There is no doubt that Non-Fungible Tokens are the latest and most popular trend in the blockchain industry. Everyone is talking about launching their own NFTs. On March 11th, the history of blockchain technology and the history of art changed forever. Christie’s, one of the most renowned auction houses in the world, sold an NFT work of art for $69 million. The piece entitled “Everydays: The First 5000 Days” was created by a digital artist Mike Winkelmann, better known as Beeple. The NFT is not a single artwork but a collage of 5000 tokenized images which Beeple was creating every day over the course of years.
Hi, my name is Laxman and I am the founder of Lapits Technologies. We have built several interesting blockchain products including NFT and have already spent thousands of hours experimenting with smart contracts and security audits for NFTs and Defi.
In this article I will be talking about:
Take a deep breathe, quickly grab your Coffee or Tea to excite your taste buds this article will help you understand what NFTs are and why should you create one.
What is NFT?
NFT stands for Non-Fungible Token and are the tokens that we can use to represent ownership of unique items. They let us tokenize things like art, collectibles, video, music, photo, even real estate. Each NFT represents a one-of-a-kind cryptographic item that cannot be interchanged with another and is maintained in a digital ledger called blockchain. Fungible items, on the other hand, can be exchanged because their value defines them rather than their unique properties. On the contrary, a non-fungible token is unique and not interchangeable.
Why is the world talking about NFT so much?
NFT has now become an Internet of assets which solves many problems exist on the Internet today. In the physical growing world if you own a car, bike, watch, real-estate property, book, art, or any other thing, then you own it. But this is a problem in current digital internet of things. For example: writing something on your facebook or linkedin or twitter wall post does not give you rights to own the content why because owner (who wrote it) details are stored on the servers controlled/owned by these companies. Its use case has been identified more for the music, art, and collectibles. But people have now started thinking other ways around.
Content creators can sell their work anywhere and can access a global market. These creators can retain ownership rights over their own work and claim resale royalties directly & automatically. Whereas platforms like YouTube or any other streaming services retains most of the profit from sales. And this is exciting, isn’t it? I mean It solves major problems like protection of ownership rights, its uniqueness, trustless transactions between buyer and seller, receive royalties directly. Then it is surely talk of the internet today.
Should you also create NFT?
This is remarkably interesting. Knowing that you need to create NFT will help you start creating your own NFT immediately or at least you start planning it. But how do you decide whether NFT is a thing for you. No worry, I am here to help you with.
Are you planning to launch a bookstore online where you are a publisher or author, or it invites other publishers to launch books on your store? Then you must create NFT marketplace for authors and publishers. There may be different benefits for different user group which we can discuss anytime.
Are you an artist who sells arts online or offline? You must create NFT of your art piece. Similarly, if you are a creator who creates video/music content, or you are a blogger, or story writer then NFT is surely a thing for you. Different category will offer you different benefits.
Do you have an idea to organize online events and people will need to buy tickets to attend these events? NFT is a thing for you. Creating NFT of tickets will help maintain its uniqueness and will be proof of ownership (that you own the ticket) which anyone can verify on a decentralized network.
Real-estate, loans, insurance etc. I know that people are focusing more on the art & collectibles these days but trust me the day is not too far when people will be creating NFT for these too. Can you imagine buying a property (or percent share) online will make you owner even if it is in their centralized server? I do not think so. Anything which is centralized is highly open to any manipulation. Decentralized NFTs are the answer.
What are the benefits associated with NFT?
As I mentioned above that NFT has different benefits for different user groups for example: If you are a seller rather an Artist then you can earn money by selling your artwork online on a NFT market and not just this, you can automatically receive a percentage every time the NFT is sold. On the other hand, if you are a buyer, or collector then you support artists, wait for its monetary value to be increased so that you can sell and make profit, you also get some rights like being able to post picture online or use it on your profile, in-fact it brings you complete usage rights – what can you use and where. Below are some common properties of NFT (non-fungible tokens) which make it stand out in the industry.
How can you create NFT?
Process can be simple and easy when you use any existing marketplaces like Opensea, Rarible, etc. to create/mint your NFT. They have an interface which guides you and lets you create NFT easily. Apart from adding description & photo/video/audio, you may be prompted to set sell price (or create a sell offer).
If you are planning to develop your own NFT marketplace, then process becomes little harder and challenging. Here is covered all what you will need down the road:
We at Lapits Technologies makes your life easier, here you get complete package “one stop solution for all your blockchain requirement”. Since I mentioned our experts of blockchain have already built some remarkable products thus they are ready to take up any challenge, advise you as and when required and develop NFT platform right from scratch. Let me talk about several blockchains which you can use seeing to fit into your use case here.
Ethereum is currently the leading blockchain service for NFT issuance.
- Transactions only take 15 seconds to clear
- Trading costs are high.
- Ethereum’s decentralized finance (DeFi) system never sleeps or discriminates.
- Ethereum services are open by default – you just need a wallet.
However, there is a range of other blockchains that are becoming increasingly popular, including:
Binance Smart Chain
- Cheap transaction fees that reach as low as 1 cent.
- High performance with a network capable of producing a block every 3 seconds.
- Cross-chain DeFi mechanisms that increase DeFi interoperability.
- A supportive Binance ecosystem that funds and bootstraps many DeFi project.
- Polkadot is a scalable, heterogeneous, multi-chain technology.
- Pooled security and trust-free interchain transactability.
- Transactions can be spread out across the chains, allowing many more transactions to be processed in the same period.
- The PoA consensus allows for lower gas prices and for a straightforward transaction system.
- Overall cost reduction for the consumer and improved collection through direct receipts for the content producer, which offers a win-win situation.
- It is transaction or Gas fees is too less.
- Allows easy and cost-effective sharing of digital content.
- Tron attempts to bridge the gap between content creators and content consumers by eliminating the middleman.
Storage for digital files is as important as making a choice between different blockchains. Depending upon the use case you can make a choice between centralized storage and decentralized. Centralized storage are like any CDN (content delivery network) which may be Amazon CloudFront, S3 bucket, Google Cloud CDN, Cloudflare etc. you can also make your own server dedicated to deliver content. However, adoption rate for decentralized storage is very high when we talk about NFT, again it completely depends upon your use case. But you can make choice between IPFS and BTFS.
BTFS uses a native token BTT which ensures incentivized, fair, useful, and efficient system. In both file system, you will require to host a node which will give two base urls a) Gateway URL which you can use to explore files b) API URL which will help you post/get data/files to the file system.
Last few seconds, let me summarize the article, NFT is certainly a thing for you if blockchain or crypto excites you even if you are not an artist. You can buy and make profits and do a lot of other stuff. Non-fungible Tokens are the latest buzzword in the crypto community. It has got benefits for both artists/creators and buyers. Lapits Technologies is a blockchain technology development and consulting company which is your go to technology partner for all your blockchain development and consultation requirement.