What are NFTs?
Non-Fungible Tokens (NFTs) are smart contracts that represent the ownership of unique items such as tickets to an event, videos, digital art, legal documents, etc.
When something is “Non-Fungible,” it simply means it is unique and cannot be replaced with something else. Let's say, for example; a dollar bill is a fungible item as one dollar bill can be replaced by another and be considered and worth the same.
A “Non-Fungible” item outside the crypto world is assets like land, diamonds, and even baseball cards. A Non-Fungible item is not interchangeable with other items because of its unique properties.
NFT only has one official owner, and the contract and transaction are recorded and secured on the Ethereum blockchain.
How do NFTs work?
When an NFT is minted or created, it creates a smart contract recorded onto the blockchain. The contract is managed with the help of a UniqueID that displays who the current owner is. When you purchase an NFT, that uniqueID changes and is also reflected on the blockchain. You now have public and traceable ownership of that asset through the Ethereum blockchain.
Bitcoin, blockchain, and cryptocurrency technology: laptop connected to a network of concepts.
A single person can only own an NFT, and the record of the price, sale, and ownership all exist on a public ledger. When the NFT changes hands, the blockchain acknowledges the transaction viewable by all in public.
Simply put, you own the NFT, proving the ownership is quite secure and simple, and so is any proceeding sale of the asset.
List of Top NFT Marketplaces
Probably the best NFT marketplace according to the present industry standards, OpenSea is also the largest among the NFT marketplaces. It offers various NFTs varieties such as virtual worlds, art, censorship-resistant domain names, sports, trading cards, and collectibles. The interesting highlight of OpenSea is the fact that it includes the ERC721 and ERC1155 assets.
It allows you to sell, purchase, and explore some of the exclusive digital assets such as Axis, ENS Names, Decentraland, CryptoKitties, and others. OpenSea features more than 700 projects of different varieties such as trading card games, digital art projects, name systems such as ENS, and collectible games.
The item mining tool on the OpenSea is also one of its top highlights as an NFT marketplace. The minting tool allows creators to develop their items and create their own NFT collection. OpenSea is the perfect marketplace for creators developing their own smart contracts for the digital or games collectibles.
The next probable answer to ‘What is the best NFT marketplace” comes in the form of Nifty Gateway. It is easily one of the trusted high-end NFT marketplaces for trading in crypto art. The partnership of the Nifty Gateway with top creators, artists, brands, and athletes works in its favor. As a matter of fact, the collaboration brings exclusively unique works to interested collectors of crypto art.
Moreover, it is quite difficult to get accepted on the Nifty Gateway when it comes to crypto art marketplaces. Thus, brands, top artists, and celebrity creators are able to access this platform. The platform follows three different auction styles such as silent auctions, timed auctions, and “Buy It Now.”
Nifty Gateway also allows for royalties as artists can select the percentage they want from secondary sales. As a top NFT marketplace, it supports payment in debit cards, credit cards, and Ether.
SuperRare is also another promising NFT marketplace that comes to mind among the best alternatives. The platform also focuses profoundly on serving as a marketplace where people could trade in a unique, single edition of digital art. An artist in the SuperRare network creates authentic artwork.
Then the platform tokenizes the artwork in the form of a crypto asset or collectible, which is subject to trading and ownership. Many industry experts praise SuperRare for offering a new approach of interaction with culture, art, and collecting on the internet. The striking highlight of SuperRare points out the development of a social network over the complete marketplace.
Since digital collectibles are mainly associated with a transparent record of ownership, they can be suitable for a social environment. SuperRare is suitable for beginner artists with a knack for creativity and innovation. It supports Ether, a native cryptocurrency in the ETH network.
Any discussion about the top NFT marketplace would be incomplete without the name Rarible. It is a very easy-to-use NFT platform with limited obstacles for being accepted as an artist. Thus, people who are just setting their foot in the domain of the NFT could make the most of the Rarible.
Furthermore, it presents a slight setback in terms of the User Experience, which bears the influence of a confusing layout. The interesting fact about the Rarible is RARI, its own token. RARI is helpful in rewarding active platform users.
Running on the ETH Blockchain, it requires fees of around 2.5% on every sale and supports cryptocurrencies such as ATRI, WETH, and DAI, apart from the ETH and RARI. Moreover, Rarible is also a reliable and flexible NFT marketplace for royalties, such that artists could select the share of profits they want from secondary sales.
One of the most notable entries among the NFT marketplaces that have made news in the recent news is Foundation. It has become the best NFT marketplace for many crypto art creators. The distinct features of Foundations refer to the facility of community curated collections. With a collaborative approach, collectors as well creators encourage new artists to join Foundation.
Thus, creators can easily access the “Creator Invites” feature after selling their first NFT. Any artist with the talent to make a mark and stand out as a unique creator can choose the Foundation. It supports payment in Ether and also plans on introducing a completely new feature guaranteeing around 10% royalty for the secondary sales.
Why Is an NFT Different from Cryptocurrency?
NFT stands for the Non-Fungible Token. It is generally constructed exercising the same kind of programming as cryptocurrencies like ETH or Bitcoin, but that is where the similarity ends.
Physical money and cryptocurrencies are “fungible,” representing they can be exchanged or transacted for one another. They are too equal in value – one dollar is always worth another dollar, the same way one bItcoin is always equal to another Bitcoin. Crypto’s fungibility impels it as a trusted means of conducting business on the blockchain.
NFTs are different. Each has a digital signature that constitutes its impossible for the NFTs to be exchanged for or equal to another (hence, non-fungible). One NBA Top Shot Clip, for example, is not equal to EVERYDAYS simply because they are both NFTs.
Just like cryptocurrencies, you can buy, create and sell NFTs from the marketplaces and online exchanges. The creator can choose the price, or there could be an auction for art pieces; you can bid for the NFTs.
NFTs are speculative assets; some make millions of dollars, while others may end up spending a lot of money and not getting any worth for the NFTs they bought, created, or have sold.