NFT is offering innumerable options to create, trade, purchase, and sell digital assets. It comprises both original artwork and Blockchain. NFT is a digital token and is a modified concept of bitcoin and Ethereum. In fact, it is a broad term that has taken various artworks and other domains under its umbrella.
Now you must be thinking about what does Non-fungible really means and why it is particularly called that way? The non-fungible literal meaning is the thing that can't be replaced. It means it’s a unique and irreplaceable so NFT is inimitable asset. Even bitcoin is fungible but not NFT. Although it is a trading token but a non-fungible one which makes it a state-of-art concept.
NFT is not your ordinary cryptocurrency, but what makes it unique? The concept revolves around trading artwork and various oeuvre besides trading money in the form of bitcoin. NFT is actually a part of Ethereum. The options for NFT trade are so vast and diversified that it stores a myriad amount of information, making it an above-the-horizon cryptocurrency.
The types of NFT include digital art or painting, music file, any jpeg image, etc. So we can say that anything which possesses value in the digital world is an NFT. Let's suppose; instead of buying a painting on a canvas, you get a Jpeg Image. You have bought NFT of great value in the form of cryptocurrency. I hope your mind got the concept of NFT that it is buying any type of art in the form of cryptocurrency. Also, NFT has added to the value of digital art so much that artists now feel worthy of themselves. Coming to the next part, which is;
How NFT works?
As described earlier, as part of Ethereum, NFTs are digital tokens with added information inscribed on them. This extra information makes the NFTs special and distinctive from other ordinary Blockchain. With the help of this extra storage, these can include music, art, audio, videos, images (Jpeg), GIFs (dynamic images), MP3s, to name a few. These forms of art are of significant value so that they can be traded. One can buy or sell it virtually the same as physical art.
Another question might be scrapping your mind: if you can download an image or a song, what is the benefit of buying it in the form of NFT? That downloaded file won't contain the stored information, which makes it unique and worthy of millions. So did you get that NFTs in any form of art are valuable and are not any middling files that are available anywhere?
Christie’s is a renowned auction house entitled to selling state-of-art artwork. It came into the limelight when it sold a collage by Mike Winklemann –a digital artist- famous as Beeple.
Beeple is one of the biggest and most celebrated artist in the world of digital art. The collage was traded for approximately 42000 Ether which was equal to $69.3 million in cryptocurrency. The hype is because that collage was sold as NFT.
Being an open-source auction house, Christie's has opened its arm for the emergent market, i.e., Non-fungible Token. The auction of that collage took place in February, but since that, Christie's has persisted in auctioning the art as NFT cryptocurrency, setting standards for the competitors and the rest of the giant firms.
Larva Labs Latest Projects
Larva Labs is an innovative company run by two technology enthusiasts Matt and John, who create Crypto art. These projects include Cryptopunk, Autoglyps, Meetnits, Kidpunks, etc.
Cryptopunk and Meetbits are algorithmically generated characters of 3D nature and are exclusively linked to NFTs. In fact, these are Ethereum NFT artwork each can be sold individually to each person. This project has helped NFT to gain momentum and ignite a spark in cryptocurrency buyers. In the past few months, Cryptopunk has been able to amass $550 million for those 3D characters.
There is no domain left where NFT has not sneaked into, let alone the games. The NFT is permeating the gaming world and has changed the arena for players to have more significant roles in gaming. The game developers are taking advantage of cryptocurrency, and now they are tying bonds with the NFT.
NFT games are developed in a way that they have classic design along with contemporary game mechanics, allowing the gamers to indulge and enjoy the games even more and have more control over the game chattels.
NFT games are welcome cordially by the gamers, and they are enjoying them to bits. Axie Infinity is the most phenomenal NFT game belonging to the Pokemon series, and the cryptocurrency tinge makes it even a blockbuster. Besides this, various other games are ruling. These include Splinterlands, Gods Unchained, The Sandbox 3D, Alien Worlds, etc.
Another NFT game known as Cryptokitties was developed by Canadian developers back in 2017. In the game, the players can trade the digital cats which is a kind of cryptocurrency. Cryptokitties are unique to their owners that can be verified. Once a NFT Cryptokitty is purchased by someone, all the rights are transferred to the owner and not even developers can have a claim over the Cryptokitty.
Mobox is one of the biggest NFT game by now. This game is based on Free-to-play as well as Play-to-earn model which is improvised by coalescing NFT along with yield farming resulting in bombastic game which amuse the players and they can indulge in it while enjoying the privilege of it as digital asset.
Fractionalization of NFT
Fractionalization of NFT is a process of converting non-fungible tokens into fungible tokens by dividing them into ERC-20 tokens. Then these divided, fungible tokens are sell in the market. This process allows small investors to invest in NFT without worrying. They can have fractional interests of bigger Non-fungible tokens.