Non-Fungible Tokens

Jan 21 2022

Facebook and Instagram could introduce NFT Avatars

You can ask any new-age investor about his investment plan and they would say NFTs without even giving a second thought to your question. Yes!!! That is the insane craze for Non-Fungible Tokens these days especially amongst the youngsters who find the concept ‘Cool’ and ‘Trendy’. Where firms are connecting people to their favorite collectibles through NFTs, Mark Zuckerberg’s Meta is all set to take the craze a step further by allowing support for NFT avatars on popular social media platforms Facebook and Instagram for NFT fans.

According to the report by Financial Times, Meta is working on plans that would help people from across the globe to design and trade Non-Fungible Tokens on the firm’s core ecosystem. The company is contemplating whether to launch a native marketplace dedicated solely to NFT trading for investors. With this happening, Meta will turn out to be a strong competitor for the OpenSea marketplace that is currently the undisputed leader of the digital collectibles space. So, those owning an NFT avatar might show it off as their display picture on Facebook or Instagram in the near future if Meta manages to implement its plans.

In 2021, Facebook launched its revamped image with a new brand name Meta that signaled its shift from a social media business to Metaverse. The company is actively involved in exploring Metaverse technology and is taking all the steps in the right direction to succeed in the field. Recently, the group hired experts from Microsoft and Apple who possessed experience of work in the Metaverse domain to strengthen its hold in the sector.

Interestingly, Facebook and Instagram have been super successful in the social media sector and have managed to fetch billions of dollars’ worth of revenue for the company. However, with the entry of new platforms, their popularity has been affected to some extent. This triggered the Meta team to look for other high potential revenue sources such as Metaverse which has gained high momentum in a short span. The news report clarified that Meta’s NFT plans are in the nascent stage and are likely to change as per the situation.

The crypto industry has always been a favorite of Meta’s chief Mark Zuckerberg who was actively involved in launching a native crypto project. However, due to regulatory complications, the project got stuck. The company is presently working on its digital wallet solution called Novi. The trials for the project have started in some parts of the U.S and Guatemala. The project runs on the Pax Dollar, stablecoin launched by Paxos. The involvement of Meta in NFTs is likely to turn out as a huge push for the overall NFT industry.

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Blockchain Weekly Source

Jan 04 2022

Know Four Reasons Why Some NFTs Are Overvalued

Many people equate cryptocurrencies to fiat currencies, believing that they are the same thing but in digital form. However, if the blockchain space stuck within conventional advancement rules, it wouldn’t be as crazy as it is today, would it?

Significant developments on the artistic side of the cryptocurrency trading industry have occurred in recent years. These developments have stormed the fintech world and awestruck millennials and GenZ with blooming investment opportunities.

Soon, the fintech domain witnessed the emergence of NFTs. Non-Fungible Tokens are unique tokens that a sole entity can only own. Unfortunately, they are frequently overpriced because of their rarity and crafty supply-demand imbalance and only surge their value.

NFT: The Concept

Non-Fungible Tokens are virtual tokens that represent the ownership of unique collectables. For example, digitizing artworks, collectables and even real estate can be tokenized into NFTs.

So, what compels people to join the best NFT frenzy, investing anywhere from hundreds to millions of dollars in some instances? Crypto art investors believe it is the result of a combination of factors, including the epidemic and the rise in bitcoin values.

Crypto art has been existing for over a decade. Still, these digital assets, known as non-fungible tokens, appear out of nowhere to many people outside the crypto industry.

With spellbinding sales in recent months, crypto artists have drawn more attention than ever to top NFT platforms. Mike Winkelmann, also known as Beeple, a digital artist, made history when selling a crypto art piece for roughly $70 million.

But what makes these so-called Non-Fungible Tokens so expensive? What factors drive staggering NFT values? Let us try to understand it.

The Building Blocks of Gigantic NFT Value

Four crucial building blocks manage and control the value of assets that the NFT represents. Investors use this framework to evaluate whether an NFT is worth investing in. Developers, on the other hand, utilise it to plan strategies to boost the value of NFTs in order to get traction and traffic. The significant factor is that NFTs provide a plethora of new value-creation opportunities for both developers and asset owners.

Let us explore the foundational blocks of NFT value:

History of Possession

Value relies significantly upon the identity of the guarantor and past proprietors of the NFT.
NFTs with a significant history of high possession frequently belong to renowned artists or organizations with solid brands.
There are, however, two ways to raise the NFT value.The first strategy is to collaborate with individuals or organizations with a strong identity for issuing NFT tokens. This strategy automatically drives more traffic and investors to the ecosystem. For instance, the first approved NFT that addresses a Formula 1 vehicle was sold for $113,124.
The second strategy is to exchange NFTs that initially belonged to influential people. But, it is pretty challenging to determine the former owners, despite that it is valuable on-data information.
To boost the value of NFTs, marketplaces and sellers can provide an easy-to-use tracking interface. OpenSea, for example, can highlight the addresses of investors who make the most significant money from trading NFTs and identify additional NFTs they own.

Utility

The utility value of an NFT is determined by the ways it is used.
Game assets and tickets are two primary categories with significant utility value. A rare and potent Crypto Space Commander battleship, for example, was sold in 2019 for $45,250, and the value of an NFT ticket equals the price of an event ticket.
Another characteristic of utility is the NFT’s potential to be used in various applications. Imagine if you could deploy the same battleship in a different game; the value would undoubtedly increase.
However, achieving compatibility is quite tricky. Currently, 90% of NFT gamers stick around a single game only. This is because the developers must first create a vast ecosystem of games and give appealing use cases. Both Dapper Labs and Engin are working in this direction.
Although many unresolved questions will require a significant amount of time and labour, this is a fantastic opportunity for businesses.
Another simple strategy to improve utility value is to develop agreements with other firms to provide benefits to individuals who possess your NFT. Dapper Labs, for example, can work with NFT event organizers to negotiate a discount for CryptoKitties owners.
It is very convenient to validate the issuer and owner of NFTs using technologies such as AlphaWallet’s token script, such that event organizers that desire additional participants don’t need to do anything to execute the collaboration. It’s a definite plus for everyone.

Liquidity Premium

A higher liquidity premium corresponds to a higher NFT value.
The liquidity premium is the key reason why on-chain assets should have a higher value than those off-chain assets.
Anyone who owns ETH (Ethereum) can trade ERC standard NFTs on secondary markets without friction, increasing the number of possible buyers.
Because liquidity reduces the risk of keeping NFTs, investors choose to invest in NFT categories with a high trading volume.
Even if the NFT loses its utility value when the linked platform closes, a highly liquid NFT retains its value as long as people are ready to purchase and sell it.

Future Value

Calculating the future value of an NFT using both valuation revisions and future liquidity.
Speculation drives valuation and is sometimes the primary driver of price appreciation. In December 2017, for example, the price of CryptoKitty #18 surged from 9ETH to 253ETH in just three days.
However, some investors claim that price movement based on valuation is harmful to NFTs; however, speculating is a natural aspect of human nature and an essential part of the existing financial system.
Developers can boost NFT value and attract new users by striking the correct balance.
Scarcity of supply and speculation drive valuation.
Price-performance charts of NFT products can be used to guide speculation, as can highlighting NFTs that rise in value.

The driving force behind purchasing NFTs now

The key designer of the digital art ecosystem with the worldwide recognition of his digital art “RF collection,” Rodriguez-Fraile believes that the dissatisfaction in the US dollar and impact of the pandemic are the reasons for pushing the Bitcoin worth.

Since the pandemic outbreak, more people have begun to believe in savings and have searched for various investment options. NFTs could be one of the appealing options for people to invest in.

“Art has been used to store value for a long time,” Rodriguez-Fraile told Insider. “Crypto lends itself well to digital art,” thus contributing a simple and a more modern way of investing in art and using it in the same way as that of the gold or bitcoin.

Multi-million dollar purchases by 3LAU and Grimes have captivated the attention and prompted a gold rush for many artists, especially in the music industry, but the motive for buyers is less obvious.

NFTs Value Holding

NFTs, according to an investor and VaynerMedia CEO Gary Vaynerchuk, are in a bubble, but that doesn’t mean they won’t last.” A lot of people felt the internet was a craze,” said Vaynerchuk.

Technically the internet was a revolutionary technological advancement; however, many of the early ventures were merely sold on the sheer joy of the moment.

“NFTs are likely overvalued; if it isn’t a bubble today, I believe it will be some time,” according to Winkelmann.

Final Thoughts

It is pretty evident that NFTs and the use of art in crypto exchange are runners of the long run. Investors must use their expertise and strategize trading techniques to outwit other players and remain in touch with the never-ending saga of developments in the crypto sector and lead the curve in the trading market.

With the creation of NFTs, metaverses, and other crypto-related technologies, it’s past time for people to accept that the world is heading towards a more digital place — we’ll just have to wait and see what else crypto enthusiasts come up with.

If you want to dive into the more detailed crypto realm, you can probably lookout for some cryptocurrency learning courses. Such courses will help you to have a better understanding of the whole concept. Moreover, if you are particularly interested in knowing more about Non-Fungible Tokens, you can check out some learning programs.

However, seeking professional advice is always the best idea!

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Blockchain Weekly Source

Dec 28 2021

Difference Disclosed: ERC20 Vs. ERC721

Difference Disclosed ERC20 Vs ERC721-01

Ethereum tokens gained popularity in 2016 and 2017 as Initial Coin Offerings or ICOs began to use them to represent ownership or value. Ethereum tokens were later utilized to represent in-game assets in 2017, such as in the popular game CryptoKitties.

One of the most prominent aspects of tokens is their trading potentiality. For example, if you purchase a token, you would definitely try to trade it for another valuable token or probably for Ether. Therefore, the standardization of tokens is crucial, which is why Ethereum Request for Comments (ERC) was created. ERC is an open and public mechanism inspired by the well-known internet Request For Comments (RFCs). RFCs allow anyone to create and comment on recommendations for defining Ethereum smart contracts and tokens. This is distinct from Ethereum Improvement Proposals (EIPs) -focused on the Ethereum protocol.

ERC20 and ERC721 are two of the most widely used ERC token specifications. They are used to symbolize fungible and non-fungible assets, respectively. This article will look at the structure of ERC20 and ERC721 tokens and discuss the differentiating factors of ERC20 vs ERC721 tokens, including how they work.

Fungible and Non-Fungible Tokens: An Overview

Understanding fungible and non-fungible tokens may be aided by familiarity with the idea of fungibility in economics. The sole distinction is that crypto tokens convey their fungibility via a coding script.

Assets or tokens that are fungible are non-unique and divisible. For example, Dollar, which is a fiat currency, is fungible. Bitcoin is another example of a fungible token, but in cryptocurrency, that is, 1 BTC is worth 1BTC regardless of where it is issued.

On the other hand, the tokens that cannot be divided and are one-of-a-kind symbolize non-fungible tokens. They can be considered as a form of deed or title of possession to a unique, non-replicable item. For example, a domain name is a non-fungible asset because there cannot be another domain name of the same sort due to its unique aspects. Thus, non-fungible tokens represent a single, unique and indivisible entity, whether physical or immaterial, such as intellectual property or photograph.

The core technology that can easily verify and validate an intangible digital object’s proprietorship details is perhaps blockchain technology. The critical distinction between fungible and non-fungible assets is the information they contain. Non-fungible tokens store data, such as an academic title or an artwork—however, fungible tokens, such as Bitcoin, store value.

Ethereum Crypto Realm Assets

Assets in the Ethereum crypto realm are also classified as fungible and non-fungible assets.

ERC20 tokens are used to represent fungible assets. For example, these tokens represent project ownership, service vouchers, staking tokens, or governance tokens. In contrast, ERC721 tokens represent non-fungible assets. Presently, the sole prominent application of ERC721 tokens is in-game assets. For example, CryptoKitties is a game where you collect and breed virtual or digital kitties. A unique ERC721 token represents these kitties in the game. In addition, ERC721 tokens can be used in future tokenization of real-world assets such as your home.

The Ethereum blockchain does not distinguish between ERC20 and ERC721 tokens. Instead, tokens are just variables established in smart contracts on Ethereum and can be considered as a ‘coin within a coin.’

Therefore, before delving into the ERC20 and ERC721 standards, it is important to realize that tokens are stored in smart contracts, which are stored on the Ethereum blockchain. Smart contracts are coded manually, and every variable is assigned with a specific meaning during scripting.

So far, we’ve discussed the ERC20 and ERC721 standards at a general level, but in the next parts, we’ll delve into these standards and discover how they function.

Understanding ERC20

ERC20 was developed by Fabian Vogelstellar in 2015. The prime mission of ERC20 is to make a uniform Application Programming Interface (API) for tokens within smart contracts achievable. Thus, ERC20 acts as a standard set of rules for the Ethereum blockchain. It follows a series of regulations for fresh tokens to be swapped, moved, or shared to a cryptocurrency wallet.

Furthermore, the API of smart contracts is described in the ERC20 rather than its implementation. As a result, when you have a smart contract, you have functions referred to as code groups. The interface explains what a smart contracts’ function should be beforehand. Then there is the implementation which happens at the back end. The actual code for these routines may be seen here.

Following are the ERC20 token standards:

Token Name
Decimal (up to 18)
Symbol
Transfer
Balance of
Total supply
Transfer From
Approve
Allowance

The standards: Token name, decimal, and symbol, are optional, while the remaining standards are essential. For example, a “transfer” function is vital for an ERC20 token, which is where the need for the “transfer and transfer from” function arises. The token owner, recognized by their Ethereum address, can transfer tokens to another Ethereum address using the transfer function. To transfer tokens on behalf of the owner, the “transfer from” function is used with a third-party Ethereum address.

Understanding ERC721

CryptoKitties, a popular game, implemented the ERC721 standard in late 2017. As previously said, participants in this game gather virtual kittens, which are each represented by an ERC721 token.

But then, what is the difference between ERC20 tokens and others? An ERC721 token represents a class of assets, whereas an ERC20 token represents a particular type of asset. In the instance of CryptoKitties, the ERC721 token contract represents all of the game’s unique cats and who owns which of them.

Comparison to ERC20, ERC721 simplifies ownership: a participant either completely owns or does not fully own an asset. In CryptoKitties, for example, it is not feasible to possess “half a kitten”. As a result, the ERC721 token is referred to as a standard for non-fungible assets. This is one of the crucial aspects of the ERC721 standard to understand. However, the rest of the standards, particularly in terms of token transfers, is more or less similar to the ERC20 standard.

Associated Threats

The main reason for introducing the ERC721 standards was to address the critical challenge of transferring multiple assets without increasing the operational costs.

In terms of vulnerabilities, ERC20 tokens are at risk of being lost when moved to other wallets or smart contracts that do not support ERC20 tokens. To address this issue, ERC223 and ERC777 standards were designed.

There are various distinctions between both the standards and each provides its consumers with something unique. As a result, they are continually pushing for progress, despite their hurdles.

Briefing the differences

We have already discussed the differences between the two standards in detail. But before concluding our discussion, let us summarize them:

The main distinction between ERC20 and ERC721 tokens is that the former is a fungible token, but the latter is a non -fungible token.
ERC20 tokens are interchangeable and represent a single entity, whereas ERC721 tokens represent a collection of assets. Furthermore, ERC721 is not divisible.
CrytoKitties is a notable example of gaining complete ownership of virtual cats, which is one-of-a-kind and cannot be shared with any other player.
The game is swiftly gaining traction to the point where blockchain gaming may become more generally embraced in the future.
ERC20 tokens can be divided in any number of ways. Even sharing 0.1 % of your token is possible.

Conclusion

ERC20 and ERC721 token standards are only the beginning of a digital environment that is both inclusive and efficient. Because token standards are evolving at a much faster rate, it won’t be shocking to see blockchain technology develop dramatically in the future.

If you are familiar with the term NFT, you are probably aware that fungibility is a major issue. But that’s only one of the system’s features. Because dealing with a single, eccentric identity is not always possible. Sometimes, you are dealing with duplicates, copies, or completely similar items. So it’s not only about best NFT tokens; it is much more than that. It is also about managing ICOs, crowdfunding, and introducing additional cryptocurrencies to the market, etc. All of these applications need a certain level of functionality and adherence to rigorous criteria.

Enrol in blockchain courses or cryptocurrency courses if you want to learn everything there is to know about blockchain and associated technology as well as their applications.

If you want to enter the blockchain world, we have everything that you need – click here. Obtain certification in a variety of blockchain domains to gain entry to a prosperous world that will ensure your job chances. Don’t forget to check out our special offers page for the best certification deals.

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Blockchain Weekly Source

Dec 03 2021

How decentralized exchanges and aggregators drive DeFi growth

Decentralized exchanges (DEXs) are currently gaining a lot of attention, a part of Decentralized Finance (DeFi). The worldwide market capitalization of cryptocurrencies reached a new all-time high in 2021. In addition, new blockchain trends, such as Non-Fungible Tokens (NFTs), are propelling cryptocurrencies to the forefront of blockchain news.

DeFi is constantly garnering attention and rising in popularity, and so DeFi certification courses. The trading volume of DEXs topped $11 billion in August 2020. Although Centralized exchanges (CEXs) now dominate cryptocurrency trading, Decentralized exchanges (DEXs) are quickly gaining traction among techies and the blockchain community. Uniswap, for example, is a DEX that processes $2 billion in transactions every day.

In this post, we will be discussing DEX in detail.

Understanding DEX

A DEX (decentralized exchange) is a cryptocurrency exchange that works independently of a central authority of a third party. A user maintains complete control over assets held or exchanged on DEXs. DEXs are more secure than CEXs (centralized exchange). Ethereum smart contracts are required to run decentralized exchanges built on the Ethereum blockchain.

Difference between DEX and CEX

To have a proper understanding of DEX, let us first understand the difference between DEX and CEX.

An autonomous financial protocol supported by smart contracts and peer-to-peer payment systems, such as PancakeSwapm or Uniswap, is DEX. Traders can send digital assets to others through DEXs, and all transactions are recorded and visible on the blockchain. It does not require an intermediary to clear transactions. Instead, smart contracts are used to execute and verify them. Meanwhile, CEXs, such as Binance, are online trading platforms that connect buyers and sellers through an order book. They are popular and dominant online trading platforms based on the concept of online brokerage. Centralization and ownership are the critical differences between DEXs and CEXs.

Centralization

The areas where instructions are coordinated and implemented are referred to as centralization. Whereas all services in DEXs are managed and controlled by smart contracts or relayers that form a network of trustworthy nodes.

Order books in CExs are responsible for assessing and confirming incoming orders to ensure that users match appropriately. The transaction’s execution proceeds further by the exchange software and servers in the second stage. DEXs, on the other hand, do not utilize any intermediary and facilitate crypto-asset exchanges by trading through smart contracts.

Ownership

Ownership is the authorized control of the keys to accounts on exchanges. Users own all assets in their personalized wallets when trading on decentralized exchanges. Users retain control of their private keys when transacting on a non-custodial DEX platform. They can use their wallets to choose, submit and confirm trades, treating exchanges as a matching service. Users can make a match and then cancel it using a smart contract on a non-custodial exchange.

CEX, on the other hand, is custodial. As a result, users do not have complete control over their crypto assets. Users that purchase Bitcoin on a CEX, for example, do not yet own the coins. Therefore before purchasing Bitcoin, they must request to add the coin to their external wallet address.

Need for DEX aggregators

The launch of the 1inch MVP proves the need for DEX aggregators. At the ETH New York hackathon in 2019, Anton Bukov and Sergej Kunz produced the 1inch MVP in 18 hours. They did it merely because they required it for personal reasons. ” The primary consumers of 1inch were Sergej and I,” according to Anton, the company’s CTO.

Manually checking for the best trading prices on all the DEXs like Uniswap, Kyber, and 0X, before transacting was inefficient and tedious.

A practical algorithm was required to scan every DEX for the best trade price and offer an optimal deal instantly, just like other crypto users.

To attain the best and economical price for an exchange, you must search across all the DEXs for the best price. However, screening manually is inefficient and does not allow for sophisticated trade networks and routes. Therefore, DEX algorithms play a crucial role in reducing exchange costs. As a result, DEX aggregators have witnessed tremendous growth in recent months keeping in line with DEX volume growth.

How do DEX Aggregators work?

The primary goal of a DEX aggregator is to provide a customer with better exchange rates than any other platform with minimum transaction time. In addition, protecting consumers from cost effects and reducing the probability of transaction failure are some other significant goals of DEX.

DEX aggregators pool liquidity from multiple DEXs, allowing users to achieve higher token exchange rates than they could on a single DEX.

DEX aggregators have the potential to optimize token pricing, wastage, and trade fees resulting in a better valuation for users. An exchange contract split among numerous DEXs, for example, can get a user significantly better pricing than trade on a single exchange.

DEX aggregator integrations are often beneficial to DEXs as they rope in additional users and volume. According to recent research, high-volume traders are increasingly using DEX aggregators, while retail users continue to use DEXs directly.

The DeFi boom and the DEX aggregators

DEX aggregators are a comparatively fresh idea emerging as a result of the continuous developments in DEX. However, they have grown increasingly essential to consumers during the recent DeFi boom. This is because more and more people are prioritizing decent trade deals.

Understanding Pathfinder

1inch, a DEX aggregator, just unveiled the second version of its protocol. The new version includes Pathfinder, an API with a new revelation and navigation technique. Pathfinder can aggregate trades over the 21 liquidity protocols it supports and use multiple market depths within the exact mechanism if essential.

Why use ‘Market Depths’?

The number of open buy and sell orders is used to calculate market depth, which measures supply and demand for liquid assets like cryptocurrencies.

This more complicated strategy results in measurable benefits for the user. For example, 1inch offers an exchange rate for 1 sBTC-sUSD over 98 percent better than Uniswap, owing to enhanced quotes.

The usage of ‘market depths’ is a significant optimization of the protocols of the previous version. The new algorithm takes a more complex approach than just aggregating an exchange across several protocols. It also includes different ‘market depths’ acting as a sort of bridge between the source and destination tokens.

Partial and Dynamic Fill Tools

Pathfinder’s partial and dynamic fill mechanism is 1inch’s strategy for minimizing the frequency of unsuccessful transactions.

When a customer seems to make a trade on 1inch, the aggregation of transaction conducts amongst different protocols. Aggregation provides the user with the rates that were initially displayed in the UI. However, before completing the trade, the rate on one of the protocols can change, making it less appealing to the customer. This is where the term ‘partial fill’ comes to play. This feature can partially fill the order, and the channel where the rate alters or several other routes can be effortlessly terminated.

Partial fill is set to default in Pathfinder. However, it can be turned off in the ‘advanced settings’ menu. Using this option is recommended to protect users against price slippage and unsuccessful transactions, particularly obvious for large exchange volumes. Due to this, the consumer successfully avoids failed transactions, and their unswapped coins simply return to their wallet. However, the consumer solely pays the exchange fee in such circumstances. Furthermore, consumers can save extra bucks by consuming Chi gas tokens. Chi gas tokens can slash gas expenditures by 43 percent.

In the same way, the dynamic fill option may help prevent unsuccessful transactions by switching parts to a different protocol in the split or path.

For example, consider an algorithm aggregating an exchange between the protocols Uniswap, Sushiswap, and Balancer. If the Uniswap exchange fails, the entire swap will shift to Sushiswap and Balancer. However, the exchange will still progress, giving the user the rate they had seen earlier and accepted in the interface.

Flexibility

The idea behind the development of PathFinder is to provide a highly flexible algorithm that could accommodate a wide range of protocols. Curve, Chai, Balancer, Uniswap V1, Uniswap V2, Sushiswap, Kyber, Mooniswap, Oasis, Compound, Yearn, Bancor, and Aave, are presently supported by 1inch, thanks to Pathfinder.

Apart from this, Pathfinder is built in such a manner that it can handle blockchains other than Ethereum. Furthermore, there are plans to add support for Binance smart chain, a parallel Binance chain.

In the meantime, the Pathfinder can be upgraded to allow for collaboration with a centralized exchange. As a result, startups would have entirely new business potential to build on top of the 1inch protocol. They may, for example, develop products that act as a bridge between CEX and DEX.

Collateral Tokens

The capability to deploy collateral tokens from lending protocols Aave and Compound as part of the exchange path is another significant feature of Pathfinder.

Other tokens are bundled into collateral coins by Aave and Compound, like Compound’s USD-pegged coins, cUSD. The consumers used the loan protocol that generated the coins to pack or unpack back into collateral coins. The reason is the unavailability of the utilization of collateral coins in exchange networks on the 1inch platform.

Pathfinder may now relocate, pack, or unpack a user’s collateral tokens in a single transaction, saving time and money. In addition, since packing and unpacking are automated, users can quickly trade collateral tokens from the reserves.

Lowest Gas and Maximum Return Options

Finally, Pathfinder gives the users the option to choose between the “maximum return” and “lowest gas” features. The maximum return feature has the switch taking complicated routes to obtain the best value for the user. On the other hand, in the lowest gas option, swaps are carried at market rates without splits across several exchanges. However, the customer pays the lowest feasible gas fee.

Evolution of DEX

The first decentralized exchange surfaced in 2014, but it gained popularity when decentralized financial services based on blockchain gained attention. Even the AMM technology helped alleviate the liquidity issues that DEXs has experienced.

Since there is no central authority authenticating the information shared with centralized platforms, it is difficult for such platforms to enforce KYC and Anti-Money Laundering checks. However, regulating bodies may still try to impose controls on decentralized systems. Custodian regulations don’t apply to these services, as those that do allow user deposits still require user-signed blockchain messages to move funds from the platform.

Users can now borrow funds to leverage their positions or supply liquidity to collect trading fees on decentralized exchanges. More use cases may be generated in the future because these platforms are autonomous smart contracts based. Flash loans, are the loans acquired and repaid in a single transaction, are the best example of decentralized finance innovation.

Conclusion

If you are planning to upgrade or build your DEX platforms, you can look for suitable solution platforms and seek professional guidance. However, if you want to have the basic knowledge or become an expert, you can learn DeFi. You can search through various cryptocurrency learning or Blockchain certification courses. In addition, several organizations are providing DeFi training and DeFi certification courses.

Other than this, you can search for companies that provide services like web app development, crypto exchange development, NFTs development, DEX development, or DeFi solution development. Choose the one that provides the best and economical solutions.

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Blockchain Weekly Source

Dec 01 2021

World’s most expensive NFT ever sold

World's most expensive NFT ever sold

The continuous technological developments are impacting the financial sector as well and changing the traditional investment criteria. The talk of the town in the investment world, NFTs are unique virtual assets that symbolize works of art and collectibles, thus storming the digital funding market.

NFTs are driving the millennials to reconsider their perception of arts and notice the upcoming investment opportunities. Moreover, in 2020, NFTs shot to the vanguard of crypto space. The cryptographically unique tokens make it feasible to create real-world shortages for virtual objects, and artists have clutched the opportunity offered by technology.

Recently, NFTs have successfully attracted more investors, with Google search interest outreaching the highest ranking. Not only peaking the search interests, NFTs even observed record trading volumes in investment market spots like OpenSea and Nifty Gateway.

But it is now no longer about gaining paramount interest. Individual NFTs are trading for hefty amounts, categorizing some of the artworks in the most expensive NFTs ever sold.

Most Expensive NFT ever sold

CryptoPunk, the 8-bit art style, is highly admired in the world of top NFTs, and the number 9998 withinside the series has practically broken records with its whopping price tag.

The CryptoPunk NFT announced its sale on Twitter for a staggering amount of approx $532M. However, according to Artnet, the customer and vendor were “one.” The record-smashing price tag was due to the NFT owner boosting the value by purchasing their own NFT. Such a move is considered somewhat illegal in the trading market as this makes a digital collectible more valuable than it really is.

Ether cryptocurrency was used to purchase CryptoPunk, and surprisingly the respective Ether address used to make the purchase cost $532M. Hence, the astonishing price quotation.

Some expensive NFTs ever sold

Since we are discussing the most expensive NFT ever sold, let us look into a few other top NFTs offered for whooping amounts.

Everydays- the First 5000 days

This NFT holds the place as one of the most expensive NFT and digital artwork ever sold. The digital artwork created by Beeple sold for a staggering amount of $69.3 million. The first 5000 digital artworks of Beeple shaped this collection, Everydays. The botch demonstrates the growth of Beeple as an artist over the years in the direction of his career. The collection consists of various styles, mediums, and content. The collection is distinct because when Beeple engaged in making digital art, he worked every single day beginning May 2007. The preparatory works were not satisfactory; still, the value amplified exponentially. Thus, this is one of the most valuable top NFTs.

CryptoPunk #3100

CryptoPunks are the contemporary creations of the NFTs world. As a matter of fact, these are the absolute first NFTs made available, and after the roar of NFTs, currently, a large number of them are selling for millions! That is the reason why CryptoPunk #3100 is additionally on our ramp, as it is one of the high-priced NFT projects ever sold.

In actuality, this CryptoPunk is one out of the ordinary ones and is a member of the 9 Aliens group. CryptoPunks consists of 10,000 punks in its pool, out of which 9 form the alien’s group. Therefore, these 9 are some of the golden collections they have.

What makes this punk super rare is its type and the accessories used, which makes it $7.58 million worth. This NFT abides by ERC standards and are ERC-20 tokens.

CryptoPunk #7804

One of the 9 alien CryptoPunks, this punk also sports three accessories, shades, a forward cap, and a pipe. Additionally, this punk is the exclusive CryptoPunk to own a forward cap or a pipe.

Dylan Field initially got the punk back once the company began to disclose the 10,000 CryptoPunks. He is the CEO of the startup Figma that relies on technological designs. But why did he purchase that punk? Well, because he recognized the potential for this Ethereum based NFT that persuaded him to purchase it. As a result, this CryptoPunk roped in an astonishing amount of $7.57 million.

Crossroads

Another NFT creation by the acclaimed digital artist Beeple sold for $6.66 million. Crossroads sold just days before the large sale of Everydays. Moreover, this piece was sold on Nifty Gateway. Unlike Everydays, this creation is simply a solo piece of art. Therefore, the estimation of this piece makes it more expensive.

If we talk about Crossroads, this artwork is somewhat political speculation and a reaction to the US presidential elections of 2020. And here comes the fun part, where the artist created contrasts. One depicted Trump’s victory and the second Trump’s defeat. Even the video was alterable based on the outcome.

The first tweet

Hopping on to the next artwork that lists the most expensive NFTs in 2021 is the very first tweet. The founder and CEO of Twitter, Jack Dorsay, tweeted the first tweet that sold for a hefty amount of $2.9 million. The tweet was all about ” just setting up my Twitter” and drew in millions.

Twitter, the massive popularity that this social media platform enjoys, undoubtedly the first tweet garnered so much attention. Definitely a new style of digital asset tokenization.

Initially, Jack Dorsay sold the tweet to the CEO of Oracle Sina Estav, who later sold this tweet on Valuables, an online auction platform. Although the ownership of the tweet lies with Sina Etsav, the post will still be on Twitter.

CryptoPunk #4156

Another CryptoPunk on the list of the most expensive NFTs is an Ape Punk that accessorizes a blue bandana. Of all the 10,000 punks, only 481 categorize such feature. This NFT brought in a whopping amount of $1.25 million and now belongs to the Ethereum platform.

Not Forgotten, But Gone

Would you choose to purchase a rotating gummy undergo video clip for millions? Well, this is what happened in Nifty Gateway NFT sales. An artist referred to as WhIsBe used to create artworks, elements of numerous gummy bears in innovative forms. Sold for $1 million, this creation is a 16-sec video of a rotating golden gummy enduring a skeleton known as “Not Forgotten, But Gone.”

World Wide Web Source Code

The idea of selling an NFT representing the unique source code of the web in an auction at Sotheby’s by the originator of the World Wide Web, Tim Berners-Lee, stunned many people. This decision brought a lot of criticism. According to the critics, selling the web’s unique source code is against the ethics of decentralized aspects of the web. However, Tim Berner’s Lee argued that his decision totally aligns with the ethics of the web.

Of course, it is no longer truly the web’s supply code- open supply and in the public domain and is therefore openly accessible to view and copy. Instead, it is a creative illustration of the supply code, a bundle of artworks collectively packaged in an NFT. The NFT titled “This Changes Everything” sold for $5.4 million despite the criticisms it faced.

Fidenza #313

The Ethereum- based generative art reserve Art Blocks have been achieving hundreds of millions of bucks in buying and selling while the identicals of CryptoPunks and Bored Ape Yacht Club have been topping the headlines.

As of August 2021, Fidenza #313 by Tyler Hobbs has been recorded as one of the most expensive Ethereum based NFT sold to date. The purchase was sealed with a transaction of $3.3 million. However, the seller bought it for only $1400 just two months before reselling it at a mind-boggling price of $3.3 million.

Apart from Fidenza, three other artworks from the reserve have been trading in seven-figure amounts. The Art Blocks NFT project single handedly traded for $300 million in August 2021.

CryptoPunk #2338

Here we go, with another CryptoPunk added to the list. The artwork we are talking about is one of the 88 zombies in the entire collection of 10,000 CryptoPunks. Out of the 88 zombies, only 4 of them accessorize with a thin mohawk attribute, thus making it unique in the pool of CryptoPunks.

This CryotoPunk #2338 NFT deal serves as an excellent example of a return on investment. Initially, this punk was purchased just for $443 in November 2018. However, the owner resold this CryptoPunk for an astonishing amount of $4.4 million in August 2021, thus garnering 1,000,000% profit within three years.

Conclusion

Over the last few months, NFT has stormed the digital marketplace. It has changed people’s perception of investment in the digital world. The beginning of 2021 witnessed a surge in demand for NFTs, where many of them were promoted for millions. The idea might be insane for some, but this is the era of the digital revolution, and NFTs are unique forms of the token that perfectly fit in.

Now that you are pretty aware of the concept of NFTs and the most expensive NFTs in the virtual market, why not try your hands on your luck? But before that, remember to take the guidance of an NFT expert. You can also opt for NFT training courses available if you want to be an NFT expert. And don’t forget that these NFTs are supported by blockchain technology, so dig in for some extra knowledge and keep yourself updated with the latest trending technologies and digital investment options.

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