17 Nov 12 Facts you need to know about NFTs
The NFT world is changing at a dizzying speed. Non-fungible tokens (NFTs) have completely changed how we think about digital assets, legitimizing their ownership and securing their sale. NFTs represent the future for many artists and collectors, allowing financial freedom for creativity and investment potential.
Here are 12 Facts About NFTs to help you comprehend the space’s meteoric emergence and rise in popularity.
1. Each NFT is unique
NFTs, unlike cryptocurrencies, is unique. Each NFT created is a verifiably unique asset worth as much as someone is prepared to pay for it, often following the Ethereum token standard of ERC-721.
2. Forgeries do not exist in the realm of NFTs.
While some experts predict that more than half of all art on the market is likely to be fake, the chances of investing in counterfeit physical art are high. NFTs solve this problem by allowing artists to show provenance and establish a chain of ownership by utilizing the blockchain’s ledger.
2. NFTs enable artists to reach new audiences
NFTs, dubbed the “new disruptor” in the art market, are making ripples in an industry historically dominated by traditional investors. OpenSea, Nifty Gateway, and SuperRare marketplaces are now connecting artists with investors searching for the next big thing.
With over 1.4 million daily unique visitors and over $1.2 billion in sales in July 2021, the market is bursting with opportunities and massive potential.
4. Listing NFTs entails minting
Minting is the process through which your artwork, collectible, music, film, domain, or other item is added to the blockchain.
Minting, named after the traditional technique of manufacturing coinage, reflects your asset on the Ethereum network so that it may be published on markets or exchanged with others.
Several markets, such as OpenSea, are used to complete the procedure.
5. OpenSea allows free NFT minting.
OpenSea, unlike other platforms, does not impose a fee to mint NFTs. To differentiate itself, the platform charges a payment on the final sale price, which is presently 2.5%.
With the OpenSea platform experiencing enormous success in 2021, the business model looks to be viable and is an excellent option for young NFT producers to get started.
6. Ethereum supports the majority of NFTs.
Though various blockchain networks are utilized to create NFTs, Ethereum remains the most popular. Ethereum allows fungible tokens such as ETH, but it differs from blockchains such as Bitcoin in that it also enables non-fungible tokens, which store additional information about the token.
While other networks, like Enjin, can apply their token standards, such as ERC-1155, most still rely on Ethereum as their underlying network.
7. Smart contracts allow for anything digital to be converted into an NFT.
Anything digital has the potential to become an NFT. Although most of the attention has been focused on the sale of digital art and collectibles, the technology’s versatility allows practically anything to be tokenized.
Domain names, assets, tweets, music, and movies, to mention a few, may all be connected to a smart contract to confirm ownership.
8. The NFT market increased by 18,000% in a year.
The NFT market earned an outstanding $13.7 million in sales in the first half of 2020. A year later, the first six months of 2021 witnessed an astounding $2.5 billion in sales. Sales continue to be strong, with August 2021 alone posting $3.4 billion in sales!
9. The value of Ether has skyrocketed
The price of Ethereum has risen by 960% since the first NFTs were minted. A single ETH was valued at roughly $320 in June 2017 – that exact coin is now worth approximately $4,175.24 (as of 11/16/2021) While the growth of the blockchain network did not happen overnight, the rise in NFTs is mainly responsible for increasing ETH’s value.
As digital money has become more widely utilized in NFT transactions, its value has risen as a result. Since the value of ETH is expected to increase further, purchases made today might be worth a fortune in the future.
10. Meme NFTs are valuable
The Success Kid meme sold for 15.00 ETH ($32,355.75)
11. Cardano is an NFT contender to Ethereum.
Cardano has emerged as a blockchain to watch, with the potential to challenge Ethereum’s dominance. While other blockchains have incorporated NFT technology, they have mainly depended on Ethereum. Cardano’s NFT coins will be native to its blockchain, allowing for reduced gas prices and speedier transactions.
12. Ethereum 2.0 will almost certainly fix the problem of excessive gas prices.
The explosive growth of Ethereum has resulted in increasing gas fees, with the minting and trading of NFTs costing large amounts. The fees are a result of the Ethereum network’s proof-of-work principle.
With the introduction of Ethereum 2.0 in 2022, the network will transition to a proof-of-stake architecture, with fees and transaction times projected to fall considerably.