We have moved forward in many aspects of our lives. This includes the development in technology surrounding us. Technology has tremendously benefited and positively affected our daily lives. Technology has affected almost every aspect of one’s life in the current 21st century. Advancement in technology has been implemented in different industries across the world, such as the transportation industry, the access to food and healthcare industry, socialization, productivity, business industry and the entertainment industry. With the use of technology, we now have a global platform for us to access information, share ideas and make the flow of conversation easier among countries with the internet. New doors for the business industry have opened with the help of technology and the internet. Many businesses have incorporated the usage of the internet. A recent and popular business is the NFT marketplace.
What is NFT?
Before we dive into the NFT marketplace and its advantages, let’s start from the core, what is NFT? NFT stands for non-fungible tokens. NFTs are digital assets that represent real-world objects like art, music, video game items and videos. NFTs are encoded with the same underlying software as many cryptos that are sold and bought online using cryptocurrency. NFT was originally introduced in May of 2014 and gained increased popularity in 2021due to it being considered a new and trendy way to buy and sell digital artwork. NFT has now become well known and there are different types of items that can be purchased through NFT. Some examples are Bored Ape Yacht Club NFT, Doodles, CyberKongz, Mekaverse and find cryptopunk nft art malaysia. Some may think NFT is the carbon copy of cryptocurrencies like Bitcoin and Ethereum, but that is not the case. They share only one similarity; NFT is built using the same kind of programming as cryptocurrency. As compared to cryptocurrency, NFTs are not exchangeable for one another and each NFT has its own unique digital signature.
What is an NFT Marketplace?
The NFT marketplace is a digital marketplace. There are other different digital market platforms such as Spotify and Netflix that provides an unlimited amount of digital content like music and videos based on specific subscription fees. However, as compared to these other digital marketing platforms, the NFT market works similarly to a physical content market where the digital content is unlimited in quantity and there is only one of each NFT that is considered original to the owner. The NFT marketplaces are supported by blockchain technology that is used to prove the source of the digital contents. You could correlate this situation with how a traditional auction house verifies the original art that is bid. Additionally, since the NFT marketplace functions on a blockchain system, there are transaction logs that handle the royalty ascription that shares a certain percentage of the profits to the original creator, each time the NFT item is traded. There is however a matter that individuals who take part in the NFT marketplace must always take into consideration. That is to understand the foundation of the marketplace in that you choose to buy and sell your NFT items. There are marketplaces that help you expand your revenue and others that may backfire on you. After all, not all NFT marketplaces are the same from A to Z.
What are the Types of NFT Marketplaces?
When the types of NFT marketplaces are brought into the topic of discussion, there are quite a few elements that are required to be considered. Nonetheless, to make it simple and easy to comprehend, you could categorize the NFT marketplace into a cross-section of a streamlined marketplace and an augmented marketplace. The main difference between these two types of NFT marketplaces is that the streamlined marketplaces provide a broader range of NFTs and offer more limited, generic services to sellers, while augmented marketplaces are highly specialized and provide a more full-service experience.
The streamlined marketplaces focus principally on enabling efficient transactions, oftentimes providing payment groundwork to accept both credit cards and crypto payments in Bitcoin, Ethereum, and occasionally other speciality tokens. These platforms generally have fairly large and varied user bases since they offer minimal additional services. On the other hand, when it comes down to augmented marketplaces, this marketplace has the tendency to focus on value-added services such as minting, such as creating the NFT itself, curation, marketing, pricing recommendations, portfolio trackers, and the full-blown games built on top of the NFTs.
What are the Advantages of NFT?
Currently, in the blockchain industry, Non-Fungible Tokens (NFTs) are the most recent jargon. It is proven to be a thrilling branch in the crypto world. Nevertheless, there still are many individuals who are unsure about the benefits and advantages of NFT to a buyer, seller or future investor. The few key advantages of NFT are that NFT is a decentralised marketplace, each NFT is unique in its own way, NFTs are collectibles and NFTs are resellable. Firstly, since the NFT marketplace is a decentralised marketplace, it allows the creators to make money directly from their work. For a creator of an art NFT to sell their work to their customers, they do not require a middleman and allow the artist to communicate directly with their customers to carry out the transactions. Since there isn’t a middleman involved in the transaction, the creator or artist is able to earn a commission each time the NFT exchanges hands. Next, each NFT is unique on its own. There will only be one NFT that exists and cannot be forged. Only the buyer will have the original NFT. Third, NFTs are considered collectibles. And as only one of each NFT exists, the buyer can hold onto the NFT as its value increases over time. Last but not least, NFTs are resellable. There is a large number of people who make a living out of reselling the NFTs. Since the value of the NFT will increase as time passes, the value increases and therefore profit made from reselling NFTs is extremely high.