KB NFT MARKETPLACE
NFTs have already made significant inroads into the luxury and gaming industries, and have plenty of room to grow beyond these initial applications. The art sector will continue to be an important segment of the overall NFT market and is likely to gradually reach maturity over the next couple of years, although it is likely to be surpassed by other digital certificate applications like trademarks and patents, training and upskilling certificates.
Some of the froth may have come off this year’s cryptocurrency rally, but crypto FOMO is finding new footing in a phenomenon that has left many scratching their heads in disbelief.
Crypto investors are spending tens of millions of dollars on digital art that only exists in the ether.
Non-fungible tokens (or NFTs) are a new class of digital assets stored, certified and handled on a blockchain. These tokens can be thought of as certificates of ownership for virtual or physical assets that are characterized as unique, irreplaceable and non-interchangeable. They are called as “one-of-a-kind” assets in the digital world and they can be bought and sold like any other piece of property, but they have no tangible form of their own. They are tokenised things like artworks, collectibles, and even virtual real estate.
Uses of NFT
A unique sneaker in a limited-run fashion line
A unique digital artwork
An in-game item
A digital collectible
A domain name
A ticket that gives you access to an event or a coupon
NFTs have become hugely popular with crypto users and companies alike because of the way they revolutionized the gaming and collectibles space.
NFTs bring so many versatile features from blockchain to the content business. The benefit for NFTs is that blockchain technology enables people to truly own an item — it cannot be stolen or duplicated with ease.
Once again this adds to a NFTs intrinsic value because it cannot be accumulated over time — it must be acquired as a whole token.
This very feature will take blockchain and crypto users to the first billion!
THE APPLICATION OF NFT
APPROVED ON BLOCKCHAIN
Blockchain is a crucial technology for creating NFTs. It uses cryptography to chain blocks into a growing list of records. Each block is locked by a cryptographic hash, or string of characters that uniquely identifies a set of data, to the previous block. The transaction records of a chain of blocks are stored in a data structure called a Merkle tree. This allows for fast retrieval of past records. To be a party in blockchain-based transactions, each user needs to create a pair of keys: a public key and a private key. This design makes it very difficult to alter transaction data stored in blockchain.
NFT, This one-of-a-kind asset is something that cannot be tinkered with, but can still be traded as an asset or bought with a cryptocurrency such as Ethereum. Essentially, this makes an NFT a digital certificate of authenticity: The token serves as a unique code connected to a file, allowing distinguishing the original file from copies floating around on the Internet. This relatively new technology allows for various applications.
How do NFTs work?
When you pay for an NFT, what you get is the right to transfer the token to your digital wallet. The token proves that your copy of a digital file is the original, like owning an original painting. And just as masterpiece paintings can be copied and distributed as inexpensive posters, anyone can have a digital copy of your NFT.
Your private crypto key is proof of ownership of the original. The content creator’s public crypto key serves as a certificate of authenticity for that particular digital artefact. This pair of the creator’s public key and the owner’s private key is primarily what determines the value of any NFT token.
NFTs can also contain smart contracts that may give the artist, for example, a cut of any future sale of the token.
In addition, NFTs have a feature that enables you to get paid a percentage every time the NFT is sold or changes hands, making sure that if your work gets super popular and balloons in value, you’ll see some of that benefit.
THE COMING CRYPTO-ECONOMY
Whether or not the current NFT craze can keep its momentum going, NFTs have already accelerated a larger trend of digital economic innovation. NFTs have confirmed that the public is feeling increasingly favourable toward a crypto-economy and is embracing short-term risks in return for creating new business possibilities.