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The Tokenisation of non-fungible assets has created endless possibilities for blockchain asset digitization. Blockchain offers the collectible market much more security and digital scarcity, especially to ensure assets’ authenticity and eliminate counterfeiting. NFTs are popular in the gaming ecosystem, but besides gaming, NFTs can be used to digitize anything considered to have value…
…And it seems that people really believe that NFTs can be worth quite a lot of money and through the recent NFT history we can see multi-million dollar deals like Beeple’s $69 Million sale!
The Ethereum blockchain with its NFT token standard ERC-721 really allow anybody to create an NFT and unlock many of the use cases that I list below. There are however some important steps, and you need to understand the technologies behind it, its features and constraints.
Decentralized applications (Dapps) on the blockchain use NFTs for investment purposes, digital identities, virtual assets, fine art, trading cards etc. Since the explosion of NFTs in the cryptospace in 2017 coincidentally aided by the ICO boom, there has been significant growth in the crypto-collectible market with over a hundred successful NFT projects. Here are a few popular NFT projects:
Cryptopunks — a huge success, Cryptopunks will be recorded in history forever (and also in the blockchain). Created in 2017 by Larva Labs, the project initially created 10 000 unique characters distributed for free. Currently, they can be sold and purchased in marketplaces like OpenSea or on the Larva Labs website. The most expensive CryptoPunks are currently traded for a few million dollars. This one is my favourite punk. Should I buy one?
CryptoKitties — another big hit. Some of the kitties are being traded for close to one million dollars. Created in 2007, the Cryptokitties can breed to create new kitties with new “catributes”. Each kittie is unique and cannot be replicated.This Kittie was being sold for approximately 1 Million dollars
Sorare — a global fantasy football game using licensed football cards. Each player represents a card backed by an ERC-721 token. Each player card is unique and is owned by the gamer. The cards are validated in the Ethereum blockchain, and their value can appreciate or depreciate based on the market.
ENS Domains — Ethereum Naming Service allows creating .eth domains that can be used for different purposes, including to receive crypto. The ENS domains are immutable and censorship-resistant because they are distributed in the blockchain. Unstoppabledomains is another service similar to ENS domains.
Gods Unchained — another cool card game that allows users to own unique cards represented by ERC-721 tokens.
Decentraland — a virtual reality platform that is wholly owned by users, powered by the Ethereum blockchain. Users can create, experience, and monetize content and applications.
Binance Collectibles — created in 2018 as a series of holiday-themed NFTs to serve as prizes for a festive engagement campaign during the season of giving. The ERC-1155, which allows both fungible and non-fungible tokens under the same contract, was used.
MyCryptons — digital collectibles of public figures, ranging from Head of States to celebrities like Oprah Winfrey, can be collected and sold.
SuperRare — a blockchain project that is creating NFT that enables digital artists to link an image or a GIF they’ve created to a token.
Nifty Gateway — a marketplace to buy and sell NFTs that represent artwork or limited edition items created by artists, brands and content creators. Another great platform for artists to use.
Legends of Crypto — LoC is an NFT game that allows users to collect rare NFT cards with characters from the crypto universe. Users can also play the Legends of Crypto game and win new NFT cards.
The most well-known marketplaces and minting platforms are SuperRare, OpenSea, Rarible, Nifty Gateway, but there are more. Be aware of fake websites. Like any other industry, when there’s a lot of money flowing, scammers are trying to rip off people’s money.
These marketplaces can be used both by creators and by art collectors to create the NFT, and buy or sell it.
It is also important to say that most of the marketplaces use Ether as a cryptocurrency, but sometimes other cryptocurrencies can also be accepted.
Nifty Gateway is the platform where Beeple famously sold his artwork. Nifty is an invitation-only platform for artists, i.e. to sell on Nifty you will need to be invited.
Currently, OpenSea is probably the biggest NFT marketplace where you can list NFTs minted on many other platforms.
