on a one-to-one basis, NFTs are not interchangeable because each one has unique properties. Cryptocurrency coins all have the same value, but every NFT is individually valuable because of its rarity.

NFTs may be regarded as a sort of in-between real property and digital files, according to some NFT supporters. They say by keeping ownership recorded on a blockchain, they avoid the risk of items being copied and pirated, making NFTs somewhat akin to physical properties but with greater security. An NFT could be anything that can be stored as a file, such as music, artwork, tweets, or even virtual goods acquired in online games.

Who Created the First NFT?

In 2012, even before the invention of Ethereum, Israeli Bitcoin Association Chairman Meni Rosenfeld came up with the idea of “Colored Coins.” The objective was to represent real-world assets through a digital ledger. In 2014, software artist Kevin McCoy made the first NFT. The ownership proof for this digital image called “Quantum” was kept on the Namecoin blockchain.

When NFTs were first created, some people thought they would be without value. Nowadays, many digital assets of this kind have made their creators a lot of money. As an example, in 2021 the artist Beeple sold his collage “Everyday: The First 5000 Days” for $69 million.

OpenSea: Where NFTs Are Sold

OpenSea is the top NFT marketplace for a plethora of categories, including art, domain names , music , photography, sports memorabilia , and trading cards. You can use it to buy or sell any digital item you please!

The Value of NFTs

By nature, NFTs attract creators and collectors because they offer characteristics that not even physical assets can provide. Similar to bitcoin, NFT transactions are incredibly difficult to tamper with due to the documentation of ownership on unalterable blockchains. Not only does this create peace of mind for those involved in the exchange, but it also allows for more customization when swapping assets- all thanks to its decentralized state.

For Artists

Did you know that selling a musical album, piece of digital art, and even a house all have something in common? Yeah, third parties looking to make some easy money. In the non-digital world, record labels, art dealers, and real estate agents get rich quick by being the middleman between buyers and sellers. But what if there was a way to cut out the middleman?

Artists and vendors can now use digital asset trading to their advantage. This decentralized system allows them to break away from third-party intermediaries, which can often be costly. With NFTs, artists can also produce a limited quantity of their work, resulting in scarcity and increased profits.

For Collectors

Naysayers argue that digital assets, such as NFTs, are not physical and therefore cannot be hung above a fireplace. However, the market’s reaction speaks for itself.

The growth of cryptocurrency has demonstrated that consumers appreciate digital assets, in part owing to the technology that secures them, limits them (in most cases), and makes sending and receiving them simple. The same may be said about NFTs, but they come with a unique benefit for collectors. NFTs that are based on the blockchain have a limited supply and their ownership is recorded on the blockchain, which makes them many times more valuable than physical copies.

For Business

NFTs have changed the digital assets scene by allowing for new marketplaces and opportunities for businesses. With NFTs, not only can you establish proof of ownership, but also attendance and live engagement. This is particularly useful for events like festivals where engaging with the audience is key. Additionally, NFT contracts can ensure that original creators are compensated when their work is resold in the future.

NFTs: How Are They Useful?

NFTs have a wide range of applications. Not to mention, cryptocurrency has already demonstrated that digital assets aren’t only practical; they’re also very valuable (although their value does tend to fluctuate). Below, see some of the most alluring NFT markets currently available to get an idea of how NFTs can be advantageous or possible in our day and age.

1. Graphic Art

Artwork is the second most popular NFT, and while you can’t hang an NFT on your wall like a physical painting, they’re just as lovely when displayed. You won’t be able to steal, lose, or damage valuable art NFTs in today’s world! Artworks that are both rare and expensive abound these days, including simple yet costly cartoons of ape and cyberpunk artists to exquisite pieces of fine art and stunning digital masterpieces.

2. GIFs

Non-fungible tokens, or NFTs, are digital assets that each have their own set value and cannot be traded for other assets. This makes them perfect for businesses seeking exclusive rights to certaindigital products, as well as graphic designers lookingfor a new revenue stream from turning their GIFs intoNFTs.

3. Videos and Sports Highlights

NFTs are incredibly popular right now and for good reason. The NBA just launched their Top Shot product—a blockchain-based trading card system that allows users to buy and trade digital cards featuring NBA highlights and artwork. So far, a LeBron James highlight has been sold for over $200,000. As more sports organizations join the fray, this market is expected to explode.

4. Collectables

One of the most appealing aspects of NFT collectables is that they are often valuable as soon as they are released due to the low quantity available. Furthermore, the ownership can be securely proven with blockchain technology, meaning that collectors don’t have to worry about fakes or counterfeits.

5. Virtual Avatars and Video Game Skins

NFTs have the ability to modify the value of tangible items and assets, but others function well in existing digital markets. Virtual avatars and video game skins are two examples of virtual objects that are becoming increasingly popular among internet gaming communities. Reddit has just launched an NFT avatar marketplace as a demonstration of how widespread NFTs may be online.

6. Designer Sneakers

You can’t wear NFT sneakers or carry them. Despite this, demand for them has continued to rise. NFT sneakers are just like playing cards and other collectibles in the sense that they’re attractive and highly desirable on digital markets. The typical price of a pair of NFT sneakers is between $6,000 and $10,000. Prepare to spend up to $20,000 on some pairs if you want some CryptoKicks (a Nike product).

7. Music

NFTs have the potential to improve digital music, which has been illegally copied and shared for many years. NFTs give musicians more control over their work and how it is distributed. Some artists are releasing limited editions of albums, while others are providing audio-visual packages with only a few copies available.

8. Authentication

Serial numbers have long been used to track customer purchases and prove authenticity, but NFTs are a much more secure way of doing so. With an NFT, you can match a wallet number with the product (say, a ring) and the corresponding serial number using blockchain technology. This is much less likely to be forged than a paper certificate.

NFT Controversy

NFTs have been surrounded by controversy since their inception, with many people arguing about their merits and drawbacks. Below, we take a look at the main points of contention.

Buyer Fees

Although Ethereum-based NFTs may be traded without charge, they are always subject to “gas” fees, which are a fee that it takes to execute a transaction on the Ethereum network. However, certain users consider these costs to be exorbitant enough that they might stifle future development in the sector.

Plagiarism

NFTs are expensive to create because they require the use of a computer. When minting NFTs, artists must pay gas fees. Despite these increasing costs, artists have discovered imitation NFTs on certain trading platforms, which has raised fears about the security of their work.

Fraud & Security

Unfortunately, scams are all too common in the world of NFTs. There have been many reports of buyers losing their digital wallet credentials to scammers, resulting in significant financial losses. The digital asset space as a whole is still quite new and unregulated, which makes it fertile ground for fraudulent activity. According to a security company named Privacy HQ, 90% of survey respondents claim they have experienced some type of scam.

How Are NFTs and Cannabis Related?

With NFTs becoming more and more popular, it’s no surprise that the cannabis industry has decided to jump on board. Here are some of the most promising projects in the sector.

Crypto Cannabis Club

Crypto Cannabis Club is an online community for cannabis connoisseurs and digital art enthusiasts. The platform sells cannabis-themed NFT art, metaverse property, and also offers play-to-earn games.

The Medicine Man Cannabis Cooperative is an excellent example of how NFTs have the potential to take off in the cannabis sector. They not only provide digital items for sale, but they’re also helping to grow the community around marijuana and this new technological innovation. They run a Discord group dedicated to welcoming newcomers into the ecosystem, and they assist experienced NFT collectors in creating MetaMask crypto wallets.

Blazed Cats

With so many ape NFTs on the market, Blazed Cats offers a new take on digital artwork with its 10,000-strong collection of hand-drawn and randomly generated cats. These stoned felines come in all sorts of shapes and sizes, sporting unique traits and accessories like joints between their toes or circular-frame sunglasses. So if you’re looking to add some abstract pieces to your NFT collection, be sure to check out Blazed Cats!

BitCanna

BitCanna is not only a cannabis cryptocurrency, but it offers utility that other transaction platforms lack. Many companies, such as PayPal and credit card companies, avoid doing business with the cannabis industry to stay on good terms. BitCanna provides a way for businesses and customers in the cannabis world to exchange money without issue.

The BitCanna project, on the other hand, has expanded beyond bitcoin and into the NFT market. The team created BitCanna Buddheads, a set of 8,420 digital collectibles that include 420 freebies as a promotional effort. Buddheads aren’t only attractive; they also serve as digital entry passes to the BitCanna community and beyond. Currently, BitCanna is partnering with industry leaders such as Royal Queen Seeds to assist newcomers get started in the NFT and cryptocurrency markets.

Digi Strains

Rather than collecting Pokémon cards, what if you could own legal digitized weed strains? With Digi Strains, created by The Peakz Company, this is now a possibility! These 3D creations are the first digital cannabis strain collection to ever hit the blockchain. They can be displayed in your virtual home once you purchase them. They are currently selling for around 0.03 Ethereum (which equals approximately $50).

The Future of NFTs in Cannabis

NFTs have been used in a variety of ways. In the case of art and games, they’ve so far focused on the cannabis industry. However, they may play an even bigger role in the future. Could NFTs help breeders to secure and sell their genetic rights? Could seed banks release NFTs alongside restricted quantities of seeds to create incredibly rare, expensive, and unique strains? Only time will tell if cannabis and NFTs are a good fit.

Cannabis, like tobacco and other drugs (dope), is highly addictive and harms the brain. Even if cannabis was not legal, there are plenty of places where you could get high in an air-tight room or vehicle. The exhaled smoke and smoke from the joint, pipe, or bong are unable to escape, are trapped inside the space where they’re breathed in instead of being wasted.

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