What are the much-hyped NFTs? What tokens will lead the NFT charge in 2022?
NFT is an exclusive piece of data that redirects the owner of that piece to a specific server or location on the web. And, this address can store an image, Gif, music video, or anything that is ‘ART’.
But that’s not the best thing about NFTs. You can learn and read more about NFTs and even invest in specific NFT drivers via leading crypto exchanges like
CoinSwitch
.
The original entity stored in the server has the creator behind it, who determines whether the collectibles change or what the entire NFT bundle offers.
If someone owned an NFT, they haven’t actually bought the stuff made by the creator. Instead, only the bragging rights were purchased, and the creator is still in control of the artwork, regardless of what it might be.
NFTs and the Metaverse
Metaverse is a virtual or digital reality where purchases, concerts, lands, and other resources are available just like they are in the real world.
Metaverses like Decentraland serve as virtual reality marketplaces built by and for users on the Ethereum blockchain.
NFTs
can be created, traded, monetized, and even flipped in this marketplace using the native MANA token.
Similarly, the Sandbox, a popular Voxel platform, allows users to hold NFTs and other digital assets with the native SAND token.
Even though Metaverse is still a long way from becoming mainstream, NFTs have gained a lot of traction across these marketplaces. And, the success and growth of NFTs largely depend on the success of the Metaverse and vice versa.
NFTs: Fad or Fab
Massive valuation of NFTs might appear controversial to some, but the digital asset market has exploded, defying the popular belief that they are doomed to fail. And there are several factors that have contributed to the explosive growth of the NFT market.
Creator-centric
Recurring payments are not attracted to physical art pieces. NFTs, on the other hand, change this by adhering to the Blockchain. NFTs can use Ethereum’s Smart Contract feature or any other compatible blockchain to ensure that the creator is paid a royalty every time an NFT is sold or even flipped.
Investor-centric
Over the last week, the top five NFT collections have brought in nearly $300 million? That’s how popular NFTs are, and it’s because of this craze that investors are buying the best ones in the hopes of flipping them when their popularity rises.
Non-fungible
No two NFTs have the same value, and the value of an NFT is determined by what people think of it at any given time. These digital assets are more like people-driven art forms, catering to those valuing them. The ‘Non-Fungible’ nature adds to their popularity.
Easy to buy
You can pick NFTs of your choice from specific marketplaces. However, buying NFTs necessitates the use of blockchain-specific currencies, which can be ETH (as most NFTs are Ethereum-backed) or any other platform-relevant cryptocurrency, such as MANA for Decentraland, GALA for Gala Games, and others.
Easy to store
To store the NFTs that you purchase, you can go to a secure software, hardware, or a web wallet that is secure enough and allows you to store the address and password that leads to the collection.
ET Spotlight SpecialTop 5 tokens to deal in NFTs
For a long time, ETH (Ethereum) has been the crypto asset of choice for bidding in and purchasing NFTs, as most NFTs were hosted on the Ethereum blockchain itself.
However, as the Metaverse expands and more marketplaces and VR platforms launch their own NFTs, here are a few tokens that could see a lot of use in the future.
SAND
SAND is one of the few NFT-relevant tokens that allows users to own, build, and even monetize their gaming and digital asset procuring experiences. It is native to the Sandbox ecosystem. If you’ve been playing the Sandbox platform’s 3D games, having SAND in hand can help you share and build resources, as well as vote on important platform-specific decisions.
MANA
MANA is an ERC20 token that is used to buy LAND NFTs and other digital assets. It is synonymous with the Decentraland blockchain. Decentraland creators can also use MANA to incentivize virtual structures, experiences, theme parks, and other entities.
GALA
Gala Games is another Ethereum-based platform that uses the GALA token as its native currency. It’s a hotbed for blockchain games, with NFTs being sold, bought, and traded with the GALA token. And all this primarily influence game launches, in-game purchases, and other decisions.
The three tokens mentioned above are now available on
CoinSwitch Kuber
, and if you’re interested in NFTs or the Metaverse, you should check them out.
ENJ
The ENJ token is used to pay for building websites and other NFTs in the Enjin ecosystem, which helps users create and load digital assets. The ENJ crypto is also used to tokenize all digital assets that are relevant to this blockchain.
CHZ
The CHZ token is used to exchange specific NFTs on the Chilli blockchain. Most importantly, the CHZ token is built on the ERC20 protocol and includes voting rights for the Chiliz ecosystem.
In conclusion
With the pace that they are going at the moment, the concept of NFT is certainly the future of digital art, collectibles, and ownership.
While it might still look like a trend to some, 2021 has proven that NFTs are here to stay, with platforms like
CoinSwitch Kuber taking center-stage in explaining them better. It is a novel idea that will keep generating recurring revenue for the creator, keeping the ownership space transparent for all.
And with the Metaverse on the horizon, things are going to get more exciting from here with NFT-relevant tokens, exclusive virtual marketplaces, and entire virtual worlds ready to be purchased.
Disclaimer
: The above content is non-editorial, and TIL hereby disclaims any and all warranties, expressed or implied, relating to the same. TIL does not guarantee, vouch for or necessarily endorse any of the above content, nor is it responsible for them in any manner whatsoever. The article does not constitute investment advice. Please take all steps necessary to ascertain that any information and content provided is correct, updated and verified.
