NFTs and the Rise of Ethereum in 2020
Exploring the world of NFTs and their impact on Ethereum
NFTs and the Rise of Ethereum in 2020
Thanks to the emergence of smart contract platforms such as decentralized finance (DeFi), Ethereum has been a star project in the cryptocurrency world in 2020. In addition to DeFi, non-fungible tokens (NFTs) have also emerged, bringing new possibilities to Ethereum.
Image Source: Medium
What are NFTs?
Although the NFT concept is relatively new, most NFT activities so far have been on the Ethereum public chain. NFTs are unique, non-interchangeable tokens that rely on special token standards such as ERC-721 to ensure uniqueness and scarcity. They cannot be split into smaller units and have properties of being verifiable and owned permanently on the Ethereum blockchain.
The Benefits of NFTs
NFTs empower creators in unprecedented ways, such as allowing automatic royalties to be integrated into digital assets. This means that creators can receive a portion of each subsequent sale of their digital assets, even after they have sold their original piece.
Image source: Youtube
How are NFTs Created and Sold?
NFTs can be created using specialized platforms and marketplaces such as OpenSea, SuperRare, and Rarible. These platforms allow creators to upload their digital assets, set their own prices, and sell them as NFTs to collectors and investors.
Image source: CoinGecko
How to Collect NFTs
Collecting NFTs can be done through popular platforms such as OpenSea, SuperRare, and Rarible, as well as through various online marketplaces and auction houses. It is important to research the creator, platform, and authenticity of the NFT before making a purchase.
Image source: SuperRare
Overall, NFTs have opened up new possibilities for creators and investors alike, and have played a significant role in the rise of Ethereum in 2020. As the NFT market continues to evolve, it will be interesting to see how it integrates with larger decentralized finance ecosystems and what implications it will have on the larger cryptocurrency landscape.
NFTs: Digital Collectibles with Value
NFTs, or non-fungible tokens, are like digital collectibles or ownership certificates that hold value because they are 1:1 or limited edition assets with liquidity and utility on the Ethereum platform.
Since the launch of projects like CryptoPunks and CryptoKitties in 2017, the NFT ecosystem has grown and diversified into various use cases and industries.
According to data from NonFungible.com, the token sales of the NFT economy have exceeded $109 million to date, with $1 million in revenue generated just last week.
Use Cases for NFTs
NFTs can tokenize almost anything, with the most common use cases for NFTs being:
- Digital art
- Music
- Virtual real estate
- Wearable VR devices
- Gaming assets
- Event tickets
- Subscription badges
- Blockchain domains
- Luxury goods
- Insurance policies
To create an NFT, you need to start with a medium such as visual documents (JPG, PNG, GIF), music documents (MP3), or 3D documents (GLB), and upload them like you would for any other media file.
How to Create and Sell NFTs
If you want to create and sell NFTs, you can follow these steps:
- Use music production software to create disco MP3 tracks.
- Prepare the files for upload to a minting platform.
- Choose a minting platform from available options like OpenSea, Rarible, InfiNFT, Mintbase, SuperRare, and Async Art.
- Upload the files and provide asset descriptions, including options such as standalone or version-based work, royalty percentage, and unlockable content.
- Begin the minting process by paying the required amount of ETH for approval and minting transactions.
- List the NFTs for sale on open marketplace platforms like OpenSea and Rarible.
- Connect your Ethereum wallet to complete the transaction.
Here are some images to help you understand the process:
Music production software
Minting platform options
Asset description form
ETH payment process
Now that you know how to create and sell NFTs, you can explore different pricing strategies and collect NFTs for curiosity or investment purposes.
Guide to NFTs
If you're interested in the world of non-fungible tokens (NFTs), you should remember that reputation, scarcity, and provenance are the most crucial factors. For example, a 1:1 NFT from a well-known artist is more valuable than a version from a lesser-known creator.
NFT projects have floor prices, and you can use platforms like OpenSea to measure the lowest prices of these products, hoping to bid at or above this punctuation. Pay close attention to trading volume and activity, as projects with higher activity offer more profit opportunities.
Remember that the motto "not your keys, not your crypto" also applies to NFTs. That's why paying attention to security issues is essential when collecting them. The best practice is to store NFTs in a hardware wallet (or across multiple wallets) that is not easily attacked.
Conclusion
Now is a booming period for the NFT economy, and the NFT market is experiencing enormous growth, with even explosive cost increases for the industry. Combining this recent trend of NFT+DeFi projects, it's easy to see that NFTs will continue to increase their utility and popularity.
Of course, compared to DeFi, the NFT sector is still relatively small but has empowered creators in unprecedented ways. NFT supporters can't hide their ambition and expectation that NFTs will reshape the gaming industry, transform the traditional collectibles market, and even impact the traditional real estate industry. Critics, on the other hand, pour cold water on this, saying that NFTs are still just a small group of enthusiasts lacking a unified standard and having no big money entering the market, requiring a long time to mature.
As time goes on, more and more artists and innovators are using tokens to express their unique properties and expand in new ways. Additionally, as Ethereum becomes more prevalent, platforms outside of Ethereum will also further shift their focus towards NFTs.
Reference article: Complete Guide to NFTs: How to Create & Collect the Next Wave of Digital Assets.
Disclaimer
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