What is NFT?

By the term NFT, we understand a token, which simply stores any properties from any asset (object) and information about its author and owner. It is a unique record in the network of a particular blockchain, and can not be divided into parts smaller than 1.

Simply speaking, an NFT is a unique digital object whose uniqueness and ownership is proven through the use of blockchain technology.

Where do NFTs and their collections live?

In most popular blockchains, the community of these networks has developed standards for smart contracts called the “NFT Collection”. Figuratively speaking, the collection is programmed in a way that groups tokens of the same kind, with similar attributes. First, the contract of some collection is deployed into blockchain, and then some NFTs can be issued (minted) in the contract of that collection.

But there are blockchains in which the NFT standard means issuing a separate smart contract for each token, which makes the transaction fee with that NFT cheaper. By such standards, an NFT contract can either be linked to the contract of a collection or exist independently of other NFTs and collections.

Generally speaking, a collection contract describes what properties each of the tokens in its set can have, as well as what actions (contract methods) can be performed to operate on the tokens, for example:

  1. Create (or “mint” or “issue”) a new token in the collection
  2. Read information about the token
  3. Transfer token to another owner
  4. Burn token

and many other actions.

In particular, smart contracts of collections standards prescribe which actions-methods must be programmed, but do not restrict the addition of any custom actions with NFT. This is how various smart contracts of NFT collections for games, lotteries, building rentals, and a host of other online services and applications are emerging.

If you want a better understanding of the types and standards of tokens, start with these articles on Medium while we go further.

A hype or an uptrend?

These are Google search statistics for the phrase “NFT” worldwide from 2019 to June 2022:

The leaders in terms of interest in NFT are China, Hong Kong, and Singapore. Canada and the United States are in 9th and 15th place, but with a share of more than 30% of searches. That’s in fact an impressive share of all other searches that people within that territory have generated over time.

If you leaf through the top 25 related queries, you can see that people are looking for popular NFT marketplaces, NFT collections, and NFT games. They also want to understand what NFT is and how to buy or create it.

The NFT market statistics on CoinMarketCap.com show that a lot of people believe in the high value these assets have already been assigned (data as of July 2022):

  1. The market capitalization of all NFTs on known platforms equals twenty billion USD
  2. The daily sales volume of NFT on all popular marketplaces is measured in several billions of USD.
  3. About 100 new NFT collections have been announced, with sales starting a few hours to a few months from today.

Why are NFTs so expensive?

The value of the token is influenced by its artistic meaning and the legend of its creation, as well as the target audience.

In addition to artistic value and exclusivity, many NFT collections offer functional uses for these tokens, more specifically “tokenomics”. Tokenomics is an economic model built around a particular collection. It can include merch, games and more.

And we haven’t even started talking about metaverses yet…

In lieu of a conclusion

We regularly receive requests for the development of projects in one way or another tied to NFT, such as platforms to create, sell or rent tokens, ideas to create bridges for transferring NFT between blockchains or integrating NFT into other projects, writing custom contracts for NFT collections. There is a growing demand for developers who understand NFT standards.

We also offer the opportunity to buy a ready-made NFT marketplace, with or without modification to your needs. If you are interested, you you can safely contact us using this link https://www.novus.team.

There are good-quality NFT platforms on the market, filtering out content that is minted by users, leaving really valuable tokens. But there are many more trash collections and tokens released on low-quality platforms, which so far scares away the common person, who, getting on them, does not understand the value of NFT in the form of pictures of cats and food.

Therefore, an important mission of popular NFT platforms and marketplaces, in our opinion, is still the moderation of content, first by their own efforts, and later by the efforts and votes of the decentralized community. As well as popularizing NFT terminology and teaching the values that are embedded in NFT assets.

And for 2022–2023, we can conclude that NFT is still quite a significant trend, and we will still hear news about some large and authoritative collections of non-fungible tokens that will gradually begin to integrate into everyday life.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Novus Team

We are blockchain development company with custom development and other services provided by our specialists