The NFT Spring
You might already hear of CryptoKitties, a bunch of cute digital kitty collectibles on Ethereum blockchain. Or NBA Top Shot, a virtual sports cards collection on Flow Chain. This march, a digital art- “The First 5000 Days” created by Beeple was sold for 69 million at Christie’s.
These collectibles are blockchain-based digital assets known as Non-fungible tokens (NFTs). NFTs has become an eye-catcher around the end of 2020 and the beginning of 2021 after the 2020 DeFi summer. There are more and more crypto holders and investors seeking to own these diverse unique collectibles. While previous digital items lived on company servers, NFTs are blockchain-native items that exist on blockchains owned by no single party.
Okay, let’s start with the basics and here are some frequently asked questions and answers about NFTs:
- What is NFT?
- What are NFT marketplaces?
- How to Start Buying NFTs?
- What is an Active NFT Marketplaces?
- What is the NFT fundamental facilities?
- What is NFT Gaming?
- Where can I trade NFT related tokens?
What is NFT?
Non-fungible tokens (NFTs) are digital assets based on blockchains that can represent all kinds of tangible and intangible products. As the nature of NFT tokens, each NFT can represent the ownership of something inherently distinct and scarce. For now, it is wildly known as digital collectibles such as artworks, sports cards, and in-game assets.
There are several formats of NFT tokens, such as the ERC-721 standard that is built by Dieter Shirley- the founder of CryptoKitties. Another example is the ERC-1155 standard, which was invented by Witek Radomski, CTO of a gaming application platform- project Enjin. It is a modification for the gaming use case.
Unlike fungible tokens that can be traded at crypto exchanges (centralized and decentralized), NFTs are not able to be traded at these exchanges. These NFTs can now only be traded at separate marketplaces such as OpenSea, Rarible, and the new Binance NFT Marketplace, and so on.
What are NFT marketplaces?
NFT marketplaces mentioned above are platforms for NFT traders. NFT buyers can display their NFT collections on the marketplace, while sellers can window-shop on it. In other words, NFT marketplaces are like online shopping websites such as eBay and Amazon where provide an intermediary platform for NFT traders, they make transactions happen. Also, many NFT marketplaces allow artists and creators to mint their creations and sell them on these platforms.
How to Start Buying NFTs?
• Register on marketplaces
For some NFT marketplaces (mostly centralized), you have to sign up an account on the platform for further operation.
• NFT crypto wallet
You will need a blockchain wallet that is compatible with the blockchain which is the target marketplace you are intending to trade on. For example, if you are selling or buying NFTs based on Ethereum, you can use a wallet such as MetaMask. For those NFTs based on Flow blockchain, you will need a wallet like Blockto.
• Transaction fees
For Ethereum based NFTs, as you trade at other DEXs, you have to deposit a few ETH in your Ethereum wallet for transaction fees. Each blockchain has its native coin such as Flow - FLOW, Polygon - MATIC, and Binance Smart Chain- BNB.
Active NFT Marketplaces
1. OpenSea: Founded in 2017, over 119,000 users, OpenSea has become the largest NFT marketplace. Users can trade NFTs such as artworks, collectibles, in-game items, and any other NFTs created via the ERC- 721 and ERC- 1155 standards through direct purchase, auction, and OTC (Over the counter) on the platform.
2. Rarible: Rarible is an NFTs issuing and trading platform. Any users without any coding knowledge can create their own NFTs and sell them on them. Rarible has issued its native governance tokens RARI which allows creators and collectors to vote on platform future decisions.
3. Binance NFT Marketplace: Binance has launched its NFT marketplace aiming to gather artists, creators, and crypto fans at the same place. It has three different product lines:
• Marketplace: where users can create, buy and sell NFTs
• Events: Introducing high-quality NFT created by worldly famous artists and the most influential brands. These NFTs are made by digital artists, musicians, and celebrities.
• Mystery Box Playground: Every mysterious box contains a random NFT. Buyers can earn different NFTs randomly ranked between Normal (N), Rare (R), Super Rare (SR), Superior Super Rare (SSR).
NFT fundamental facilities
As we all know NFTs lived on blockchain, the efficiency of minting and transactions of NFTs is limited to the efficiency of each blockchain. In 2017, CryptoKitties has temporarily caused a transaction jam on Ethereum. Thus, based on different NFT use cases, many developers have to try different scaling solutions such as building specialized blockchain or sharding techniques.
• Flow: Flow is an independent blockchain specialized for digital recreation applications. It was launched by the team behind CryptoKities - Dapper Labs.
• EFINITY: EFINITY is a new project started by Project Enjin, it will be a parachain on Polkadot designed for all kinds of NFT applications.
• Immutable X: Founded by the creator of Gods Unchained, Immutable X is an Ethereum layer 2 solutions focused on NFT.
NFT gaming is still at an early stage now. Most of the existing NFT games are based on Ethereum and are in the form of collecting games because of the limitation of Ethereum. Axie Infinity is now considered the most popular NFT game based on Ethereum. It has earned over 84,000,000 USD in the past month and its native token rises abruptly lately.
Start trading NFT related tokens with ABCC
SAND is the native token of a gaming platform The Sandbox, an ERC-20 application token built on the Ethereum Blockchain, which is used by gamers, content creators, and investors alike. SAND is a fungible, divisible, and mutually replaceable token. The tokens listed on the ABCC Exchange are all homogenized tokens. The token powers the Metaverse of The Sandbox game.
Chiliz (CHZ) is an ERC20 token for sports and entertainment, powering a blockchain-based fan engagement platform Socios.com. Fans can purchase & trade branded fan tokens which allow them to participate all kinds of club-exclusive activities. Chiliz aims to connect sports and entertainment teams with tokenized fan tokens as a share of influence.
Decentraland (MANA) is a decentralized virtual reality word built on Ethereum that allows users to buy their lands, build up, and monetize content. Decentraland uses two tokens: MANA and LAND. MANA is an ERC-20 token that can be used to forge NFT token LAND, another token used in Decentraland. MANA tokens can also be used as a currency to buy all kinds of in-game items (NFT) Decentraland marketplace.
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