Beginner's Guide to NFTS: How To Get Started With Non-Fungible Tokens
Non-fungible tokens (NFTs) are among the hottest emerging blockchain applications. Though NFTs were first conceptualized in 2017, the technology is still in its infancy.
In fact, experts are predicting that it will be a long time before we see widespread use of NFTs on the blockchain.
But NFTs have numerous advantages over traditional cryptocurrencies and real-world assets alike—and as more developers begin exploring this groundbreaking technology, more opportunities to capitalize on these advantages will arise.
You are probably here because you know already what Non-Fungible Tokens (NFTs) are and have heard a lot about them. You have been hearing about NFTs for months now, but do not know where to start with all of this.
The Fungible vs Non-Fungible token comparison chart is an excellent place to start your journey into the wonderful world of NFTs, so let’s get started!
Non-fungible tokens (NFTs) are one of the hottest topics in the blockchain world right now. Though they may sound like a strange term, NFTs can actually be very useful for businesses of all sizes and industries.
For starters, let’s define what non-fungible means.The most common example of fungible objects are currency notes such as the dollar bill. You can hand me a $1 note and I’ll give you another one, which is exactly identical.
History of NFTs
The first non-fungible token was CryptoKitties, which launched in November 2017. The popularity of the game quickly brought attention to the idea of NFTs.
It has led to many other games and projects adopting them. Since then, we have seen the creation of Etheremon, CryptoKitties, and more.
How Do NFTs Work?
NFTs are essentially tokens that are based on the Ethereum blockchain. The Ethereum blockchain is a decentralized platform that runs smart contracts.
Smart contracts are applications that run exactly as programmed without any possibility of downtime, censorship, fraud or third party interference.
As a result, the NFTs can be used to represent ownership of virtual or physical assets, as well as to represent a variety of more complex contracts.
As we will see in the next section, there are a number of ways that you can create your own NFTs and there are many projects already working on making it easier to create and use NFTs.
What are the best examples of non-fungible tokens?
CryptoKitties was the first major project to use non-fungible tokens, but there are many other examples.
CryptoKitties is a blockchain-based game that allows users to buy, sell, and breed digital cats. The company raised $12 million in funding from venture capital firms Andreessen Horowitz and Union Square Ventures.
Dapper Labs is the company behind CryptoKitties. According to its website, Dapper Labs is “building a new blockchain-based digital media ecosystem that allows creators to cut out the middleman and build applications on their own blockchain.”
How to trade on OpenSea
OpenSea is a decentralized marketplace specifically for crypto-collectibles. The platform, which was launched in late 2016, has over 700,000 users and 500 ERC721 tokens that can be used to represent unique digital assets on the blockchain.
It is based on the Ethereum blockchain and built using the ERC721 standard. This means that all digital assets are non-fungible, tradeable, and easily transferable on the network.
OpenSea has a wide range of non-fungible tokens (NFTs) that users can purchase, sell and trade with or without ETH.
Buying, selling and creating NFTs
NFTs are one of the hottest emerging blockchain technologies. These digital assets that cannot be substituted on the blockchain by another token.
Ethereum is the platform most famous for hosting NFTs, but other blockchains are starting to emerge as well, like EOS and NEO.
There are a number of reasons why you might want to buy or sell an NFT, such as:
1) Collectibles – If you collect unique or rare digital items, then NFTs will likely be of interest to you.
2) Decentralized marketplaces – If you are interested in using a decentralized marketplace, then NFTs will likely be of interest to you.
3) Gaming – If you are interested in using NFTs for gaming, then NFTs will likely be of interest to you.
4) Financial instruments – If you are interested in financial instruments that have a built-in revenue stream, then NFTs will likely be of interest to you.
5) Digital collectibles – If you are interested in digital collectibles that can be used as a medium of exchange, then NFTs will likely be of interest to you.
Investing – If you want to invest in NFTs
NFTs are assets that can be traded and transferred on the blockchain. They are tied to real-world assets. If you want to invest in NFTs, there are some important considerations you should look at before you decide to invest.
The first thing you need is a wallet. You need a wallet that supports any ERC721 token. The second thing you need is a marketplace or exchange that sells NFTs.
It is important to do your research and find out the best place for you to buy NFTs. When buying an NFT, make sure it comes with a warranty.
Also, make sure you read the reviews to find out if others have had any problems with the product.
Other ways to make money with NFTs
Non-fungible tokens (NFTs) are showing a lot of promise for creators and investors. NFTs can be used to raise funds for projects like blockchain games, collectibles, and other forms of digital art. These are just a few examples of ways that NFT investors can make money with their tokens.
NFTs are a digital representation of unique assets, so they’re perfect for representing physical items that are often used for digital collectibles. With this in mind, NFTs will continue to gain popularity as more and more people come to understand how valuable they can be for the gaming industry.
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