As NFT gains traction, here are some of NFT’s top markets, as well as its future outlook.
Currently valued at around $100 million, NFT’s Non-Fungible Token is changing the way digital asset ownership and authenticity are perceived. The leading entities in the crypto and blockchain gaming world have been experimenting with NFT in every way. However, the main goal is to prove the authenticity and ownership of digital items, which has previously proven difficult until the advent of blockchain technology.
Through blockchain technology, digital assets can have unique identifiable properties that make them rare and irreplaceable. On NFT marketplaces such as OpenSea, countless projects are active that produce all kinds of innovative and transferable NFT items.
Although the past decade has seen a lot of euphoria surrounding Fungible digital assets like Bitcoin (BTC) and Ether (ETH), Non-Fungible Tokens are just getting started and a lot of progress has been made. outstanding.
NFT exploded quickly
Although the Fungible Token is indistinguishable from Bitcoin and is replaceable by other tokens of the same type, the Non-Fungible Token is distinguishable from other tokens and cannot be replaced or replaced.
For example, a banknote in a wallet can easily be lent and replaced with another. The lender is not required to return the same banknote. Thus, the bill is an object that can be replaced by another object of the same type in a one-to-one ratio.
However, when buying a unique piece of art or a plane ticket, you won’t be able to get the same value if the item is exchanged for something else — assuming the items are unique. Therefore, an airline ticket that gives you access to a standard seat on a flight to location A is not the same as a ticket that allows you to board a private plane to location B.
Blockchain makes it possible to own NFTs in the digital world, similar to how anyone owns baseball cards in the real world. These digital assets can be stored on the blockchain and transferred from one owner to another without the risk of being caught and illegally copied.
OpenSea is billed as the world’s largest marketplace for NFTs. With trading volumes exceeding many of its peers, OpenSea offers a wide variety of virtual goods ranging from digital collectibles to domain names, digital art, card games and more.
Simply put, the platform acts as a single storefront for all tokens. Users can also customize their NFTs and sell them to the target audience in the market. Currently, OpenSea hosts over 1.2 million NFTs and features tools that allow developers to create and integrate NFTs into games in the simplest way.
According to the company’s CEO Devin Finzer, the future of the NFT industry will see more activity in the pure digital gaming world before the tokenization of real-world assets accelerates. .
On June 8, PlayDapp was launched as a customer-to-customer NFT marketplace that allows users across the globe to freely trade blockchain in-game items. Currently, users on the platform can trade in-game items from CryptoDozer and DozerBird, which are the only blockchain games supported on the market. Plans are underway to launch titles like Along with the Gods: Knights of the Dawn.
In addition to being a platform for gamers looking to trade NFTs, PlayDapp also provides support for developers. According to Choi Sungwone, the platform’s general manager of strategy, the company plans to offer tools that “allow game items in the RPG genre to be traded through NFT through the PlayDapp MarketPLAce.”
PlayDapp is focusing on creating in-game items that can be traded between users and is supported by the involvement of industry experts such as Koh Kwang-wook, Item’s former chief technology officer. Fly, the world’s first online game site.
Also, about a year ago, SuperTree, the PlayDapp market backer, joined Samsung’s C-Lab program, a startup incubation program that supports the growth of promising startups. .
Credits in the game
Game, which owns Game Credits, wants to be the in-game currency of the e-sports industry. At its core, the Game Credits platform uses the GameCredits (GAME) token for a variety of purposes. First, the token serves as an in-game currency that can be used to buy and sell NFTs in the marketplace.
GAME token holders can also stake tokens to fund the development of quality games on the platform. Tokens are used to pay for transactions on the NFT marketplace and also to pay the fees associated with the creation of NFTs by developers.
In addition to being a marketplace for in-game items, Game Credits also provides solutions for owning and creating digital assets by providing developers with ready-made tools that allow fast integration of NFT into the game platform.
With Game Credits, developers can earn from the NFTs they create, even without any knowledge of blockchain programming. Jason Cassidy, CEO of Game Credits, says that NFT exchanges are an essential part of the ecosystem: “NFTs represent the other half of crypto — parts of our world. are unique and hold value to us for completely different reasons.”
Founded in 2015, Decentraland is a decentralized, user-owned, virtual world featuring an NFT marketplace where users can buy plots of land, develop and sell them later. The platform also allows users to create original works of art and scenes using simple construction tools. In addition to buying and selling virtual land, Decentraland’s NFT marketplace also offers wearable avatars, among other NFT items built on the Ethereum blockchain.
Every virtual item on the platform is represented by a token recorded on a blockchain-backed ledger.
For example, virtual land is represented by a token called LAND, and holders of those tokens can build other tokens representing other items such as houses, hotels or schools on virtual land. .
While the platform is still in development, at its core, Decentraland is looking to create a new way to interact with NFT by creating an immersive experience tied to a native economic network.
Enjin Market was one of the first NFT marketplaces online. Enjin, a blockchain asset issuance platform, allows developers to use Enjin Coin (ENJ) to develop NFT. Enjin Coin is built on Ethereum with a refined NFT standard including the Enjin suite, allowing for the creation and monetization of digital games.
To date, Enjin has collaborated with other players in the industry to create tools such as the EnjinCraft plugin, which is an open source plugin that allows the use of encrypted NFTs in Minecraft. Thus, players can link their Enjin wallet to buy weapons and avatars in the game or exchange them for other items in Minecraft.
Having secured partnerships with Ubisoft, Microsoft, and Samsung — to mention just a few — the Enjin team has become well known in the Ethereum world and plans to grow its platform while continuing to enable NFT’s secure ownership and transactions.
According to Dapp Radar, Rarible is one of the top markets for NFT, with weekly volume exceeding $1 million. However, the Russia-based foundation was only founded in 2020.
Rarible is a community owned platform that offers a wide range of digital assets, from digital artwork and domain names to different types of collectibles. In addition to allowing players to trade NFTs, users on the platform can use Rarible Governance Tokens (RARI) to create custom NFTs. This feature allows artists to create music albums, movies, and even books with titles secured on the blockchain.
The Rarible token is also used as a governance token, thus further transforming the Rarible marketplace into a decentralized autonomous organization.
Rarible recently partnered with CoinFund, a blockchain investment firm based in New York, through which Rarible is expected to receive funding for the further development of the NFT market.
The way forward
Currently, there is consensus in the crypto community about the value of fungible digital assets like Bitcoin and Ether, determined by market forces. However, impassable assets are valued for completely different reasons and are increasingly becoming the other half of the blockchain discussion.
With reports showing growth of over 2.5 billion users, Cassidy believes that future growth is predicted based on the usability of NFT exchanges: “Hot NFT areas like technology The technique needs these markets to allow for value formation because their value is purely subjective. Exchanges provide this platform for awareness of a new asset class as well as direct access to invest in it. “
The future looks bright for the NFT scene as organizations like the Blockchain Gaming Alliance strive to bring together NFT-focused people to grow the industry even stronger. However, there are still a few challenges on the way ahead. For example, Cassidy notes that the lack of liquidity makes investing in some NFTs risky because the market is still in its early stages with a limited number of buyers. Also, because the value of the asset is considered subjective, investors may have to wait a while to get the price they want.
Additionally, since most NFTs are built on Ethereum, Cassidy added that “The more Ethereum struggles to scale, the more challenging the NFT industry is because modern ERC-721 and ERC-1155 standards represent the vast majority of all NFTs in existence today.”
Perkins also noted scalability as the main issue hindering further growth of the industry. However, he thinks scalability may not be an issue in the long run based on efforts from multiple projects to develop scalable layer two solutions that hopefully improve handling of off-chain transactions using decentralized applications. As a result, layer two solutions will reduce the cost of moving NFTs from one user to another while increasing the overall efficiency of Ethereum-based platforms.