NFTs in Technology

Overview

An NFT marketplace is essentially an e-commerce platform where users can buy and sell digital assets such as digital art, collectibles, gaming items, audio records, and so on. Non-fungible tokens are assets that are linked to blockchain technology, specifically Ethereum. NFTs are immutable digital asset ownership records based on blockchain that promise to provide true value. They provide benefits in a variety of ways. Art, entertainment, music, games, and other industries have benefited greatly from the power and potential of NFTs.

Because each NFT is unique, we cannot exchange it for the same digital asset because there are none. Because of this, they are known as non-fungible tokens.

Advanced use cases such as NFTs are one of the main reasons for blockchain technology's growing popularity and widespread adoption across industries. Non-fungible tokens, or NFTs, have grown in popularity in recent years, revolutionizing digital assets' buying, selling, and trading.

According to research in the first quarter of 2021, the total market capitalization of large NFT projects increased. Most NFTs sell out instantly, with the most famous NFTs selling in millions. In addition, celebrities support the NFT hype by tokenizing their music, paintings, memes, short videos, logos, computer code, etc. 

This article will take the reader through the best technologies for the NFT marketplace, what NFTs are, and where one can use them.

Technology Stack

The following blockchain platforms are used for building NFTs:

• Ethereum
  Ethereum is one of the most popular platforms for NFT marketplace or non-fungible token development. Since transaction history and token metadata are publicly verifiable on Ethereum, it is easier to prove ownership history. As all Ethereum products share a common backend, NFTs become portable across products. Also, Ethereum rarely goes down; therefore, tokens will always be available for sale.

• Flow
  Flow is a rapid and decentralized blockchain designed for a new generation of digital assets, apps and games. The platform is being widely used to create both NFT marketplaces and NFTs using the Cadence programming language.

• Tezos
  Tezos is an open source blockchain platform for applications and assets backed by a community of builders, researchers and validators. Using a pre-compiled FA2 NFT contract written in LIGO smart contract language, Tezos supports the development of NFT marketplaces and NFTs.

• Cardano
  Cardano is a blockchain platform with technologies and tools required to provide unmatched security and sustainability to decentralized systems and applications. It also supports the development of NFTs and other digital assets.

Storage Platforms

• InterPlanetary File System (IPFS)
  IPFS is a peer-to-peer hypermedia protocol designed to store media content in a decentralized way. As the media file related to NFTs cannot be stored directly on the blockchain, IPFS can store all that data.

• Filecoin
  Filecoin is a decentralized storage network designed specifically to store critical information, such as media files. The storage platform includes everything a developer will require to get started with decentralized storage for NFTs. Knowing its benefits, Truffle Suite has also launched NFT Development Template with Filecoin Box.

• Pinata
  Pinata is a popular platform for uploading and managing files on IPFS. It provides secure and verifiable files for NFTs.

Use Cases of NFTs

Non-fungible tokens (NFTs) have several use cases, including:

Digital Art Collectibles

NFTs can be used to authenticate and sell digital art and collectibles. They provide proof of ownership and scarcity, allowing digital assets to have value in the same way that physical assets do.

Digital art and collectibles are digital assets that are created and owned by individuals or organizations and can be bought and sold online. Digital art is a form of art that is created using digital technology, such as computer software or applications, and can take many different forms, such as drawings, paintings, animations, and digital sculptures.

These digital assets are unique and often have a limited edition or a specific theme, and they can be anything from digital trading cards to virtual real estate. Digital art and collectibles are often bought and sold on marketplaces or platforms that specialize in the sale of these types of assets. They can also be stored and managed using blockchain technology, which provides a secure and transparent way to track ownership and authenticity.

Gaming

NFTs can be used to represent in-game items, such as weapons or characters, that can be bought, sold, and traded on the open market. NFTs (non-fungible tokens) are digital assets that are unique and cannot be exchanged for other assets on a one-to-one basis. They are often used in the gaming industry as a way to represent unique in-game items or assets, such as rare weapons or characters. These NFTs can be bought, sold, and traded on various online marketplaces, and they are stored on a blockchain, which allows for verifiable ownership and scarcity. Some popular examples of games that use NFTs include CryptoKitties, Axie Infinity, and Gods Unchained.

Virtual real estate

NFTs can be used to represent ownership of virtual real estate, such as land in a virtual world or a virtual plot of land in the real world.

Virtual real estate NFTs (non-fungible tokens) are digital assets that represent ownership of a virtual property or location within a virtual world. These assets are often used in online games and virtual reality platforms. They can be bought, sold, and traded like other NFTs and can sometimes have real-world value.

Some examples of virtual real estate NFTs include virtual land in virtual worlds, virtual plots of land in decentralized virtual cities, and virtual real estate within online games. Some virtual real estate NFTs may offer additional benefits or privileges to the owner, such as the ability to build or customize the virtual property or to receive a share of the revenue generated by the virtual world.

Tickets and passes

NFTs can be used to represent tickets to events or passes to clubs or other exclusive venues. NFTs have the potential to revolutionize the way that tickets and passes are bought, sold, and used. They offer a secure, verifiable way to represent ownership of these items and can help to prevent fraud and counterfeiting. Additionally, NFTs can make it easier for people to buy, sell, and trade tickets and passes online, opening up new possibilities for event organizers and attendees.

Identity verification

NFTs are used to verify the identity of individuals or organizations online. NFTs have the potential to revolutionize the way that tickets and passes are bought, sold, and used. They offer a secure, verifiable way to represent ownership of these items and can help to prevent fraud and counterfeiting. Additionally, NFTs can make it easier for people to buy, sell, and trade tickets and passes online, opening up new possibilities for event organizers and attendees.

Supply chain tracking

NFTs are used to track the movement of goods through the supply chain, providing transparency and security. In the supply chain context, an NFT can be used to represent ownership of a physical item as it moves through the supply chain. Each time the item changes hands, the NFT can be transferred to the new owner, providing a permanent record of the item's ownership history. This helps ensure the authenticity and provenance of the item, as well as provide transparency and traceability in the supply chain. There are many potential applications for NFTs in supply chain tracking, and this technology is still in the early stages of development. It will be interesting to see how it evolves and is adopted in the coming years.

Concluding Remarks

NFTs, or non-fungible tokens, are digital assets that are unique and cannot be replaced or exchanged for something else of equal value. They are often used to represent ownership of a digital asset, such as a piece of artwork, music, or video game item. NFTs are stored on a blockchain, which is a decentralized and secure digital ledger that allows for the recording of transactions across a network of computers. Because they are stored on the blockchain, NFTs can be bought and sold easily and securely, and their ownership can be tracked and verified. The use of NFTs in technology has grown in recent years, particularly in the field of digital art and collectibles. Some people are even using NFTs to represent ownership of physical assets, such as real estate or luxury goods. As the use of NFTs continues to grow, that will lead to even more innovative and creative ways that they are used in the tech industry.