Are you curious about NFTs? What are they exactly? How do they work? We hope to answer all your questions (and more) in this post. Do you want to know what this new digital item can offer you? If the answer is yes, keep reading!
NFT: Non-Fungible Token
You’re probably asking yourself what it means. NFT means non-fungible token, which is a unique digital asset that can’t be modified or exchanged for other NFTs. They’re assets, therefore, that follow the logic of non-fungible goods, those whose value is unique. It is not possible to equate the value of two paintings, since each one has certain qualities. They can’t be substituted for another! And now that you know a little bit more about NFTs from its name, let’s see how you can benefit from them.
Originality in Blockchain
NFTs have the advantage of being unique assets, just like we mentioned. That’s why we can say that they act as a deposit of value. And in the same way that gold has its place in the world of physical assets, NFTs hold that role in the digital environment. In other words, supply and demand decide the value of NFTs in each moment. These work, in addition, through blockchain technology. What provides NFTs with authenticity isn’t just the metadata present in them, but the Ethereum blockchain that registers each transaction that NFTs undergo until arriving in the present moment. Therefore, if someone wants to know the initial value of a certain digital asset that has been tokenized by NFT, they can do it easily and see the evolution of its value. You think speculation is at the heart of the asset? You're not entirely wrong!
Games with NFTs: A Promising Market
Within the commonly tokenized digital assets, you can find video games. These games have the advantage of allowing users to play at the same time as they earn money. In these games, you can buy and sell characters, in addition to the properties present in the games, that are encrypted with blockchain technology. Any user can make money because the game’s assets are NFTs!
What Industries Can Be Transformed by NFTs?
In the video game industry, one of the biggest problems is that even once players buy assets in the games, the developers can actually delete them at any moment. Users spend a fortune on games like Fortnite, but these assets are usually the property of the company that created the videogame, stored in their systems. If the company closes or goes bankrupt, the users run the risk of losing the virtual assets for which they previously paid. If the assets created in video games were created like NFTs, it would guarantee that the user isn’t subject to the decisions of the video game creator, but instead their own property, creating opportunities for a second-hand market.
Imagine that you’re buying clothes and then you simply edit them on a photo and post it to Instagram. Some marketplaces are aiming to sell digital clothes as NFTs, which guarantees that the clothes cannot be duplicated and, in addition, allows brands to create scarcity and exclusivity. These marketplaces and digital fashion platforms could become new business models for designers and brands alike.
Music is another industry that will inevitably be revolutionised and democratised by NFTs, moving from being controlled by record labels, radios and any other means of transmission to being owned by its true creator. Artists like King of Lion, Aphex Twin, Gorillaz and even The Weeknd have already started selling their music via NFT.
Where to Buy and Sell? Marketplaces
Given the particularities of this technology, it’s important to note that buying and selling isn’t carried out in the same way as cryptocurrencies, for example. Well, not exactly. It is possible to buy NFTs on different marketplaces, some of which we’ll detail below. The first thing to know is that you can only pay for NFTs with Ethereum-based cryptocurrencies from any wallet, like Binance.
Some of the world’s most famous marketplaces are OpenSea, where it’s possible to buy everything from NFT games to domains; Axie Infinity, where the user can create small characters with unrepeatable characteristics and sell them at their desired price; or Rabile, specifically focused on digital assets of art, like photography or music.
However, it’s true that there are other marketplaces with unique and different offers from which the user can choose. The rise of the metaverse and the digital economy is making the NFT market flourish. And Costa del Sol, a favourite location of Europe’s technology companies, is not sitting out of this new trend! Are you ready to learn more, dive into the techy environment and experience the best weather in the world?
