What is NFT?
NFTs stand for non-fungible tokens. They are digital assets that represent real-world objects such as art, music, and real estate, and they cannot be copied. They are bought and sold online on NFT platforms, usually crypto exchanges, on some platforms that allow you to exchange them for fiat.
NFTs can represent digital art, music, virtual land, sports cards, tickets, fashion, and much more.
NFTs in recent years have been developing strongly. It is predicted to explode in the coming years with technological development. According to metrics that demonstrate this boom, investors spent 963,227 ETH, or $2.7 billion, to mine NFT on the Ethereum blockchain in the first half of 2022. Given the current market conditions, these numbers will continue to increase over time.
Furthermore, NFT plays an important role in the Metaverse virtual world, which is to be researched and developed by future researchers. Currently, there have been a few Metaverse projects in association with NFT, typically The SandBox, Decentraland,...
The turning point for the NFT market is special, digital work titled "Everydays: The First 5000 Days" that was successfully auctioned for up to $69.3 million by digital artist Mike Winklemann, commonly known to the public as the Beeple. It is known that the work is a combination of 5000 photos corresponding to 5000 days to create the most famous NFT work in 2021.
How does it work? (ERC-1155, ERC-721)
NFTs work on blockchain technology, which is a distributed public ledger that records transactions. NFT is proprietary. Each NFT owns only one at a time, and only one person owns the asset. Thanks to blockchain technology, it is easier for them to verify ownership and transfer assets (tokens).
For example, NFT artists can sign their work by including their signature in the file.
Most NFTs are based on an Ethereum standard called ERC-721, which allows for the creation of discrete tokens.
Currently, technology is developing more and more, realizing many changes. Experts have researched and released the ERC-1155 standard, the ERC-1155 standard that allows the mass transfer of many assets on the Internet. The same Smart Contract results in tokens transferring at the same time, which makes the network less congested and less costly in gas.
The difference between NFT and CryptoCurrency
NFT ( non-fungible token) and cryptocurrency both work on blockchain technology. Furthermore, they both work on the same technology and are based on pretty similar rules.
Cryptocurrencies are "fungible," meaning that users can exchange and trade for another cryptocurrency. For example, one ETH can be equal to another ETH. Cryptocurrency's fungibility makes it a reliable means of conducting transactions on the blockchain. Cryptocurrency is traded or exchanged without any loss of value. Currently, however, cryptocurrency is considered a high-risk investment because of its market price volatility.
The nature of the NFT is irreplaceable. Each NFT is different, unique, indivisible, and has a different value. Each of their values is determined by the asset's rarity and user demand. The NFT price level is very volatile because of its uniqueness and specialty. Users often use it as an asset to increase their value from which to make trades and make profits. This makes NFT different and outstanding with cryptography. For example, there have been a number of works that have been posted on NFT trading platforms and have generated a substantial profit from that NFT work, such as Everydays: The First 5000 Days - $69.3 million, Clock - $52.7 million, HUMAN ONE - $28.9 million.
On which platform should we exchange NFT?
Currently, on the market, there are many popular platforms to help you exchange, buy, and sell NFTs: OpenSea, Binance NFT marketplace, Rarible,... You need to consider which NFT you want to exchange in order to choose a suitable platform. In addition, it is necessary to consider the transaction fees on each platform separately from gas fees, and service fees,... OpenSea with 2.5% service fee, NFTSpaceX 2.0%, Rarible 2.5%,... According to the information that I have just updated, NFTSpaceX is an upcoming NFT exchange platform with a service fee of only 2%, and creators can set a royalty fee of up to 30%, which is a suitable fee for users looking for a platform that optimizes fees.
Visit the NFTSpaceX platform to learn more: https://nftspacex.io/
