Doors are opening to welcome artists and creators from all over the world to place their digital assets on the NFT market, but... What are Non Fungible Tokens or NFT?
what are Non Fungible Tokens or NFT? How are they used? What are their characteristics? How do they work? Can you buy NFT tokens? What are their advantages? Why are they so popular in 2021?
In this beginner's guide to NFT development you can find out all this information.
what is NFT and what is it for?
Non-Fungible Tokens or NFTs are unique digital assets that can be used to represent tangible and intangible items. They cannot be divided into small units, unlike fungible tokens, because their functions are unique, as with digital assets in art or games. In addition, NFTs provide powerful security and ownership rights.
Their emergence on the internet has been made popular by celebrity initiatives such as Elon Musk's "I sell this NFT song as an NFT", as he tweeted on his social media in March 2021, or the case of youtuber Logan Paul, who took 3,000 NFTs from his old Pokemon cards.
These are just two examples of the enormous capitalisation of this market in recent years. And no wonder, given that it is used to buy a unique digital work of art on the network (a painting, drawing or other) and uses blockchain technology to ensure its authenticity. Without a doubt, it is one of the latest innovations in the world of digital artists.
In short, NFTs have a multitude of use cases, from digital collectibles to works of art and music.
NFT market development
Many companies globally are embarking on tokenising their own NFTs, which is a major challenge. Where to start?
- It requires the creation of a non-fungible token protocol on the Ethereum network, for example. Smart Contracts in the system store NFT token information as well as records.
- Create your profile on the platform and download your wallet to store the tokens. You can pay and get an artwork to sell on a secondary platform in order to receive income, but this is only one possibility among many.
- It provides security and transparency on the platform, which will build trust and protect users against possible losses or errors in transactions.
Other factors are involved in the development of the NFT market:
- Smart contracts, which serve to prevent fraudulent activities and eliminate intermediaries.
- Decentralisation, allowing data to be distributed across multiple networks. When a new block is added to the blockchain, the NFT platform updates the chain.
- Operations: The NFT platform allows instant payment, without the need to provide personal data to access it.
- Originality: Such markets must be original, authentic, unique and uphold the value of integrity.
As a result of developing the NFT marketplace, users will be able to use the platform in a personalised way, have their own wallet, record transactions efficiently and use it easily.
what differentiates NFTs from traditional auctions?
It is no coincidence that the NFT market is at the centre of conversations across the blockchain community. Over the past few years, we have seen auction professionals such as Christie's and Sotheby's open their gallery doors to the non-fungible token market.
"Europe's oldest and most important auction houses have joined in the moment of fame that non-fungible tokens are experiencing, the first of which was Christie's, now followed by Phillips, Sotheby's, and China's Yongle," according to the CryptoNews portal.
The high fortunes that can be achieved with NFTs have little to envy conventional art - just ask artist Mike Winkleman, who raised $69.3 million, or second highest bidder Justin Sun, with more than $60 million.
Of course, a buyer of active tokens, which represent digital artworks, does not receive the physical artwork as such, as is the case with traditional art. What he or she gets is the authentic certificate of ownership, which provides great benefits, as well as a very attractive source of income.
Fun facts about the growth of the NFT market
Below we have compiled some facts that demonstrate the popularity and growth of the NFT market in the last year:
- The NFT market has grown by more than 299% in 2020 for more than $250 million as a total transaction. (New Newspaper)
- Smart contract initialisation on the NFT-based blockchain platform has generated active users of 200 in 2020 and more than 500 in 2021.
- In 2020 alone, the value of these digital assets amounted to $338 million, more than double the previous year.(Entrepreneur)
- NFT sales exceeded $2.5 billion in the first half of 2021(Cointelegraph)
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Conclusions about NFT development
Following the resounding success of cryptocurrencies in recent years, professionals in the blockchain universe are talking about a new market: NFTs. These digital assets open up a world of opportunities in the world of digital art or collectibles. It is a unique way to prove the authenticity of artworks and ensure their integrity.
For now, most of the attention around Non-Fungible Tokens is focused on artworks and games, but their potential is much broader.
what can we expect from the development of NFT in the future, what functionalities does it have on intellectual property, ticketing and software licensing, and in what other fields can it be applied?
The NFT market is synonymous with security, transparency and trust. Find the right NFT development company for you.