By Luke Sumpter

What are NFTs? Why are they so valuable? What role do they play within the rapidly developing cannabis industry? Find out the answers to all of these questions below. While the NFT market continues to boom, most people still have no idea what they are or what they do. Get ahead of the game and learn everything you need to know about this new form of digital asset.


Cryptocurrencies: A Brief History

To fully grasp the concept of NFTs, it’ll help to get familiar with cryptocurrencies, as the rise of cryptocurrencies set the technological foundations for NFTs to become a reality.

Cryptocurrencies are defined as digital currencies designed to work as a form of exchange between peers using a computer network that doesn’t rely on a central authority like a government or central bank. The decentralised nature of crypto has attracted people from a range of political philosophies, including anarchism and libertarianism. To ensure security and anonymity among users, crypto networks use blockchains—a record of transactions of a particular cryptocurrency maintained across multiple computers through a peer-to-peer network.

However, the utility of cryptocurrencies has attracted a much wider user base. Some of these digital coins are now accepted as a means of tender for insurance, consumer staples, watches, and event tickets. But where did this all begin? Check out the brief timeline of key events below:

  • 2008: An anonymous individual under the pseudonym Satoshi Nakamoto releases a paper describing a decentralised form of digital currency.
  • 2009: Satoshi Nakamoto makes history by sending 10 bitcoins to a programmer—the first cryptocurrency transaction. People also started mining bitcoin at this time using computers.
  • 2010: The first trade between bitcoin and tangible goods takes place when somebody purchases a pizza using 10,000 coins (now worth approximately $196 million).
  • 2014: The first stablecoin, “Tether”, emerges and pegs itself to the price of the US dollar.
Timeline
  • 2015: The cryptocurrency Ethereum emerges, as does the exchange Coinbase.
  • 2016: The United States Securities and Exchange Commission (SEC) airs one of its first warnings about the dangers of crypto.
  • 2019: Elon Musk starts to publicly voice his support for the “meme coin” Dogecoin.
  • 2021: The total market cap of all crypto breaches $2.5 trillion before tumbling to $1 trillion.

Now that you’re more familiar with crypto and its history, let’s take a look at NFTs and how this new technology relates to cannabis.

What Is an NFT?

NFTs, or non-fungible tokens, are a form of digital asset. Much like cryptocurrencies, ownership of these assets is logged on a blockchain, a digital ledger of transactions recorded across a network of computers unified through a peer-to-peer network.

NFTs differ from cryptocurrencies in that they are non-fungible, or not mutually interchangeable. Whereas all coins of one cryptocurrency share the same value, NFTs all feature qualities that make them unique, and therefore, not interchangeable.

Advocates of NFTs claim that ownership documented on a blockchain circumvents the issue of reproduction and piracy, making them sit somewhere between physical asset and digital file. An NFT can be anything that can be stored as a file, such as music, artwork, tweets, and collectable assets that form the basis of online games.

What is an NFT

Who Created the First NFT?

Even before the cryptocurrency Ethereum came about, the mathematician and now chairman of the Israeli Bitcoin Association Meni Rosenfeld developed the concept of “Coloured Coins” in 2012, an idea that sought to represent real-world assets using a digital ledger. Two years down the line, in 2014, digital artist Kevin McCoy minted the very first NFT. The proof of ownership of this digital image, known as “Quantum”, sat on the Namecoin blockchain.

While the initial creation of NFTs seemed insignificant to certain parties at the time, many of these digital assets have earned their creators massive financial gains. In 2021, the now-famous digital artist Beeple sold his collage titled “Everyday: The First 5000 Days” for a record-breaking $69 million.

OpenSea: Where NFTs Are Sold

Those interested in digital assets can buy NFTs from a wide range of marketplaces. However, OpenSea emerged as the first NFT trading platform, and remains the largest to this day. The website provides a place for users to discover, collect, and sell NFTs that autumn into a long list of categories, including art, collectables, domain names, music, photography, sports, and trading cards.

The Value of NFTs

NFTs are valuable for creators and collectors alike. Much like cryptocurrencies, they offer advantages that tangible assets do not. The ability to record proof of ownership on blockchains that are nearly impossible to hack or alter provides a big safety net. Adding to this, the decentralised nature of exchange allows for unparalleled flexibility when it comes to trading assets.

  • 🎨 For Artists

What does selling a musical album, a piece of digital art, and even a house have in common? Third parties looking to rake in a little cash. In the non-digital world, record labels, art dealers, and real estate agents make mountains of money by facilitating the buying and selling of goods. The decentralised nature of digital asset trading allows artists and sellers to sidestep third parties and the endless fees—or commission—they tend to demand for their services. NFTs also enable artists to mint a certain amount of their product, leading to low supply, high demand, and an economy of scarcity that results in increased profits.

  • 🖼️ For Collectors

Naysayers rail against the intangible nature of NFTs, often stating that digital assets don’t compare to those that one can physically grasp and, say, hang above a mantle piece. Well, tell that to Beeple. The market speaks for itself.

The rise of cryptocurrency has clearly shown that people value digital assets, in part because of the technology that makes these tokens secure, finite (in most cases), and easy to send and receive. The same applies to NFTs, but these assets offer something more for the collector. Blockchain-based ownership and limited supplies make owning an NFT of an album, photograph, or playing card many times more valuable than physical copies and those based on the blockchain.

  • 👔 For Business

NFTs have shifted the market for digital assets. New marketplaces are emerging on ground broken by the establishment of NFTs, and businesses are scrambling to get involved in this still relatively early period. For example, NFTs not only show proof of ownership, but also proof of attendance, meaning they have the potential for use in live events such as festivals. Moreover, the smart contracts written into NFTs can ensure that the creators receive a slice of the pie if and when they are transferred to third parties.

NFTs: How Are They Useful?

NFTs have a variety of functions. Moreover, cryptocurrency has already proven that digital assets aren’t only useful, but also incredibly valuable (although somewhat volatile). To understand how NFTs are useful or viable in the modern world, check out some of the most promising NFT markets below.

1. Graphic Art

Artwork remains one of the most valuable NFT markets. Sure, you can’t hang up an NFT like you can a physical painting, but they look equally cool projected onto a wall. Plus, you can’t steal, lose, or damage NFT art. Currently, valuable art NFTs range from basic but expensive drawings of cartoon apes and cyberpunks to fine art pieces and striking digital masterworks.

2. GIFs

GIFs (which stands for graphics interchange format) are bitmap images used as logos and display graphics. GIFs are also commonly used in online communication as a form of living meme. Turning GIFs into NFTs offers a promising means of revenue for graphic designers, and a secure means of exchange for businesses that want exclusive rights and ownership of these digital products.

3. Videos and Sports Highlights

Sport highlights NFTs are becoming a big, big market. Recently, the NBA created a Top Shot product—a blockchain-based trading card system based on new angles of NBA highlights and digital artwork. So far, a LeBron James highlight has sold for over $200,000. This marketplace is destined to explode as other sporting organisations enter the space.

4. Collectables

Collectables and NFTs go together like hands and gloves. Physical collector's items typically become valuable over time as many of the original items are lost, discarded, or broken, with the exception of those released with a low supply. NFT collectables, however, are (for the most part) inherently valuable immediately following release, given the tightly controlled supplies. Almost unbreakable proof of ownership also ensures those who buy NFTs can keep them secure and erase the threat of con artists crafting counterfeit copies.

NFT Uses

5. Virtual Avatars and Video Game Skins

While some NFTs seek to usurp the value of physical items and assets, others easily slot into already digital marketplaces. In the case of virtual avatars and video game skins, NFTs have found a welcoming home among online and gaming communities. To give you an idea of just how far NFTs are likely to reach online, Reddit has recently launched an NFT avatar marketplace.

6. Designer Sneakers

You can’t hold NFT sneakers. You can’t even wear them. But this hasn’t stopped demand from increasing. Much like playing cards and other collectables, NFT sneakers are fetching huge prices on digital markets. The average price for a pair of NFT sneakers sits between $6,000–10,000. If you want some CryptoKicks (a product patented by Nike), prepare to fork over $20,000 for certain pairs.

7. Music

NFTs even have the potential to change the landscape of digital music, a territory that fell victim to pillaging from pirate hoards over the past few decades. NFTs give musical artists the chance to regain an element of control over their products and the ability to sidestep third parties in the distribution process. Some artists are releasing one-off editions of albums, and others are providing limited audio-visual packages.

8. Authentication

Not only do NFTs have the ability to prove the ownership of digital assets, but they can also be used as a more secure replacement for “real-world” paper-based certificates of authenticity. For example, by matching a wallet number with a certain product (say a ring, for example) with a corresponding serial number, sellers can prove authenticity to buyers using proof of purchase logged onto a blockchain ledger.

NFT Controversy

As you can imagine, the same level of controversy that has plagued cryptocurrency also spills over into the NFT space. Check out the main bones of contention below.

❌ Buyer Fees

When trading NFTs, users are often subject to fees, known as “gas”, a price that it takes to fulfil a transaction on the Ethereum network. However, these fees are deemed far too high by some users, to the degree that they could stifle future growth in the space.

❌ Plagiarism

NFT artists have to pay gas fees when minting NFTs. Despite paying these rising prices, artists have discovered knock-off NFTs on certain trading platforms, which has raised concerns over the security of the work they upload and sell.

❌ Fraud & Security

Fraud and scams are rife within the NFT space. Many reports exist of buyers getting scammed out of their digital wallet credentials, resulting in significant financial loss. The digital asset space as a whole remains in somewhat of a wild west phase. According to a security company named Privacy HQ, 90% of survey respondents claim they have experienced a scam of some type.

NFT Controversy

As one of the fastest-growing and most innovative industries out there, it only makes sense that the cannabis sector has started to embrace NFTs. Let's take a look at the most promising projects.

Crypto Cannabis Club

As the self-proclaimed hub for cannabis connoisseurs and digital art enthusiasts, Crypto Cannabis Club has sought to create an online community with its roots in the metaverse. The platform has sold cannabis-themed NFT art, metaverse property, and also offers play-to-earn games.

This organisation serves as a perfect example of how NFTs have the potential to take off in the cannabis space. Not only do they offer digital goods for sale, but they're helping to bolster the community around the herb and this new digital technology. They have a Discord server aimed at welcoming novices into the ecosystem, and they help keen NFT collectors set up MetaMask crypto wallets.

Blazed Cats

You've probably seen a lot of ape NFTs at this point, but have you seen any stoned felines? Blazed Cats has taken a fresh approach to NFT artwork by releasing a 10,000-strong collection of hand-drawn and randomly generated cats that all feature their own unique traits and accessories. You'll find everything from felines holding joints between their toes, to those riding cartoon aeroplanes, and those that sport a traditional hippy appearance—circular-frame sunglasses and bandanas included! Only one question remains: will you add these abstract pieces to your NFT collection?

Digi Strains

Forget Pokémon cards. Imagine owning legal digitised weed strains instead! Digi Strains, created by The Peakz Company, exists as the first digital cannabis strain collection to ever hit the blockchain. Far from shabbily drawn cartoon images, Digi Strains are three-dimensional creations made to inhabit the metaverse. Once purchased, owners can put their favourite varieties on show in their digital homes. These pieces of art are currently selling for around 0.03 Ethereum, equalling approximately $50.

The Future of NFTs in Cannabis

So far, NFTs in the cannabis space largely centre around artwork and games. However, they could play a much larger role in the future. Could NFTs help breeders secure and sell the rights to their genetic material? Could seed banks release NFTs alongside limited amounts of seeds to create super rare, expensive, and exotic strains? Only time will tell. So far, NFTs and cannabis seem like a compatible pair with a bright future.

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Privacy Policy - Royal Queen Seeds

To ensure a safe online environment and guarantee adequate data protection, we strictly comply with all legal requirements. In this privacy statement, we provide information about how and for what purpose data is collected, safety measures, storage periods and contact details.


COMPANY NAME: SNORKEL SPAIN, SL (hereinafter ROYAL QUEEN SEEDS)

C/ Vilar d'Abdelà, 5 (nave 1) CP: 08170 de Montornès del Vallès

+34 937 379 846

support@royalqueenseeds.com


The present Privacy Policy sets out the terms on which we will treat personal data at ROYAL QUEEN SEEDS; this includes any personal data collected through our website https://www.royalqueenseeds.com/ as well as any other data we process in the course of our business activities.

ROYAL QUEEN SEEDS collects the following personal data for the purposes listed below:

SECTION 1 – PERSONAL INFORMATION WE COLLECT

1.1 Account purchases

Account purchases can only be made if you are in possession of a personal account. When you create an account or purchase something from our shop, as part of the buying and selling process we collect the following personal information that you provide to us:

This information is required for delivery. In addition, when you browse our shop, we automatically receive the Internet Protocol (IP) address of your computer. Based on this information, we can optimise your online experience and at the same time protect our online environment.

Purpose of data collection

We collect and store account-related data for the following purposes:

(a) to carry out obligations arising from any contracts between you and us, and to provide you with information, products and services that you may request from us;

(b) to set up, manage and communicate with you about your account and your orders;

(c) to conduct market research and analysis;

(d) to confirm your age and identity, and to detect and prevent fraud.

1.2 Newsletters

With your explicit permission, we may send you newsletters about our shop, new products and other updates. We send newsletters based on your explicit consent. In the event that you purchase a product, and in accordance with current regulations, we may send you commercial communications in accordance with the legitimate interest of our company, always about products or services similar to those you have purchased or contracted. In any case, you may exercise your right of opposition through the channels announced in this Privacy Policy. The following information is collected in relation to the newsletter:

We do not need to know the sex of the person in order to send the newsletter (data minimisation: by law we must ask for data that is strictly necessary to provide the service, and in this case knowing the sex is not necessary to send the newsletter).

Purpose of data collection

The data collected is used to:

(a) personalise our emails, including your name and gender;

(b) provide gender-specific content.

You can withdraw your consent at any time by using the link provided in the newsletter or the contact information provided in section 2.

1.3 Customer service and contact form

In order to provide appropriate support, our customer service employees have access to information related to the account. Consequently, their support will be highly effective and friendly. The data provided in our contact form is used by our CRM provider, SuperOffice. We will only use your details to respond to your message.

SECTION 2 – LEGITIMATE INTEREST

If you have purchased any of our products, please note that we may process your personal data for promotional purposes, based on Royal Queen Seeds' legitimate interest only to offer you products or services from our company and about products or services similar to those you have purchased. You may exercise your right to opt out of future messages by the means set out in this Privacy Policy or through any notification you receive.

2.1 How do you withdraw consent?

If you change your mind, you can withdraw your consent for us to contact you for the purpose of collecting, using, or disclosing your data at any time by reaching out to us at: support@royalqueenseeds.com.

SECTION 3 – DISCLOSURE

We may disclose your personal information if we are required to do so by law or if you breach our Terms of Service.

SECTION 4 – HOW LONG DO WE KEEP YOUR DATA?

At Royal Queen Seeds, we will not retain your data for longer than is necessary for the purposes described in this Policy. Different retention periods apply for different types of data; however, the longest period we will normally hold any personal data is 10 years.

4.1 Account information

Data relating to the account remains relevant for as long as the consumer is in possession of an account. Therefore, the data remains documented for as long as the account exists. When our customers delete an account, the associated data will be deleted within a reasonable period of time. Requests regarding the inspection or correction of stored personal data or the deletion of an account can be sent to support@royalqueenseeds.com.

4.2 Newsletters

In the event that you give us your consent to inform you about our products or services, we will keep your data until you express your wish not to receive any further communications from us. However, we regularly (every month) carry out a relevance check. Registered customers (and their personal information) will be deleted whenever customers do not reply to our request. In addition, our newsletter mailing has an opt-out feature. Consumers can withdraw their consent by using this opt-out feature.

SECTION 5 – COOKIES

Cookies are small information files that notify your computer of previous interactions with our website. These cookies are stored on your hard drive, not on our website. Essentially, when you use our website, your computer displays its cookies to us, informing our site that you have visited before. This allows our website to function more quickly and remember aspects related to your previous visits (such as your username), making your experience more convenient. At Royal Queen Seeds, we use two types of cookies: functional and analytical.

5.1 Functional Cookies

Functional cookies are used to enhance your online experience. Among other things, these cookies track what is added to your shopping cart. The use of these cookies does not require prior authorization.

5.2 Analytical Cookies

Analytical cookies are used for research and market analysis. The data collected with these analytical cookies is anonymous, making it unusable for third parties. The use of these cookies does not require prior authorization.

SECTION 5 – THIRD-PARTY SERVICES

Third-party services are required to conduct transactions and provide our services. In general, the third-party providers we use will only collect, use and disclose your information to the extent necessary to enable them to perform the services they provide to us.

However, certain third-party service providers, such as payment gateways and other payment transaction processors, have their own privacy policies regarding the information we must provide to them for your transactions.

We encourage you to read the privacy policies of these providers so that you can understand how these providers will handle your personal information.

In particular, certain suppliers may be located or have facilities located in a different jurisdiction than yours or ours. Therefore, if you choose to proceed with a transaction involving the services of a third party, your information may be subject to the laws of the jurisdiction in which that service provider or its facilities are located.

Once you leave our website or are redirected to a third-party website or application, you are no longer governed by this Privacy Policy or the Terms of Service of our website.

Web analytics service (anonymous data)

On this website we have integrated an element of a web analytics service (with anonymisation functionality). Web analytics can be defined as the gathering, processing and analysis of data about the behaviour of visitors to websites. An analytics service collects, among other things, data about which website a person came from (the so-called referrer), which sub-pages they visited or how often and for how long they visited a sub-page. Web analytics is mainly used for website optimisation and for a cost–benefit analysis of internet advertising.

Courier service

To complete deliveries we use a courier service. This courier service carries out the delivery between our company and the consumer's home. To complete these logistics, the company requires access to the consumer's name and address information.

Mailing service

Royal Queen Seeds uses a third-party mail service provider to send its newsletter. This provider has access to limited account information related to opt-in consent (e.g. email address).

Marketing services

Royal Queen Seeds has the support of a company that specialises in marketing and communication activities. Their access to personal information is very limited and mostly anonymous.

Payment services

At Royal Queen Seeds we use external payment services to handle our transactions (e.g. credit card payments).

SECTION 6 – SECURITY

To protect your personal information, we take reasonable precautions and follow industry standard best practices to ensure that it is not inappropriately lost, misused, accessed, disclosed, altered or destroyed.

If you provide us with your credit card information, the information is encrypted using secure socket layer technology (SSL) and stored using AES-256 encryption. Although no method of transmission over the internet or electronic storage is 100% secure, we follow all PCI-DSS requirements and implement additional industry standards that are commonly accepted. Information related to the account is protected with a hashing method. This method transforms the information into a generated hash. As a result, confidential information is protected and invisible, even to us. In addition, our databases are exceptionally protected against unauthorised access. For example, access to the database is only possible and permitted via approved IP addresses (e.g. from Royal Queen Seeds headquarters). Other attempts and addresses are rejected at all times.

Furthermore, data is anonymised as much as possible, so it cannot be directly linked to a specific consumer. With this data, however, we may be able to carry out market research and analysis. In addition, the third parties concerned (e.g. mailing service) are examined prior to our collaboration, comply with the GDPR from the EU and receive a processing agreement. Within Royal Queen Seeds, employees are assigned different access permissions. Specific permission provides access only to information that is strictly required to perform a task. Digital security measures are subject to change and must meet high requirements to ensure the safety of online customers. That is why, at Royal Queen Seeds, we appoint a security officer. Regular verification and improvement of security measures (where necessary) are part of the role.

SECTION 7 – CHANGES TO THIS PRIVACY POLICY

We reserve the right to modify this Privacy Policy at any time, so please check back regularly. Changes and clarifications will be effective immediately upon being published on the Website. If we make substantial changes to this policy, we will notify you here that it has been updated so you will know what information we collect, how we use it and under what circumstances, if any, we use and/or disclose it.

SECTION 8 – YOU HAVE THE RIGHT TO: