What is an NFT?
NFT is short for non-fungible tokens. They can be anything digital such as drawings, music, etc.
The unique aspect of NFTs is the non-fungible aspect which means that they are unique and can’t be replaced with anything else thanks to blockchain technology. A blockchain is a way to store data without having to trust any one company or entity to keep things secure and accurate. This allows for digital files to be secured in a way that ensures ownership and creates scarcity.
For instance, anyone can right-click and save a picture from a website, but there is no verifiable way to ensure who the true owner is.
With an NFT, you will know for sure not only who the owner is, but the metadata in the NFT will also tell you when it was created and other attributes such as transfers between owners.
How Does an NFT Work?
Most NFTS that are created nowadays are a part of the Ethereum blockchain. While Ethereum is a cryptocurrency, it’s blockchain technology also keeps track of who is holding and trading NFTs.
Some projects like NEAR have implemented their own blockchain and also have NFT functionality!
What are NFTs used for?
NFTs have been around since 2014 and interest has surged in recent years with its use case of being used to buy and sell digital artwork.
While there are many use cases for NFTs, one of the most popular ones is Digital Collectibles.
Artists that create NFTS of their digital artwork can receive royalties on every sale to ensure that they are properly compensated for their work. In the first half of 2022, $2.7 billion was spent on minting NFTs on the Ethereum blochain alone. By 2027, that number is expected to reach $13.6 billion!
Tegus NFT Marketplace provides “White Label” NFT platforms to established artists and corporations to help them capitalize on the popularity of NFTs.
If an artist or corporation tried to make an NFT collection on Opensea or any other public NFT marketplace, their brand would be lost and diluted in a sea of other NFT collections.
If they tried to make their own NFT marketplace, the development costs alone could add up to more than $100,000.
By providing an NFT marketplace at no up-front cost, Tegus NFT platforms reduces the barrier to entry into this lucrative market and in fact, provides a steady source of revenue for our clients.
Interested in learning more? Be sure to fill out our contact form or call us at (561-983-4303) to get started!