Assets are an integral part of the economy; Property, car, artworks, and game components can be one’s personal assets for the present/future.
The assets ownership can be changed for the exchange of currency as well as it can be used as credit to borrow. Instead of assets, certain rights could be exchanged too in order to get passive income. However, all these scenarios involve financial and legal procedures which makes licensing, transfer, ownership verification process complex. There is huge room for misusing loopholes in these procedures. It highlights the need of having a more transparent, automated & trustable system.
This is where blockchain comes into the picture. Blockchain has a concept called tokenization which enables a decentralized economy.
Token is an asset, which is digitally transferable between two entities in a Blockchain ecosystem. Tokens are issued on blockchain depending on properties assigned to them, having different classifications and uses. Generally, tokens are categorized into two types Fungible tokens, and Non-fungible tokens. Fungible tokens are tokens that are tradable for each other, and their value remains the same.
What is NFT?
Non-fungible tokens ( NFTs) are cryptographic assets with unique identification codes and metadata on the blockchain that makes them different from each other. NFTs can be literally anything such as art, music, gif, collectibles, and many more.
NFT cannot be swapped/exchanged for another NFT as they differ in value, making them unique and indivisible. Yes, NFTs can not even be divided. It is just like you own a movie ticket and you try to give some part of the ticket to your friend, making it worthless. Either you give the whole ticket to your friend or give nothing, NFTs work the same way.
An NFT is one of a kind. Though buying an NFT doesn’t mean you are buying the picture instead, you are buying the property rights to the picture.
Following aspects will help us better understand why NFT,
- Limited: The value tends to increase when there is a lack of availability. The same goes with NFTs, They are very limited since they bear a high price tag to get ownership.
- Indivisible: Almost all of the NFTs are indivisible meaning we cannot share/sell some units of the NFT, either you give/sell the whole or you end up losing the value.
- Unique: NFTs store the data/record to the corresponding blockchain making it unique from every other NFTs.
Advantages of NFT
NFTs provides a various advantages to one who owns it and the one who creates it such as:
- Easily to prove the ownership/creator
- Restriction to manipulate it in any way
- Allows owners to create the scarcity
- Earn royalties on every resale
These are some of the features which is making NFT a hot topic in the industry:
Identity: Every NFTs has an owner which is public record and easily accessible to anyone to verify.
Tokenizing: Tokenizing real-world tangible assets allows them to be sold, bought and traded more efficiently and fraud-free.
Easily Transferable: NFTs are bought and sold on a special marketplace which allows the user to easily transfer the ownership to the buying entity.
Trustworthy: Blockchain technology possessing the power of decentralization practices NFTs, makes it difficult to create counterfeits with a permanent record. Blockchain even helps in ruling out the intermediaries in the conversion of a physical asset into a digital asset.
NFT in the Gaming and Art industry.
Non-Fungible tokens are in the limelight and are believed to have a big picture in the coming days. NFT has solved some of the major problems faced by artists and gave them the liberty to portray their artwork in front of the community. You now don’t require any intermediary to list your artwork. There are NFT marketplace like Zora, Rarible, SuperRare which allows you to create an NFT in a few simple steps. All you need is to have an Ethereum wallet connected to the platform and have a digital file of the art, it can be an Image, TXT, JPG, PNG, MP3, or GIF to mint an NFT. You can set your price for your art and put it for sale on the marketplace and wait for the first Bid.
CryptoKitties is a popular game on the ETH-powered decentralized protocol allowing the collection, purchase, sale, and breeding of virtual cats.CryptoKitties was the first mainstream use case on the second-largest blockchain that focused on leisure.
In the coming days, NFT can be widely accepted by the gaming industry following the craze for being unique among the players. Custom-made gun skins, Weapons, title cards, special attributes all in the form of NFTs can bring revolution in the gaming industry. Imagine owning some real badass Assassin’s Creed gear on the blockchain that you can show off in online mode. Yes, that is going to be super exciting!
Spark+ NFT pilot using 0xert.
NFT artworks trading platform enabled tokenization of paintings through their images. It uses 0xcert blockchain APIs which are built on top of the Ethereum blockchain. Related tokens can be stored in the wallet and can be traded while maintaining transparency.
There are two different architectural models of this platform.
1. Subscription based model where the platform takes care of NFT generation cost.
2. P2P model where users will directly interact with blockchain by paying fees on every transaction.
How does Spark+ NFT platform work?
Spark NFT framework allows you to create NFTs for your digital art with simple and minimal steps. The platform even allows the user to view and verify the tokens.
Working overview of the platform:
- Define your wallet & generate an address
- Assign a unique title for your artwork & submit
- The platform will generate a Unique token id with the creator details on the blockchain. Token will also be featuring transfer and destroy options
- Verification of the token will display the asset’s imprint with the owner’s name, description followed by the date and time of the creation
Blockchain is bringing the most transformative era in the business today. Learn how Spark+ Technologies can help your business change the way blockchain technology works today. We have helped small businesses, innovators, and forward-thinking entrepreneurs to embrace blockchain solutions to bring trust, transparency, identity, and ownership to the supply chain, civic engagement, payments, and retail.
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