7 NFT-Related Facts You Should Know

NFTs, which are well-known on the BNB Chain and Ethereum, are tokenized collectibles valued for their rarity and uniqueness. Take a closer look at the token on a blockchain explorer because the value of NFTs depends on their veracity and rarity.

The revolutionary non-fungible token ecosystem on BNB Chain now has applications beyond only cryptographic art. It's simple to draw comparisons between the recent popularity of NFTs in the headlines and their high selling prices with the ICO craze of 2017. However, the two are actually very distinct entities.

Based on common misunderstandings and frequently asked questions, we go over the fundamentals of NFTs to help you understand them better.

Introduction

Art and collectibles are always close behind when it comes to non-fungible tokens (NFTs). Graphic designers and visual artists are selling a lot of these distinctive tokens, which is generating waves. The most well-known example is Artist Beeple. His NFT, "Everydays - The First 5000 Days," brought in over $69 million at auction.

NFTs are extremely well-liked, but there is much more to the subject than simply what makes press headlines. If you want to go a little farther, the next step is to understand and investigate the realm of NFTs. There are various areas to look for them, uses to consider, and even myths to dispel.

NFT definition

An NFT is a cryptocurrency asset that uses blockchain technology to symbolize something special and collectible. It's possible that the NFT is in demand since it was produced by a well-known artist or composed by a talented musician. The token might also be useful if you're playing a game or trying to finish a collection.

NBA Top Shot is a digital collectible basketball card game, which you may already be familiar with. The cards function exactly like real trade cards do, but blockchain technology ensures their validity. Each card has a unique value and some are more uncommon than others.

A non-fungible token, in other words, cannot be forged or duplicated. We may learn a little more about what distinguishes an NFT by taking a closer look at the concept of fungibility:

The capacity of an asset to be swapped out for other assets of the same kind is known as fungibility.

A bitcoin can be exchanged for another bitcoin at the same value. On the other side, there is only one #1/99 Keldon Johnson Holo Icon Top Shot card, which makes it not interchangeable.

What can I use an NFT for? Can they be traded?

NFTs come in a variety of forms, sizes, and even applications. The uses of digital art NFTs that are purely for collecting are fairly constrained. Of sure, you can exchange them, but in terms of utility, an NFT of a photo isn't all that different from a typical print.

However, certain NFTs actually do have applications in games, such as the well-known CryptoKitties on the Ethereum network. In this situation, a collectible cat can breed to breed new cats with its qualities.

Additionally, financial platforms frequently use NFTs. The market for artistic NFTs that can be exchanged for cryptocurrencies is enormous. Due to this special combination, it is possible to make predictions about the price of the cashable amount in the future.

The capacity to exchange them for various digital assets is a feature shared by all of these NFTs. As a result, you can exchange ETH, BNB, or other cryptocurrencies for NFTs. Nevertheless, each NFT piece is distinct (i.e., they are not interchangeable).

How are an NFT's worth and rarity determined?

Depending on what it stands for, an NFT's value can be calculated. Cryptographic art resembles other forms of art in many ways. We must consider the piece's creator, creative merit, and potential marketability to other collectors.

Specific numbers are frequently worth more than others when an NFT is a part of a limited run or series. The number one is typically thought of as attractive, however people also value other numbers like 13 or 7. Value and rarity are influenced by a number of variables, including those described above. These Top Shot NFTs demonstrate how a product's ranking influences its price.

Specific NFT monsters or objects may provide financial advantages for game-based NFTs. It will be worth at least $100 without considering its artistic value if they give you an additional $100 in staking incentives.

The NFTs on PancakeSwap are a little different. A portion of their tokens can be exchanged for the platform's cryptocurrency, CAKE. Therefore, if, for instance, your pet rabbit can offer you 10 tokens of CAKE and CAKE costs $20 (USD) each, your NFT is worth at least $200.

What stores sell NFTs?

There are a few different areas to investigate if you want to learn more about the NFTs that are available. Non-fungible tokens are available for purchase on NFT marketplaces from both renowned creators and novices. There are several options available, but among of the most popular are OpenSea for NFTs based on Ethereum and Treasureland, BakerySwap, and/or Trophee for NFTs built on the BNB Chain.

There are more and more markets, some of which are more specialized than others. If you want to purchase something made by a well-known artist, be cautious to verify the marketplace's legitimacy. Participating in decentralized finance (DeFi) projects or playing blockchain games are additional ways to find NFTs.

Which NFT projects are the most prominent on BNB Chain?

The blockchain's vibrant NFT community benefits BNB Chain, and it's not only about art and marketplaces. NFT games and even collections with monetary rewards are available.

Some of the biggest NFT exchanges are trophee, Treasureland and BakerySwap, as was previously noted. Additionally, BakerySwap enables you to easily and affordably produce NFTs. These are excellent places to start when it comes to the artistic and creative aspects of NFTs.

NFTs are also being tested in more financial contexts in blockchain games like Battle Pets and the DeFi protocols. The largest project for NFT usage is PancakeSwap, which tops Treasureland's list of exchanged NFTs. 

NFTs: The Next ICO?

Simply put, no. The amount of money that NFTs raise and their recent excitement and popularity may have some tiny similarities, but that is about it. An initial coin offering (ICO) is a technique for raising money for projects by offering project tokens for sale. It gained notoriety around 2017 It gained notoriety for the large number of scams and unsuccessful projects involved.

It's understandable how some individuals could believe that NFTs and ICOs are identical. Recently, millions of dollars have been paid for these digital treasures. They are also widely covered in the media and are viewed as a way to make "quick money" with cryptocurrency. The similarities between the two stop at these two locations. However, you must conduct your own investigation because not all projects are legitimate before putting your money at danger.

How can the legitimacy of an NFT be confirmed?

Depending on what you're searching for, demonstrating the legitimacy of your NFT may be challenging. Certainly, people are uploading other artists' work while posing as them. In this situation, you would need to speak with the artist to make sure they are indeed selling NFTs of their creations.

The person who created an NFT should provide you with some sort of identifier so you can verify it. The majority of the job will include using a blockchain explorer like BscScan to view your NFT. We follow the maxim "don't trust, verify" when it comes to blockchain.

The date the NFT was mined and the wallet address where it was created could both be useful pieces of information. You could check to see if your NFT matches up by using the transaction history ID. This approach is superior than simply looking at the picture or file that goes with your collectable.

In order to confirm the file's underlying content, there may occasionally be an IPFS link or URL. But anyone can make a false token by using either or both. You're usually better off getting in touch with the author first.

Closing Remarks

New applications and developments for NFTs are always being released. It's simple to forget that the technology is still developing and was only invented in 2017. Make sure you know exactly what you're getting into and how to use these tokens before you start putting money in them. Although it's simple to conceive of NFTs solely as works of art, a vast array of projects employ them in various capacities.