NFT’s are the new way of auctioning the arts, mainly digital art. NFT’s are taking the digital Art’s to the new sky-high level. Digital artists are now enthusiastic to sell there arts to the new crypto audience.
First NFT based game is launched in 2017, named Cryptokitties. In that game players could purchase, collect, breed and sell virtual cats using Ethereum. And you won’t believe that highest selling price of a cat was $117712 in that game.
Now the NFT market have become huge and its total asset sales value have crosses $25 billion dollar since 2017.
Many celebrities and sportsmen’s are now find the new way to connect their fans. Now NFTs have become very popular among gamers, celebrities, their fans and development companies.
NFT’s provide you the ownership deed of an item in digital world. In the field of games and virtual collectibles, NFT is now very popular.
What is NFT?
NFT stands for “Non Fungible Tokens”. NFT’s are the tokens that shows the ownership of a unique item. NFT’s are secured by the Blockchain technique, only by using Ethereum crypto currencies.
NFT’s can be created for things like Art, videos, Collectibles and also for real estate. In future NFT’s can be generated for other physical items like car’s. And that unique token (NFT) will authorize that, you are the sole owner of that property.
What is fungible and non-fungibles ?
Fungible items are like bitcoin, etherium, Dollar etc. They can be exchanged because their value defines them, not their uniqueness. 1 bitcoin can be exchanged with another 1 bitcoin.
Non-fungible items are like a unique Art, your laptop, A song. They can’t be exchanged with another because of their unique property.
Unique properties of NFT
· Uniqueness – No two NFT’s are same, they are unique digitally.
· NFT provides a creator the global market.
· NFT’s have the unique address, That can be verified easily.
· NFT’s now can be used as collateral for loan.
· Each NFT token minted on ethereum platform. And linked to an ethereum address.
On a technical level, there are “standards” on which NFTs are created and recorded.
ERC-721 Standard: it was the first standard used to create the NFTs. ERC-721 is based on “smart contracts” written in “Solidity”, it was very simple for developers to create.
ERC-1155 Standard: This second standard token introduces the concept of semi-fungible and allow developers to also build assets in ERC-721, which is used for financial instruments such as NFT Stocks.
How do NFTs work?
NFTs can be sold and bought on Ethereum blockchain or the platforms which provide you this service like Opensea.
A sale does not mean that you will receive a painting; you are going to receive the certificate of ownership of that painting in the form of Token on the blockchain.
The Token is a 40-digit string of words and numbers, which have the information of original creator of that art, current owner of that art and the current price of that art. And all this information is on Blockchain technology, which can’t be changed because of its decentralized system.
Your certificate must be kept safe in a digital wallet, which have connected to Metamask. Metamask is a free extension for your internet browser to perform the transaction.
If you are an artist you can create or mint your own NFT, then take that to the NFT marketplaces to sell. It required a little gas fee to mint an NFT.
Top best selling NFT’s
1. Everydays – The first 5000 days (69 million dollars)
2. Cryptopunk #3100 – (7.58 million dollars)
3. Cryptopunk #7804 (7.57 million dollars)
4. Crossroads – (6.6 million dollars)
5. Doge – (4 million dollars)
Platforms where you can Mint, Buy or Sell NFTs
2. Nifty gateway
In these platform you can create and sell your NFT’s. To sell NFT you have to pay some gas fee(around 8-20 $). Mintable is the platform where you can create and sell with zero gas fee.
Royalties on NFT
NFT pays royalties automatically to their creators, when they’re sold. Original owners gets a royalty of 8-10% every time the NFT is sold on.
This is an automatic process, so creators can just sit back and earn royalties as their NFT is sold from person to person.
If you missed out the opportunity to sell NFT on great price, Royalties is the way so you get paid back of your creation value on each and every re-sale.
Popular NFT Use Cases
NFTs in the gaming industries are the most trending thing now. Games like Decentraland and Axie infinity have already created NFT buzz in market.
NFTs, give game developers another stream of revenue. Players feel more connected to games when real rewards involved.
Weapons and digital assets in games can be owned by a player and then sell/rent to other players to make profit. This kind of real involvement in games makes NFT based games more popular.
Authenticity of products-
When NFT expends it uses to physical products, then It can be used to ensuring authenticity of a product. As we know that NFT works on Decentralized network, means it stores information which can be accessed by anyone and no any middleman involved.
To ensure products authenticity Buyer can check its detail on Decentralized Network and all the information can be accessed related to that product.
The most awaited use case of NFTs are in Real Estate. Real estate industry is the most NFT ready sector because of its safe and speedy transaction feature.
NFTs are currently used to buy and sell virtual lands now it is the time to move a step forward in real world.
NFTs will enable smart contracts for properties and buyer can check its previous records on a single click.
NFTs can be used in academics to provide you certificates of degree completion on decentralized network and issue smart contracts for verification. If you completed a course or a degree it can be stored in your profile and can be accessed from anywhere.
NFTs first start within Art industry, mostly digital arts. An artist can sell its art on NFT platform, there is no any middleman involved means you get all the profit.
By NFT royalty system creator will receive payment every time when his art will re-sold. Means if an artist sell its art on lower price and if that Art became more popular in future then, by royalty system he will receive profit on and on till his artwork travel in network from one person to another.
NFTs play a vital role in development of Metaverse industry. As we all know that Virtual reality “Metaverse” is now trending everywhere.
You can check detailed article on Metaverse from here-
NFTs use-case in Metaverse is very important like- in virtual world your avatar need to buy stuffs, lands or weapons and it is only possible by NFTs because only NFT provide you authenticity of an asset and certified you as its sole owner.
There are many other use-cases of NFTs in near future like- Ticketing, medical records, Voting, product supply chain etc.
Q. Why NFTs are so expensive?
NFT is just a Token of authenticity for an asset in digital world. The value of art make NFTs expensive, Ex– Picasso’s painting worth millions while a random persons painting will not worth that much.
Q. Can I buy NFTs without crypto?
Some crypto exchanges provide you their master cards, by
them you can purchase NFTs without crypto. But you will need a crypto wallet to
store your Purchased NFT.
Q. Can I sell one NFT multiple times?
You cannot sell one NFT multiple times. It is based on decentralized network and works similar to crypto coins. Like if you have one bitcoin in your wallet then you cannot transfer it to two persons.
To know more about how validation of transactions happen in decentralized network, you can visit below mentioned Articles section “Crypto stacking” –
Q. Can I sell Physical items on NFT platform?
Yes, some of the platform offers physical NFTs like Flipkick, They offer physical NFTs, means a chip is being attached to your physical art to ensure its authenticity in digital world. Buyer can verify by scanning it and store the information in his Wallet.
Q. How can I create my own NFT?
Before creating NFT you need your Digital Art ready. Here are some free platforms where you can create your digital Art-
– Make beliefs comix
– Sumo Paint
– Toy Theater
Now your digital Art is ready to list on NFT platform, Follow these steps-
– Select a marketplace for NFT like Opensea.
– Setup a digital wallet like Metamask.
– Connect it to the marketplace.
– Upload your digital Art on marketplace.
– Setup a price for it.
– Mint NFT by paying Gas fee.
– Start auctioning.