All You Need To Know About NFTs.

In this article, we will explain what NFTs are and share what you have been missing with blockchain and the latest trend of the metaverse (virtual space in the digital). If you are a tech-savvy person, a crypto investor, curious about the digital ecosystem, or looking to start your own project based on NFTs, you have come to 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. If you are interested in NFT investments, we advise you to stay calm, because FOMO (Fear Of Missing Out) should not be in the forefront of your mind when making such decisions, as there are many ways to earn extra income.  Before thinking about profit, you need to be able to identify the best projects and understand why they are most attractive for your purposes. That is why we would like to provide you with a deeper knowledge of NFTs by answering frequently asked questions: What is an NFT? Where can they be found? How do you choose one? What are the benefits/applications? What do I really own? Where should I start if I want to develop an NFT project?

What is an NFT?

You may have encountered many definitions of NFT, so we will keep it as simple as possible. NFT stands for Non-Fungible Token, a form of cryptographic token that represents something unique, a digital asset of which there is only one on the blockchain (technology that certifies digital ownership). This uniqueness can come in the form of art, entertainment, twins, or a representation of a physical asset, or it can be a moment in time that a person can own. It can also be used to represent a variety of things such as digital artwork, 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 never has before, and we are 100% behind that thought.

Where to find the best NFTs?

There are many marketplaces where you can find NFTs. The main ones are opensea.io, rarible.com and superrare.com. However, it is also possible to find them in other places, such as project websites, mobile applications, or games. Before choosing one of these options, you should have a wallet that is connected to the marketplace. The process is quite simple: create an account and follow the steps. For example, if you choose a project on the Ethereum network, you can connect to the Metamask wallet. In fact, it might be the best one for this purpose, as most relevant projects are based on this blockchain network and the user experience is pretty good.

How to choose one?

We are in no way trying to give you financial advice. These are simply some good practices to keep in mind as you analyze potential NFT projects. There are many projects that deserve our attention, and evaluating them is a very comprehensive task. Ideally, you should be interested in projects that have a real use case or collaboration with a recognized artist. Nowadays, projects of greater value are those where artists take the lead. As you continue your evaluation, you need to assess the token’s value proposition and benefits, as well as the roadmap, tokenomics, royalties, and how the community will be involved in owning the assets. Once your decision is made, you should follow the news and make sure you can find out the NFT’s drop date (private sale or public sale). This way, you can be involved in the particular NFT project from the beginning, rather than just picking a project on a leap of faith.

What are the utilities/ applications of an NFT?

The utility is another important point to consider, whether you are selecting a project or starting one yourself. Today, teams developing NFTs need to think about the utility of the NFT after launch. That’s why it’s important to ask yourself questions like: Where do I want my assets to be displayed? Do I want them to be shown in a game, in an AR filter experience, online, or in a frame on the wall? Answering these questions can help differentiate an NFT drop. When thinking about the benefits, also consider the impact on people or the metaverse.

What do I really own?

Ownership is one of the main reasons this technology has become popular, especially when we think of its long-term value, simply because it meets many doubts regarding its path to mainstream use. It is important to note that NFTs are based on a decentralized technology (blockchain) that guarantees control and ownership of your assets. Technically, it’s important to understand that you will only truly own a portion of it. If you want to acquire a digital collectible, this means that you will own (for example) a .png or .gif file, and only a small part of that collectible is actually on the chain (within a particular blockchain network, like Ethereum). That part is, simply put, a URL, and the other part (the metadata) is mostly supported by a protocol called IPFS (InterPlanetary File System), which is also basically a decentralized system, but not a blockchain.

Where to start if you want to develop an NFT project?

Much has already been said in most parts of this article that applies to building a new project around NFTs. As trends are explored within the metaverse, analyze the utility of the token, think about how others might benefit, and understand how to develop something that respects the time-to-market to pick up this hot trend. 

Before you jump into software development, you should make several important assessments. We recommend defining what blockchain the project will run on, what will be on-chain and what will be off-chain, and how to build and engage a community before and after 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 holders and the community can participate and vote fairly on the new features and plans for the future. It may sound intimidating, but do not be afraid, because this is not rocket science. It’s just a way to approach things in the long term and make sure your project is fully prepared for this universe. 

If you are ready to take the next step in your innovation and want to learn more about how to develop NFTs in your organization, contact our team for a 100% personalized consultation.