What Is NFT?
A new trend of NFT tokens (non-fungible tokens) has burst into the cryptocurrency world – this is a new type of digital goods that are non-fungible tokens. This, in fact, is their value – in uniqueness.
Let’s consider the properties of fungibility using an example from everyday life. Suppose you lent your friend $ 100 by giving him a bill of the appropriate denomination. The fungibility of money allows you not to think about whether your friend will return the same bill to you or it will be any other 100-dollar bill, unless we are talking about some collectible coins.
NFT tokens, like collectible coins, are unique in their kind. The uniqueness is realized thanks to the new cryptoasset standard ERC-721. Unlike conventional ERC-20 fungible tokens, the NFT token cannot be counterfeited, replaced or broken into pieces. There are also several other NFT token standards in existence today. For example, ERC 1155 is a token that can be issued in multiple copies, and ERC 988 is playable characters who can own multiple in-game items.
Where NFT Is Applied?
Regardless of the technical details, NFT can be used to prove ownership of an object. And thanks to the tokenization of real assets, NFT can reflect the fact of their ownership. Such an object or asset can be an image, real estate, music, any digital artwork, game item or character. NFT, thanks to the unique information recorded in the smart contract, can confirm the authenticity of documents.
NFT tokens can be compared to baseball cards, which are also unique and therefore very popular among fans of the sport.
Collectors are willing to shell out colossal sums at auctions for rare baseball cards. In 2007, one of these cards with the image of the American baseball player Honus Wagner, printed in 1909 in the amount of 57 copies, was sold on Ebay for $ 2.8 million.
Whether the same fate awaits for NFT tokens is difficult to say today, but given the growing popularity of the blockchain and cryptocurrency sphere, such a possibility exists.
How Did It All Begin?
For the first time, they started talking about such assets after the introduction of Colored Coins and Counterparty technology, thanks to which it became possible to “paint” crypto tokens to make them unique (the introduction of a special add-on to the Blockchain protocol).
In January 2017, the HOMERPEPE meme tokenized on Counterparty was bought for $ 500. About a year later, in January 2018, at the first Rare Pepes live auction, this meme was resold for $ 38,500 in PepeCash tokens.
But NFT tokens got more widespread after the Larva Labs team released a collection of CryptoPunks with images of various heroes. A total of 10,000 such cards were created and you could get them completely free of charge. The monkey in the cap, which we talked about at the beginning of the article, is from this collection. But in fact, 140 ETH is not a record transaction amount for crypto banks. A little earlier, another character from this collection was sold for 189.99 ETH.
NFTs And Crypto Exchanges
NFT tokens can be traded on crypto exchanges. Such large platforms as Binance, OKEx and ZebPay have already announced the planned launches of marketplaces for the sale of such tokens, creation of their own, or indirectly interact with the NFT market.
Binance recently launched its NFT token in partnership with Enjin. The crypto exchange today implements NFT technology due to its power and has an advantage over other platforms.
However, for now, the implementation of your own NFT token or marketplace is not such a common practice among cryptocurrency exchanges. Most NFT marketplaces are not centralized, not custodian. That is, the user has a private cryptographic key, he can keep it, without worrying about saving his funds, if he organized everything correctly. And at the same time, buy NFT tokens for millions of dollars in special markets. But if he gives a million dollars to some cryptocurrency exchange, he will worry if it will be hacked tomorrow or the day after tomorrow. His need is to keep his money protected, in a cold wallet. That is, in a different place.
You can entrust Boosty Lab’s team with a task of a cold wallet development (https://boostylabs.com/blockchain). Their services include development of server solutions for cold and hot storage of cryptocurrency; mobile cryptocurrency wallet; integration of storage functions and cryptocurrency transactions into your products.
It is possible to encourage users to turn to the NFT marketplace implemented by the exchanges. OpenSea is trying to do GAS FREE token creation, making fewer user interactions with the Ethereum network in order to maximize the savings on fees. Centralized crypto exchanges can leverage the advantage they have over DEX. Namely, to make the creation, trade, withdrawal, resale of NFTs cheap. That is, so that the user does not depend on the Ethereum network or any other, but interacts with UA-IX exchanges, which are fast, convenient, and do not need to be understood for a long time.
Boosty Labs’s team has solid expertise in various blockchain projects and cryptocurrency exchange development. Boosty Labs offers advanced and efficient blockchain solutions. It works closely with clients, from the development stage to the business partnerships.
Where To Sell Or Buy NFT Tokens?
The most popular site today is opensea.io. Here you can buy and sell any kind of NFT tokens. All assets here are divided into categories: Art, Domain Names, Virtual Worlds, Trading Cards, Collections, Sports and Utility. For example, in the Virtual Worlds section, you can purchase a digital land parcel. Prices for some plots already today are not much different from prices for real real estate.
Another interesting NFT project is Zen.Run. Marketplace for buying / selling digital racehorses. As in the CryptoKotics project, after the purchase of horses, they can be crossed and most likely in the future the value of horses from the first offspring will increase. As of today, the minimum purchase price is $ 40.
Influential participants in the NFT ecosystem, such as crypto exchanges, developers and founders of NFT projects, often hold various kinds of raffles with the distribution of NFT tokens. One of the developers of the Avalanche project, Don Wonton, periodically raffles the NFT tokens created on the blockchain of this project among his followers on Twitter. To participate, you just need to indicate in the comment on the tweet the address of your Avalanche wallet and retweet the entries. Don Wonton usually plays about 20 cards. Judging by the number of retweets, the odds of winning are pretty high. Therefore, if you are interested in this area, you should definitely try.
Despite the fact that NFT is still a very young technology, and the volumes of this market are still rather modest, its prospects are enormous, therefore, in our opinion, the history of NFT is just beginning. But we remind you that all information is for informational purposes only and does not constitute our recommendation or call for investment.