Last year the crypto space was entirely about DeFi. All about its achievements and discoveries. It showed us how the world is accepting the DeFi solutions for witnessing new essays of our life. One of the sectors that have enhanced the DeFi adoption is “Non-Fungible Tokens.” A reasonable hype was seen in the Non-Fungible Tokens and projects associated with it. The sale of Non-fungible Tokens touched sales of around $1million.
Postulate of Fungibility
The notion of fungibility has been accepted by the real-world and the digital world. An item is called fungible when it can replace an identical item.
Example: Money, cryptocurrencies, etc.
A dollar, irrespective of its serial number or location of storage, always holds the same value.
Cryptocurrencies are also launched in a way that they are always identical to the other token. One Bitcoin is always equal and compatible with other Bitcoin. One Ether coin is always similar and consistent with another Ether coin.
What are Non-Fungible Tokens?
Non-Fungible Tokens are one of a kind cryptographic tokens. They are unique and cannot be interchanged. Built on blockchain technology, they attract investors and traders due to their distinctive features. Like any other cryptocurrency, they are also built on blockchain technology, but their distinctive feature helps it stand out from the crowd. They can be broken or divided into smaller denominations. They are used as a whole for investment, trading, etc. Their metadata cannot be manipulated, reflecting an unquestionable record. They represent the following assets;
- Crypto collectibles
- Event tickets
- In-game purchases
- Real-world investments
How to Create NFTs?
Creating your own non-fungible tokens is a very simple process. The user should own a digital wallet, which is connected to an NFT marketplace. At the first stage, the user uploads the digital asset into the NFT marketplace. The marketplace platform initiates the minting process, where the digital asset is converted into an NFT. The converted NFT is stored in a digital wallet that is linked with the respective NFT marketplace. The storage of NFT in the digital wallet indicates that the NFT has been created. The final stage would be listing the NFT on the marketplace to raise an auction or attract buyers.
How Non-Fungible Tokens Work?
Non-Fungible tokens have the attribute that they cannot be copied or fragmented into smaller denominations, like Bitcoin. It can be fragmented into smaller fractions and traded. At the same time, they both share the same features as transferability, transparency, speed, etc.
ERC-71: The Ethereum network’s standard is used by different NFT platforms like Cryptokitties and Decentraland to build their NFTs. Other blockchain networks like BSC, TRON, EOS, and others also offer their own NFT standard, which assists in creating NFTs on top of each of these blockchain networks. Recently, Ethereum launched another standard to launch NFTs known as ERC-1155.
Features of Non-Fungible Tokens
- Irreducible: NFTs cannot be fragmented into smaller portions but can be used as a whole. You can perfectly correlate it with a movie ticket, and it cannot be bought partially; one needs to buy it completely and use it as a whole.
- Rare: The creation of NFTs is entirely in the court of developers. So, they might have the liberty to create infinitely or limit it. Therefore, it is said that its availability is scarce.
- Distinctiveness: NFTs are not interchangeable, they can not be manipulated, metadata is permanent, which makes every single NFT unique and distinctive from another NFT.
- Interoperability: NFTs are compatible with ERC-721, which means their technical specification is similar to that of the Ethereum network.
- Ability to trade: Users have the liberty to sell their assets outside the environment and into a marketplace, where they can grab high-tech trading opportunities.
- Liquidity: Non-fungible Tokens are leading the path to new liquidity pools for trading.
- Immutability: The Metadata of non-Fungible Tokens are immutable, which means they cannot be manipulated or altered.
- Programmability: Non-FungibleTokens are completely programmable, like a pool of opportunities and possibilities.
Pros of NFTs
- NFT allows users to inculcate as many features as they want to add with respect to what it speaks for.
- This validates the NFTs and increases their value.
- NFTs are ERC-720 compliant.
Use-cases of Non-Fungible Tokens
- Establishes copyright protection in Artwork: Digital content creators can easily showcase their work in the virtual world, without worrying about copyright hitch, with the help of NFTs. It also helps in claiming ownership and earning at a recurring pace.
- An efficient and secured in-platform trading in gaming platforms: In the gaming world, NFTs give the liberty to players to trade in-game items, which is restricted on many other platforms due to the jeopardy of online transactions.
- Simplified collectible trade: With the assistance of Non-Fungible Tokens, one can easily buy tokenized versions of collectibles like rare currency, limited edition action figures, and other exclusive merchandise goods.
- Real Estate: NFT can represent portions of land in various locations. The users can monetize their property by leasing it out to other gamers on the platform or by utilizing it for promotions.
- Entertainment Industry: NFT can use blockchain technology to prevent such frauds as piracy, copyright infringement, and plagiarism, making replicating ideas and creative work impossible.
How much does it cost to make NFTs?
The cost of developing an NFT varies according to the specifications provided by the customers. At Infinite Block Tech, we invigilate every customization feature and suggestion provided by our customer, and depending on the functionalities of the specifications, the cost for the creation of non-fungible tokens is estimated. Our primary priority is to develop NFTs for our clients at a very affordable price for each customization level. We specialize in deploying NFTs at high speed and at an economical cost.
How to Buy NFTs?
NFTs can be purchased in NFT marketplace platforms. There are many NFT marketplace platforms where the user can purchase non-fungible tokens. The most common marketplaces where the users purchase NFTs are OpenSea, Rairble, SuperRare, etc. The cost for purchasing NFTs varies depending on the marketplace platforms since all NFT marketplaces are unique. The transaction fee is a very important factor to be considered while buying non-fungible tokens. It varies drastically for every marketplace platform where some NFT marketplaces charge transaction fees, and in some marketplaces, they do not; it is important to be aware of the gas fee before purchasing an NFT.
How to Sell NFTs?
The selling of non-fungible tokens varies depending on the type of marketplace platform. In order for users to sell an NFT, the digital asset that needed to be converted into an NFT is minted in an NFT marketplace. After the minting has been completed, the NFTs that are stored in the digital wallet is listed on the respective NFT marketplace platform. Listing of the non-fungible token is an essential process as it showcases the user’s NFTs to the buyers, and it helps the users to sell the NFTs at a high price.
Is now a Good Time to get into NFTs?
Yes, the time is now. In the near future, the NFT domain is said to dominate the digital market. Even at the present time, there has been a huge crypto fan following behind the concept of NFTs, and it is estimated to increase in the future. Everything has been shifted towards the digital world, from e-commerce to selling arts, it has been a great leap. Since NFT is a growing platform, it is determined to be a great success in the future. Thus, getting into the NFT field right now is a perfect opportunity to enjoy great profit yields in the future.
What Infinite Block Tech Holds for you?
Infinite Block Tech is a leading name in the Blockchain technology market. We can develop such tokenized solutions that will be beneficial to your business in every lucrative manner. It’s time to learn and earn more because it is like a now or never opportunity. Develop your own NFT with Infinite Block Tech to fortify your financial dreams. Let us hold hands together and win the world!