TL;DR

The Non-Fungible Token (NFT) is a special type of token of the cryptocurrency market. The most important feature that makes it special is that there is no other like it. so it is unique. Non-Fungible Tokens (NFTs) maintain their presence in the market using blockchain technology. Its production is carried out within Ethereum token production standards. Its use is present and widespread in areas such as real estate trading, collectors, purchasing virtual game content, and pets. 

Introduction

The ever-renewing technology of the digital world continues to rapidly change the old-fashioned shopping style. The sales of digital products in a very wide area on digital platforms have gained a high momentum.

Now, for most of us, it is much more practical to shop for digital products from the couch, using the positive benefits of technology. In addition, the products sought in digital environments are much more in terms of quantity and their transportation can be made much faster.

The use of Non-Fungible Token (NFT) has increased rapidly since 2017, and over $174 million has been spent on it in this process.

As it is known, the balance of supply and demand plays a major role in determining the price of that asset in all assets that have value. In this context, determining the price of Non-Fungible Tokens (NFT) depends on supply and demand.

In addition to all these, since NFTs are unique, each of the products offered for sale is considered a collector’s item. For this reason, it has a very high value. 

In the new democratizing approach of the digital world, world-famous names also find it attractive to invest in NFT. Eminem was the latest to join the NFT investment caravan. Eminem, who bought NFT worth $ 450 thousand (123.45 Ethereum), has certified his digital assets.

What Is Non-Fungible Token (NFT)

The Non-fungible token (NFT) is the safe, fast, and flawless execution of the virtual trade that will take place between the parties on the blockchain, of digital collection assets on digital platforms. Because with this method, an intangible asset can be verified and it is a simplified form of exchange in terms of trade.

Non Fungible Tokens (NFT), which support the most important coins of the crypto money market such as Ethereum or Bitcoin, operate on the blockchain, which is considered as a digital database covering the entire coin transactions.

Some basic features of NFT are as follows. As an example of these statements, we would like to share this story with you; There was a 10-second video posted on the internet in February of 2021. This video belonged to an artist named Beeple. This video, which is as short as 10 seconds, was sold on the internet for 6.6 million dollars. Yes, you heard right, the 10-second video sold for exactly 6.6 million dollars.

Another artist, by his stage name Christie’s real name Mike Winkelmann, is from the state of Wisconsin in the United States. The aforementioned artist announced the sale of a collage of his own works. The collage he offered for sale attracted a lot of attention, because it was entirely from his own works and was completely digital. A virtual auction was held and the sale price was opened at $100 while this collage was placed on the auction block. When the collage was sold, the selling price was exactly $69 million.

It is fascinating that such digital products are being sold for such high amounts in the virtual environment. But the selling prices of the products are not the only fascinating part. When observers examine, for example, collectors who buy Beeples, they do not take the product they buy as any tangible item. Well; they have no physical presence. So what exactly do they get in exchange for giving such large sums of money in digital environments?

The answer is not a secret; They are embezzling a crypto asset that is growing in popularity and attracting all the attention. This crypto asset is called a Non-Fungible Token. Nicknamed Value (NFT)

So the main issue we need to understand here is: Each of Beeple’s revealed artifacts is paired with a Non-Fungible Token (NFT). This makes it unique.

The statements made by Reuters, a contemporary art expert, Noah Davis, regarding Christie’s virtual auction, were striking. “While only 10 minutes have passed since the start of the tender, we received maybe over 100 offers regarding the digital product put up for sale from 21 people in the tender, and by the time we were receiving these offers, the product sales had already reached $1 million.”

Not Exchangeable with (NFTs)

One of the most important features that makes Non-Fungible Tokens (NFT) different from cryptocurrencies such as Bitcoin and Ethereum is the inability to exchange. Because such cryptocurrencies can be exchanged. As an example of this exchange, an exchange could be made between assets that already have value, such as a dollar bill, and cryptocurrency assets. The most important thing that distinguishes (NFT) from other cryptocurrencies is that it is unique and cannot be exchanged. 

Confidence 

In the trade that will take place between two parties in a digital market, it is very important that the person who buys the product is convinced that it is a real asset, even if the product is virtual. At this point, Non Fungible tokens (NFTs) provide the service of performing full-fledged product controls in terms of originality. This creates a strong sense of trust in the buyer and satisfies the buyer and seller people and institutions in the best way.

Indivisibility

The Non-Fungible Token (NFT) has been indivisible since one of its key features and one of the most notable benefits since its release. As an example of indivisibility; When you buy a plane ticket, you can never partially buy the ticket. Likewise, you cannot use it partially. As a matter of fact, only you can sit in the seat you reserved when you buy a plane ticket. For this reason, only one person should buy the seat.

Scarcity

The high value of Non-Fungible Tokens (NFT) and the main reason for their value is the scarcity of such tokens. Developers can create as many assets as they want with the help of the technologies they have. There is no restrictive obstacle in front of this. Limiting the number of NFTs is again under the authority of the developers. They do this for scarcity. 

Uniqueness

The uniqueness of Non-Fungible Tokens (NFT) makes it the clear winner when it comes to uniqueness among Digital Currencies. Its uniqueness is one of the most striking characteristics of this token. Because no (NFT) token will not be the same as any other (NFT) token, and it will not even show similarity. Moreover, they are not even interchangeable. Based on the metadata of each of the Non Fungible token (NFT) tokens, this data can replace that token’s certificate of authenticity. That’s why (NFT) is truly original and unique. 

Ownership

Non-Fungible Token (NFT) continues to exist with distributed ledger technology within its current associated account. The creators of (NFT) tokens are free to transfer their existing (NFT) tokens to other accounts. They can also perform this transfer process by checking the private keys on the accounts where (NFT) tokens already exist.

Transparency

Existing buyers within the Digital Currency exchange can purchase non-fungible tokens (NFTs) securely and conveniently. Moreover, they can perform their purchase transactions in confirmatory methods. Because it works with a Non-Fungible Token (NFT) public distributed ledger system. This type of ledger works decentralized and never changes. Transactions are transparent and presented to the parties in a visible way.

Interoperability

Non Fungible Tokens (NFT) have the ability to work in integration with various distributed ledger technology systems, which takes it further in terms of interoperability. It can perform central custody or decentralized storage centers services through distributed ledger technology. It can be bought by this method and sold according to need. 

How Do Non-Fungible Token (NFT)’s Work?

To understand how a Non-Fungible Token (NFT) works, you first need to know some standards that require blockchain compatibility. The first rule of these standards is the standards needed during the creation of “fungible” tokens on the blockchain. During the creation of such cryptocurrencies, ERC-20 standards are applied. However, tokens created within these standards can operate on the Ethereum blockchain. So how does the process work when it comes to “non-fungible” tokens? What standards are needed?

ERC-1155 and ERC-721 standards are applied in the formation of such tokens. These standards, which are frequently used in the creation of unique cryptocurrency assets, are carried out by the content creators through smart contracts. When this protocol is properly operationalized, a fungible token (NFT) has been successfully created.

Each (NFT) created is stored on the blockchain it is on, and each (NFT) metadata is recorded and preserved. In some cases (NFT) producers create (NFT) tokens by breeding their own blockchains if conditions permit.

What Can NFT be Used For?

The increase in the frequency and usage areas of NFT tokens seems to have gained momentum, especially in recent months.

Since the NFT market has existed, CryptoKitties are the first to enter this market. As the name suggests, it refers to digital kittens that do not materially exist in the digital environment.

Non-Fungible Tokens (NFTs) are owned through decentralized applications. Such applications must have the infrastructure to create and issue unique and scarce assets, namely NFT tokens.

Let’s take a closer look at the areas where (NFT)’s is used most frequently in general.

Physical and Digital Collectibles

As can be seen from the market debut and sales of CryptoKitties, (NFT) emerged primarily to form a brand new collection of collectibles. Moreover, the most attractive thing here is not only the purchase of digital and intangible assets but also the purchase of tangible collection assets via Non-Fungible Token (NFT). To put it more clearly, it is possible to buy a tokenized version of a singer or athlete you love. In addition, (NFT) is a very attractive opportunity for people who collect things like stamps and coins using traditional methods that we are all familiar with.

Gaming

The gaming industry, which is considered to dominate the (NFT) market, is perhaps the area where (NFT) is used the most. It is very popular with in-game purchases. We know that brands that offer game services to very large audiences, especially Fortnite, often have in-game sales via (NFT). Some games have even implemented various development and improvement policies in their infrastructure in order to be compatible with distributed ledger technology. Game companies that have made their infrastructure suitable for (NFT) have gained tremendous momentum and debuted through (NFT).

Depending on the nature of the games, assets for which in-game purchases were made (weapons, additional packs, character creation, vehicles, etc.) became collectible assets.

ERC-1155

ERC-1155 is a protocol developed for gaming. Provides players with opportunities to receive packs. It allows you to purchase items in your shopping cart via ERC-1155 for in-game purchases. Users with ERC-11155 standards can transfer large amounts of tokens via smart contracts. ERC-1155 or (NFT) can be created and exchangeable tokens can be defined through a single contract.

Open Sea 

Open Sea, which is notorious for its decentralization and is an intermediary between the buying and selling of (NFT) in particular, was founded in 2018. When you want to buy something on the Open Sea platform, you will need to convert your Ethereums to Wrapped Ethereum. You will perform this operation via Open Sea. Open Sea is essentially an (NFT) platform and you must have a Metamask wallet to access such platforms.

Metamask

Users can request to store different ethereum-based assets. This is where the Metamask crypto wallet comes into play. These wallets allow users to move their crypto to Ethereum addresses. Thus, you can store your ERC-20 and Ether tokens in your wallet.

You can perform a very easy installation by downloading an application to your smartphones or using a web browser extension.

ERC-20

ERC-20 is a standard that can only work on an Ethereum network and does not have functionality on other networks. It aims to implement transactions quickly and reliably on the investment ecosystem. Tokens on this system are easier in terms of traceability because they reside on a single technology.

Digital or Physical Art

Segmentation of existing properties has become possible through Non-Fungible Tokens (NFT). We can express this as follows; assets that cannot be accessed and purchased by everyone can be a very valuable asset, the possibility of everyone’s access is made possible through (NFT) tokens. A more democratic market was created in terms of purchasing and accessibility. In this sense, an existing valuable asset has been made available to everyone.

Many digital platforms not only create works of art through distributed ledger technology but also offer these created works for sale in virtual markets accessible to everyone. Moreover, it has the potential to be a buyer from all over the world.

Social Tokens

The social token has a very wide area in itself and has a wide range of services. The so-called social token; can include individual tokens, as well as tokens used for fans or a large community.

Social tokens are also very functional for the creation of an organization.

Decentralized Domains

The first asset class that comes to mind when it comes to decentralized areas of the non-fungible token (NFT) is blockchains. It also offers great convenience in examining and reading long digital wallet addresses on the existing payment network.

If you have a website, you have the opportunity to make your payments with cryptocurrencies on the blockchain publicly. You always have the opportunity to buy a blockchain domain name. Moreover, there is already an active market for these domain names. In this market, you can perform your domain name purchase and sale transactions at any time.

Identification and Certification

There is always a chance to use Non-Fungible Tokens (NFTs) for personal profile and identity creation. It creates these identities perfectly and delivers them to its owners. In addition to identities, it has the ability to create licenses and certificates that individuals need while preserving their full originality, in a digital environment. (NFT) allow a deep information infrastructure and storage of this information in its own structure and program mechanism regarding a good or asset.

How Do I Buy NFT

(NFTs) are sold to private companies through private companies. Since most NFTs are Ethereum-based tokens, most of the marketplaces selling NFT only accept ETH. You can purchase Ethereum through “Koinal” and then use it to buy the NFTs you desire.

What Can You Do With The NFT Tokens You Have Purchased?

First of all, we have to state that you made the right decision by buying a Non Fungible token (NFT). Because NFT offers very attractive opportunities with the size of its usage areas and the innovative developments it promises.

You have received your token. Now you now have brand new tokens in your wallet. So, what’s the next step? What do you intend to do with your tokens? Are you undecided? We would be happy to give you some advice on how to use your (NFT) tokens.

Some artists want to sell their digital artworks on digital platforms of their own kind and in the virtual market through large monitors. Maybe you would like to take a look at these works that are on sale.

Some users have the idea of creating virtual galleries and museums in the digital environment. Their ideas are really creative, aren’t they? You can take a small tour through such virtual galleries and museums. We are sure you will enjoy it very much.

Virtual real estate transactions sound just as tempting.

As a result, as it turns out, this is a vast virtual world. You can disappear in it as you wish, and you can examine the collections presented by other users. You are free in this world.

Closing Thoughts

There is a very large capacity in the virtual world. Within this capacity, the possibilities offered to users, investors and developers are endless. The fact that all these processes can only be done through small devices that we hold in our hands also reveals the fact that these projects are built and operated on an enormous infrastructure. Many activities such as trading and storage are carried out through Non-Fungible Tokens (NFT) operating on the blockchain.

Innovative solutions that are the result of developing technology always make a sound especially in the crypto money market. Even though everything seems to be new and slowly coming into our lives, everything is being adopted by users and investors at a great pace.

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