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Category: Inscope

What You Need to Know About Non-Fungible Tokens (NFTs) and Why They're Booming Worldwide?

Written by : Jaqueline Susanto

 

NFT stands for Non-Fungible Token. It’s an alienesque term that seems unusual to say out loud, but you can think of them as a digital certificate of authenticity.

Before we go too far, let me first explain the difference between The Fungible & Non-Fungible Token.

Fungible means it can be swapped for something else. So just like a ten dollar USD note is pretty well the same as the next ten dollar USD note, one bitcoin or BTC is the same as any other BTC. They are identical for all intents and purposes and can be swapped for each other — they are fungible.

Non-fungible, by contrast, essentially means unique. This is a one off item and whatever it contains, art or anything else, cannot be easily replicated on that blockchain. NFTs are Non-Fungible Tokens. In real life — classic works of art, antiques, and other historical items are often sold at auctions with a receipt certifying that they are genuine.

NFTs contains built-in authentication, which serves as proof of ownership.

NFTs are giving more power to content creators than ever before, powered by smart contracts on various blockchains. It’s a way to represent anything unique and seems to have exploded out of the flexibility offered by Ethereum — based smart contracts this year.

 

From art and music to tacos and toilet paper, these digital assets are selling like 17th-century exotic Dutch tulips to Lebron James Dunk Holo MMXX ( Series 1) for millions of dollars.

On 19th February, an animated Gif of Nyan Cat — a 2011 meme of a flying pop-tart cat — sold for more than $500,000 (£365,000). A few weeks later, musician Grimes sold some of her digital art for more than $6m. It is not just art that is tokenised and sold. Twitter’s founder Jack Dorsey has promoted an NFT of the first-ever tweet, with bids hitting $2.5m.

Even celebrities like Snoop Dogg and Lindsay Lohan are jumping on the NFT bandwagon, releasing unique memories, artwork and moments as securitized NFTs.

NFTs serve the same purpose as the aforementioned authenticity certificate but are primarily made for digital items. They allow GIFs, videos, jpegs, mp3s, and just about any other file format to be certified as one-of-a-kind. This technology enables a new kind of “ownership” for digital files that wasn’t previously possible.

 

NFTs can be purchased, collected, sold, and even destroyed just like physical items. Thanks to the Blockchain, they come with a transparent transaction and pricing history visible to anyone with an internet connection.

The process of turning your work into an NFT is known as “minting” which refers to the act of creating a new token on the Blockchain that will forever be attached to that content.

When an artist mints a new NFT, they can even attach a built-in commision (usually 10–30%) that they will receive any time that work is resold in the future. Digital art, songs, memes, recipes, and even entire startups are currently listed for sale on NFT marketplaces. There are currently very few restrictions as to what kind of content can be “tokenised” and turned into an NFT.

 

They are bought and sold online, frequently with cryptocurrency, and they are generally encoded with the same underlying code-base as many cryptos.

Although they’ve been around since 2014, NFTs are gaining notoriety now because they are becoming an increasingly popular way to buy and sell digital artwork. A staggering $174 million has been spent on NFTs since November 2017.

NFTs are also generally one of a kind, or at least one of a very limited run, and have unique identifying codes. Essentially, NFTs create digital scarcity.

 

Anyone can view the individual images — or even the entire collage of images online for free. So why are people willing to spend millions on something they could easily screenshot or download?

Because an NFT allows the buyer to own the original item. Not only that, it contains built-in authentication, which serves as proof of ownership.

Collectors value those “digital bragging rights” almost more than the item itself. Each has a digital signature that makes it impossible for NFTs to be exchanged for or equal to one another (hence, non-fungible).

Blockchain technology and NFTs afford artists and content creators a unique opportunity to monetize their wares. For example, artists no longer have to rely on galleries or auction houses to sell their art.

 

Instead, the artist can sell it directly to the consumer as an NFT, which also lets them keep more of the profits. In addition, artists can program in royalties so they’ll receive a percentage of sales whenever their art is sold to a new owner. This is an attractive feature as artists generally do not receive future proceeds after their art is first sold.

Taco Bell’s NFT art sold out in minutes, with the highest bids coming in at 1.5 wrapped ether (WETH) — equal to $3,723.83 at time of writing. However, art isn’t the only way to make money with NFTs. Brands like Charmin and Taco Bell have auctioned off themed NFT art to raise funds for charity.

Keep in mind, an NFT’s value is based entirely on what someone else is willing to pay for it. Therefore, demand will drive the price rather than fundamental, technical or economic indicators, which typically influence stock prices and at least generally form the basis for investor demand.

 

All this means, an NFT may resale for less than you paid for it. Or you may not be able to resell it at all if there is no demand for it.

NFTs are also subject to capital gains taxes — just like when you sell stocks at a profit. Since they’re considered collectibles, however, they may not receive the preferential long-term capital gains rates stocks do and may even be taxed at a higher collectibles tax rate, though in the USA, the IRS has not yet ruled what NFTs are considered for tax purposes.

Bear in mind, the cryptocurrencies used to purchase the NFT may also be taxed if they’ve increased in value since you bought them, meaning you may want to check in with a tax professional when considering adding NFTs to your portfolio.

That said, approach NFTs just like you would any investment: do your research, understand the risks — including that you might lose all of your investment value— and if you decide to take the plunge, proceed with a healthy dose of caution.

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WadzPay.com is Driving Financial Inclusion whilst enabling broader acceptance. WadzPay will become THE DEFAULT Digital Payments Processor. We will build direct relationships between Financial Institutions (FI)/non-bank Financial Institutions (NFI), merchants and consumers. The WadzPay token WTK is available on Bitmart now.

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The Impact of Blockchain & AI Technology to the Marketing Industry

Written by : Renda Haniefa

 

Technology has been evolving rapidly in the last few years, it has been used to fill in the gap as a problem solver for many disciplines from business to health sectors. When it comes to marketing, technologies give multiple benefits and efficiencies to identify and to assess customers better (“Martech”).

Most of the time Martech is using AI driven and blockchain technologies that give capabilities and benefits for business to deep dive on consumer behavior, provide efficiency, transparency, in real time manner which led to end results for business to save cost and secure consumers’ data.

When it comes to marketing, technologies give multiple benefits and efficiencies to identify and to assess customers better (“Martech”)

 

How does blockchain technology actually impact the marketing industry in the bigger picture?

 

  1. Authenticity & Transparency

When it comes to digitalisation: data breaches and cyber-crime are the monsters in the digital world. Consumer and businesses are protective with their databases, no one wants to compromise on data security. Entering the digital marketing era, in order to know your customer or so we called it KYC, customers provide significant personal information regarding themselves to businesses and each of these customers have the rights to know how all those data to be used and accessed.

By using blockchain technology, it has the capabilities to verify authenticity of each user to determine the real audience. It is a game changer, causing companies to save more money on their marketing budget due to its efficiency, especially when it applies to digital marketing advertising spend.

2. Data Protection

Due to its technological enhancement, currently Blockchain is the most secured and advanced innovation for data protection. Blockchain technology offers encryption and validation on their networks. According to Raturi, “Blockchain is the best way to secure the data of the shared community.

Utilizing the capabilities of the blockchain nobody can read or interfere with any sensitive stored data” (Raturi, 2020). For instance, in the marketing industry CRM stores lots of consumers’ personal information. Hence, using blockchain technology will save business from data theft headaches, at the same time it can boosts company or business credibility for having secured data storage.

3. Relevant Advertising Content that is Cost Effective

When AI driven technology is combined with Blockchain capabilities, this dynamic duo can be beneficial for advertisers or business. This is because of several reasons:

  • Once a company or business has done their KYC process and stores their consumers’ data securely, AI technology is able to read their consumer behavior, giving advertisers options to provide and to display their audience with the right content ads which means zero marketing waste.
  • Since blockchain technology has the ability to verify the user, there will be no spam click ads for the advertisers, again resulting in cost efficiency.

Thus, the company will be more efficient, precisely targeting their consumers with more tailor-made content ads for each segmented audience based on their user behaviour.

In conclusion, based on my professional experience for almost 10 years working in the marketing industry, seeing how technology has impact marketing itself, it is mesmerising. Especially in APAC market where most of the countries are emerging with high populations, Martech and blockchain have big potential to grow in the nearly future.

The key challenges are to educate businesses or companies to use AI & blockchain technology and consider them as long-term investments because at the end of the day, these technologies will save them from total headache especially, currently the trends after COVID 19, all business plan to go digital.

AI & Blockchain technologies are something they should consider to have in order to leverage their business as well as maintain credibility.

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WadzPay.com is Driving Financial Inclusion whilst enabling broader acceptance. WadzPay will become THE DEFAULT Digital Payments Processor. We will build direct relationships between Financial Institutions (FI)/non-bank Financial Institutions (NFI), merchants and consumers. The WadzPay token WTK is available on Bitmart now.

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"I pretty much went all in, but I learned a lot" - a confession from a first-time crypto trader.

Written by : Francisca Adinda

This article is purely personal opinion and experience, not investment advice.

The popularity of digital currencies (cryptocurrencies) in Indonesia is currently increasing. The largest exchange in Indonesia (Indodax) noted that the number of their users during the first half of 2021 increased by around 1 million users, with a total of 2.21 million users by the end of June 2021.

It is undeniable that people have become more active in seeking information about cryptocurrencies, either through social media, communities or following updates regarding the development of new startups joining the crypto ecosystem wagon.

It is no exception for me; starting with Fear of Missing Out (FOMO), I continued to explore crypto and eventually dragged myself directly into becoming a crypto trader. I am even willing to allocate my clothes shopping budget to invest in crypto; what a way to learn!

I agree that all women should at least know how to trade crypto, as an additional skillset: learning about managing finances independently, and how to invest appropriately. Trust me, you can’t ignore all of these technological updates, for better or worse.

The world is experiencing a generational shift into Millennials and Gen Z, where they are more technologically-savvy and open to innovations; seeking transparency at the next level. The technology that runs behind cryptocurrency is also impossible to ignore; this space has gone from curiosity to punchline to viable investment.

I signed up to various crypto market platforms such as Indodax & Tokocrypto. Based on my experience as a new trader, the psychological side is critical.

Reading a ‘candlestick’ is a roller coaster of emotion: seeing the chart’s up and down movement, and determining when is the right time to sell or buy the coin I want is exciting. Even though I only made a little margin or profit, my first trading experience at that time made me curious and addicted.

The popularity of crypto is also inseparable from the strong sentiment and forward-look from the community. So that you know, Dogecoin managed to become the most famous crypto throughout the last semester.

Indodax noted, Dogecoin managed to get a total trading volume of up to 33.5 trillion in 2021 and was followed by Bitcoin with a total of 24 trillion and Binance Coin at 19 trillion.

The popularity of Dogecoin cannot be separated from Elon Musk, who is known to openly support the crypto asset bearing the Shiba Inu dog logo. Elon, one of the wealthiest people in the world, often tweets something related to Dogecoin on his Twitter account; and most times when he provides information about Dogecoin, this asset soon rises.

The price of Doge, which is still relatively cheap, makes retail investors buy up this asset in substantial quantities so that the price can rise along with the high interest in Doge.

Indeed, from my experience and closest friends, one of the impetus for investing in crypto is that it is still significantly undervalued and has great potential.

The rise and fall of the coin’s price are unpredictable, so joining crypto communities is also very important to help predictions; they feel so passionate. Most of them find it for the investment, but they stay because they realise this is the new internet.

In line with the increasing popularity of crypto in Indonesia, the government is also paying attention. Starting from the Deputy Minister of Trade to BAPPEBTI (ICDX), they push these assets to be traded on the commodity futures exchange. Like other assets traded formally, crypto assets are also planned to be taxed, the rate of which is around 0.05%, or lower than shares subject to 0.1%.

Besides taxes, Indonesia is also reportedly open to the possibility of creating a Central Bank Digital Currency (CBDC). The issuance of this CBDC is based on three considerations: a legal payment instrument in Indonesia, monetary policy, macroprudential and payment systems, and technology-based payment instruments.

I think cryptocurrency, in a nutshell, has gotten to a point where everyone is starting to take it seriously. Crypto is very sexy, and my experience being a crypto trader was challenging, but it’s worth trying.

I believe that with the emerging technology today and despite the hype, cryptocurrency can positively impact the world.

 

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WadzPay.com is Driving Financial Inclusion whilst enabling broader acceptance. WadzPay will become THE DEFAULT Digital Payments Processor. We will build direct relationships between Financial Institutions (FI)/non-bank Financial Institutions (NFI), merchants and consumers. The WadzPay token WTK is available on Bitmart now.

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King BTC is dead: Long Live King CBDC

Written by Steve Tunstall

The E-Yuan is the world’s most advanced and biggest Central Bank Digital Currency (CBDC). China WILL make this work — and if it’s over the dead bodies of BTC and Super Apps (WeChat, Alipay, etc), well that isn’t going to stop them.

 

                                Check out #WTK token on Bitmart

 

If we want to get a sense of the future of electronic payments and how tokenisation is likely to change all our lives and finances in the next one to three years, then there is only one place to look for guidance, China.

China is so far ahead of the rest of the world in the adoption and development of digital payments it’s difficult for those of us based outside the country to really understand how far the domestic economy has been transformed in the last decade or so.

But whilst it has been a massive success, it has not been a steady story of growth — far from it. In many parts of the world, instant banking, or the appearance of close to immediate transactions, has become part of the customer expectation. In China, development followed a different path with technology vendors, particularly the Super Apps, leapfrogging the untrusted old school banks. Technology, particularly based around QR codes, allowed new ecosystems to supplant these traditional financial institution roles. In particular, mention should go to Alibaba and Tencent, for their instantaneous solutions which became ubiquitous from coffee shops to street vendors a decade ago.

However, as China became cashless, two major problems emerged for government. Firstly, the Party and the big banks were getting left out of the equation. Not good. Meanwhile leakage into crypto currency became a flood, potentially threatening to undermine much of the fiat based Chinese economy. China had quietly become the world’s dominant mining location for both BTC and alt coins. Convertibility has always been a deliberate problem for the Yuan and the wealthy savvy were increasingly using crypto as a method to extract wealth from the Middle Kingdom.

So inevitably the regulators had to step in to make changes. But they had a realistic agenda. The only way they could break into the customer friendly ecosystem that had been so massively successful for the super apps, would be by providing a viable channel inside the system. This led to the birth or the Digital Yuan or E-Yuan the world’s biggest and most advanced Central Bank Digital Currency or CBDC.

Scroll forward to today and the E-Yuan is being effectively rolled out across multiple locations in China. Meanwhile China has been reigning in the power of the super apps . At the same time the leakage via crypto currencies is increasingly under fire with the regulators targeting mining and social media advocates in equal measure. Whilst this is going on China is increasingly restricting access for the citizens to crypto generally.

So what comes next?

Well it seems increasingly likely that a fully fledged E-Yuan system will be launched before the end of 2021. Already there are 2 million test users in 11 regions including Shanghai. The wings of the Super Apps have been firmly clipped already, so it is inevitable they will be forced to adopt the E-Yuan — whether they like it or not. The Chinese clamp down on BTC and other non-regulated alt coins will surely continue — it’s likely effectiveness is a debate for another time.

But irrespective of all that, central banks and regulators from around the world will be watching this experiment very closely. The leakage from fiat to crypto has been astonishing and unprecedented. Almost every other major financial jurisdiction has now “discovered” the potential of CBDCs in the recent months and is trying to find solutions. The race is on to see who can follow the Chinese model — or something similar — as soon as possible. However, no other Central Bank is going to admit they are looking at the Chinese for a lead on technology, that would be just too ironic.

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WadzPay is Driving Financial Inclusion whilst enabling broader acceptance. WadzPay will become THE DEFAULT Digital Payments Processor. We will build direct relationships between Financial Institutions (FI)/non-bank Financial Institutions (NFI), merchants and consumers. The WadzPay token WTK is available on Bitmart now.

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What You Should Know About NFTs

NFTs, namely Non-fungible tokens, are the latest cryptocurrency phenomenon to go mainstream.

Earlier this year in March, a digital-only artwork was sold at Christie’s auction house for an eye-watering $69.3 million — but the winning bidder would n…

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Airdrops: A Win-win Solution for Both Blockchain Startups and Crypto Enthusiasts

Wondering how to get tokens for free? Many crypto enthusiasts are hunting for Airdrops where they receive a new virtual currency to their wallet addres…

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