In 2021, we could see the NFT explosion. However, the NFT sector is still in its infancy. It has matured enough to show a wide range of consumer applications and is generally becoming more user-friendly.
What are NFTs?
NFT is a non-fungible token or unique token. NFTs work on the blockchain. It first appeared back in 2017 in the Ethereum system.
The blockchain is effectively a ledger of records. For example, BTC or ETH are recorded in the blockchain. NFT too. Such tokens, like any cryptocurrency, can be stored in your crypto wallet, and you can make transactions with them, buy and sell.
But there is a significant difference. Bitcoin (BTC), Ethereum (ETH), other digital currencies, and even real money easily replace each other and are divided into parts. NFT cannot be split into parts or replaced with a similar token. From this point of view, NFT has all the properties of a unique item in the physical world.
How and Where to Buy NFTs
First, you need to find a crypto wallet that will allow you to buy and receive NFTs. Today the cryptocurrency world offers many crypto wallets that are compatible with NFTs and various crypto assets. Thus, it is up to you which wallet to choose. But do not forget to replenish your wallet with cryptocurrency. You will need it to buy NFT.
The next step is to search for an NFT marketplace to find the non-fungible token you wish to purchase. Finding a platform will not be difficult for you as there are many NFT sites currently on offer. Popular NFT marketplaces are OpenSea.io, Rarible, and Foundation. Other than that, you can also buy NFTs on gaming markets such as Cryptozoon and My DeFi Pets.
The next step is payment. Paying for NFT with a crypto wallet is a relatively simple and familiar step for many. In some cases, the website requires you to connect your crypto wallet to the platform to facilitate payment procedures. However, not all sites have such terms and conditions, and some have different rules.
Which are the Best NFT Projects to Watch in 2021?
Consider the top 10 projects that allow you to create NFTs, buy and sell them.
Theta Network is a blockchain network focused on video distribution. Allows members not only to watch videos but also to earn rewards for relaying videos to other users. In doing so, users can contribute no matter what device they use: computer, Smart TV, or phone.
In December 2020, Theta.tv launched native NFTs for content creators to boost user engagement. Authors can now mint such assets and share them with their fans. It means that over 1,000 permanent streamers on the platform can create their unique items, emojis, and badges distributed as souvenirs to interested members and fans.
The Flow project was conceived by the same team that once created the mega-popular CryptoKitties. At its core, Flow is a platform for building, launching, and maintaining blockchain applications that provide many opportunities for developers and users.
Based on the Flow blockchain, many different NFTs have already been launched. Due to their advantages in terms of decentralization and speed, the movement of such assets across the network is highly convenient. Developers look forward to engaging with other popular networks such as Cryptokitties and brands and organizations (Warner, NBA, etc.).
Enjin is an Ethereum platform primarily focused on online game development. Its native ENJ token performs many functions: buying valuable NFTs on the built-in marketplace. Objects can be very different. Their choice is limited only by the imagination of the creators of the games. There are weapons, skills, valuable items, virtual clothes and territories, and much more – thousands of items are available to users right now.
Decentraland is a virtual world divided into separate territories (areas). The plots are NFT. They can be bought and sold, and they all have different values depending on their objects. In addition to members, you can also sell various items such as play clothes.
A simple Builder tool allows anyone with no technical skills to create scenes, artwork, contests, and more. For more experienced developers, an SDK provides tools for filling the world with social interactions and applications.
Sandbox is another virtual world filled with characters, items, and territories. Collectible Assets ERC-721 and ERC-1155, as a constructor, create the Sandbox metaverse. The native SAND token allows you to sell and buy NFTs.
The player can create their own NFT objects using The Sandbox Game Maker tool and then sell them on the integrated marketplace to earn SAND.
The Gala Games platform has partnered with renowned PC game developers such as Zynga and Sandbox Games. The blockchain-based game Town Star is an agricultural browser simulator that is the main focus of Gala Games. Still, other games can also be here.
Like previous platforms, this one makes it possible to create and sell various game objects. And have fun – participate in weekly competitions, complete quests, and communicate with an active community.
WAX is a world-class blockchain network for video games and other entertainment. Entirely tied to the creation and trading of NFTs and offers several opportunities for monetization using DeFi tools. Developers call the platform the “King of NFT.” And there are reasons for this – this is the system that popular brands and celebrities most often choose to issue their non-replaceable tokens – Atari, deadmau5, Capcom, etc. Wax offers developers detailed documentation, code samples, and other supporting material to create tokens, decentralized applications, games, and markets.
LUKSO is a blockchain infrastructure that provides standards and solutions for shaping digital goods. Examples of such solutions: universal public profiles, which make remembering logins and passwords a thing of the past; digital certificates of ownership; tokens of cultural value. This spring, it is planned to launch the mainnet of the project. The network will be compatible with the Casper Consensus Algorithm (PoS) combined with the Ethereum Virtual Machine (EVM) execution engine.
RedFOX Labs is a platform for creating innovative products and solutions powered by the Ethereum blockchain. The unique build-out incubator model helps you create specialized applications from scratch that have every chance of becoming market leaders.
In addition to blockchain technology, such developments as artificial intelligence, virtual reality, augmented reality, the Internet of things, and, of course, NFT.
Ultra is an entertainment platform that allows you to perform various game-related activities at once: explore, buy, play, watch live broadcasts, interact with influencers, participate in contests, tournaments, and much more. All content that the user purchases through Ultra, such as games, DLCs, and virtual items, are digital objects, the ownership of which is secured at the blockchain level. For additional earnings, there are two multidirectional referral programs.
What is the Most Expensive NFT Ever Sold?
The list of the most expensive objects is constantly changing. So, the ten most expensive deals for the sale of NFT tokens in 2021 are:
- Genesis Estate. The price at the time of sale is $ 1.5 million. These are nine adjacent “plots” in the Axi Infinity virtual world.
- Cryptopunk # 6965. Price at the time of sale – $ 1.54 million. The fedora’s hat makes it unique.
- Death Dip. Cost at the time of sale – $ 1.68 million. The work of the English artist Xcopy.
- CryptoPunk # 3011. Price at the time of sale – $ 1.72 million. The character has an earring, glasses, and a smoking pipe.
- First tweet by Jack Dorsey. Price at time of sale – $ 2.9 million. Twitter CEO posted it on March 21, 2006.
- Stay Free. Price at the time of sale – $ 5.26 million. It is a collage of the text of a court decision that recognized illegal mass surveillance by the US National Security Agency.
- Crossroads. Cost at the time of sale – $ 6.6 million. This project was created in response to the US presidential elections. The video was supposed to change depending on the election results: either the current image or Trump is the winner.
- CryptoPunk # 7804. Price at the time of sale – $ 7.57 million. This cryptopunk has a pipe, glasses, cap.
- CryptoPunk # 3100. Cost at the time of sale – $ 7.58 million. Its distinctive feature is the headband.
- Everydays: The First 5000 Days. Price at the time of sale – $ 69 million. This JPG file is a collage from the “Everyday” series of an American artist under the pseudonym Beeple.
The Future of Non-Fungible Tokens
The rapid rise in popularity of NFT is due to the accompanying events in the world and the cryptocurrency society. Namely:
- COVID-19 has made people more connected to digital realms. People who work from home find extra time to interact in digital domains, so they are more open to digital goods and suppliers.
- The rise in popularity of cryptocurrency has sparked curiosity about a different type of digital property.
- Large companies gained confidence in NFT by participating in the auction.
- Irreplaceable items usually thrive in times of financial turmoil when a traditional currency is on the verge of collapse, attention shifts to other exclusive values.
- Gradually, people realize that they do not need cash but more valuable things – real estate, art, etc. Moreover, many understand that they can create these values themselves.
The principles that determine the value and trends of NFT in the future can be summarized as:
- Authenticity. Collectibles have all sorts of authentication mechanisms, and none of them can give one hundred percent guarantees. In contrast, the originality of the NFT is anchored to the blockchain.
- Uniqueness. All NFTs are unique. Digital physical art is also one of a kind.
- Transfer capability. The token can be resold to almost anyone worldwide, which means it has a broader range of potential consumers.
- Immutability. The NFT code and metadata cannot be changed, which makes it persistent.
- Utility. Some NFTs can perform certain functions, generate income, or be exchanged for physical property.