NFT Market is a place where people can own NFTs, and can trade these NFTs with each other. NFTs represent digital assets that can be used to pay for, or collect value from, physical rewards. NFTs are non-fungible and can be stored in the blockchain in a tamper-proof way.
Consider the following scenario:
You and another person meet to trade an NFT. The tokens each have unique characteristics and value in their own right. For example, you might have a VTC token, and your friend might have an SWC token. They could represent different types of cryptocurrency, digital collectible items, and in-game items respectively.
Imagine that, as a result of their interests, your friend creates a mine craft server for you, and your friend is prompted to create a server for you.
In this story, you have the chance to benefit from creating your server, but you don’t have to own the server yourself. Instead, your friend will own it and host it. You will benefit from being a part of the community and using the server that your friend has created.
NFTs, and the entire concept of the blockchain, provide a fair and easy-to-use solution for these types of trades. However, the aforementioned scenario is only one of many potential use cases that blockchain developers and NFT creators have thought of.
NFTs have the potential to provide a wide range of services, including being the owner of rights to content, becoming a part of an engagement with a game or virtual world, and enhancing the value of a physical item. When potential use cases are considered, it is difficult to predict where the current and future NFTs will go.
For now, it is important to understand why NFTs exist and how they function. This will help us to understand how they can improve the world of digital assets, and how we can get involved.
Why are NFTs needed?
NFTs serve a very important purpose. It is in NFTs’ best interests that they are created, stored on a blockchain, and exchanged among users.
NFTs are non-fungible, and unique identity is generated for them and assigned to each NFT. Because an NFT cannot be divided into smaller pieces, an NFT Minting is more valuable than other types of digital assets. Because this value is generated by the creator, it is known as “Proof of Creation”, and this type of Proof of Creation is the basis of most NFTs.
In an NFT-based economy, an NFT is generated by the user. The user can then do several things with it. For example, the user might tokenize an item in an online store, and pay for it using NFTs. Then, if he or she decides to “consume” that item, he or she pays the owner using NFTs.