Nowadays, Valued at $ 100 million, the non-fungible token, or NFT (acronym), is changing the way we perceive digital assets and are authentic. Leading companies in the world of video games and blockchain are already experimenting with NFTs in a variety of ways. However, the main goal is to prove the authenticity and ownership of digital elements, which was very difficult until the introduction of blockchain technology.
Thanks to blockchain technology, digital assets can have unique identifiable attributes that make them rare and irreplaceable. In NFT markets like OpenSea, many projects are working to produce all kinds of creative and transferable items through NFT.
While there has been a lot of buzz in fungible digital assets like Bitcoin (BTC) and Ether (ETH) over the past decade, non-fungible tokens are only just being born, and there are already many advances that need to be written at home.
Quick guide to understanding NFTs
While a fungible token like Bitcoin cannot be distinguished and replaced by other tokens of this type, A non-fungible token is different from other tokens and cannot be replaced or replaced.
For example, a ticket can simply be borrowed and replaced by another. The person taking the loan doesn’t necessarily have to return the same ticket. This invoice is therefore a consumable item that can be replaced by another of its kind on a one-to-one basis.
But still, If you are buying a unique work of art or a plane ticket, it is impossible to get the same value by exchanging the item for another, provided those items are unique. Therefore, a ticket that entitles you to a Standard Class seat on a flight from Location A is not the same as a ticket that allows you to fly to Location B on a private jet.
Blockchain technology makes it possible to have NFT in the digital world, much like how anyone would have a baseball card in the real world. These digital assets can be stored on the blockchain and transferred from one owner to another without the risk of theft and illegal copying. Tyler Perkins, The vice president of marketing at Immutable, a blockchain-based video game development company, told Cointelegraph:
“The use cases for NFTs are incredibly powerful. Whether it’s the unstucked ownership of video game items and domain names, rare digital art, or tracking goods, they do well for a variety of high value use cases in a digital native world “.
However, it would be very difficult to discover NFTs without a market. Perkins mentioned that “Markets play an important role in the discovery and growth of NFTs,” Add: “The ability to trade a rare and unique digital asset is one of the technology’s main selling points, so of course the markets support it.” With that said, here’s an overview of some of the most popular NFT markets.
OpenSea describes itself as the world’s largest market for NFT. With a transaction volume that exceeds that of many of his colleagues, OpenSea offers a wide variety of virtual objects, from digital collectibles to domain names, digital art, letters, etc.
In a nutshell, The platform acts as a central point of contact for all non-fungible tokens. Users can also customize their NFTs and sell them to a target audience in the market. OpenSea currently hosts more than 1.2 million NFTs and it has tools that allow developers to create NFT and incorporate it into video games with minimal effort.
According to the company’s CEO, Devin Finzer, the future of the NFT industry You will see a lot more activity in the all-digital gaming world before real asset tokenization gains speed.
8th June PlayDapp was launched as a peer-to-peer NFT marketplace where users around the world can freely trade in game items. Currently, platform users can exchange their commercial objects CryptoDozer and DozerBird, These are the only supported blockchain video games on the market. There are plans to release titles like “Together with the Gods: Knights of the Dawn”.
In addition to its platform for players looking to sell or buy NFT, PlayDapp also offers developer support. according to Choi Sungwone, Platform strategy general manager, the company plans to offer tools “in-game items in the RPG genre can be traded via NFT on the PlayDapp MarketPLAce”.
PlayDapp focuses on creating in-game objects that can be exchanged between users and is supported by the participation of industry experts such as Koh Kwang-wook, He is the former chief technology officer of Item Bay, the world’s first online gaming articles website.
Even about a year ago, SuperTree, the company that supports the PlayDapp market, has joined Samsung’s C-Lab program. This is a startup incubation program that supports the development of promising startups.
Game, the company that owns Game Credtis, wants to be the game currency of the esports industry. As such, the platform Game credits used Your GameCredits (GAME) token for multiple purposes. First, the token serves as in-game currency that NFT can be used to buy and sell in the market.
GAME token holders can also use their tokens to fund the development of high quality games on the platform. The token is used to pay for transactions in the NFT market and to pay the fees associated with the creation of NFT by developers.
In addition to being a marketplace for in-game items, Game Credits also offers solutions for owning and creating digital assets. Provides developers with pre-built tools that enable NFTs to be quickly integrated into gaming platforms.
With Game Credits, developers can earn using the NFTs they have created even without knowledge of blockchain programming. Jason Cassidy, Game Credits CEO told Cointelegraph that NFT exchanges are an integral part of the ecosystem: “NFTs represent the other half of cryptocurrencies, the parts of our world that are unique and of value to us for completely different reasons.”
Founded in 2015, Decentraland is a user-owned, decentralized virtual world with an NFT market in which users can buy, develop and later sell land. The platform also allows users to create original graphics and scenes using simple development tools. In addition to buying and selling virtual land, Decentraland’s NFT marketplace offers wearable avatars along with other NFT items developed on the Ethereum blockchain.
Each virtual object on the platform is represented with a token that is recorded in a general ledger secured by a blockchain. For example, the virtual terrain is represented by atoken called LAND, And those who own such tokens can build other tokens that represent other objects such as a house, hotel or school on the virtual floor.
Although the platform is still under development, As such, Decentraland aims to create a new way of interacting with NFTs by creating a rich experience that is tied to a local business network.
Enjin was one of the first NFT marketplaces to go online. Enjin, a blockchain-based asset issuing platformallows developers to create non-fungible tokens with their Enjin Coin (ENJ). Enjin Coin is based on Ethereum with a refined NFT standard that includes the Enjin suite and enables the creation and monetization of digital games.
So far, Enjin has worked with other players in the industry to create tools like the EnjinCraft plugin, an open source plugin that enables token NFTs to be used in Minecraft. Hence, players can link Enjin wallets to purchase weapons and avatars in-game or exchange other items in Minecraft.
By building partnerships with Ubisoft, Microsoft, and Samsung, to name a few, the Enjin team has grown in popularity in the Ethereum world. and plans to expand its platform while securely owning and selling NFT.
According to Dapp Radar Rarible is one of the top markets for NFT, with weekly volume exceeding $ 1 million. However, the Russia-based platform was barely established in 2020.
Rarible is a community-owned platform that features a wide variety of digital assets, from digital artwork and domain names to various types of collectibles. In addition to its ability to allow players to sell and buy NFT, Platform users can use the Rarible Governance Token (RARI) to create custom NFTs. This feature allows artists to create music albums, films, and even books that are owned by a blockchain.
The rarible token is also used as a governance token. with which the rarible market becomes a decentralized, autonomous organization.
Rarible recently partnered with CoinFund. a blockchain investment firm based in New York through which Rarible is expected to receive funding to further develop its NFT market.
The way to the future
Nowadays, There is a consensus in the crypto community about the value of fungible digital assets like Bitcoin and Ether, which is determined by market forces. Non-fungible assets, however, are valued for very different reasons and are increasingly becoming the other half of the discussion about blockchain technology.
With reports that demonstrate a growth of more than 2.5 billion users, Cassidy believes future growth will be based on the usefulness of NFT exchanges: “The hottest sectors for NFT, like arts, need these markets for price discoveries to take shape, since their value is purely subjective. The exchanges provide that foundation for knowledge of one new class of assets and direct access to investments in them. “
The future looks bright for the NFT landscape as organizations like the The Blockchain Game Alliance tries to bring NFT-focused minds together to further develop the industry. However, there are still some obstacles in the way. For example, Cassidy noted that the lack of liquidity makes investing in certain NFTs risky as the market is still in its infancy with a limited number of buyers. Because the value of assets is viewed as subjective, an investor may have to wait a while to get the desired price.
Since most NFTs are based on Ethereum, Cassidy added this “The more problems Ethereum has with scaling, the more challenges the NFT industry will face as the ERC-721 and ERC-1155 standards currently represent the majority of all NFTs out there today.”
Perkins also noted that scalability was the main problem holding back the growth of the industry. But still, He believed that scalability might not long be an issue given the efforts of several projects to develop scalable Layer 2 solutions that would improve the way decentralized applications handled out-of-chain transactions. In this way, Layer 2 solutions reduce the cost of transporting non-fungible tokens from one user to another, while increasing the overall efficiency of Ethereum-based platforms.