Non-fungible tokens, or NFTs for short, have many applications today, the main one being the establishment of unique ownership. We shall discover the definition of NFTs and the reasons for their recent media attention in this learning resource guide.
Anything that is easily interchangeable is called fungible; for instance, you can trade one Bitcoin for another and keep the same quantity of Bitcoin. Dollars and other fiat currencies can be exchanged and are convertible. One dollar bills are identical to one another and can be exchanged for other one dollar bills. Not a single difference! However, tokens that aren’t fungible can’t be traded. Since they are one-of-a-kind, no NFT will ever be exactly like an earlier one. This characteristic is distinct and has been effortlessly facilitated by blockchain technology.
As per DappRadar, CryptoPunks NFT is alone responsible for $3.77 billion dollars’ worth of trading activity. Here’s an intriguing tidbit to help you understand the kind of market we are talking about: Beeple, Mike Winklemann’s NFT, sold for a record $69.3 million.
How Do You Create an NFT?
An NFT is created on a blockchain that has readily verifiable public data that is accessible at all times. NFTs are indispensable and extremely reliable as a means of identifying the rightful owner because they are non-divisible and cannot be fraudulently altered. Usually, the owner is given a private key, which they can use to prove ownership whenever necessary. Additionally, the owner has the option to add uniqueness by signing the metadata linked to an NFT.
Possible Applications of NFTs
It is simple to sell an NFT on an NFT marketplace, and the creator has the option to get royalties. NFTs have advanced significantly, and there are countless applications. The following are a few possible use cases where NFTs may be a useful tool:
Digital Art/ Music Industry: NFTs can be used to prove ownership and stop illegal sales of digital art, particularly in the music industry and digital art world. Additionally, it enables artists to communicate directly with consumers rather of having to pay middlemen and agencies a large commission.
Gaming: Players can now obtain collectibles in the form of NFTs in the online gaming environment, which they can then resell for extra money. Players are free to pass on or sell the in-game things as they see suitable.
Tangible Items: Real-world sale deeds, vaccination certificates, and other documents requiring ownership verification can all be tokenized using NFTs. Even if NFTs are being utilised more frequently in the digital sphere, it won’t be long until tokenized actual goods in the real world are offered for sale as NFTs.
Investment: NFTs are becoming more and more well-liked as an investment option, particularly for art collections. They are being utilised as collateral in the decentralised finance (DeFi) arena.
Supply Chain: NFTs can be used to determine the origin, sale, and likelihood of fraud of an item. For instance, the wine business regularly uses NFTs to verify the sale and actual provenance of wine bottles, as well as to stop the sale of counterfeit alcohol. A popular watch, rare coffee, or even a pair of trainers can all be authenticated using a similar idea. There are countless options.
Is NFT minting supported by all blockchains?
NFTs can be created on a blockchain that has the capability to implement smart contracts. The Ethereum network has the largest and most widely used blockchain that permits NFT minting.
Which well-known blockchains allow NFTs to be supported?
These are a few blockchains that facilitate NFTs; nonetheless, Ethereum is without a doubt the main network.
Ethereum: Ethereum’s ERC-721 and ERC-1155 standards enable the construction of NFTs. Additionally, Ethereum has put up a revised EIP-2309 standard with enhanced features including less NFT minting costs. Ethereum was used in the creation of CryptoKitties, one of the most well-known NFTs. OpenSea, one of the biggest NFT marketplaces, is also housed on Ethereum.
Binance Smart Chain: Developers are increasingly choosing the BSC network due to its impressive uptake. In comparison to Ethereum, it is much less expensive and enables the minting of NFTs at a fraction of the cost. BakerySwap, PancakeSwap, and Battle Pets are hosted on the BSC network and enable the construction of gaming, financial, and collector NFTs, respectively. The BSC network has surpassed Ethereum in terms of NFT transaction volume, according to Dapp Radar, but Ethereum is still a formidable competitor, with the total volume locked in NFTs at an all-time high.
Solana: Several intriguing NFT projects are housed on the rapidly gaining popularity Solana blockchain. Degenerate Ape Academy, SolPunks, Frakt, and Bold Badgers are a few of these.
EoS: Another blockchain that allows NFTs is called EOS, however, it is less well-known now and is being eclipsed by more recent blockchains like Cardano and Solana. Nonetheless, it has a few NFT ventures, like Atomic Market, Upland, and Crypto Dynasty.
WAX: Having debuted in 2017, the WAX network is a relatively young blockchain with cheaper fees than other blockchains. On the WAX network, trading an NFT costs 2% of the transaction. Alien Worlds, R-Planet, and Farmers World are a few of the well-known NFT projects on WAX.
TEZOS: Through the use of its own token standard, FA2, the well-known blockchain Tezos also supports NFTs. NFTs issued on the Tezos blockchain include Grammy Awards and Doja Cat.
Tron: The ERC721 standard is compatible with the Tron blockchain, which also enables smart contracts. It uses the TRC-721 blockchain standard to support NFTs.
FLOW: Although it is a relatively new blockchain, FLOW has gained popularity among developers as a means of creating NFTs. A couple of noteworthy initiatives are xtingles and TuneGO.
NFTs are also supported by a few additional side chains and layer 2 solutions. These consist of Chiliz, Enjin, Polygon Network, and Decentraland.
NFT Marketplaces
To engage in NFT trading, you must have access to an NFT marketplace. A marketplace for NFTs is embedded into some cryptocurrency exchanges, but there are also several major players where you can simply purchase NFTs or sell them if you already own one. Below, we’ll talk about the top 10 NFT marketplaces.
Open Sea: One of the largest NFT marketplaces, OpenSea, is based on the Ethereum platform and accepts additional layer solutions, such as the Polygon network. Devin Finzer and Alex Atallah founded it. supports the Polygon and Ethereum networks.
Axie Infinity: The native NFT marketplace for the well-known game Axie Infinity is called AxieInfinity. New Axies, entire lands, and other items can be purchased by players with NFTs from the marketplace.
NBA Top Shot: This is the entry point into the NFT universe for the National Basketball Association and Women’s National Basketball Association. Collectible items and artwork from basketball games are available for purchase. The FLOW blockchain powers it.
Rarible: You must buy the native token known as RARI in order to use Rarible. With ambitions to support other blockchains in the future, Rarible is a multiple blockchains supporting NFT marketplace that now accepts NFTs issued on Ethereum, FLOW, and Tezos.
Zora: GIF NFTs, photos, videos, and music are supported. Built on the Ethereum network, it enables artists to receive royalties from the platform’s NFT sales. Coinbase and MetaMask wallets are supported.
Foundation: It operates on the Ethereum network. To purchase or sell NFTs on Foundation, Ethereum is required. Primarily operates as an auction platform wherein creators submit works for sale as NFTs for a 24-hour period.
Patrn: This is an NFT-minting crowdfunding platform. Because it allows up-and-coming artists to crowdsource Ether for NFT minting, it’s an intriguing approach. The artist receives any remaining ETH after transaction fees are paid.
CNFT.io: The market place for NFTs based on Cardano is called CNFT.io. The commission is 2.5% ADA, but there are no fees associated with listing, purchasing, or modifying an asset’s price. has also unveiled the CNFT token, which is already accessible as an NFT and will eventually enable airdrops and early access to NFTs.
Theta Drop: The Theta network’s native marketplace. With a collaboration with the World Poker Tour, it promises to be 100 times faster than the Ethereum network. Right now, it’s in beta.
Ghost Market: This cross-bridge NFT marketplace is compatible with a number of blockchains, including the Phantasma, Avalanche, BSC, NEO, and Polygon networks. Additionally, Ghost Market intends to shortly introduce support for Solana and Ethereum.
Over the next decade, NFTs are probably going to become popular investment possibilities. It’s the next big thing that blockchain technology can support. In addition, NFT technology will keep growing into other important domains like identity verification and certification, which regularly face obstacles and are vulnerable to fraud and impersonation.
Disclaimer : This article was created for informational purposes only and should not be taken as investment advice. An asset’s past performance does not predict its future returns. Before making an investment, please conduct your own research, as digital assets like cryptocurrencies are highly risky and volatile financial instruments.
