Non-Fungible Tokens (NFTs): All you need to know about the growing concept
As their name implies, non-fungible tokens are special, unique, and one-of-a-kind entities that cannot be replaced, replicated or copied.
They are recorded on the blockchain and currently exist in varying projects.
The unique nature of non-fungible tokens makes it easy to verify the authenticity of a kind and also to certify the ownership.
They are simply individual tokens with important and unique traits used in the story’s vital information.
Picture-for-profile (PFP) NFTs are special forms of non-fungible tokens used by social media users, most especially Twitter and Discord to represent themselves.
These avatars can be an imitation of images of varying objects, humans, animals, items, or even a place.
Since anonymity on the blockchain is what draws the attention of many people, they find it appealing to use avatars as their profile pictures rather than their real identity.
In this article, we’ll be explaining non-fungible tokens (NFTs) and why they are gaining popularity lately.
Non-fungible tokens: An overview
Known for their irreplaceability, immutability, inimitability, and uniqueness; non-fungible tokens are digital assets stored on the blockchain and backed by cryptography.
Their unique metadata and identification codes make them stand out from one another and other assets.
In other words, each NFT is different from the rest and also different from any other digital assets.
Non-fungible tokens are invaluable which accounts for their expensiveness. They are also different from cryptocurrencies with their unique features.
Cryptocurrencies can be replaced and copied – we can have multiple kinds of Bitcoin in different wallets.
Even fiat/traditional currencies are fungible. We can have several kinds of dollar notes or gold and other assets.
However, the case is different for NFTs as they are unique, and no two non-fungible tokens can have similar features.
Non-fungible tokens are used to represent several items digitally and they are also used for varying purposes.
Most importantly, they are minted and sold on marketplaces like Opensea to make millions of dollars. Other forms where NFTs can be used include domain names, event tickets, in-game items, profile pictures, and digital and non-digital collectibles.
Available NFT projects
Since NFTs can be developed and minted by anyone, given that you have the basic knowledge of how the marketplaces work, there are several NFTs out there. However, for the scope of this article, we’ll be looking out for the top 3 NFTs that are popular in 2022.
- CryptoPunks: Regarded as the first ever created NFTs, CryptoPunks are the most popular non-fungible tokens you’ll ever hear of. In fact, it was the creation of CryptoPunks that inspired the modern crypto art explosion according to Zebpay.
CryptoPunks are generated on the Ethereum blockchain and form a basis for the generally-used ERC-721. They are a set of 24 x 24 pixel art images representing humans, aliens, zombies, and apes.
The floor price of CryptoPunks is 64.4 ETH with a total volume of 939,000 ETH. They are one of the most expensive NFTs available today. The project was developed by Larva Labs.
- Bored Ape Yacht Club (BAYC): The Bored Apes team generates the 10,000 different Apes in the project using a special programming language. This programming language assigned different expressions, outfits, and character traits to each of the apes.
Another important thing about this project is the availability of a collaborative space for its holders. Each of the 10,000 apes serves as a membership pass to the Yacht Club.
The floor price of Bored Ape Yacht Club (BAYC) is 89 ETH with a total volume of 618,000 ETH. They are one of the most expensive and well-known NFTs available today.
- Mutant Ape Yacht Club (MAYC): MAYC is another set of NFTs containing a total of 20,000 unique tokens as an extension of the Bored Ape Yacht Club. By implication, MAYC is just another special form of BAYC.
In reality, Mutant Apes are formed when a Bored Ape is exposed to something known as “Mutant Serum”. This project was developed as a means to reward BAYC holders with something new.
The floor price of Mutant Ape Yacht Club (BAYC) is 17.55 ETH with a total traded volume of 421,000 ETH.
Other NFTs include Otherdeed for Otherside, Azuki, Decentraland, Dribblie, Flyfish Club, Lucky Block NFTs, NBA Top Shot, Meebits, Crypto Baristas, Kibatsu Mecha, and Moonbirds, among several others.
Non-fungible Tokens (NFTs): How it works
If you’ve been passionate about getting your NFT collection and you are wondering how to go about it, here are a few steps to take.
- Get a digital wallet where you can store NFTs and cryptocurrencies
- Depending on what your NFT provider accepts, you’ll use your fund to purchase cryptocurrencies like Bitcoin or Ether.
- Check out some common NFT marketplaces and place an order of your favourite NFT(s) and get down to your wallet.
Non-fungible Tokens (NFTs) Marketplaces
Once you get a wallet and fund it, the next step is to move to an NFT marketplace and explore to check and buy anyone that appears appealing. Below are the common NFTs marketplaces.
- OpenSea.io
- Rarible
- Foundations
Final Thoughts
As much as they are expensive and unique, the choice of whether to buy an NFT or not depends on your “why”.
While they appear promising, their future is not certain. Besides, they have just a little history and hence, there is nothing much to trace about them.
It is highly recommended that you invest just a little in purchasing NFT as a beginner so as not to end up losing when they liquidate.
Most importantly, unlike cryptocurrencies, NFT buyers are not readily available. You have to post them around on platforms to get a buyer.
Kindly share your thoughts about non-fungible tokens. Do you have an avatar already?
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