What Is An Nft?
NFTs or Non-fungible Tokens are unique pieces of data that point towards Digital(or physical) Assets that have some monetary value. An NFT associated with an asset acts as Proof of Ownership.
For instance, your bank account might be connected with a payment app that helps you conduct transactions. However, you cannot use the app if you do not have an actual bank account(you cannot create an NFT without the existence of the original product). The digital account stored in the app represents the actual bank account(like an NFT represents an asset) and contains your bank details to prove ownership.
The OpenSea beta, launched in December 2017 is a peer-to-peer NFT Marketplace. It was the first open marketplace on the Ethereum blockchain for any NFT. OpenSea is now the largest general marketplace for user-owned digital objects, with the most categories and compatibility for various Blockchains.
Pros
- Good for collectors looking for a wide range of NFTs, traders interested in buying and selling a variety of NFTs, and people who want to learn more about digital collectibles but aren’t sure where to start.
- Smart contracts safeguard OpenSea, making fraudulent transactions practically impossible.
- Without any prior knowledge of Blockchain or code, you may quickly establish your own NFT collection. Furthermore, this service is free, whereas most competitors charge for NFT creation.
- For purchasing and selling NFTs, the platform has some of the lowest commission prices.
Cons
Cryptocurrencies are the only way to pay on OpenSea which makes Cryptocurrency Wallet a requirement to sell and purchase NFTs.
Axie Infinity is NFT-based online trading and battle video game created by Sky Mavis in which Axie Infinity Shards (AXS) and Smooth Love Potion (SLP), both Ethereum-based Crypto tokens, are used. Users can earn AXS or SLP in the game, which can then be converted to the Ethereum blockchain’s ETH, which can be used as actual money.
Pros
- Potential to earn a substantial sum of Cryptocurrency.
- System of earning money by playing.
- Desktop and mobile versions are both available.
Cons
- The game has become expensive to play for newbies.
- The only payment methods that are accepted are Ethereum and Axie Infinity.
- Charges on marketplace sales.
- Purchasing three Axies is required for the game.
CryptoPunks is a type of collectible NFT that uses the Ethereum blockchain to store Proof of Ownership. There are 10,000 unique 24×24 pixel digital art characters in the collection. The collection also includes several unique zombie, ape, and extraterrestrial figures. The punk style of the characters inspired the name.
CryptoPunks is one of the oldest NFTs, having been released before CryptoKitties in November 2017 and NBA Top Shot in June 2020.
Anyone may verify the legitimacy and ownership of each CryptoPunk using the code contained on the Ethereum blockchain. When compared to traditional art transactions, the transaction fees for the trading of these NFTs are modest.
For example, the most valuable CryptoPunk traded online, CryptoPunk 3100, was sold for 4,200 ETH on March 11, 2021, valuing it at $7.58 million. The bidder paid a $27 transaction cost, while the seller paid a $16 fee to accept the bid, resulting in a 0.0006 percent commission.
Pros
- Supply is limited supporting scarcity and prices.
- Accessible to everyone.
- Transactions are made with ETH Cryptocurrency securely.
Cons
- Ethereum Blockchain fee is quite high.
- The only way to purchase Cryptopunks is through ETH and no traditional methods can be used.
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Top Shot Moments, which are official video highlights, can be traded, bought, and sold on the NBA Top Shot Blockchain platform. The platform was created by Dapper Labs and has the NBA’s and NBA Players’ Association’s official endorsement.
Since its launch in October 2020, the NBA Top Shot platform has generated over $700 million in sales, drawing analogies to the Bitcoin phenomena. Several people have already posted their stories of winning significant money through the NBA Top Shot on the internet, with numerous Top Shot “moments” worth more than $100,000.
Pros
- The NBA Top Shot maintains the scarcity of products in the marketplace, resulting in some Moments being quite valuable.
- The availability of distinct NFT associated with each NBA Top Shot moment indicates that the assets in issue have official authenticity and ownership.
- A product’s value is determined by the amount of demand it continues to generate, and because NBA Top Shot moments are regarded as official, they appear to provide benefits both to fans and to product owners.
Cons
- Purchasing the number of packs that are dropped on the platform requires a certain amount of luck in order to land key Top Shot moments.
- Complaints have been recorded about issues with buying and selling packs, as well as unstable servers and a sluggish website.
SuperRare was created in 2018 and uses an Ethereum Blockchain to mint, transact, and verify NFTs on the network. It’s also a curated platform, which means that only approved authors are allowed to mint NFTs on it. Each piece of art is generated by a network artist and tokenized as a crypto-collectible digital asset.
All purchases on the site are subject to a 3% transaction fee, which is paid by the buyer. Primary sales(from a creator to a buyer) are subject to a 15% artist gallery commission, which is high for NFT markets but cheap when compared to real art galleries, and secondary sales(from a buyer to the next ones) are subject to a 10% royalty.
Pros
- Artists receive high royalties.
- The user interface is simple to use.
- Provides a purchasing system alternative.
Cons
- When compared to other NFT marketplaces, the commission is quite high.
- Ether(ETH) is the only Cryptocurrency accepted as a payment method.
- On the Ethereum network, fees might be quite high.
To make sure that the Digital Assets you leave behind are handled properly, a Digital Will is a good option for the transfer of your Digital Asset ownership to your family members. With Clocr’s Digital Will services, you can be sure that what you’ve spent years building and cultivating will continue on long after you’re gone.
