The NFT industry has taken the crypto world by storm, changing our perception of authenticity and ownership of digital assets. Although launched in 2012, it recently became the new trend after the Defi craziness, since its rise to prominence, NFT has been experimented with by a host of leading entities in the blockchain and gaming world.
Without the help of blockchain technology, NFT would not be able to function properly and achieve its primary goal, which is to prove the ownership and authentic identity of digital items. With the aid of blockchain, digital assets can possess a unique identity and attributes that facilitate their rarity. So, what is NFT? How does it work? Where are the best places to obtain them? All these questions will be answered below…
What is NFT?
NFT is the acronym for ‘Non-Fungible Tokens’, they are a type of cryptographic token that symbolizes a unique item. Unlike crypto assets like Monero, they are not mutually interchangeable by their characteristics.
This means that one NFT is not equal in value or properties with any other NFT in existence, because each Non-fungible token is assigned a digital hash which distinguishes it from other NFTs. They are useful to create verifiable digital scarcity and are utilized by applications that need unique digital items like digital collectibles, digital art, and in-game items.
Top 5 NFT Marketplaces You Should Know
Marketplaces play a very important part in the growth and discovery of NFTs as they are much more difficult to find without a platform for the selling and buying of NFTs. We compiled five (5) popular marketplaces for the sale and purchase of NFTs, they include:
With transaction volumes that overshadow its peers, OpenSea is seen as the world’s largest marketplace for the selling and buying of NFTs. It offers a plethora of virtual items ranging from digital art to card games and domain names among others. It functions majorly as a one-stop-shop to trade Non-fungible tokens.
Users of OpenSea are allowed to customize their NFTs and market them to a specific niche or audience within the marketplace. OpenSea currently hosts over 1.2 million NFTs, featuring tools used by developers to create and integrate non-fungible tokens into games with little effort.
Devin Finzer, the CEO of the OpenSea marketplace stated that before the tokenization of real-world assets starts to garner support, the NFT industry will have to see much more activity in the purely digital gaming world.
Decentraland is a virtual world founded in 2015. It is a user-owned, decentralized virtual world where users can purchase plots of land and develop them, with intending to sell for a profit in the future. The platform is also used to create original scenes and artwork with the aid of simple building tools. In addition to buying and selling virtual land, the Decentraland market place also trades wearable avatars, along with other NFT items built on the Etherium blockchain.
Each virtual item is recorded on a blockchain-backed ledger, represented as a token. Let’s take, for instance, you own a virtual land represented as a token named LAND, you can build other tokens which represent items like schools, house or hotel on this virtual land.
Though still under development, Decentraland aims to change the way we interact with NFTs by creating an indulging experience linked with a native financial network.
3. Super Rare
Super rare is an NFT marketplace that deals with the trade of extremely rare art. The NFT marketplace has made a name for itself of the sales of unique digital artworks. To fully embrace technological advancements, the Super rare non-fungible tokens platform has so many interesting features like; a mobile app, improved management, simplified experience, live auctions, extended payment, and social profiles.
On the platform, artists issue authenticated single copies of digital artwork that are certified on the Etherium blockchain to ensure originality. Users of the Super rare marketplace can also customize their profiles to show off their art collection which can be viewed on digital display or VR.
Founded in 2020, this Russian-based platform is already a leading NFT marketplace, boasting a transaction volume of over $1million weekly. Rarible is a community-owned platform that deals with several digital assets including; collectibles, domain names, and digital artwork among other items.
Along with its capacity to assist gamers to trade Non-fungible tokens, users on the platform can also utilize the RARI which stands for Rarible Governance Token to custom create NFTs. Rarible recently signed the dotted lines to officialize their new partnership with a New York-based blockchain investment firm called CoinFund. Through this partnership, Rarible is expected to revive funds to further the development of its marketplace.
Its tokens can also be uses as a governance token which stretches its credentials as a decentralized autonomous organization even further.
Widely regarded as one of the oldest NFT marketplaces, Enjin was one of the first NFT marketplaces to get on the online scene, fully operational. It is a blockchain asset insurance platform that lets developers make use of its Enjin Coin(ENJ) to develop NFTs. Enjin Coin is Etherium-built with a furnished NFT standard which includes the Enjin suite, the allowance to create and monetize digital games.
With the partnership of big names in the industry, they have created several tools that push them higher up the ladder. The EnjinCraft plugin, for example, is an open-source plugin that allows the use of tokenized NFTs in the game ‘Minecraft’. This means that players can use Enjin wallets to purchase or trade in-app items like weapons and avatars etc.
Succeeding in enabling secure ownership and trade of NFTs, Enjin continues to rise in stock. With big partners like Microsoft, Samsung, and Ubisoft already on board, the sky is the limit.
NFTs have come and are here to stay, and with its special function of providing rare and unique digital items to customers around the world, it will surely remain relevant for a long time. Non-fungible tokens have different value systems to those of fungible tokens like Bitcoin, thus, they are slowly occupying the other half of the blockchain network. With a reported growth of 2.5 billion users in the past few years, NFT marketplaces have a bright future ahead of them.