BITSONIC’s Crypto Book — NFT
NFT ecosystem booming
Nowadays, collecting works of art or collectibles has been converted to a digital method, and buying and selling digital goods with NFT(Non-Fungible Token) is becoming trendy.
According to Nonfungible.com, the NFT market has grown about 705% by the end of 2020, to $338M market value. Just three years ago, the value of the entire NFT market did not exceed $42M.
Besides, the NBA Top Shot played a significant role in making NFT more popular, and it achieved sales of about $200M in five months after release. On the other hand, NFT’s representative product, CryptoKitty, has been sold for more than $40M since 2017. As you can see, there is a big gap between them.
NBA Top Shot
NBA, NBPA, and Dapper Labs collaborate to launch a collectible game running on the Flow blockchain. The NBA Top Shot is a digital collectible documenting the highlight moments of NBA players.
For this reason, searching NFT on Google is increasing recently.
According to Cointelegraph, the NFT industry will boom in 2021.
Singer Grimes, known as the wife of Tesla’s CEO Elon Musk, recently posted 10 digital painting collections on an online auction. The paintings were sold for $5.8M in 20 minutes. As it is known that the digital work has implemented NFT technology, NFT draws attention once more.
Grimes Digital Painting Collection ‘War Nymph’
What is NFT?
NFT stands for Non-Fungible Token, which means a token that cannot be replaced with another token.
Various tokens are based on Ethereum, and this is an ERC-20-based replaceable token. On the other hand, NFT is an ERC-721 token as an irreplaceable token on the Ethereum network. It is used for ownership of digital assets such as tickets, real estate, income rights, game items, and limited items on the blockchain.
NFT features
Ownership Guaranteed: It was challenging to authorize the source of collectibles in the past. However, NFT provides a certificate of ownership for digital goods so that users can check the authenticity. In addition, ownership and management rights are granted on the blockchain, and products’ value can be protected.
Scarcity: The scarcity and ownership of NFT are transparently confirmed on the blockchain, so it is the only digital collectible in the world that cannot be forged or copied. Therefore, NFTs can add the value of scarcity to virtual assets such as online sports, game items, and digital art.
Limits of NFT
Since it does not cost much to issue NFTs, they can be issued unlimited times. If the number of NFT artworks increases, the supply is getting higher than the demand, so the price of NFTs may drop.
Popular NFT projects
OpenSea
OpenSea is an NFT P2P open market where users can trade various game items, virtual pets, land, etc., in multiple ways. The items in Opensea Marketplace can be purchased using several cryptocurrencies such as ETH and DAI.
Async.Art
Async is an irreplaceable token artwork marketplace where you can create NFTs and buy and sell NFTs.
Decentraland
Decentraland is an NFT project focused on a decentralized virtual world. In Decentraland, the land is used as an NFT, and owners of the land can build buildings and sell land in the marketplace.
