What are NFTs?
NFTs are a class of blockchain tokens. To understand NFTs, consider first what non-fungible means. Like a painting, a sports match ticket, or a piece of music, a non-fungible asset is unique, and its value is determined on a case-by-case basis.
Factors that determine value might include scarcity, aesthetics, current trends, the reputation of the creator and/or featured rights owner and so on.
Fungible assets are, by contrast, exchangeable within the same class; for instance, I can trade a $20 bill for any other $20 bill regardless of the serial number, when and where the bill was printed, and so on.
As for tokens: a cryptographic token is a digital unit of value that is a) programmable and b) recorded on a distributed ledger/blockchain.
Broadly, tokens can represent money, digital items, or even real-world rights and material items (i.e. a race-worn helmet) . NFTs represent ownership, so we can think of NFTs as blockchain-based titles or deeds that link to another asset, be it virtual (digital art, a domain name, or a collectible) or real (a ticket to an event).
NFTs don’t store the digital assets they represent on the blockchain. Rather, NFTs hold metadata with information about the owned digital asset and a link to the asset itself, which is stored elsewhere on storage services like Arweave or the IPFS (Interplanetary File Service).
If the asset in question is tangible – like ticket to an event– then the NFT metadata might link to a digital registry or digital certificate of ownership that links to the actual property.
In short, NFTs represent proof of ownership, and their value derives from their immutable metadata.
To sum up, NFT tokens are:
Non-fungible (unique and non-interchangeable)
Blockchain-based, which makes them:
Programmable (they can evolve in response to user/external events)
Traceable (the blockchain records their provenance and sale prices)
Immutable and unique (there might be several NFTs issued of a collectible, but I can be sure that mine is unique within that set)
Permissionless (anyone can buy, sell, or create an NFT, and on platforms like Artion)
Why do they matter?
NFTs play a central role in what is known as the creator economy. This term broadly refers to the networks that creators – from high-end rights owners like artists and athletes to independents like writers and vloggers – use to monetize their content and directly access audiences without the mediation of advertising agencies or corporations. To the extent of creators utilising the platform to build their brands through the connections they form with the ever so engaged NFT communities.
The Non-fungible Token (NFT) markets continue to grow at an unbelievable pace. As Market Insider reports, NFT sales in July 2021 reached $363.8 million, representing a 506% jump vs. June and approximately 1,300% since January.
The boom in NFTs represents ongoing mainstream adoption supported by better technologies.
Our latest drop was done via a private landing page on Artion, a dedicated NFT marketplace developed by Fantom.
NFTs are growing explosively. Here are some of the fantastic concepts circulating the community which we could help customise them for your NFT venture:
By creating NFTs of unique digital artworks or linking NFTs to real art objects that can be bought and sold, artists can bypass galleries and shows to reach audiences like never before.
For example, creating a digital version of your art piece and selling it as NFTs enables trading between users where you earn royalty on each transaction.
NFT collectibles are a hot market and offer users fun ways to obtain scarce items, showcase ownership, and trade.
For example, NFTs for up and coming athletes are often bought as an investment. As buyers see tremendous potential in that athlete becoming the next big thing.
Linking merchandise to items allows users to enjoy both items sold and a digital representation of ownership that they can showcase online and use to find others with similar tastes.
For example, we attached Pierre Gasly’s merchandise onto his NFTs as redeemables. Adding and preserving the overall value as well as serving as a benchmark for the future of NFTs.
Majority of Material from our partners Fantom and Artion