Non Fungible Tokens

Cryptocurrencies are fungible. Fungibility is an attribute where one unit of crypto is an exact replica of another unit of crypto. But, there are cases where tokens are used as proof-of-ownership of an underlying asset. Then these tokens become non-fungible. Ownership can be the same for every asset.

What is an NFT?

An NFT is a unit of information preserved on a digital ledger (blockchain network). It offers the certificate of authenticity to a digital asset uniquely identified. NFTs can be tracked on a blockchain network that offers proof-of-ownership to its collectors. NFTs are developed on the Ethereum blockchain network. They follow token standards ERC-1155, ERC-721, and ERC-998.

Twitter’s co-founder tokenized his first tweet as an NFT and sold it for more than 2.9 million dollars. Beeple’s NFT “EVERYDAY: The First 5000 Days” was sold at a high price of 69.3 million dollars. Beeple’s Digital art is available online. People can see it, download, and take screenshots of the art. But still, it was sold at such a high price. Because these actions do not provide ownership of digital art to anyone. The buyer owns the original item as an NFT that has in-built authentication.

Attributes Of NFTs

• Every NFT developed is unique and distinct
• NFTs are digitally scare assets
• NFTs are indivisible
• NFTs provide proof-of-ownership to the underlying assets
• NFTs are tamper-proof

Working Mechanism Of NFTs

NFTs are developed on a blockchain network, which acts as a distributed ledger that records and tracks all transactions. Generally, NFTs are supported by different blockchain networks but are developed on the Ethereum blockchain network. NFTs can be created for tangible and intangible assets.

NFTs provide the exclusive ownership of an asset that can not be replicated and is immune to any malfunctioning. By leveraging blockchain technology, the transfer of ownership and tokens can be done smoothly. Certain information like the signature of the artists can also be included in the metadata of the NFT.

What Are The Key Things You Need To Have Before Investing In NFTs?

Before you start investing in NFTs, you need to have two things ready:

• Wallet
• Cryptocurrencies

You will need a wallet because it will help you store your NFTs, protecting them from any fraudulent or theft activities. You can go to some cryptocurrency exchanges, and buy some of the cryptos with the help of your credit card or even PayPal. If you have done your research, you must be aware then such platforms charge your transaction fees. So, do not forget about that when you shop for cryptos.

Scope Of NFTs In Different Industry?

Anything from dreams to domains can be an NFT. Here is the list of a few sectors where NFTs are ruling;

• Art

  Physical or digital art can be tokenized into an NFT. Thus, offering a lucrative opportunity to artists across the globe to tokenize their art into an NFT. Apart from this, the artist will continue receiving the royalties as well.

• Fashion

  A fashion design be it a dress, bag, or shoe is made with effort and skill. Now, these designs or a physical dress, bag, a shoe can be tokenized into an NFT.

• Real-estate

  Imagine a piece of land or a building is tokenized into an NFT. Thus, borrow or lend from DeFi in the simplest manner negating all the tedious paperwork.

• Music

  Audio, videos, tunes, lyrics, etc now can be monetized into an NFT. Thus, providing ownership to the original content creators.

• Sports

  Short videos, photos, and scenes from a match can be tokenized into NFTs. Digital game's in-game assets and avatars can also be tokenized into an NFT.

• Entertainment

  Movie scenes and dialogues can be tokenized into an NFT.

What is an NFT Marketplace?

NFT Marketplace is a platform where buying and selling of NFTs take place. It offers an equal opportunity of NFT trading to buyers and sellers through a platform with one single platform.

What is an NFT Launchpad?

NFT launchpad is a platform that allows creators to curate and launch their own NFTs. Here, NFTs are auctioned, and also they are placed for bidding.

Difference between Selling And Bidding?

Selling - A platform or a marketplace exist. Buyers and sellers come together to buy and sell NFTs. NFTs are sold at a fixed price.

Bidding - A platform or a marketplace exists. Buyers come and start bidding for a given period of time. The highest bidder wins the bid and gets the NFT.

Conclusion

The face of investment, finance, and technology has been modified with the emergence of NFTs. Its unique attributes, its use-case in different sectors have brought a revolution in the blockchain arena. People are furious to make an investment or starting an NFT venture. If you have any such ideas in mind and want to explore more of the NFT world, Nu10 technology would love to partner in your adventure. Nu 10’s NFT expertise has helped entrepreneurs and enterprises around the world to launch their NFT projects smoothly. If you need any assistance with any of your NFT projects in any field or sector, our team of experts will help you out.

Contact us now!