Have you heard of NFTs? Here we guide to NFT development and NFT marketplaces.
If not, then you should learn about this latest newcomer in the digital market as you may want to use it for digital transactions in the future.
With NFT development everyone has a unique opportunity to exhibit individual intellects and creative collectibles and showcase those items to promotive efficient handling of digital assets.
In this guide, you will find everything you need to know about creating and managing an NFT marketplace.
This information will serve equally those who are using an NFT platform for trading, buying, and/or selling goods or as their own businesses.
What Does NFT Stand For?
This acronym stands for a non-fungible token, which is a digital asset that differentiates from others by its original identification codes and metadata. There is no option to exchange or trade it at an equivalent unit. The non-fungible tokens or NFTs are photos, videos, apps, games, tracks, and similar pieces.
According to Wikipedia, an NFT can be considered a “cryptographic token, but, unlike cryptocurrencies like Bitcoin, NFTs are not mutually interchangeable, hence not fungible”.
Each of these tokens is a unique item and what makes it stand out from other virtual currencies are its impressive features. Some of them are
- Indivisibility: These tokens cannot be divided.
- Authenticity: The belonging of the NFT is easy to prove and verify.
- Tradability: Tokens can be traded on numerous cryptocurrency exchanges.
- Liquidity: The liquidity of NFTs is high due to the possibility of non-stop trading.
- Programmability: There’s an endless number of options and variations when it comes to NFTs.
- Scarcity: Particular characteristics of NFTs are impossible to alter after launching.
So, each of these non-fungible tokens is a completely unique digital asset with an original set of metadata. This way, many artists and collectors have a chance to join eCommerce by tokenizing unique goods. This marketplace works in the form of regular stores or auction platforms.
What have NFTs been used for?
As mentioned earlier, anybody can tokenise their work to trade as an NFT. To get an idea or be inspired, here are some of the most famous examples to date shared by the BBC:
- On 19 February, an animated Gif of Nyan Cat – a 2011 meme of a flying pop-tart cat – sold for a value of more than $500,000.
- Later that year, musician Grimes sold some of her digital art for more than a value of $6m.
- Twitter’s founder Jack Dorsey has promoted an NFT of the first-ever tweet, with bids hitting a value of $2.5m.
- Christie’s sale of an NFT by digital artist Beeple for $69m (£50m) set a new record for digital art.
Advantages of NFTs are that artists for example no longer rely on galleries or auction houses to trade their art and by that won’t have to share their profits. Producers of their own work, be that a video, an image, or any other form of digital content, can trade it in a unique manner with an NFT.
Popular NFT Marketplace Domains
You will easily find a non-fungible marketplace that doesn’t charge high fees, but you might also stumble upon those who accept only specific cryptocurrencies and operate on different blockchains. Each of these marketplaces is different, meaning they all have their upsides and downsides. For those who are new to this, the best way to differentiate the NFT marketplaces is by its main category – universal non-fungible token websites and niche peer-to-peer.
From the beginning of 2021, we’ve seen so many NFT marketplaces appearing, so it might be overwhelming for you to choose the one that might suit your needs. If you’re considering building an NFT marketplace, these are the top 3 options for you.
OpenSea is the pioneer in the crypto NFT market when it comes to top non-fungible token companies. Its users can easily find numerous NFTs such as pieces of art, cards, sports and so much more. There are more than seven hundred projects currently available, and you can expect to find Cryptokitties and Decentraland. You can even build personal goods with OpenSea’s inserted minting instrument completely free of charge.
2. Atomic Hub
Yet another great digital art NFT market, Atomic Hub occupies leading positions through Wax blockchain. Its users are trading items against the native Wax coin and these goods can be traded with a 25-cent value. When comparing it with competitors, it’s quite easy to come up with an NFT collection on this platform. Users have the option to choose a common theme for collectibles or they can generate them from scratch.
If you’re looking for something more recent and innovative, you should opt for SuperRare, a great digital crypto art solution, when building an NFT marketplace. However, keep in mind that getting access to SuperRare is not that easy as only proven authors with respected works of art can publish and sell their own pieces there. Also, you will need Ethereum to participate in exchanges.
Now that you have a better idea about NFTs, you should be aware that because NFTs are relatively new and unique, their value is purely based on what the buyer offers to pay. Meaning its price is based on the demand rather than economic or other measurable factors. Therefore, an NFT’s value may fluctuate and could resale for less or become more expensive to purchase, which would be extremely difficult to foresee or estimate. It can be considered a very fragile and risky business investment and you should be prepared to make a loss; however big returns may be in sight.