An in-depth insight into Non-fungible Tokens

Did you hear about Beeple’s First 5,000 Days digital artwork – the costliest non-fungible token (NFT) that raked in $69 Million for its creator? What was being considered as an NFT bubble in 2020 has turned into mania in 2021. According to Non-Fungible Tokens Yearly Report 2020, the NFT sales between 2018 and 2020 rose by 825%. The sector refuses to rest as is proven by the trade volumes in these last 3 months of the year 2021. Between 2 February and 2 March 2021, the NFT trade volumes crossed over $419 million – this has led to an increase in demand for NFT token development.

What Are NFTs?

In simple words, NFTs are media legos that can be programmed. Unlike any crypto-token, the NFTs are non-fungible. What this means is like 1 ETH is interchangeable with 1 ETH, an NFT is not interchangeable with other NFT. These are provable scarce tokens and that is what determines the price of an NFT. The provenance of ownership of these special tokens is guaranteed by the blockchain on which they are built.

The NFTs have become very popular among creators like artists, musicians, digital gaming, sports enthusiasts, and digital collectible lovers.

What are the different types of NFTs and how can creators use them?

NFTs are designed to be unique, non-exchangeable, original, indivisible, and non-fungible tokens. They can be used to tokenize anything as blockchain records their unique and digitally verifiable properties. Some of the different types of NFTs we see today are:

• Digital art
• Digital music
• Virtual real estate
• VR wearables
• Tokenized luxury items
• Tokenized insurance policies
• Gaming assets
• Event tickets
• Subscription badges
• Blockchain domain names

Different ways to interact with NFTs

The growing frenzy of NFTs has attracted millions of users to this space. They can create NFTs, mint NFTs, sell or collect NFTs.

Creating NFTs
• Before you create an NFT, you need to have a media file. This could be a JPG, PNG, GIF, or MP3 file.
• Once your file is in place, it needs to be tokenized on an NFT minting platform.

Minting NFTs
• This is where blockchain comes in place in the process of Non fungible token development.
• Given the NFT mania, there are multiple blockchain platforms that support NFT development. But the point is how you make sure that the platform is right for you. Here is how a good decision can be made:

1. Check out the Marketplace size: Pick the blockchain that has a large pool of NFT buyers and sellers.
2. Secondary markets: Does this blockchain offer secondary markets where the NFTs can be sold or traded?
3. Apps and services: After an NFT is tokenized or minted, it needs the support of wallets and exchanges to be stored and traded. Considering the kind of additional services that the blockchain platform provides is very important.
4. Mining fees: These vary widely while moving from platform to platform. Making an intelligent choice is very important because it is a crucial parameter while trading NFTs. For example, Ethereum has been a go-to blockchain for creating NFTs.

But with the recent surge in gas fees, the creators have been forced to pay extremely high minting costs and trading fees.
Non fungible token development services offered by Antier Solutions play an important role at this point in the NFT lifecycle. With our expertise in blockchain development, we help you decide the right blockchain and the most-suitable platform for NFT development.

Selling NFTs
To sell an NFT, the owner needs to put them on an open marketplace platform. It requires a strategic placement so that your NFT garners more attention. Also, as a creator of the NFT, you can earn loyalties whenever the NFT sells in the secondary market.

How to evaluate an NFT?

Before you put a price tag on an NFT or buy an NFT for a particular price, multiple aspects need to be considered. These are:
·       The reputation of the NFT creator
·       Scarcity and provenance of the NFT
·       Open source NFT platforms have price floors where the price can be gauged.
·       Keep tabs on volume and transaction activity — projects that have more activity offer more profit opportunities.

Conclusion

It is the best time for NFT token development and the NFT economy. Currently, this space is offering phenomenal opportunities. Over time, the NFT market will attract more users and artists.

At Antier Solutions, we offer end-to-end non fungible token development services. We are a team of experts who develop and deliver world-class NFT platforms.

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