A Non-Fungible Token (NFT) is a cryptographically atomic, verifiable, and irreplaceable token that represents some entity, be it physical or digital, on a blockchain. Let’s explain more in this extensive NFT guide.
What are NFTs?
In order to be able to explain what Non-Fungible Tokens are, we need to break down the words that compose it:
- Fungible: this word represents a property, and gives something interchangeability. An example would be the fungible Dollar bill, since you can give it to someone else without its core or value changing.
- Token: cryptocurrency tokens are cryptocurrency assets, that represent something other than a monetary value. An example would be loyalty points, ownership of something else…Think of it as a stock, but instead of having ownership in a company, it can be ownership in anything else.
NFTs are basically digital ownerships tokens, that run on blockchains that support smart-contracts, such as Ethereum. Their non-fungibility is similar to real-world contracts, where you can’t trade one contract to another, because the “actual content” differs from each other. Same things for NFTs, where you can’t interchange them as their underlying “contract” changes with each one, hence their non-fungible nature.
How to create an NFT?
As mentioned, Ethereum is the most popular network for creating non-fungible tokens. Ethereum was also the first platform to support NFTs, the majority of investors use them by default. But how much does it cost to create an NFT on the Ethereum blockchain? Seasoned investors remember the days when there was a $50 to $100 transaction fee for minting a single non-fungible token, depending on the time of day and the price of ETH. But that’s no longer the case, and popular NFT marketplaces have found a way around these fees. Today, NFT artists can create their non-fungible tokens for free on the Ethereum blockchain.
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If you want to create an NFT on Ethereum, you can use one of the most popular marketplaces like Rarible, OpenSea or Mintable. Once the wallet is connected, you can create a new non-fungible token and choose between normal minting or delayed minting. This is the first option when it comes to the cost of creating your Ethereum NFT.
However, in order to create and sell your own NFTs, you must meet a few requirements. The prerequisite is that you own the ownership of the artwork that you wish to sell in the form of an NFT. Otherwise, buyers will be deceived. However, the NFT portals themselves usually do not check this, simply because the check would take a long time.
You also need a certain amount of ETH to pay the fees. Since most non-fungible tokens are currently based on the Ethereum blockchain, buying ETH for these uses is recommended.
NFT Guide: What are the current NFT trends?
Dynamic NFTs are data responsive and connected to existing infrastructure. The next evolution of NFTs is moving from static NFTs to dynamic NFTs, perpetual, smart contracts, such as those used by Chainlink with its oracles to communicate with and respond to external data and systems. Chainlink Oracle allows NFTs to use external data/systems as a mechanism to create/replicate NFTs, peer-to-peer trading and status checks.
One of the latest NFT trends is NFT staking . Holders receive a “staking reward” for staking NFTs. NFT staking is a promising subset of DeFi that can solve a number of issues related to NFT trading. Most importantly, it offers NFT owners the option to generate tokens with their NFTs without ever having to sell their creations.
If you want to buy NFTs, you can do this via trading platforms. As with all blockchain apps, the security of one’s NFT wallet is paramount, and losing it is a major risk. For example, MetaMask is a crypto wallet that supports all types of Ethereum-based tokens. MetaMask can serve as a regular crypto wallet, but its real strength lies in its seamless connection to smart contracts and decentralized applications. MetaMask values data protection, encryption and is also open source.
What use cases are there for NFT?
Non-fungible tokens can be used where virtual goods are assigned a token. This applies, for example, to music, digital art, or individual objects in computer games. Other popular use cases are:
• Metaverse NFT Use Cases : Because the Metaverse works just like the real world and involves real human participation, things like identity verification, asset transfers, and forms of exchange are required. This is where NFTs come in, as they offer all of this and more in the Metaverse.
• Play to Earn : When the tokens are connected to blockchain networks, in-game assets become transferrable and can be traded outside of the game. Any digital asset can be turned into a non-fungible token. This capability transforms blockchain games into play-to-earn (P2E) games. Play-to-earn is a game model that allows players to earn real money or other rewards while playing.
• Other NFT use cases are in the Player vs. Player segment or PVP. This type of game refers to a mode in multiplayer computer games in which two or more players or groups of players compete against each other. The term is practically only used for games that are primarily designed to be played together and offer different options. In PVP mode, participants can earn non-fungible tokens.
What are Cryptopunk’s NFTs?
CryptoPunks are among the first projects in the field of NFTs. Software engineers Matt Hall and John Watkinson created exactly 10,000 CryptoPunks in 2017. Many of these CryptoPunks have now been auctioned for amounts in the millions and are among the most expensive NFTs.
The most expensive CryptoPunk was the so-called CovidAlien, an extraterrestrial with a face mask. The pixelated head changed hands for $11,754,000. The pandemic will have been a real price driver.
NFT Guide: What is Opensa?
OpenSea , the flagship NFT trading platform, hit a record nearly $5 billion in volume in January with over 500,000 active traders. As the leading firm consolidates its monopoly position, small platforms stand little chance of making headway in the Ethereum-based NFT market. However, LooksRare seems to have found a way out with the so-called vampire attacks. Vampire attacks are a common practice to move users, and therefore liquidity, from one platform to another. For the transition, beginners usually receive an amount in tokens. So the vampire attack is platform piracy that lures users with a bonus system. Not illegal or awesome, but powerful as evidenced by LooksRare’s growth numbers.
What is the Bored Ape Yacht Club (BAYC) ?
The Bored Ape Yacht Club is one of the collections of NFTs released during the heyday of the NFT hype. Because of this, many celebrities and brands have gotten their hands on this NFT collection. Bored Ape Yacht Club has launched in 2021 with unique images of monkeys.
The BAYC collection is already known in the media as one of the most famous collections of all. In December 2021, Bored Ape Yacht Club overtook CryptoPunks as the most expensive NFT. Bored Ape, along with other character-based NFTs, is “a status symbol for owners who regularly use their animated creatures as social media avatars.”
According to CryptoSlam, the collection has amassed around 11,000 unique owners since its inception. On average, a bored ape was sold for 84 ethers, or about $344,000. Companies have been encouraged to buy Bored Ape NFTs. For example, Adidas bought one in September 2021. Many online media have reported on celebrities who collected BAYC in late 2021 and early 2022. Shaquille O’Neal, Eminem, Gwyneth Paltrow, Snoop Dogg, Stephen Curry, Mark Cuban, Post Malone, Paris Hilton, Serena Williams are among the celebrities who can call themselves BAYC NFT owners.
One of the most interesting news in the updated Bored Ape Yacht Club roadmap is a huge event. BAYC, Cyberkongz VX and Sandbox are said to be involved in this. There will also be a real meetup in Miami, this time exclusively for BAYC members. The Bored Ape Yacht Club roadmap continues to bear fruit!
What is Doodles NFT?
Doodles NFT is a collection of 10,000 NFT doodles, portraying different characters such as cats, little animals, people, and even aliens. They are sketched in a hand-drawn way, depicted in a light and fun way. This project came to life thanks to 3 main founders: Evan Keast, Scott Martin, and Jordan Castro. They recently launched their space Doodles, with the main theme revolving around…space.
Each Doodle has its own breakdown of 5 stats:
- Piloting
- Mechanical
- Stamina
- Bladder
- Vibe
What is the MUTANT APE YACHT CLUB ?
MUTANT APE YACHT CLUB is a collection of 20,000 mutant monkeys that can only be created by influencing an existing Bored Ape with a flask of MUTANT SERUM, or by minting a Mutant Ape at a Public Sale.
To date, MAYC NFTs have had impressive results, not to mention their insane sales. According to DappRadar, the collection’s all-time sales surpassed $847 million. Meanwhile, its minimum price reached 19.35 ETH, or around $60,000. No wonder they currently rank ninth among NFT collections in terms of all-time trading volume!
What is Aavegotchi?
Aavegotchi is a Tamagotchi-inspired blockchain NFT game. Aavegotchi itself is available as an NFT. Each Aavegochi is unique and has individual characteristics. The more unique Aavegotchi’s traits are, the rarer and more valuable it is. Aavegotchi allows users to create rare collectibles that they craft by depositing DeFi assets as collateral. These DeFi assets reside on the Aavegotchi lending platform.
$GHST is the Aavegotchi ecosystem’s default utility token and serves to unlock portals, wearables, and consumables. A small portion of $GHST token transactions go to AavegotchiDAO members to encourage smart decentralized governance.
What is RTFKT-Clone-X ?
RTFKT-Clone-X is the first release in “a broad ecosystem of high-quality PFP avatars that enable the Metaverse. If you are looking for an NFT avatar that you can take anywhere, this is the right choice. Besides this interesting fact, one of the reasons for the success and great value of RTFKT-Clone-X is that the buyer can modify the characteristics of the NFT by accessing its 3D file and with the project of the famous artist Takashi Murakami’s work.
What is The Sandbox NFT?
The Sandbox opens up a decentralized, virtual gaming world and is powered by the world’s largest crypto exchange, Binance. Thousands of individual NFTs can be found in the sandbox world. The blockchain-based game allows players to create and monetize their own individual gaming experiences.
The sandbox game was developed in 2012 by the studios Pixowl and Animoca Brands. The video game was initially released for iOS and Android smartphones. It is a voxel-based game that uses polygons to graphically represent the game world. The world’s most famous example of such a game is Minecraft.
Within the game world of the blockchain version of The Sandbox, gamers can purchase so-called parcels with digital currencies. One of these parcels is the LAND token, which represents 96 square meters of land in the game world. The LAND token is based on the Ethereum token standard ERC-721.
Players can then build their own objects on their properties or even develop their own smaller games. The gamers own their creations. They are their own NFTs and therefore their unique digital property. More information about Non-Fungible Tokens (NFTs) here .
NFT Guide: What is Decentraland MANA ?
Decentraland is a virtual world running on the Ethereum (ETH) network. Users can buy plots of land as NFT because they are stored as non-fungible tokens and then build on them. Decentraland MANA is one of the biggest NFT trends. Essentially, Decentraland is a virtual world. It is browser-friendly and available for free. Users first create an avatar and can use it to enter the world. Decentraland doesn’t have the fixed objectives or gameplay loops typical of video games. This is the biggest difference between a game and a Metaverse world like Decentraland: the latter contains very different themes and features, with no specific goals or reward systems running throughout the game.
Instead, content in Decentraland is created entirely by the community, such as mini-games or 3D scenes. Therefore we speak of a decentralized platform, as the name Decentraland suggests. Likewise, players can simply use the virtual world as a place to learn, explore, or for commercial purposes. The technical background is also worth mentioning: Decentraland is a blockchain platform based on the cryptocurrency Ethereum.
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