Non-Fungible Token (NFT)

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Non-Fungible Token (NFT)
Non-Fungible Token (NFT)

NFTs have become one of the most famous blockchain trends of 2021. They are unique digital crypto assets that users are collecting since 2012. Since last year, its revenue has increased from $250M to $389M, almost 55% in a year.

With the recent $69.3 million sales, Non-Fungible Tokens (NFT) are again in the headlines. If you are someone who is new to all these and has been confused a lot about NFTs, how they work, or any other thing about them, don’t worry we got your back.

What are Non-Fungible Tokens (NFTs)?

As everybody already knows by now, NFT stands for Non-Fungible Tokens and, from a market perspective, very simply put, because there is really no reason to complicate things further, if you set something apart and it retains a proportional value of the something left, then it is Fungible. Otherwise, you broke it, my friend, it was Non – Fungible. Non-fungible tokens are representations of such kinds of assets that have opened a whole new world of possibilities.

Trouble gasping all these? Let’s take an example to make it easier: Let say you want to buy an orange jacket. You go on the internet, and a Jacket costs $69. If you purchase that jacket for $69, you don’t care what specific jacket they send you from their collection. Here the jacket you buy is Fungible. On the other hand, there is another Orange Jacket that is unique and has no copies. Now that jacket has some value, or we can say it has some significance, or we can say this jacket is non-fungible. Now what people are doing is giving tokens to things and exchanging them for money. They see something unique and buy it. NFT can be anything, artwork, or even some NBA top shot clips.

They are like digital assets, and the list of non-fungible tokens is very long. Some examples are Blockchain heroes, Decentraland, and Prospectors.io.

How to Create Non Fungible Tokens?

Creating your own NFT is an easy and straightforward process that doesn’t require substantial knowledge of cryptocurrency. Usually, Ethereum Blockchain is used to make NFT; however, various other options like Tron, Tezos, Cosmos, Binance Smart Chain, WAX, and EOS are also becoming popular. Each Blockchain has its standards for development, and because Ethereum is the famous one, here is a demonstration of how you can create one for yourself and do Non-Fungible Token trading.

For creating an NFT using Ethereum Blockchain, all you need is an Ethereum based wallet that is compatible with ERC-721 standards and 50-100$ in Ethers. Once you have them, you need to select an NFT-centric platform to connect your wallet and then upload the file you want to convert in NFT.

How and Where to Buy Non Fungible Tokens?

Below are the three easy steps, which on following you can buy NFTs

1) Creating NFT Marketplace Account

The first and most essential step is making an NFT Marketplace Account. There are many marketplace sites available for buying, and the art collection or collectibles you purchase will depend on the marketplace you choose.

2) Transferring Funds to your Account

Since most of the NFTs are tokens, many non-fungible token markets accept Eth tokens as a way of payment. If you already have an account, then all you need to do is send your crypto to the marketplace and then purchase Ethereum on it.

3) Buying your NFT

Once you have set-up and transferred funds in your account, it becomes easy to buy. You need to place your bid in the marketplace and the higher your bid will be, the better your chances will be for having your NFT.

  • Opensea: This marketplace uses Ethereum to operate. It auctions various digital collectibles, including video games items and digital artwork. You will need a web3 cryptocurrency wallet like Metamask to trade here.
  • SuperRare: It is a social network for NFTs where you’ll only find the most unique artworks. This platform also operates on Ethereum, just like Opensea, and you’ll need Eth tokens for trading.
  • Nifty Gateway: It is a marketplace Gemini which is a popular cryptocurrency exchange. It has collaborations with famous artists such as Steve Aoki, Grimes, and 3LAU to release artworks in its primary marketplace. It also has a secondary marketplace where users can resell artworks. For funding, the best thing here is that you can connect your credit card directly.

“Non-fungible assets are just normal stuff. Fungible assets are the odd ones out!”

Devin Finzer, CEO and co-founder of OpenSea.io

Conclusion

As you have read above, now I guess you’ve understood that NFT is still in its early stage of development. Therefore, you can expect some good performance in upcoming years. For the present scenario, NFTs are transitioning from Crypto Kitties and gaming to other digital assets that means the market is still in raw terms of experimentation. If you still have any doubts, or suggestions feel free to comment down below.

FAQs (Frequently Asked Questions)

What is Non-Fungible Token?

Non-Fungible tokens are unique digital assets that represent real world objects like music, videos, art, and in-game items. These are built using the same programming as cryptocurrency, and are bought and sold online just like Bitcoins and Ethereum. NFTs were introduced in 2014 and have gained more than $147 million revenue till November 2017.

How to Create Non-Fungible Tokens?

Non-Fungible tokens are can be created easily and then auctioned on numerous of NFT-centric platform. To create your own NFT you need to register yourself on a marketplace. Then connect your wallet, and upload the image, audio or video which you want to be your unique NFT.

How to Buy Non-Fungible Tokens?

For buying Non-Fungible Token you need to register in a market place like Opensea or SuperRare. Then link your wallet and add funds. NFTs are traded in auctions so highest the big, more is the chance of you getting the ownership. These auctions takes place frequently only on online marketplaces.

Where to Buy/Sell Non-Fungible Tokens?

Each NFT is unique and can’t be duplicated. Most NFT platforms require seller and a buyer to have a digital wallet and use crypto currencies to pay for their purchases. Some Top NFT Marketplaces for Creators to Sell or Buy NFT are Open Sea, Rarible, SuperRare, Foundation, AtomicMarket, Myth Market, BakerySwap, KnownOrigin,  Enjin Marketplace, Portion, Async Art. OpenSea describes itself as the biggest marketplace for NFTs and features more than 700+ different projects.

Future of NFT

With the recent boom in the past few days, we can say that NFT will be like crypto in the next few years. The initial stage of NFT had a great boom, and this is just starting. The revenues will increase dramatically in the near future.

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