NFTs or Non-Fungible Tokens are all the rage right now in the crypto world.
People are finding new and innovative ways to create them and use them.
But what if you want to sell an NFT?
How do you go about doing that?
In this blog post, we will explore some of the options available to you when it comes to selling your NFT.
How many times have you looked at some asset, be it on the blockchain or in real life, and wished that you could possess it yourself?
Well, now you can!
With NFTs (Non-Fungible Tokens), you can create your very own tokenized digital collectibles.
NFTs are unique because they are not interchangeable.
One NFT is not equal to another. This means that they are unlike cryptocurrencies, which are fungible.
When you buy a cryptocurrency like Bitcoin, Ether, or even USTD (a stablecoin), you can easily sell it for the same value that you bought it at (minus fees).
With NFTs however, each asset is unique.
Just because you own one asset does not mean you own all of them.
That is the beauty of NFTs!
What are non fungible tokens?
Non-fungible tokens (NFTs) are representations of unique entities as cryptographic assets.
These could be ownership of a house, company shares, otherwise unregistrable objects such as art or collection of NFTs, and even resources such as gold.
Non-fungibility means that each token has unique properties which can reference these underlying entities and/or represent them in a different way than other tokens do – think of it like barcodes on products at the supermarket: each has its own identifying characteristics and every product carries a different code.
The difference between these types and NFTs is that the latter is uniquely identifiable (just like barcodes), but does not define additional properties or characteristics.
They cannot be divided into smaller parts.
Is it really possible to have an NFT?
Believe it or not, every cryptocurrency token – i.e., Bitcoin, Ethereum, etc. – can be represented as an NFT.
If you own any of these tokens, you own at least one NFT!
But there are other types of tokens that exist which are also considered non-fungible assets.
These include ERC721 tokens for digital gaming assets and ERC20 tokens for utility use cases such as bug bounties.
The important thing to remember though is that just because a token has never been divided does not mean that it is an NFT.
In order for a tokenized asset to be considered an NFT, it must meet the following six requirements:
It must be unique and distinguishable from all other items.
There cannot exist two or more identical items of this nature.
It must have a fixed supply.
No more of these assets can ever come into existence after their initial creation (if they do, then this defeats the purpose of them being scarce).
As there cannot be more of these assets in circulation once created, their value increases as demand increase
If no new tokens are created and people lose their keys/passwords, there will eventually be none left as they cannot be regenerated, unlike cryptocurrencies they cannot attach additional characteristics to the token.
Only the token itself is considered to have value.
The history of NFTs
Non-fungible tokens are not new, in fact, they have been around for over 20 years.
It was only last year, however, that the demand for them spiked when CryptoKitties took the world by storm!
This game allowed players to breed and trade digital cats using these unique tokens.
The game generated so much revenue that it slowed down the entire Ethereum network for two weeks!
This prompted many people into action who were previously unaware of these types of assets.
Since then there has been a steady increase in the number of blockchain projects looking to create their own NFTs.
More companies are looking at ways to incorporate these new types of tokens into their business models.
To put things in perspective, the market cap for these types of tokens is currently estimated to be around $10 billion (with ~$3 billion being attributed to ERC721 tokens).
NFTs are the next big thing!
Now that you know what NFTs are and how they work, it is important for you to understand why they are so important.
The truth is that companies will forever need unique digital assets which cannot just be replaced by cryptocurrencies like Bitcoin or Ether.
Anyone can create more of these coins whenever they want without even breaking a sweat, but creating an NFT is not as easy as copy-pasting your token address.
This is why NFTs are the next big thing!
They allow companies to create programmable assets that can be used for various purposes such as authentication, tracking, and voting.
They give people the ability to not only keep track of blockchain activity but also provide them with a functional purpose within the company’s business model.
There you have it, folks!
I hope you found this article insightful and informative.
Please check back soon for more updates on new developments in the world of cryptocurrency and blockchain technology.
And remember: see something, say something!
If you find any information that is incorrect, please let me know so that I can fix it ASAP!
Until next time!