Machine NFTs: The New Machine Economy Powered by NFTs
November 19 2021 - 12:31PM
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If there’s one thing that has overwhelmed the universe aside from
cryptocurrency, it is definitely NFTs. The NFT craze between 2020
and 2021 alone was out of the ordinary, and to date, no one really
knows what triggered the interest, but who cares now? Given the
amount of money moving in and out of the market. To confirm this,
NFT trading volume in Q3 increased by a whopping 704% from that
recorded in the previous quarter. Digital creators, traders, and
investors exchanged close to $10B in Q3 of 2021. That’s massive and
an unthinkable figure. It’s no surprise considering the amount of
digital content that has been sold. Till days, Beeple’s artwork
remains the most expensive NFT sold, auctioning for $69M. But, are
non-fungible tokens just about making money off digital artworks
and music? The Concept of Ownership and Machine NFTs NFTs promoted
the concept of ownership where one person has an exclusive right to
an item. Of course, it’s non-fungible, which means it can’t be
replaced by another of the same kind, unlike cryptocurrencies. But,
how does one know that you own an NFT that represents an item? What
determines the ownership of a digital item since there are no
physical contract papers where you pen your signature and all that?
Let’s take this example; you fancy buying a car and you have
identified your choice. After you must have paid for the vehicle,
some papers, which you have signed, are issued to you. These papers
indicate that you are the owner of the vehicle. NFTs use the same
concept, only that the contract isn’t physical but digital. The
contract isn’t rooted in government signatures/stamps but in a code
stamp. The beauty of this code stamp is that anyone can verify the
originality and validity of the contract independently. Once
checked, such a person will be convinced that you are the actual
owner of that NFT. With governments or centralized authority, you
will have to go to them to verify directly, which is time-consuming
and energy-draining. This unique concept of ownership is what
Machine NFTs are all about. Machine NFTs are simply a contract of
ownership of a machine. Just like digital content, anyone can
verify this ownership independently, so there’s no form of
centralized authority. One protocol that focuses on ownership of
these machines is peaq, a protocol based on the Polkadot ecosystem.
But, why own machines? It’s a well-known fact that machines are the
future and on course to replace humans as the elementary workforce.
In the no-distant future, cars will become autonomous and robots
will work in offices and establishments. What becomes of humans
when this happens? Humans will be left out of jobs but they can
profit from these machines when they take ownership. This is what
the Peaq Network is aiming for. It intends to provide a platform
where stakeholders, manufacturers, owners, and users can own,
govern and profit from these machines. Machines aren’t really the
problem. Not taking advantage of the opportunity to own and control
them is. Machines are just human extensions that track, record and
send data to us. Machine NFTs want to create a machine economy
where individuals own a stake in these machines that power the
economy. These individuals will be able to sustain the machines and
improve them. With machine NFTs, everyone earns and the purchase of
machines can be subsidized by the economy itself. The Internet of
Things Vs. The Economy of Things The current machines on Web2, also
known as the Internet of Things, are controlled by corporations and
governments. The money generated is limited and can only be
accessible in full by these centralized entities. Aside from that,
any machine that wants to render service must rely on these
entities, which puts someone’s safety, privacy, functionality, and
availability at risk. These limitations are eliminated in the
Economy of All Things, as peaq describes. Web3 combines the
decentralized capability of Web1 and the advanced functionality of
Web2 to address the problems in the latter. Web3 will enable
machines to save more time and energy and fulfill tasks even
better. With Web3, individuals can own and build their pieces. At
the end of the day, they profit. This is what peaq clamors for.
Peaq’s Innovative Approach peaq is on a mission to build a new
machine economy by leveraging Web3 potentials. This enables one to
gain massively with minimal risks and own machines using peaq
tokens, which allow you to buy Machine NFTs. To that, the network
said that it will democratize the potential of the machines. peaq
is the first protocol to align the incentives of stakeholders by
machines that provide services while creating a loop of value. This
loop of value involves stakeholders providing liquidity and getting
their yields after the machines must have generated revenues from
rendering services. Machines will use decentralized apps to render
services to people and generate revenue on the network, while the
network will leverage DeFi to fund new SSIs machines. Peaq is
creating an economic future of machines, and leveraging the
protocol will be beneficial in terms of profit generation. Machine
NFTs represent real-life machines, which means ownership guarantees
holders a fantastic recurring revenue stream provided the machines
continue to render services.
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