In this episode of Understanding Crypto Paul Abercrombie and James Burtt present eight points to consider when choosing and participating in an NFT project. Paul says that these 8 pillars are relevant if you're looking to invest in a project, as well as when you’re launching your own NFT.

The eight core pillars of a successful NFT project are:

1. Rarity:  NFTs are often digital art pieces that are sold as collectibles; the individual components of the artwork are referred to as traits. Collectors are interested in collections that are distinct and have clear backgrounds for seamless compilations. James describes the procedure: “150 individual images may be placed into the generator and out of that you'll get 10,000 collections”. The rarest combinations produced by the algorithm have the highest perceived value, and are therefore more expensive. The rarity of the NFT and its collectability are also impacted by the quantity in the collection. [Listen from 3:01]
   
   
2. Artwork: Contemporary developments have led to NFT artwork that changes over time. The use and potential value of the NFT can be affected by this method, which has since gained usefulness. Through the evolution of its artwork, inventive creators can access new functions. [Listen from 8:17]
   
   
3. Utility: Paul thinks that when evaluating the utility of an NFT, investors and developers should take these considerations into account:
   1. What function does the NFT fulfill? 
   2. What possibilities does the NFT present? 
   3. What future use cases might there be?
      
      The best NFTs have utility in the real world, and offer a mix of experience, training, and access to the investor. Paul illustrates how utility can be incorporated into a Web3 project using their TWC tokens as an example. [Listen from 10:17]
      
      
4. Secondary Market: The type of blockchain that developers use to design their NFTs is the primary factor that determines their ability to sell on particular secondary markets. Developers should carefully choose the blockchains they build their NFTs on, given the inter-portability limitations that currently exist in the Web3 world. "You need to consider where you want to post that and the market cap of the size of the blockchain you're on," says Paul. [Listen from 15:07]
   
   
5. Gamification: Gamifying NFTs keeps participants interested and committed to the project. “You're incentivizing somebody to take part and you're rewarding them for their participation,” Paul explains. It is associated with utility and contributes to the evolution of the project's functionality. Ideal projects are balanced, which guarantees that investors are always engaged and dedicated to the project. [Listen from 20:00]
   
   
6. Credibility:  Who are the people involved in the NFT project? Who are the participants in the NFT project? “In the traditional world of business you wouldn't even dream of investing money into a company or a crowd fund unless you knew who was behind it,” James remarks. Both James and Paul concur that if a project is financed by a crowdfunding platform, NFT developers should never be undocked or anonymous. Investors should have access to all information, including the identities of creators, board members, and the addresses of physical offices or crypto-mining sites. [Listen from 23:36]
   
   
7. Community: Paul argues that the concept of community in Web3 is that everyone gains and benefits in the same way. “It's a share of wealth, a new distribution of that wealth model which is different to traditional business.” Because they apply web2 tenets while utilizing web3 platforms, he thinks that many NFT developers do not accurately portray the principles of web3 community. The most successful NFTs projects are able to guarantee investors' equitable returns at every level of participation. [Listen from 30:30]
   
   
8. Legacy: They anticipate that NFTs' overall legacy will be its normalization, making them a part of daily life. Paul invites developers of current NFT projects to consider how their NFTs might leave a legacy.“With our creator coin, our legacy is that we're giving people their voice, and we're allowing them to build their platform on our network.” [Listen from 37:31]

Key Takeaway

• The eight pillars of a successful NFT project are: Rarity, Artwork, Utility, Availability on the secondary market, Gamification, Credibility, Community and Legacy