NFT Ideas and Examples: Cryptopunks and their Utility

Regarding digital artwork, few collections can compare to the legendary CryptoPunks. These pixelated images, created by software engineers Matt Hall and John Watkinson, have taken the art world by storm, with some selling for millions of dollars at auction.

The CryptoPunks NFT collection started from humble beginnings, with a value of nothing when collectors first claimed them. However, their popularity and monetary value skyrocketed in just a few years, rivaling traditional physical artworks. The success of CryptoPunks paved the way for other crypto art collections like the Bored Ape Yacht Club (BAYC), CryptoKitties, and CrypToadz. Also, it sparked a surge of interest in blockchain-based collectibles and digital art. But what exactly are NFTs, and what makes them so popular and expensive?

CryptoPunks and Digital NFT Examples

CryptoPunks are more than just a collection of digital art pieces. They have made history as the first ERC-20 tokens stored and secured on the Ethereum blockchain. Their creation also inspired the CryptoArt movement, aiming to create a more inclusive and accessible art market. Unlike future NFT collections built as ERC-721 tokens, the innovative ERC-20 token technology behind CryptoPunksh as set a new standard for the digital art industry. 

In 2017, software engineers Matt Hall and John Watkinson, the founders of Larva Labs, began an experiment that would revolutionize the world of digital art. They created a program that generated thousands of unconventional pixelated images that could be used in smartphone apps or games. This experiment would eventually become known as CryptoPunks.

Initially, CryptoPunks were distributed for free to anyone with an Ethereum wallet.

Read more: Digital Wallet Explained: Types With Examples and How It Works

To claim one of the nine thousand available images, all it took was to pay the minting gas fee. While most of the images were claimed by early adopters, the developers held onto one thousand. This distribution method made CryptoPunks one of the earliest examples of non-fungible tokens (NFTs), unique digital assets stored on the blockchain.

Overtime, the value of CryptoPunks has skyrocketed, and some of these digital artworks have sold for millions of dollars. As the NFT market grows, CryptoPunks remains a highly sought-after collection for collectors and investors alike. The fact that they were originally issued for free only adds to their unique appeal and charm.

Why is CryptoPunks so expensive?

CryptoPunk shave revolutionized the world of non-fungible tokens (NFTs) with their unique combination of attributes and traits that make each punk one-of-a-kind. Inspired by the cypherpunk subculture and the London Punk movement of the1970s, CryptoPunks were the first NFT collectibles to gain widespread attention and exorbitant prices at prestigious auction houses.

 What makes these NFT projects stand out is their aesthetic appeal and the scarcity of each punk. There are only 10,000CryptoPunks in total, each unique from the rest. In addition to their rarity, each punk's attributes and traits have captured the imaginations of collectors and investors worldwide. These attributes include everything from hair styles and accessories to facial expressions and skin tones, with some even sporting cigarettes or glasses.

 Since their creation in 2017, the value of CryptoPunksh as skyrocketed, with some selling for millions of dollars at auction. Their success has inspired many other NFT projects that follow a similar model, but none have achieved the same level of notoriety as the original CryptoPunks. However, their rich history and unique attributes make it easy to see why they remain popular for collectors and investors alike.

Steps to add Utility to an NFT

Creating a successful NFT project requires a deep understanding of blockchain technology and smart contract development. As with any decentralized application, these are the general steps to begin;

Define the Utility:

The initial step in incorporating Utility into an NFT project is determining the specific use case or Utility the founder intends to integrate. This critical step will be the foundation for the design and development process. The intended Utility must be carefully defined and aligned with the goals of the NFT project.

Choose a blockchain:  

NFTs are most commonly created on a blockchain infrastructure that offers the necessary tools for managing and storing these unique digital assets. Therefore, founders of an NFT project must select a blockchain that specifically supports the creation and management of NFTs. Popular blockchain networks for NFT creation include Ethereum, Binance Smart Chain, and Solana.  

Design the NFT:

Once a blockchain is chosen, founders must design the NFT. This includes determining the metadata associated with the NFT, such as the name, description, image, and additional attributes specific to your use case.

Read more: How to make money on NFT: Mint Your Art and Gain Financial Freedom

Develop the smart contract:

The next step in NFT creation is to develop a smart contract that defines the underlying rules and logic of the NFT. This includes the utility or use case defined for the NFT, such as providing access to exclusive content, granting voting rights, or enabling the collection of royalties.

Test and deploy the NFT: This involves testing the NFT on a test network to identify and address any issues before deploying it to the main net. Trying the smart contract on a test network helps mitigate the risk of potential security vulnerabilities, which could lead to the loss or theft of NFTs and associated assets.

Marketand distribute the NFT:

The final stage of creating an NFT project involves marketing and distribution. To successfully promote and spread the NFT to the intended audience, project owners may seek to collaborate with NFT marketing agencies and influential individuals in the blockchain space. By partnering with knowledgeable marketing professionals and industry thought leaders, project owners can leverage the expertise and network of their partners to increase awareness of the NFT and generate demand for it.

How to buy Cryptopunks NFTs?

 The NFT market has seen an unprecedented surge in popularity, prompting the emergence of various online marketplaces catering to the public's insatiable demand for CryptoPunks and other NFT collections. In recent years, trading NFTs have become just as popular as trading cryptocurrencies, with 2020 and 2021 markinga significant uptick in trading volume. You can easily get your hands on CryptoPunks and other NFTs via several marketplaces such as OpenSea, Rarible, Nifty Gateway, and LooksRare, which also features the highly coveted Bored Ape Yacht Club (BAYC) collection.

 If you're looking to purchase CryptoPunks directly from the creators, it's important to note that the acquisition by Yuga Labs is currently in progress. Once completed, the entire collection will be transferred to the website.

How to use NFTs Cryptopunks?

To enter the world of CryptoPunks, one must first have a cryptocurrency wallet that supports Ethereum, like MetaMask. Once you have connected your wallet to the platform of your choice, you can start exploring and obtaining the necessary permissions to bid on, buy, and sell CryptoPunks.

 The LarvaLabs platform offers a transparent way to keep track of the status of each CryptoPunk NFT based on its background color. For example, the NFTs with blue backgrounds are not for sale and have no open bids. However, if you come across a CryptoPunk with a red background, the owner has put it up for sale. On the other hand, if the background is purple, it indicates an active bid on that specific punk. This color-coding system makes it easy for users to navigate the platform and find the CryptoPunks available for purchase.

The Future of Cryptopunks

 It's hard to predict what lies ahead for CryptoPunks, as their future depends on various factors. However, it's undeniable that they have already significantly impacted the world of digital art collections. In just four years, they have skyrocketed in value from zero to millions of dollars, marking their place in history. As more people discover and invest in NFTs, the demand for CryptoPunks will likely continue to rise, solidifying their status as a sought-after collectible. Only time will tell what the future holds for these iconic NFTs

In conclusion, CryptoPunks have revolutionized the world of non-fungible tokens (NFTs) with their unique combination of attributes and traits that make each punk one-of-a-kind. Their success has inspired many other NFT projects that follow a similar model, but none have achieved the same level of notoriety as the original CryptoPunks. However, their rich history and unique attributes make it easy to see why they remain popular for collectors and investors alike. To create a successful NFT project, founders must define the utility, choose a blockchain, design the NFT, develop a smart contract, test and deploy the NFT, and market and distribute it. As the NFT market continues to grow and evolve, it will be exciting to see what new and innovative digital art collections emerge and how they shape the future of the art industry.

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