Blockchain technology created trust among startups by offering high-end security and privacy who have implemented that in their business. Even financial sectors and other important sectors started to use this technology in different aspects. The advancements in blockchain technology helped many people in reducing the cost of exchanging value. When it comes to blockchain-powered tokens, you can think about it in two ways. Fungible tokens & non-fungible tokens both come under the fungibility and non-fungibility concept. A fungibility token is a concept of exchanging one token with another token of the same kind. Whereas the Non-fungibility token concept is quite the opposite. That means it is unique and non-interchangeable.
In 2021, there were many new trends in the blockchain industry. But among them, NFT is attracting many investors, traders, and other individuals from all parts of the globe. It all started in 2017 when an NFT was introduced in the name of Crypto Punks on the American Studio Larva Lab using Ethereum Blockchain. In the same year, another NFT project was introduced in the name of CryptoKitties and that went viral immediately which made about $12.5 million in that time.
Non-fungible tokens (NFTs) are creating a huge buzz right now in many areas like digital art, gaming, and more. The crypto phenomenon has caught the attention of investors and big companies after a popular one house recently sold a digital-only artwork for $69 million in an auction. By seeing this much craze towards non-fungible tokens, many startups and entrepreneurs showed interest to create a Non-fungible token.
If you aren’t aware of NFT and how to invest in them, then this article will help you with all you need to know. Besides, we will also mention how to create a non-fungible token and launch them in an NFT marketplace. So keep on reading to know all the essential factors of NFT.
Let us begin this article with…
What are Non-fungible Tokens?
The Non-fungible token is the kind of blockchain token which grabs the attention of many investors across the world. The NFT represents the unique item and they are not similar to other tokens which means that NFT is non-interchangeable. These items can be either digital property or physical property. Like digital art, ancient sculptures, sneakers, commercial real estate, game items, painting, GIF, and a lot more. Among these assets, digital arts, GIFs, and gaming items are prevailing in the NFT marketplace. These assets cannot be duplicated and they are indivisible. Therefore, one can prove ownership, authenticity, create scarcity, and make them more valuable
NFTs convert assets like digital art into a verifiable digital asset that holds value as a form of digital currency and are easy to trade on the blockchain. If you trade digital art for example, whatever you have traded it for will be different because it is the only original. This is in contrast to a crypto coin like bitcoin, where you can exchange for a bitcoin is a bitcoin or some other digital currency. In general, NFTs have a different protocol structure and they can be traded on digital platforms or NFT marketplaces. Most of the NFTs are used as collectibles and for raising the funds through a crowdfunding platform. Blockchain-powered tokens add some different properties to NFTs and that will change the user & developer relationships with these following essential factors.
- Immutability and provable scarcity
NFT collectibles might be art, digital content, or whatever it can be. But all of these collectibles will attract the right audience easily. At this current time, there is a vast demand for NFTs. Therefore, developing an NFT with any collectible will lead you to reach a greater height in the NFT marketplace. Besides, you can also earn a lucrative amount of money.
How Does the NFT Work?
NFTs exist on a distributed public ledger so it records all the transactions. We hope that you are familiar with blockchain technology that makes digital currencies possible. Currently, most of the non-fungible tokens are developed using the Ethereum blockchain with an ERC721 standard. However, other blockchain platforms like Tron, binance smart chains have NFT standards for developing non-fungible tokens. An NFT is usually created from digital assets that represent both tangible and intangible items. Such as
- Videos and sports highlights
- Virtual avatars and video game skins
- Designer sneakers
Even tweets count when it comes to NFT. Twitter co-founder Jack Dorsey sold his first tweet as the non-fungible token for more than $2.9 million. Essentially, the non-fungible token is like a physical collector’s item. Thus, instead of getting an oil painting to hang on the wall, the buyer gets a digital file instead. With this, they also get ownership rights. The non-fungible token can have only one owner at a time. It has unique data which makes it easy to verify their ownership. The owner or creator of the non-fungible token can also store particular data inside them.
How Non-fungible Tokens Suddenly Got Popularity?
The non-fungible tokens are widely used in many industries and today they are created based on ERC-721, ERC1155, TRC721, or BEP721. It has some extraordinary features and those features make the non-fungible token a prominent one in the marketplace. Like…
The entire data of the non-fungible token is completely stored securely in blockchain technology. So these tokens can never be removed, erased, or replicated.
NFT’s main source of value is scarcity. However, NFT developers can generate several tokens. But they will keep it limited to maintain their value.
The non-fungible tokens are indivisible which means they can’t be divided like Bitcoins
With the implementation of blockchain technology, the non-fungible token can be easily tracked back to their original owner
We know that crypto coins like bitcoins come under the fungible concept and can be traded while maintaining a standard value even after the exchange. But the non-fungible token cannot be directly exchanged with anyone else because each token has a unique structure and they are non-interchangeable.
Prominent NFT Projects in the Marketplace
Presently, there are several non-fungible token projects showing their presence. But only some NFT projects attracted many investors and gained prominence in the marketplace. Here is the list of top non-fungible token projects that are prominent on digital platforms.
- Crypto kitties
- Async. art
- Axie Infinity
- FND NFT
- NFT yourself
- POW NFT
- Binance collectibles
These are the best non-fungible token projects in the major digital platforms and NFT marketplace.
How to Invest in NFTs?
The main problem with the non-fungible tokens is they are not like publicly traded tokens that you can just and sell. These tokens are extremely diverse, have distinct value drivers, and are thinly traded. If someone is new to the NFT market, they can’t simply start buying NFT. Investing in the non-fungible toke is like investing in small businesses. Investing in the blockchain ecosystem that supports the NFT seems like a more sensible approach.
A direct way to get exposure to the underlying blockchain technology is to invest in Ethereum or Tron-based NFT. because those tokens are gaining prominence in the NFT marketplace. But rather than investing in NFT, you can create an NFT that helps you to reap more profits in less time. So, now, let us see…
Token Standards used For Creating a Non-Fungible Token
When it comes to the NFT creation process, multiple frameworks across different networks will be used for developing and deploying the non-fungible tokens. As already said, NFTs are interoperable, indivisible, and interchangeable. So NFTs can be exchanged across various DLTs. For making an NFT, different types of token standards are used. Such as
- ERC721 – Ethereum Blockchain
- TRC721 – Tron Blockchain
- BEP721 – Binance Smart Chain
ERC721 was the technical token standard used for creating an ethereum-based non-fungible token. The ERC721 standard was the first token standard to represent non-fungible assets in the ethereum platform. Since it is an NFT standard, it has unique characteristics that make this token standard highly valuable. ERC721 standard tokens are non-interchangeable with other tokens. A smart contract will be implemented to trade tokens and manage them. But the value of the ERC721 standard tokens will be based on their characteristics. Cryptokitties, Axie, avastar, and SWAPO are the popular non-fungible tokens created on the ERC721 standard. Thus, many startups are preferring the ERC721 token standard for creating an NFT.
TRC721 is a well-known standard used for developing and deploying an NFT on the Tron blockchain network. It will be compatible with ERC721 and allows you to digitize your collectible into the non-fungible token. The Tron blockchain platform offers risk-free deployment of TRC721 to your unique collectibles.
BEP721 is the newly launched NFT standard by the binance DEX and it comes under their blockchain platform named binance smart chain. You can launch a non-fungible token with your collectible in a trouble-free manner by using this BEP721 token standard. Like ERC721 and TRC721, this NFT standard also gains great popularity among investors right now in the NFT marketplace.
How to Launch a Non-Fungible Token for Your Business?
We got advanced technologies right now, so creating an NFT is not a kind of hard task. Currently, lots of NFTs have been created under the Ethereum blockchain, Tron blockchain, and binance smart chains with NFT tools. Therefore, for making an NFT, you need to choose the blockchain platform. On the other hand, you must also determine the token standard. As previously said, three main token standards are used for developing NFT such as ERC721, TRC721, and BEP721. Thus, select the right NFT standard that suits your business needs.
When it comes to NFT development, you can create the non-fungible token in two methods. Firstly, if you are an experienced blockchain developer and have in-depth knowledge about the NFT standards. Then you can develop and launch an NFT on your desired programming language by considering some important elements. Like the token name, token symbol, smart contract, and the collectible that you are going to utilize for developing the NFT. but if you have made any mistakes in the programming part, then it negatively impacts the whole NFT creation process.
Secondly, you can get in touch with a professional NFT development company in the blockchain industry. They will assist you to create and deploy your non-fungible token on your desired blockchain network. Everyone knows that NFTs are the recent trendsetter in the blockchain industry. NFT protects the digital properties and emerges as one of the best blockchain business ideas in the blockchain space. In that sense, it is the right time to develop your own NFT
Use cases of Non-fungible Token Development
Here we list the popular use cases of non-fungible token development in the blockchain industry.
- NFT for Gaming
- Digital assets
- Art tokenization
- NFT marketplace
- NFT for fashion
- Lending platform
- NFT for real estate
- Music and Videos
- Identity management
- NFT for Collectibles
The future looks promising for the non-fungible tokens and NFT marketplace. Because the total market for the NFT crossed more than $300 million. Experts in the blockchain industry even speculate that 50% of new crypto users will use the non-fungible token as an entry point. This will be the right time for kickstarting your NFT business.
All you need to do is hire a team of blockchain developers from the leading NFT development company in the industry and one such company is Zab Technologies. We excel in providing NFT development services with perfect outcomes.
If you wanna develop an NFT at a budget-friendly price, then choosing Zab Technologies will be the finest solution for your business.