Cryptocurrencies are a type of payment mode where digital goods are bought and sold online. Many companies in the digital market space have developed and introduced their own cryptocurrencies called Tokens. A Cryptocurrency platform is built on blockchain technology, and it exists in a decentralized ecosystem. The domain of cryptocurrency has given rise to several forms of exchange methods and decentralized finance functionalities, but none of the platforms had the attention and dominance asserted by Non-fungible tokens (NFTs).
Difference Between Fungible And Non-Fungible Tokens
Fungible tokens are completely interchangeable in nature; they are identical and carry the same value. For example, you can trade a $10 note for another $10 note, and the value remains the same. Non-fungible tokens are not interchangeable in nature; they are non-identical and possess unique value for each token. For example, a trading card that was produced a decade ago does not have the same value as a trading card that is released in the present year. Many external factors play a role in the identification of uniqueness in non-fungible tokens.
- Token Standards
Fungible tokens are dependent on the ERC-20 token standard. This token standard allows the user to trade fungible tokens of the same value. Non-fungible tokens are dependent on the ERC-721 token standard. This token standard allows the user to trade non-fungible tokens on the NFT marketplace platform.
What Is An Non- Fungible Token?
A Non-Fungible Token, also known as NFT, is a digital asset or a digital certification of an asset. These digital tokens are non-fungible; hence they cannot be interchanged or replicated. NFTs are built on a blockchain network that allows them to store data and information securely and prevent theft of data. Each NFT possesses a unique value that provides proof of authenticity and ownership of the digital asset.
Non-fungible tokens can be represented in any form of a digital asset such as video clips, audio clips, trading card collectibles, domain names, artwork, etc. Similar to the fungible tokens like bitcoin, litecoin, ethereum, etc., NFTs can be traded in any decentralized exchange, but, NFT marketplace is the popular and most commonly used exchange platform.
What are Crypto Collectibles? Examples of Crypto Collectibles
The development of cryptocurrency has paved the way for the creation of crypto-collectibles. This cryptocurrency platform has turned to be a dominating platform from the initial days in the digital space. It has achieved great business traction due to its exceptional functionalities and features. Crypto collectibles are unique digital assets that cannot be interchanged with other collectibles. These tokens are developed on blockchain technology; thus, they verify ownership for these digital assets. These crypto-collectibles are also known as non-fungible tokens. These collectibles can be traded on decentralized platforms like the NFT marketplace platform. This is an exclusive platform that trades only non-fungible tokens. Crypto collectibles or non-fungible tokens can be represented as anything that can be digitized, including tangible and intangible digital assets. The most common examples of crypto-collectibles or NFTs are listed below.
Examples Of Crypto Collectibles
- Digital artwork collectibles.
- Domain names.
- Image clips.
- Music files.
- Trading cards.
- In-game collectibles.
- Event or concert ticket.
What Is An NFT Marketplace?
NFT Marketplace is a special platform where non-fungible tokens can be bought and sold. It is built on a blockchain network. The transactions that take place in this platform are secured by the blockchain and thus, hacking or destroying of data is eradicated. There are several types of NFT Marketplaces, some are open types and some are exclusive types. For example, OpenSea and Rarible come under the category of open type NFT marketplaces, and SuperRare, Nifty Gateway, and Foundation come under the category of exclusive NFT marketplaces.
In open type NFT marketplaces, all types of NFTs can be traded such as video clips, artwork, audio clips, trading cards, etc, whereas in an exclusive type NFT marketplace, only the particular digital asset can be traded which is respective to the core of the marketplace.
Non-Fungible Tokens have arrived as a dominant force in the crypto space. Many NFT Marketplace development companies have started to develop their own NFT marketplaces. Many gaming companies have actively taken part in revolutionizing the digital marketplace by introducing NFT marketplace-based blockchain games.
Blockchain-based NFT games have become a key revenue generator in the field of cryptocurrency. The in-game assets are represented in the form of NFTs and players can play the game and win rewards in the form of non-fungible tokens. These NFT games are represented in many genres like adventure, real-estate business types, trading digital cards, etc. The listed below are the popular NFT games
- Gods Unchained
- Crypto Kitties
- Light Nite
Workflow Of NFT Marketplaces
The users can create their digital assets by uploading them to their desired marketplace in order to showcase their work. NFT Marketplaces are very flexible, they give the user the freedom to choose the type of payment token they would accept for their art and fix a price. Listing the digital items that are for sale is very crucial as it showcases the user’s digital items to the buyers and it works as a promotion factor. Then, the user can select a fixed price or initiate an auction. A transaction is formed when the digital item from the listing is bought by the collector, it launches a personal trading smart contract for the user’s digital wallet.
Features Of NFT Marketplaces
A high level of liquidity is gained due to the ability of the NFT marketplace to trade immediately. NFT tokens are held as collateral for liquid cash or other crypto assets for immediate cash. Immediate liquidity with a huge audience in the marketplace is achieved by the functionality of a huge pool in the digital market. Unique assets can be gained by expanding the market.
A non-fungible token’s contribution to the public blockchain allows the developers to build inheritable, reusable, common standards that are relevant to all NFTs. This executes the standardization of the user’s collectibles represented as NFTs to view in the NFT marketplace.
NFTs can be traded in multiple marketplaces due to their interoperability feature. This enables the token holders to make use of the advantage of the trading capabilities, bundling, bidding, and the ability to sell in digital markets.
Scarcity improves the uniqueness of the digital assets, thus, it increases the value. Developers can restrict the production of digital assets by programming them to produce only a specific number of rare items.
Similar to the conventional digital assets, Non-fungible tokens are completely programmable and the design space is filled with customization possibilities.
Build Your NFT Marketplace Development Platform
The users can develop their NFT Marketplace Development Platform by executing any one of the following methods, to create a custom NFT Marketplace or to implement OpenSea SDK to the marketplace.
Implementing OpenSea SDK to the NFT Marketplace allows the user to complete the construction of the marketplace in a very short period of time but it imposes minor restrictions to the modification of the codes. This method of creating an NFT marketplace cannot be customized to the user’s desired specifications. It follows OpenSea’s in-built SDKs.
On the other hand, the second method, creating a custom NFT Marketplace, eliminates the restriction imposed by the SDK method. Its entire architecture is dependent on the user’s specifications.
Why Choose Infinite Block Tech As Your NFT Development Service Providers?
We Infinite Block Tech are one of the prominent NFT development service providers in the globe. We provide top-notch NFT development services to the clients in terms of the creation of NFTs and the creation of NFT marketplace platforms. We are internationally recognized for delivering high-quality results in the blockchain technology domain. Our professional developers are extremely skilled in building a high-end NFT marketplace. Our primary goal is to create a marketplace based on our customer’s specifications. Our technical team works 24×7 to help customers with queries and post-deployment services. Our aim is to assist our customers in elevating their business growth to the next level. The investors and entrepreneurs can avail of our services by contacting us!