Non-Fungible Tokens | Answers to Most Frequently Asked Questions
From the last year, NFT mania has been crescendoing like the buildup to an EDM drop. Now, it has taken the world of tangible and intangible assets like contracts, music, art, and collectibles by storm digitally. Recently, it has been manifesting life-changing moments for its proponents, thanks to the rise of an increasingly large, new crypto-audience.
From celebrities to star athletes are joining the bandwagon to monetize their unique works and capitalize on their IP rights (intellectual property rights). Musical artists, including the rock band Kings of Leon, the R&B pop star the Weeknd, and more, have sold their limited-edition music tracks for millions. They sense new opportunities that connect them with fans in an entirely transformative way and vice-e-versa.
However, NFT collectibles of arts and unique assets are only one way to realize the potential of NFTs. Indeed, they can serve as the means to represent traceable ownership and provenance of any unique asset with Blockchain and thus, redefine ownership and eliminate fraud and intermediary involvement. For instance, one day, you might be able to prove your car’s ownership with an NFT.
Considering that the trend is emerging, it can take a while to understand how NFTs work, why and how to make, sell, buy them, and the reason behind their exponentially increasing value. Thus, one should properly understand NFTs if they wish to join in the frenzy. In this quick guide, get answers to some of the most frequently asked questions that you might be looking for all over the web.
What are NFTs
What is a non-fungible token (NFT)? An NFT essentially refers to a unit of immutable metadata residing on Blockchain. Each NFT represents a unique digital or physical item and is, therefore, non-fungible or not interchangeable. In a nutshell, these digital token representations are ownership certificates for tangible or intangible assets. Intrinsically, they can represent collectible digital files, for instance, of original artworks, music, or videos.
How NFTs Work
NFTs have some specific properties (metadata) residing on Blockchain’s immutable yet transparent distributed ledger. Mostly, NFTs live on the Ethereum blockchain, powered by its ERC standards. Each token minted carries a unique hash identifier to prove its uniqueness. It cannot be directly interchangeable with others. Each will always have an owner. Owners can easily prove that they own NFTs with Blockchain.
How NFTs Value Work / Why Are People Going Crazy About Them
Collectors pay large sums to collect intrinsically scarce assets and one-of-a-kind. In such cases, investors can buy and hold such NFTs comprising specific properties, like a unique painting, and auction them for a different price to interested collectors. In such scenarios, the scarcity of an NFT is what determines its resale value. The more unique and scarce an NFT is, the more valuable it becomes. Additionally, NFT owners, in some cases, can earn resale royalties with NFT contracts, for instance, by selling a music track or patented design of a shoe
NFT Use Cases and Examples
The world of NFT is still relatively nascent. In principle, NFTs can represent anything that is special and needs provable ownership. Here are some current examples of NFTs to help you get the idea:
- A rare digital collectible
- A digital artwork
- A limited-edition sneaker or a fashion line.
- An in-game item
- An article or a twit
- A music track
- A sports contracts
- A domain name
- A ticket to an event or a coupon
- A sports asset
- A sports trading card
Legal/Security Considerations for NFTs
The current regulatory and legal framework has not been built yet to handle digital properties, like NFTs. However, legal disputes with NFTs are now not limited to professional circles only. A slew of legal issues has arisen, including financial law responsibilities, copyright law classification, and the problems faced under civil, criminal, and data protection law.
While NFTs are still in their infancy, working with a securities lawyer familiar with the interplay between NFTs and securities laws can improve the chances of a project’s success.
Which are the Best NFT Wallets
You might be among people who are unsure where and how to keep their NFTs safe. Crypto wallets are the solution. While some crypto wallets are adapted to work with NFTs, others have been created specifically for this reason.
- Math Wallet
- Trust Wallet
Which Blockchain Platforms are Used to Develop NFTs?
Ethereum, a decentralized open-source platform based on blockchain technology, currently enjoys the vast majority of NFTs. Its token standards, a type of blueprint, enable developers to create NFTs while ensuring that they are compliant with platforms, exchanges, and wallet services currently available in the blockchain ecosystem. Also, other platforms such as on Binance Smart Chain (BSC), Polygon, Neo, and Tron have launched their own NFT token standards.
How to Create, Purchase, and Sell NFTs
Blocsport.one and NFTdeals.io, for example, are proving to be game-changers in the emerging NFT market. They primarily aim to provide stakeholders in the sports industry with the opportunity to explore the unique marketplace offered by NFT technology. Sports companies, clubs, athletes, and NFT collectors can use this dedicated platforms to create, purchase, and sell NFTs.
NFTdeals.io wants to make NFT sales mainstream. That is why you have two options on how to buy them. One is “the crypto” way where you create your crypto wallet and pay with BNB (Binance Coin). The second way is much more interesting for traditional fans as CREDIT CARD payments are also possible. It’s a very simple process and doesn’t require any registration. A detailed description of NFTdeals and how to buy and pay with a credit card you will find here: https://app.gitbook.com/@blocsport-one/s/blocsport-one/