- HR:+91-879-9184-787
- Sales:+91-908-163-7774
There has been extensive talk about NFTs and blockchain for the last two years. With word of many celebrities and product brands even dabbling with the NFT universe and its related currency, Ethereum. However, you’re probably not the only one who still doesn’t know what NFT is? What does it even stand for? Fret not, help is on the way.
We’ve written a blog to explain what it is and how it affects you. The tech world is complex, and if you stay in the dark too long, you won’t know what’s real anymore!
NFT, or Non-Fungible Token, refers to an irreplaceable token, one that bears no value when comparing it to tokens of its kind. This token could refer to music, video, digital art, or any other type of digital media.
Simply put, NFTs are a digital asset. They can hold immense value as we have seen the auction of the most straightforward ones for tens of thousands!
What is so special about an NFT? Each NFT is unique, with one original copy and a unique identification number. So, sure you will find pictures of that one NFT on the internet. It will only have one owner who has exclusive rights to it.
NFTs differ from your usual artworks because they can only be purchased using cryptocurrency and not physical currency.
For those who don’t believe that non fungible token artworks are not worth more than a few dollars, here’s proof to prove you wrong!
1. Everydays: the First 5000 Days ($69.3 Million)
2. CryptoPunk #3100 ($7.58 Million)
3. CryptoPunk #7804 ($7.57 Million)
4. Crossroads ($6.6 Million)
5. Ocean Front ($6 million)
So, should you invest in an NFT?
An NFT is only a collector’s item in a digital format! You do not get a painting to hang on the wall. Instead, the seller will deliver a digital file to you. After purchasing the NFT, you are the legal copyright owner of this item.
This ownership means you also stand to gain every time the NFT is copied and downloaded. Additionally, high chances of the NFT gaining value with time and being resold is a thought many NFT keep in mind.
Ether, the cryptocurrency from the Ethereum blockchain platform, is favored chiefly as the primary eligible payment for NFT. A single ether is trading at just under $3000 to give you the scope of the conversion.
This cryptocurrency can then also be liquidated to virtually any physical currency.
The simplest difference is that an NFT is non-fungible, but cryptocurrency is fungible.
Fungible means exchanging cryptocurrency for an equivalent amount of physical money. But, NFT cannot be traded for an equal value, even if it is sold for another NFT.
Different NFT art can vary significantly in price, anywhere from a few hundred to even millions of dollars.
One of the most expensive NFT art is ‘Everydays: the First 5000 Days’ by the artist Beeple. This collection of 5000 pieces of digital art sold for a whopping $69.3 million. The second and third best were not far off from this figure either.
Also Read: Some of The Most Expensive NFTs Ever Sold
A non-fungible token will fall under the same class as cryptocurrency. However, this is not a correct classification.
The same technology is used to develop cryptocurrencies and NFTs. But that’s where their similarities end! Why is that? These are some of the advantages of NFT over cryptocurrencies.
Since NFTs are non-fungible, they are unique and cannot be directly exchanged for anything of equal value. No two NFTs will have the same value!
This allows any NFT to amass a value of millions of dollars if the market makes it so.
Thanks to the platforms on which they are built, NFTs are relatively a safe investment. Blockchain technology on which cryptocurrencies are built is much safer than dealing in physical currency.
For NFTs, the future looks bright, seeing as Ethereum is the second highest-grossing cryptocurrency after Bitcoin.
Unlike tangible items, which are subject to physical damage and theft, NFTs are immune to such misfortunes! This characteristic gives people much more confidence to deal with such digital items as they are not impacted by the common shortcomings of digital assets.
Due to blockchain technology’s presence, all NFTs have a distinct journey mapped out that can be verified. Blockchain has individual blocks that detail the previous ownership of every particular NFT.
NFTs do not have any restrictions as to who can own them. Anyone can purchase Ethereum with real currency. With this purchased currency, anyone can choose to purchase or deal in NFT-related products.
Anyone mildly intrigued by the idea of a non-fungible token or even anyone who owns one would ask what is NFT investing and where is it heading?
would like to know where this road leads.
Despite being around since 2014, there is much unknown about this new market. And its full potential is yet to be exploited.
Quite a few big names have taken an interest in developing NFTs. Examples include Marvel, Nike, Starbucks, and some very popular names. Even footballer Neymar Jr has bought an NFT and uses it on his social media accounts as a profile picture.
Most arcade games require players to pay real currency to avail premium features of objects in the game. However, you can include the ability to earn NFTs in the game through online player-vs-player events or side competitions.
Players can then exchange these NFT objects for features or things in the game that would improve their skills and level.
Doing this would increase the engagement of your mobile game. It would also increase downloads and use time of your app.
Several fantasy-based games have been introduced with the ability to start earning from NFTs. But in a fun way. Everyone can partake in these games and start earning non fungible tokens through blockchain and cryptocurrency.
Games revolving around these two technologies are trending; an example is CryptoKitties. This game allows users to earn through developing unique cats. Once completed, the final cat image can be sold for Ethereum currency.
Card games tend to be boring for this generation of users. However, applying the concept of earning an NFT is highly appealing.
An example is God’s Unchained, which is an action-based card game. Players are provided with a pack of character cards. They must duel with other players to improve their cards. The highest level will present an NFT card upon leveling up each card.
Adding this functionality will add an incentive to play the game. This incentive goes for both existing players and new players. It puts the game in a desirable spot as people may rather play a game where they can earn rather than play with no goal.
Treat it like any other investment method if you plan to invest in a non-fungible token. Proceed cautiously in the beginning until you have thorough experience in the same.
But, on the bright side, dealing in NFTs may bring you unimaginable wealth. If you don’t want to be left in the dust, you should be on your way to discovering more about what is NFT investing? Considering the opportunity it creates for artists, collector’s, and common individuals, it is definitely worthwhile exploring the world of NFTs, and the Ethereum blockchain it depends upon.
Are you also interested in a mobile application development company that uses the most advanced technologies on the market?
Artoon Solutions will make the best partner. With 14 years of experience in developing software solutions for clients around the world, their professional team is dedicated towards applying the best practices to provide you with world-class solutions.
If you are looking for a development partner for your project, contact us.
Also read: How Cryptos are Influencing NFT Mobile Gaming App Development
Artoon Solutions
Artoon Solutions is a technology company that specializes in providing a wide range of IT services, including web and mobile app development, game development, and web application development. They offer custom software solutions to clients across various industries and are known for their expertise in technologies such as React.js, Angular, Node.js, and others. The company focuses on delivering high-quality, innovative solutions tailored to meet the specific needs of their clients.
Copyright 2009-2024
