NFT stands for Non-Fungible Token, a unique token used to identify goods and assets. Because of this unique nature, it can become an authentication tool in the internet world, and the potential of this technology is immense. However, in the present, it is difficult to exploit them all. Only a few areas with the right specificity could quickly apply this technology. In this article, let us explore the potential of NFT.
Potential of NFT
Game is one of the leading areas in the NFT. By playing video games players can earn valuable items. Tokens will be authenticated and identified against all of the game participant’s items.
Users can take advantage of their gaming prowess and generate real income. Items can be sold and purchased weapons, vehicles, characters. It depends on the game and there are different rules and gameplay.
In addition, NFT in the game world allows players to easily trade items with each other. This is a rare function on the market.
Before blockchain technology, verifying works of art gave artists a headache. With blockchain, every artwork when transacting will be counterfeited, ensuring neither side can change the details of the artwork. This enhances the transparency of the origin and the trust between the buyer and the seller.
Identity management is an indispensable need of governments. With the need to securely store digital data increasingly in the world, NFT can hold unique information about a particular asset. This could include any kind of data such as medical history, property details, personal records, education level, and financial information.
Communication and content creation
In the field of media and content creation, piracy, copyright and plagiarism are significant challenges. It affects the growth of the media and entertainment industry. NFT could use blockchain technology to prevent such fraud. This makes reproducing ideas and creative work impossible.
The traditional real estate industry has a very cumbersome procedure. With the NFT, the entire process will be digitized. Assets can be encrypted on the blockchain network and divided into tokens. These tokens are tradable and easily exchangeable on secondary markets. This eliminates the role of middlemen such as brokers, brokers, banks, and agents. It also prevents any disputes over property ownership between any party.
Potential NFT projects
This is a game built on the Ethereum platform. It allows users to collect and breed virtual cats. These digital cats are distinguished in appearance and traits. It is considered their “attribute”. Given the nature of these tokens, each digital cat represented by the NFT cannot be copied, destroyed, or taken away.
To start breeding digital cats, users need to deposit ETH into the game’s official wallet, Dapper. There are two ways to breed a new kitten. One is to breed two of your own kittens, if you do not have two, you can use Public Sire. Second, buy the first kittens on the market.
CryptoKitties was the first NFT protocol to get major attention in late 2017. Since users can breed rare cats and resell new kittens for a profit, the game has attracted considerable attention. Currently the “boom period” of CryptoKitties has passed, but the game still retains a strong attraction in the NFT space.
Backed by Ethereum, Decentraland is a decentralized virtual world. It allows users to buy and sell real estate and participate in the process of building virtual worlds.
In the game system Decentraland requires both fungible token and non fungible token. MANA is the digital currency used on the Decentraland market. MANAs can be purchased from any supported cryptocurrency exchange. In addition to the Decentraland marketplace, users can purchase items supported on the NFT marketplace like OpenSea.
Decentraland calls on users to participate in the administrative process. Users can vote on administrative recommendations and their voting rights come from a variety of sources. Maybe for example MANA, land, resources in the game. Topics are voted on regarding new features, transaction fees, equipment in the Decentraland world.
Rarible is an NFT marketplace founded by Alexander Salnikov and Alexei Falin in January 2020. It specializes in buying and selling rare digital collections. Rarible supports a wide variety of digital assets. Some examples are: digital art, domain names, DeFi insurance policies, meme and metaverses.
In use, users can upload collections in any supported digital format (graphics, sound). Then add a description and pricing details. As a next step, users need to connect to their Ethereum wallet to approve transactions.
Rarible has gained widespread popularity in the crypto community due to its token. It is RARI. The launch of RARI is the first step towards Rarible’s ultimate goal. That is the establishment of the decentralized organization Rarible. As RARI holders, users can submit and vote on system upgrade proposals. These include decisions regarding Rarible’s transaction fees and the addition of new features. Similar to Decentraland.
SuperRare is a digital arts marketplace founded in 2017 by John Crain. At SuperRare, artists can code and monetize unique artwork. Every piece of art on SuperRare is represented by an ERC-721 token.
When artists release authenticated digital artwork on SuperRare, their artwork gets certified on the Ethereum network. This prevents tampering and provides historical origins. Additionally, artists can showcase their artwork in SuperRare using virtual reality galleries.
Art collectors, on the other hand, can purchase artwork on SuperRare. Also resell NFT on secondary markets, such as OpenSea. All transactions on SuperRare are done using Ethereum. Buyers then need to pay a 3% transaction fee on all purchases.
Similar to traditional art galleries, SuperRare also charges fees from artists. For primary sales, artists receive 85% of sales, while SuperRare holds 15%. For extra sales, the artists receive 10% of the royalties.
Ethereum Name Service
Founded by the Ethereum Foundation in May 2017, Ethereum Name Services is an open, decentralized, and scalable naming system based on Ethereum. “.ETH” domains are unique and cannot be changed. It is represented by ERC-721 compliant NFTs and they are available to buy and trade on NFT markets like OpenSea and Rarible.
Since these domains comply with the ERC-721 NFT standard, they can also seamlessly connect to NFT markets and wallet interfaces, enhancing NFT and DeFi integration.
The potential of NFT is indisputable. Another aspect of this technology is the NFT marketplace. These markets are developing and improving more and more. That gives traders another promising investment channel.