Blockchain technology is always a hot topic in the town because it creates trust among startups by offering high-end security and privacy to those who have implemented that in their business. The advancements in blockchain technology helped many startups and other individuals 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. Fungibility 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, indivisible, and non-interchangeable.
In 2021, we can see many new crypto trends in the blockchain industry. But among them, the non-fungible token is attracting many investors, traders, and other individuals from all parts of the globe. It all started in 2017 when a 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.
Following these huge impacts of Non-fungible tokens in the Blockchain space, It is now expanding to many other areas like digital art, gaming, and more. Well, this tremendous growth of non-fungible tokens invites many startups and speculators to create a Non fungible token (NFT).
If you aren’t aware of NFT and how to create an NFT???, then this article will help you with everything you need to know about them. Besides, we will also mention the importance of the non-fungible token and NFT marketplace. So keep reading to have an insight at all the essential factors of NFT and NFT development.
Let’s start with some basics!
What are Non-fungible Tokens?
The non-fungible token represents the unique item and they are not similar to other tokens which means that NFTs are non-interchangeable. The items can be either digital property or physical property. Like digital art, ancient sculptures, sneakers, commercial real estate, game items, tickets, painting, GIFs, and more. Among these unique assets, digital arts, GIFs, and gaming items are prevailing in the global NFT marketplace. These assets cannot be duplicated and they are indivisible. If a user buys an NFT, then he/she can prove ownership, authenticity, create scarcity, and make them more valuable. In other words, the Non-fungible token is the kind of blockchain token that is grabbing the attention of many business class people and investors across the world right now.
The NFT can 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. In general, NFTs have a different protocol structure and they can be traded on the NFT marketplace. So what is the NFT marketplace? It is a platform or a marketplace for buying and selling all kinds of non-fungible tokens securely in a risk-free manner. Many popular NFT marketplaces are currently available for trading NFTs such as opensea, rarible, foundation, and nifty gateway. The NFTs can change the user & developer relationships with these following important factors.
- Immutability and provable scarcity
Most of the NFTs are used as collectibles. 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 time, there is a vast demand for NFTs. Therefore, creating your own NFT with any collectible will lead you to reach a greater height in the NFT marketplace. Besides, you can also generate profitable money within a short time.
Best NFT Projects in the Global NFT Marketplace
Presently, many non-fungible token projects are showing their presence in the industry. But only some NFTs 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 punks
- Async. art
- Axie Infinity
- FND NFT
- NFT yourself
- POW NFT
- Binance collectibles
These are the finest NFT projects in the major digital platforms and NFT marketplace. Now, let us see…
How Non-fungible Tokens Suddenly Become Popular?
The non-fungible tokens are widely used in many industries and today they are created based on different standards such as 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 duplicated.
- 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 trade. But the non-fungible token cannot be directly exchanged with anyone else because each token has a unique structure and they are non-interchangeable.
How to Buy and Sell NFTs?
Unlike the usual crypto tokens, non-fungible tokens are not sold/bought publicly. 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 token 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. Just you need to create an account in the NFT marketplace platform and connect your crypto wallet which enables the user to buy their desired NFT in a hassle-free manner. After buying NFT, you can also sell them at a fixed price or in bidding.
But what we are suggesting is rather than buying/selling NFT, you can create an NFT on any collectible that helps you to reap more profits in less time. So, now, let us see…
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
Currently, the gaming industry is valued at more than $160 billion and it might reach more than $200 billion by the year 2023. As we can see, the popularity of NFTs in the gaming industry is probably one of the major reasons to consider a good run for NFTs in 2021. Players can trade with other players using NFTs. They can get more tokens and improve their gaming expertise. That’s why the gaming industry presents highly lucrative prospects for the growth of non-fungible tokens in 2021.
NFT in Digital arts
The non-fungible tokens in the digital arts will provide proof of ownership and authenticity for any artwork to the holders. It supports shared ownership and digital identity which has the capability of increasing monetization. NFTs can provide some essential information. such as the list of previous owners of the token and the cost featured on the token.
Real estate NFTs
You can create an NFT that represents people’s identities and property rights. Else, you can tokenize your virtual lands, interiors, and sell them on the market quickly.
NFTs in sports
You can use non-fungible tokens to represent the most entertaining and dramatic moments and items that are in high demand. Such as Tokenization of video clips and implementation of digital bids
Token Standards used For Creating a Non-Fungible Token
When it comes to the NFT development process, multiple frameworks across different networks will be used for creating and deploying the NFTs. 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 is 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. 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 Ethereum blockchain to create ERC721 tokens.
TRC721 is a well-known standard used for developing and deploying an NFT on the Tron blockchain network. It is compatible with ERC721 and allows you to digitize your collectible into a non-fungible token. The Tron blockchain platform offers risk-free way to create TRC721 tokens to launch your unique collectibles.
BEP721 is the newly launched NFT standard by 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 gained great popularity among investors right now in the NFT marketplace.
How to Create a Non-Fungible Token?
We have advanced technologies now, so creating an NFT is not a hard task. Currently, lots of NFTs have been created and auctioned on various marketplaces. Anyone can create non-fungible tokens on top of popular Blockchains such as Ethereum, Tron, 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 development process.
Secondly, you can get in touch with a professional NFT development company in the blockchain industry. One such best non-fungible token development company is Zab technologies. We will assist you to create and deploy your non-fungible token on your desired blockchain network as per your business needs at a reasonable cost. 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
The future looks promising for the non-fungible tokens and NFT marketplace. Because the total market for the NFT crossed more than $300 million right now. 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 well-skilled blockchain developers from the leading non-fungible token development company in the industry – Zab Technologies. We excel in providing top-notch NFT development services with perfect outcomes. If you want to create a NFT at a budget-friendly price, then choosing Zab Technologies will be the ultimate solution.
Get a free consultation to create non-fungible tokens here <<