UNDERSTANDING NFTs
1. What are NFTs?
The role of Non Fungible Tokens (NFTs) acts as unique digital assets on a blockchain, which consists of digital art, games, music, videos, sports cards and more. Each NFT is a sole digital asset and their ownership is of immutability.
2. How do they work?
The unique difference between NFTs and other tokens (Bitcoin, Ethereum, Sushi, etc,) are that they are cryptographic tokens, which are non-fungible meaning unlike one dollar bill or one BTC or one ETH. Each NFT is identified with sole information without interchange between two NFTs, which creates sense of unique and is easily verifiable.
There are several prominent features of NFT:
· Indivisible feature: Cryptocurrencies like Bitcoin or Ethereum can be divided and traded in fractions, while the NFT is an intact asset.· Indestructible or immutable feature: All NFT data is stored on the blockchain platform through smart contracts. Virtual items in the game can be mass duplicated or deleted if the manufacturer declares to be shut down, but each NFT is unique and exists regardless of the company. For example, you can buy music from iTunes which means you buy a license to listen that music but do not own it.
· Verifiable feature: Digital artwork purchased and sold as NFT will always be original, with no second copy. Thanks to the storage of ownership data on the blockchain, anyone can trace the origin of the work, without the need for a third party to authenticate like art antiques that need expert certification.
3. Why are they valuable?
Since ancient times, humans have indication to collect items of high artistic value, from art to autographs, beanie babies to trading cards, sneakers to stickers, etc,…
NFT itself has a collector’s value because each item is unique, which brings digitized environment for both tangible and intangible items. Artists now have the ability to verify the origin of their work and have direct connection with their audience, without intermediary. However, it also brings many benefits for gamers and investors. Thanks to blockchain technology, investors and gamers can make money selling in-game items, in virtual casinos like The Sandbox or Decentraland virtual theme park.
4. What are some examples of NFTs?
The non-fungible token space (NFT) has appeared in 2012 but until 2017 it was more known thanks to the launch of the first crypto games — CryptoKitties on the Ethereum network. It allows players to purchase, collect, breed and sell virtual cats.
For another example, a gamer sold a series of plots of land in Decentraland for $ 80,000, or an investor bought a track in F1 Delta Time as an NFT. This person will receive a 5% dividend from the races taking place on the road, including entrance tickets.
For artists, selling a work in the NFT form without going through a third party (such as auctions, galleries, etc.) will help them retain a significant portion of the profits. They will also receive royalties each time the work is handed over to the new owner. More and more artists are creating NFTs in unprecedented forms: digital artwork sold at Christies, NBA highlights, music albums, you name it.
The burst of crypto in the beginning of 2020 paved the way for NFT to become the latest investment trend, bolstered by both gaming assets and digital assets. According to a report from NonFungible.com, sales of NFT to more than $2billion in the first quarter of 2021 — more than 20 times the volume of the previous quarter.
5. Which does NFT-Starter bring to the NFT market?
The association between NFT and DeFi initiates great growth potential and new horizon for cryptocurrency. The complex matter of the rapid growth of NFT, after the similar hyper-acceleration of DeFi, acts as contributing factor to create astonishing innovations with enormous promise of democratization, new business models and global markets with global approach, which is driven by the basic premise of decentralization and the basic structures of cryptocurrencies.
Although the NFT is described as a unique type of cryptographic Token with some intrinsic value to holders or to the market (art, collectibles), the NFT movement is the resolving power of the DeFi movement, along with the ability to provide platforms and means of transactions for all Tokens.
NFT-Starter’s mission is to create the NFTs ecosystem’s number 1 — top 1 DeFi production in 2021, which opens the door for NFTs innovations by means of available tools, services and features of DeFi real-world solutions thanks to the high level of expertise, financial resources and NFT-Starter community strength.
NFT-Starter’s vision is to get the best out of community strength and marketing power needed to fast track the evolution of NFTs’ projects on the path to success. NFT-Starter grants the right for every participant to take complete control and freedom to utilize their valuable assets in a digitalized, secure and accessible way. NFT-Starter team express a desire to take the initiatives for creating ways for a smart investment generation, which brings to the community manifold perks from the potential cryptocurrency market.
NFT-Starter (NST) acts as a pioneer creating more consistent, more healthy development environment for the association between the new DeFi and NFT ecosystem. Hence, the goal of NFT-Starter is to act as both a role model and a guide in a firm control of the product-launching progress as well as a bustling cryptocurrency market.
NST TEAM
Update the latest news about NFT-Starter and NFT market through our following official links:
Website: https://www.nft-starter.com/
Twitter: https://twitter.com/NFTstarter
Telegram: https://t.me/NFT_Starter
