Non-Fungible Tokens have evolved to become the hottest crypto assets of 2021, with the overall sales already up 55% since 2020 - a jump from $250 million to $389 million.
Non-Fungible Tokens are unique collectible crypto assets, and have been around since as early as 2013. Back then, the concept of Bitcoin Colored Coins first emerged. These coins were just satoshis - which is a small fraction of bitcoin - marked or colored with distinct information that linked the coins to the real-world assets. Such as, “this satoshi represents $500 of John Doe’s New York office building.” For the most part, these Colored Coins were used to create and trade artwork like Rare Pepe on Counterparty, a P2P trading platform built on top of Bitcoin’s blockchain.
These funny cartoon frog images were adapted from a viral internet meme, and this was one of the earliest examples of unique digital artwork that is tied to crypto tokens. This innovation paved the way for ideation and creation of what we know today as the new non-fungible token standards – a set of blockchain building blocks that allow developers to create their own NFTs.
NFTs can be used to represent virtually any type of real or intangible item, including
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Unlike exchange-traded fungible tokens, non-fungible tokens are purchased or sold in special marketplaces. Their value depends on their uniqueness, and they’re extremely transferable assets.
Non-fungible tokens are thoroughly powered by the Blockchain technology, which means that not only NFTs are genuine, but also that it’s extremely difficult to create counterfeits, with an immutable ledger in place. This ensures utmost authenticity of NFTs.
Again, since the underlying technology behind the working of NFTs is blockchain, which is a decentralized platform, no owner can alter the data once committed. This way, NFTs offer complete ownership to the creators of the token, without any chances of the data being hindered.
Simply because of the wide range of benefits offered by them, NFTs have found more than one use in the world of today.
Especially for the use cases that require things like security, ownership, authenticity, and transferability, NFTs have proven as an ultimate boon.
Here are some use cases of NFTs to give you an idea of the power they hold!
Non-fungible tokens are extremely popular in the gaming industry as they solve some of the legacy problems haunting the gaming industry since long. For instance, Fortnite and other top games prohibit the sale of rare traits and accessories such as skins or weapons. However, using NFTs, these accessories can be very easily transferred and used in various games. Further, NFTs can also be used to drive in-game economies.
Think of Decentraland - where people are free to buy any virtual land they please. Another instance of NFTs being used for digital assets is the ENS (Ethereum Name Service), which is used by NFTs for their .ETH domains to enable purchasing and selling.
NFTs are perfect for fighting identity compromises or identity thefts. To protect from identity theft, things that can be digitized using NFTs to represent identity could be medical records, academic qualifications, job experiences, and even appearances. Further, digital artists can convert their works into NFTs and save themselves from copyright infringements. NFT’s use to prove identity also includes converting physical game tickets into non-fungible tokens to weed out counterfeits.
Non fungible tokens have given an altogether new spin to the collectibles world. As a result of that, even legacy collectors are now shifting onto digital assets, or tokenizing it for benefits.
Since the NFT space is rapidly expanding, many curious blockchain enthusiasts have started investing in different NFT projects,
and as a result, NFT-focused projects are on a forever high. The projects that use NFTs range from NFT marketplaces to gaming networks to much more.
Here’s a list of top NFT projects in the market today for you to take inspiration from!
OpenSea is simply the leading marketplace for NFT collectibles and artwork. The items listed on this marketplace range from ENS to virtual pets to virtual plots of land. The marketplace also allows purchase using other virtual currencies like DAI and ETH.
Async.Art is another NFT artwork marketplace that allows users to not only purchase and sell NFTs, but also to create one. The platform also offers some programming features that enable creators to easily define their artwork’s appearance and behavior. In fact, the platform also allows buyers to buy sections or "layers" of a given artwork and customize them.
CryptoKitties is the most talked about project in the NFT domain. In all honesty, it was CryptoKitties that brought the whole NFT game to the limelight and showed people the benefits NFTs can offer, to tackle many legacy challenges.
ENS is a domain name service project that came to life some time in 2017, and has been famous in the NFT domain ever since. The .ETH domain names are NFTs using Ethereum's ERC-721 standards and are tradable on NFT marketplaces.
Decentraland is a top NFT project focusing on a distributed virtual world. Here, participants can buy virtual land. Furthermore, each “inhabitant” has a special identifying digital passport.
The craze for non-fungible tokens is far from being over. Major brands, celebrities, companies, and others - like UFC, Shawn Mendez, and more - have already signed deals to release their NFT assets soon. Even Grimes, Elon Musk’s girlfriend, has jumped on the bandwagon selling almost $6 million worth of digital artwork in minutes.
Experts anticipate the NFT market to exceed $1.3 billion by the end of 2021 as more artists, brands and icons flock to the space to create their own distinctive tokens. With more blockchains competing to produce better NFT services too and a growing range of platforms to choose from, now is a great time to take part in the space.
Minddeft presents to you the preferred method for distributing tokens, and raising capital in DeFi - NFTs, that solves most of the existing issues in the cryptocurrency market.
Partner with Minddeft, and work on the unique possibilities offered by NFTs to build your unique product.
Minddeft’s expertise and experience of working with the latest blockchain technologies helps you to mitigate and eliminate many of the issues including hackers and human error.
With the Minddeft advantage, you get NFT products, services, and consultancy that is built to empower and enrich.