Good morning! This the Yellow Dip - we are a weekly newsletter that gives you all the right answers about Blockchains.

Here's what we got today:

• How Social Media giants are using NFTs for real

• Stripe launches a product to connect crypto & fiat currencies

• Quick dips

How Social Media giants are using NFTs for real

If I say, social media companies like Twitter, Instagram, Facebook, Telegram & Reddit are going crazy with the NFTs and pushing it to you already - would you believe it? You won't - but here's what I have for you. Let's learn.

For starters, think of NFTs as the digital version of a stamp or coin that you collect, which is unique, possesses some value but additionally, it's chain of ownership can be traced in a manner which no one can challenge. Basically, you can buy NFT at a price, which is unique (digitally identifiable) & rare. You can hold it in a wallet & it's value changes over time due to demand, rarity or uniqueness.

But what do NFTs mean to these social media companies? To start with, Instagram is enabling creators & artists to add NFTs (like images & videos) to their feed, which will have a visual differentiation like a shimmering effect. These NFTs are the ones, which these people already own from other marketplaces and helps create their own digital art gallery on Instagram. In future, people will be able to create/mint & sell NFTs directly from Instagram as well. This is just Insta, Twitter launched NFT profile pictures - which means NFT artwork can be set as profile pictures, shown in hexagon, and will have description & ownership information. Reddit's avatars use NFTs. Similarly, Telegram is auctioning its usernames as NFTs to its 700 million users. So you get the point now.

But, are NFTs unlocking any additional value, which could not have been possible without NFTs? To answer this, let's see why is this being done. I can brief this to:

• firstly, a plain reason is that it will help these companies earn more revenue when you buy & sell NFTs.

• For people, profile pictures & usernames give social recognition and something that fit the attributes of a NFT - uniqueness, rarity & as more people come on the platform, its demand increases

• Creators and artists can monetize their NFTs by allowing their followers to buy/trade NFTs and even get lifetime royalties (as ownership can traced in a trusted manner)

• The audience is now closer to the creator/artist & they can promote and sell directly without middle-men.

So, NFTs are in for real. NFTs worth $400 million were traded this month. Not bad for a 2 year old industry eh?

Stripe launches a product to connect crypto & fiat currencies

Stripe, a payments company which provides a suite of payment products, has launched a widget which will result in easy conversion of our money (fiat currency) to a cryptocurrency. If you don't know Stripe, it powers payments for many brands around the world and in India, like Nalli, Jaypore, Zoom, etc. But why is this making a buzz, let's understand this.

First, this is a big deal that a company of the size of Stripe is doing this. It is considered a company which belongs to today's internet world and is betting on the crypto stuff. While there are other companies like MoonPay or Ramp doing this, but they are meant to be crypto focused companies. So, you get it. Second, the product makes it super easy for money to transition between the fiat & crypto - which means more people can now connect to the crypto world. This also means, that many businesses who already use Stripe for the fiat payments, now also have the option to use it with crypto - like imagine buying Zoom subscriptions with a cryptocurrency, you just have to pay through your stripe account. Third, it will handle KYC, payments, fraud & compliance so that crypto companies can focus on the crypto. And it brings all the benefits that Stripe as a product brings - like saving payment methods for you, reputation, etc.

This widget, very simply means - you enter a USD (fiat) amount, and select the crypto currency you want to buy. Stripe simply converts this USD amount to the crypto you selected, based on conversion rates & some fee. Now behind the scenes, Stripe has partnered with 'Zero Hash' to get this cryptocurrency for you. Or if you have crypto, you pay for something, let's say Zoom subscription or an apparel with your crypto. The merchant gets paid in fiat & you pay in crypto - Stripe does the conversion job. But you can connect the dots, how this can impact crypto circulation at scale. Its early days for Stripe on this , and so, my guess is that they have come up with a widget to start with - which enables developers of wallets and crypto exchanges to just plug this into their products or use as a chrome extension, which basically makes adoption more easy. Crypto is arriving!  

And it's meme time! ;)

Quick Dips

+ Boris Johnson bullish on blockchain but with more regulation (The Guardian)

+ Making a Career in Blockchain (Entrepreneur)

+ The risks and rewards of paying off student debt on the blockchain (MIT Technology Review)

+ What can NFTs do for dead artists. (New Yorker)

To get started with understanding Blockchain, go through this free learning resource.

That's a wrap for today. Stay hungry & see ya next week!

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DISCLAIMER: This newsletter is strictly educational and is not an investment advice to buy or sell any assets or to make any financial decisions. Please be careful and do your own research