In this article, we are going to explain what NFTs are and share with you what you have been missing on the Blockchain and metaverse’s newest trend (virtual space within digital). If you are a tech-savvy person, a crypto investor, curious about the digital ecosystem, or looking to develop your own project based on NFTs, you may consider yourself to be in the right place.
Whether you are a newbie to this technology or an advanced user, do not worry. After reading this article you will become more aware of the crazy and hyped-up world around NFTs. In case you are looking into NFT investment, we advise you to stay calm because FOMO (Fear Of Missing Out) shouldn’t be on the top of your mind when making such decisions, since there are many possibilities out there to start making some extra income.
You need to be able to identify where the finest projects are and understand why they are the most attractive ones for your purpose. That is why we really want you to have more in-depth knowledge about NFTs by answering common questions: What is an NFT? Where to find them? How to choose one? What are the utilities/applications? What do I really own? Where to start if I want to develop an NFT project?
You may have come across many definitions of NFT, so we will be as straightforward as possible. NFT stands for Non-Fungible Token, which is a form of a cryptographic token that represents something unique, a digital asset where there is only one asset on the blockchain (technology that certifies digital ownership). This uniqueness may come in the form of art, entertainment, twin, or representation for a physical asset, or it can be a moment in time that one person can own. It can also be used to represent a variety of things such as works of digital art, ENS (Ethereum Name Service) names, conference tickets, music, or collectibles.
It has been said that this new asset will revolutionize the digital market in a way it was never seen before, and we stand behind this thought 100%.
There are many marketplaces out there where you can find NFTs. The most relevant ones are opensea.io, rarible.com and superrare.com. However, it is also possible to find them in other places such as the project’s websites, mobile apps, or games. Before jumping into one of these options, you should have a wallet connected to the marketplace. The process is fairly simple: create an account and follow the steps. For instance, if your option falls over a project within the Ethereum network, then you could connect to Metamask Wallet. In fact, it might be the best one for this purpose since the most relevant projects are based on that blockchain network and the user experience is quite good.
We are in no way trying to give you any financial advice. These are just some good practices to follow when analyzing possible NFT projects. There are several projects out there that deserve everybody’s attention, and assessing them is a very exhaustive task. You should ideally be aware of the ones that have a real use case or a collaboration with a recognized artist. Nowadays, the projects that possess more value are those where artists take the lead. Continuing on your assessment, you need to continue measuring the value proposition and the utility of the token, as well as the roadmap, tokenomics, royalties, and how they are planning to engage the community to hold the assets, for instance. As soon as your choice is made, stay tuned to the news and make sure you can get the NFT’s drop date (private sale or public sale). This way, you can participate and engage from the very beginning of that specific NFT project and not just pick projects based on a leap of faith.
The utility is another very important point to bear in mind, regardless of if you are going to pick a project or start one yourself. Nowadays, the teams that are developing NFTs need to think about the utility of the NFT post-drop. That is why it is important to ask yourself questions like: where do I want my assets to be shown? Do I want them to use it inside a game, in an AR filter experience, showcase it online, or in a frame on the wall? Answering these questions can help to add differentiation to an NFT drop. When you think about the utility, try to think about the impact that will have on people or on the metaverse.
Ownership is one of the main reasons this technology gained notoriety, mostly when we think of the long-term value, simply because it responds to many doubts regarding its path to mainstream use. It is important to mention that NFTs are based on decentralized technology (blockchain) which guarantees control and possession of your assets. Technically wise, it’s important to understand that you will only really own a part of it. If you are seeking to purchase a digital art collectible, it means that you will own (for instance) a .png or .gif file, where only a small part of that collectible is actually on-chain (within a specific blockchain network, like Ethereum). That part, in simple terms, is an URL, the other part (the metadata), most of the time is backed by a protocol called IPFS (InterPlanetary File System), which basically is also a decentralized system, but not a blockchain.
Many things have already been said in most parts of this article that apply to building a new project around NFTs. Since trends research within the metaverse, analyzing the utility of the token, thinking on how it could benefit others, and understanding how you can develop something that respects the time-to-market to catch this hot trend.
You should do several essential assessments before going deep into software development. We recommend you to define on which blockchain the project will run on, what should be on-chain vs off-chain, and understand how to create and engage a community before and after the launch. Ask yourself if you know how to define tokenomics, if it is enough to create a roadmap defined only by you or if you should also develop a decentralized and autonomous system where the holders and the community can participate and vote fairly on the new features and plans for the future.
It might sound intimidating but do not feel scared because this is not rocket science. It is just a way to approach things in the long run and make sure your project is fully prepared for this universe.
If you are ready to give the next step on your innovation and would like to get more detailed insights about how you can develop NFTs in your business, get in touch with our team and receive a 100% personalized consultation.