NFT, Ethereum and other blockchains are non-convertible digital tokens that work on smart contracts. They can be used to distribute assets and verify authenticity through a blockchain. NFT began to gain popularity in 2020. Which of them should we pay special attention to this year?
NFT – How do non-convertible digital tokens actually work?
The NFT concept was created in 2015 and the first projects were launched in 2017. NFTs are used to sell unique items online, including collection items. Because each token is unique and cannot be duplicated, the use of NFT creates the impression of being “unique” and makes them valuable to collectors and artists. They are auctioned and paid for in cryptocurrencies such as Ether (ETH) and Bitcoin (BTC).
The future of NFT includes applications in the field of expanding decentralized finance (DeFi), where they can be used as collateral for loans or insurance contracts for the auctioning of valuable assets such as works of art, rare collectors and even real estate. stock options or bonds.
The most exciting NFT projects of 2021 sell exclusive and limited number of items: digital art, music, cards and other collections, often attracting attention at high prices. New NFT projects are presented not only as the future of product sales, but also as a way for game developers to regain ownership of their songs and for game developers to profit from the economy in an era of increasingly popular streaming and file sharing. in products.
10 notable tokens in 2021
Worldwide Asset Exchange (WAX)
WAX is a decentralized peer market for NFT trading. WAX uses the Delegated Proof of Stake (DPoS) consensus algorithm to maintain security standards. On the platform, developers can create decentralized applications, games and markets.
The WAX token is based on Ethereum, and users are paid to collect their tokens for liquidity. The WAX token can also be traded on several exchanges, including Huobi, Bittrex and Bancor Network. The token can be stored in any Ethereum-compatible wallet.
Several top-rated NFTs from companies such as Deadmau5, William Shatner and Topps have been launched on the WAX platform. These assets are still traded on the secondary market.
CryptoKitties is a project that brings NFT to the mainstream. It debuted in the market in 2017 and was developed by Dapper Labs. He was the first to use the ERC-721 standard, which allows for unique digital assets. At CryptoKitties, players breed and resell virtual cats for profit on the Ethereum network. CryptoKitties tokens cannot be transmitted, and each represents a different digital cat. Interest in NFT has resulted in a resurgence of interest in the game, which peaks in 2018 with more than 1 million transactions per day.
Engin was created in 2009 to develop a gaming network. In 2017, the company introduced Enjin Coin (ENJ) to the world and began developing a blockchain ecosystem that was purposefully built for NFT. In 2018, Engein announced one of the world’s first game multivers and currently has 40 game developers under its wing using game development platforms. Engineering has become an ecosystem of integrated digital products for gaming and monetization. Developers can use Enjin Coin to tokenize in-game items in the Ethereum blockchain.
More than 1,300 blockchain marketing campaigns have been conducted using Enjin’s products, increasing contacts with companies such as Binance, CoinMarketCap, Kyber Network and CoinGecko.
Launched in February 2020, Decentraland is a decentralized virtual reality world using the Ethereum blockchain, which allows users to create and earn content and applications. Users can purchase virtual plots of land, create personalized avatars, participate in management and trade unique digital collections.
To participate in the world of Decentraland, users need tokens and NFT. They connect to cryptocurrency wallets through a web browser and set up avatars that receive virtual passports in return for their identities. Decentraland uses the MANA token, which can be purchased on cryptocurrency exchanges, and with it you can buy land and assets in the game. Users can also buy items offered in the oil markets.
Rarible is an NFT market established in January 2020 and used to create and trade unique collections. The platform supports a variety of digital assets, including art, memes, music, domain names and DeFi insurance policies.
Creating NFT with an Ethereum wallet is simple and allows artists to release teasers for their content. Rarible attracted the attention of the market by launching RARI, which is widely used in the DeFi space, in order to become a decentralized autonomous organization.
Rarible has partnered with Yearn Finance and Nexus Mutual, a blockchain-based insurance platform that provides insurance coverage for NFT, since September 2020, allowing NFT to integrate with DeFi.
NBA Top Shot
Implementing NFT, the National Basketball Association (NBA), in partnership with Dapper Labs, has launched an officially licensed blockchain application for trading collection goods. The application is based on Flow, not Ethereum blockchain. Top Shot NFT contains video clips of game moments and player statistics, as well as information about NFT trading history. Limited NFT packages are released weekly and their prices depend on their uniqueness.
OpenSea is the largest decentralized NFT market that debuted in 2017. It contains more than 50 scarce asset categories for trading, including digital art, CryptoKitties, Decentraland and domain names. The platform allows developers to build markets for digital assets on Ethereum or ERC721 or ERC1155 and earn commissions from after-sales merchandise. Game developers can set up editable showcases where collectibles can be sold automatically.
Ethereum Name Services
The Ethereum Name Services (ENS) platform was launched in 2017 on the Ethereum blockchain. Domain names cannot be transferred and can be integrated into NFT markets such as Rarible and OpenSea. Users can obtain any cryptocurrency, NFT or token associated with the domain name and run secure, private and decentralized websites.
Completing our list of the top 10 NFT Cryptocurrency Projects, 0xcert is a blockchain-based project (API) that allows developers to create decentralized applications using NFT and convertible tokens. The aim of the project is to simplify oil emissions in the blockchain and shorten the process time.
What other NFT projects have the potential to be the next hit?
The potential to integrate NFT with DeFi drives a number of upcoming NFT projects worth considering in the future. These include Unifty, which is the management center of NFT and will be equipped with copyright management. In addition, it supports many blockchains, including Dai, Binance Smart Chain and Polygon. The result is a project that will allow crowdsourcing of quotations to determine the value of NFT. NFTX will allow community-owned index funds to be created, allowing investors to be exposed to multiple NFTs by owning one token.
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