One of the hot topics recently in the world of cryptocurrency is associated with non-fungible tokens. NFTs have been gaining in popularity as the crypto community has been fascinated by Decentralized finance (DeFi), with applications spanning from digital artworks to gaming and finance. The market for NFTs generated more than $10 billion in transaction volume in the third quarter of 2021.
NFTs pertain to unique cryptographic assets based on the foundation of blockchain technology. They are considered digital assets representing real-life objects like collectibles and artworks that can be traded on public blockchains. Similar to cryptocurrencies, NFTs are issued on a blockchain and are utilized to represent ownership of an asset linked to a unique piece of data, usually a digital content file.
Unlike cryptocurrencies, NFTS are not fungible, which means that each one is unique and cannot be exchanged for another. To put it another way, while one Bitcoin is equal to one Bitcoin, and it’s equal to all other Bitcoins, no two NFTs are the same. Each NFT has its own set of attributes and isn’t worth the same as other comparable tokens.
As we live in the digital era, NFTs unlock a plethora of opportunities for digital commerce as they offer practical applications backed up by their properties and ability to establish provenance and authenticity. In the field of business, it is now widely adopted in various fields such as intellectual property, supply chain, and real estate.
In the sports and entertainment industry, this new form factor for commerce has enormous potential since it represents a more dynamic approach to engage the audience as well as potential new revenue sources for businesses. Moreover, NFTs serves as an interesting medium for creators and investors who are gaining economic potentials out of it.
As an example, many artists are now able to sell their work as a digital collectible. The artists can keep ownership of this piece of art they create while simultaneously earning royalties from secondary market sales using these blockchain-enabled digital assets. The types of NFTs are growing in recent times and are now applicable in a wide range of use cases, including collectibles, artworks, music, videos, memes, domain names, games, and other virtual items.
Visa (2020) outlines seven steps to consider for integrating NFTs successfully into a digital commerce: (1) identify the NFT use case; (2) determine the appropriate blockchain; (3) mint the NFTs; (4) decide how to store digital assets in a long-term sustainable way; (5) store and access NFTs securely and easily; (6) distribute across an applicable marketplace, and (7) identify additional opportunities to engage fans.
Due to the exponential growth of NFTs, Coinswap Space perceives the importance and vibrant prospects of the NFT landscape. And as one of the prominent players in the DeFi ecosystem, Coinswap Space has a roadmap that covers numerous NFT-related activities such as the creation of NFT characters, NFT fractalization vault & factory, gaming arena, NFT SpaceMarket, Metaverse NFT fractalization for games & competitions, physical NFT gallery, and NFT renting & exhibit.
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