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If anyone had the thought that NFTs are about to run their course, they should think again. With all the NFT innovations and applications in use out there, the world is still probably scratching the surface of possibilities out there. And the fun fact is that they're increasingly creating jobs as well as increasing users' financial independence. While play-to-earn games featuring NFT market trades captured the minds of many a gamer out there, the industry could face its biggest competitor. And no, it isn't by the NFT arts or memes, which are quite vibrant spaces in their own right. The competition is from Picture-for-Proof(PFP) NFTs.
What are PFP NFTs
First things first, just what are Picture-for-Proof NFTs? As geeky as the initials PFP may sound, they aren't some intimidating tech or economical term. PFP simply stands for profile picture. So yes, there are profile picture NFTs available. They act as a form of digital artwork that people purchase and save as their profile pictures. They're more like a digital avatar that one uses to express their persona online.
The Sense Behind Buying One
Financial Independence
The first reason is that one gets to enjoy full independence and control of their finances. NFTs are based on a blockchain, Ethereum being the most common. The platforms involved are non-custodial, in that they don't keep a user's private keys. One gets the sole ownership rights to assets via the private keys. The downside is that losing it means saying goodbye to one's ownership of the asset. But it is a much better way to store one's finances than at a bank, where access is always strenuous. The bank could also quickly freeze the account at the discretion of the Government. There is also more privacy of owner identity compared with traditional finance.
It Can Be An Income Generating Activity
Joining and participating in PFP NFTs could be an income source for users. The most straightforward way is by minting a PFP NFT and selling it in the NFT marketplace. And there are big money figures to be made. The bored ape yacht club NFT was at the time of writing valued at $429,000. While that's a pretty sum, the CryptoPunk #7523 sold for a whopping $11.7 million, the all-time highest of all NFTs sold! One can earn by also buying. One of the ways is that they'll have to buy multiple PFP NFTs at first mint. The second is when they sign up with a talent agency because they own the unique personality created by their NFT.
Improved Social Network and Status
Everyone wants to build their network. Having a PFP NFT immediately ushers one into the NFT community. Several PFP communities even arrange for in-person meetups that enable one to share ideas and time with like-minded people. Some even promise an exclusive club of members worldwide. Even better, one can get to build a network that has celebrities. Owning one of the bored ape yacht club NFTs gives the owner a direct link with big names like Eminem and Jimmy Fallon. That's quite a big deal.
How PFP NFTs Came About
The idea of PFP NFTs was first brought to life under the name CryptoPunks in June 2017, a project by Larva Labs. It consists of a 2-person team of technologists, Matt Hall and John Watkinson. It all started as an experiment to learn more about the mechanisms of supply and demand. Randomly generated 24 by 24 8-bit pixelated art images were released, heavily inspired by London Punk, a relic of the 70s. The blockchain of choice was Ethereum, and once released, it couldn't be altered. The punks are ranked according to rarity, with unique traits such as beards being the differentiating factor. The random generation created unique pictures with personalities owners could relate to and use for their profiles. They also resulted in truly unique and rare specimens, which are the most expensive. And so started the journey of PFP NFTs.
Are PFP NFTs any Different from other NFTs
There are differences between PFP NFTs and other types of NFTs. The most noticeable one is how they are launched. PFP NFTs go live in huge numbers, many times in the thousands in one fell swoop. By utilizing a set of data that is bounded, they can all algorithmically go online together. Such a feature makes the possibility for many users to have first mint benefits. The other difference is their wide usability. The most obvious use is as a digital way to express one's persona online. They are increasingly being used as a brand-building innovation. Individuals and organizations keep releasing groups of PFP NFTs branded by their logos or artwork. Big brands are also participating, with Visa having bought a PFP from CyberPunks and openly displayed their ownership. They also share the universal usability of all other NFTs, that of being an income stream. PFPs however offer several ways of generating income.
Are PFP NFTs Worth a Look?
PFP NFTs have been around for quite a while. Their vibrancy is however just beginning to take off in a major way that could potentially usher in a new era in cryptos. That's an era of increased mass adoption. PFPs offer users both economic and social benefits, the economic ones being increased control of one's finances and a source of income. Socially, they give users a way to express themselves via digital avatars they relate with as well as opportunities to network. They are also noticeably different from other NFTs, especially in the way they are launched. They're a space worth watching out for.