What is an NFT marketplace and how does it work?

NFT – or non-fungible token – is a unique digital item whose originality and ownership has been proven using blockchain technology. Most often, NFTs are bought and sold through the Ethereum blockchain cryptocurrency.

In short, a blockchain is a database containing information about the purchase and sale of a digital item, whether it be one NFT digital token or one Ethereum. It is incredibly difficult to fake or change this data, but access to this information is open, so anyone can use it to confirm the authenticity of a digital item.

(Not) interchangeability

Cryptocurrency and nft marketplace development company work in the same way, the only difference between them is the concept of non-fungibility. Money is fungible. 200 rubles is 200 rubles. Two banknotes of 100 rubles each are also 200 rubles. Moreover, the serial number of the banknotes can be anything, they will not lose their value of 200 rubles from this.

But art objects, for example, are not interchangeable. Malevich’s Black Square is a brilliant and priceless painting. The “black square” of another authorship is kalyak-malyak. Malevich’s painting can be endlessly copied and adapted, but nothing beats the value of the original.

Now, despite the millions of copies of the Nyan-cat gif on the Internet, one can prove the originality of one of them.

How to create a token yourself

You can create a unique token and associate your asset (art, collectibles, things, content) with it independently and for free on cryptocurrency services. In essence, you will get your hands on a digital equivalent of a title deed, confirming the uniqueness of your copyright.

According to experts, in the future we will see tokenization in the NFT format and other unique objects: real estate, vehicles, up to personal identification. That is, the token will be tied to a person in order to identify legal documents, personal data, etc. There will be no need for intermediaries who are guarantors for the parties to the parties. Now the authenticity of documents and identity can be verified using the NFT token. This, of course, still fits in the head, but for our children and grandchildren it will be in the order of things. Digitalization is in full swing.

It should be noted that technology is just beginning its march and the world of art, as the most loyal sphere for new methods of self-expression, gladly accepted it. Experts believe that the penetration of technology into other areas will occur in the next 10-15 years.

Index platforms and tokenized set shares

As for a private investor, there is an opportunity to make some money on arbitration – to acquire digital art objects and resell them later at a profit. You can also consider buying a general NFT index to profit from rate differences. Let’s see where and what can be done. There are two kinds of projects: NFT index platforms and NFT set tokenized shares.

Index projects:

  • NFTX is a platform for creating index funds backed by NFT. Tokens of one type of assets and tokens of a combined fund are offered for purchase.
  • NFT20 is a decentralized exchange for NFTs created by NFT development studio Very Nifty. On the platform, collectors can make a deposit to a certain NFT pool without approval, receiving another NFT in return, or ERC-20 tokens confirming their shares in this pool.
  • B20 – a token from the Metapurse team, is a basket of NFT tokens dedicated to the work of the artist Beeple, which was mentioned at the very beginning. B20 allows you to become a co-owner of this basket, which includes more than 20 NFT Beeples 1 to 1, as well as other valuable NFTs.

Share NFTs in your email newsletters

If you have at least a small subscriber base, launch emails on the topic. Talk about upcoming projects, share cases of selling tokens (your own or someone else’s), upload training videos, etc. The main thing is to unobtrusively, but regularly stir up the interest of subscribers to the topic and do not forget about powerful CTAs. And find more info here.

 

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