To know what a Non-Fungible Token isfirst of all we are going to break down each of its elements:
A brief about NFT market development :
“A Token ” is a unit of “token” value created by an organization to govern its business model by giving more power to its users to interact with its products, while facilitating the distribution and distribution of benefits among all its shareholders. Mougayar (2018)
While “Non-Fungible” is defined as something unique, which cannot be substituted or replaced by another.
Now, in this context of digital investments, Non-Fungible Tokens represent unique digital assets, encrypted and developed with Blockchain technology and security. Thus, NFTs can be taken as digital assets or tokenized versions of real-world assets of value.
For example, Jack Dorsey in March 2021 sold the first tweet in history in the form of a non-fungible token marketplace (NFT) for $2.9 million. The message, posted was “I’m just setting up my twttr”. In that sense, the sale of tweets in the form of NFTs is already a reality, just as there are also those who pay for memes or digital works of art. At its simplest, NFTs transform digital works of art and other collectibles into unique, verifiable assets that are easy to trade on the digital blockchain.
Videos, images, GIFs, all kinds of digital art and even the first publication on a social network. Absolutely everything on the Internet, just like physical objects, can be certified with NFT to confirm authenticity.
Characteristics of NFTs.
Unique : They represent a unique encrypted asset, and even when copies may exist, their owner can certify that it is unique and real.
They cannot be exchanged for others, due to their unique and unrepeatable nature.
Cannot be divided or split — TNFs also cannot be copied or split into smaller fractional units like other cryptocurrencies.
They are indestructible , developed and stored with blockchain technology through a smart contract (Smart contract). This also allows them to be verifiable by knowing their purchase history, their absolute owner and their original creator.
Ownership of a TNF is absolute to whoever acquires the digital asset.
They have free trade in digital media.
Origin of NFTs
The origin of the NFT marketplace development that we know today dates back to 2012 where the first colored coins began to be developed, which could be used to designate properties, coupons, issue shares of a company, generate subscriptions or even market digital collectibles. That is, they expanded the utility of Bitcoin and allowed for more experimentation among developers in the community.
In this way we can see how similar ideas existed in the market since 2012 with the emergence of cryptocurrencies, but it was not until 2017 in October, when the standardization of non-fungible tokens was given by the Axion Zen team which I believe “Crypto Kitties”, a blockchain-based game as the first ERC721 token; All the “kitties” that are created are NFTs, that is, they are unique and no two can be the same. This Project quickly became a success and ERC721 became the standard API for creating NFTs.
In that order of ideas, it should be noted that in 2020, the market for non-fungible token marketplace development service (NFT) grew almost 300% , three times its size in 2019. Currently, operations involving NFT exceed 300 million US dollars in volume. of transactions.
Types of NFTs
Every day there are more elements that can be converted to NFT in the digital world, so far the most common are the following:
collectibles , Images , Art , tickets , Videos/Gifs , Gaming , virtual elements , real assets , digital identities ,….
NFT products span everything from digital artwork (the most common today), digital fashion items, to collectible sports cards, first social media posts, virtual real estate, and video game characters , however day to day more brands venture into creating digital assets to promote their products in the real market and engage these investment alternatives as part of the brand and user experience.
visit : https://www.blockchainx.tech/nft-marketplace-development
