NFTs

What are NFTs? Non-fungible tokens, commonly known as NFTs, are a rapidly growing segment of the cryptocurrency ecosystem. These blockchain-based collectibles allow collectors to purchase or sell digital assets such as art, music, and even virtual real estate in exchange for cryptocurrencies like Bitcoin and Ethereum. Best of all, the buyer of an NFT owns their copy of the token forever.

NFTs are a unique type of digital asset, meaning they are not interchangeable or replicable. This is different from cryptocurrencies like Ether and Bitcoin, wherein many tokens share the same characteristics. Those cryptocurrencies minted on the Ethereum protocol, for example, all follow the same ledger and run the same codebase.

Non-fungible assets or non-fungible tokens may include crypto art, digital art, or even blockchain collectibles.

Characteristics of NFTs

1. Unique nature

Unlike cryptocurrencies such as bitcoin or ether, NFTs can’t be easily divided or exchanged for one another because every token has a unique underlying code. For one thing, they’re amazing and one of a kind. That means no one can produce another copy of the same exact crypto item or asset just like a fingerprint.

2. Non-fungible

An NFT holds value based on scarcity, uniqueness, and ownership rights. The fact that an NFT cannot be divided into smaller units makes it non-fungible. This quality makes it impossible to exchange the coin for another item of the same quality because no two tokens are alike (e.g., one can exchange $10 for two $5 bills). Decentralized blockchain technology and marketplaces such as Ethereum allow NFTs to transfer freely among parties and track immutable ownership records. The use of digital wallets and smart contracts facilitates this process. That is part of what makes NFTs unique from one another.

3. Controlled supply

The nature of NFT makes it an excellent way to control the supply of digital content, which is key to driving its price. Because it attributes one owner to one piece of content, even if others can see the NFT, only one person can own it.

Importance of NFTs

NFTs lets artists do what they do best, and are changing the art world for the better by bringing blockchain’s transparency, fairness, and an authentic connection between artist and collector to the creative market. This new way of buying art allows you to invest in a first-edition piece, proving that it is the real deal and yours for life, with the creator getting their due and a chance to break into a new scene.

NFT marketplaces

The three primary types of assets available in the NFT marketplace are trading cards, music, and digital art. Before choosing an NFT marketplace, you'll first want to decide the kind of digital asset you're interested in buying, selling, or creating. For example, if you've created a new piece of digital art and are looking to sell it as an NFT, know that you'll have to meet the specifications of the marketplace you choose to use.

Here are some of the best NFT marketplaces right now.

1. OpenSea (seemingly the leader in NFT sales)

2. Axie Marketplace

3. Larva Labs/CryptoPunks

4. NBA Top Shot Marketplace

5. Rarible

6. SuperRare

7. Foundation

According to Influencer MarketingHub, these are the 10 Top Selling NFT Creators in 2022:

1. Beeple (Mike Winkelmann): Beeple sold 845 artworks for $113,544,319.92.

2. Trevorjonesart (Trevor Jones): 5,284 artworks for $18,591,061.32.

3. FEWOCiOUS: FEWOCiOUS has sold 3,104 artworks for $18,175,346.36.

4. Pak: Pak has sold 1,691 artworks for $16,880,471.30.

5. Maddogjones (Michah Dowbak aka Mad Dog Jones): Maddogjones has sold 1,567 artworks for $14,548,163.55.

6. Hackatao: Hackatao has sold 1,504 artworks for $12,487,255.50.

7. Xcopy: Xcopy has sold 1,907 artworks for $11,906,985.44.

8. Slimesunday (Mike Parisella): Slimesunday has sold 6,508 artworks for $11,734,586.58.

9. 3lau (Justin Blau): 3LAU sold the world's first digital tokenized album, generating over $11.6 million in online sales in under 24 hours during the last weekend in February 2021. One song sold for over $3.6 million on his custom-made digital-token auction site.

10. Grimes: Grimes has sold 1,122 artworks for $8,793,359.30.

Non-fungible tokens provide a platform to make sure artists get paid while still granting legitimacy to the collector. Upload that PDF of your digital artwork to the NFTs marketplace and you’re free to go. Work with one of the countless artists creating unique pieces on their own terms, or purchase limited first-edition prints from some of the most sought-after creators in the world. With NFTs, you’re credited as the rightful owner, the artist receives credit for their work and a cut of each sale and ongoing royalties, and neither of you loses money to elitist intermediaries.

I hope you found this article very educative. Stay tuned for more