Before we talk about anything else, the first thing we have to look at is how Non-Fungible
Tokens work, how they are acquired, and what kind of value they have.
What is an NFT?
Non-Fungible Tokens are essentially crypto assets that are indivisible and completely unique, and they can be used to represent tangible and intangible items.
NTFs originally launched on Ethereum through the use of the ERC-721 token standard, however in recent years they have become available on a lot of other blockchains and as such, have gathered a lot of different use-cases, from digital collectibles, artworks, and even in-game assets.
Non-Fungible tokens contain information that is recorded within their smart contracts and this piece of information is what makes each NFT different. This means that these cannot be replaced by any other token out there.
We’ll be taking a look at Bitcoin, which is a fungible token. This means that you have the ability to send someone a single Bitcoin, and they can send one back, and at the end of the day, it will remain a single Bitcoin. The value has the possibility of changing between the transactions as the market fluctuates and due to the fact that it is a volatile currency, but the currency itself stays the same.
The difference in the Non-Fungible Tokens is in the fact that they are not divisible. Think of a plane ticket, now imagine giving your friend half of a plane ticket, it wouldn’t be valid without the other half, right? I’d honestly love to see an airline accept that half-ticket and get him aboard the plane, but that is not the case in the real world. As such, NFTs represent a unique asset. You can also see the NFT Bible for more detailed insight into NFTs.
Fungibility refers to a currency’s ability to maintain a standard value as well as a uniform acceptance. It means that a currency’s history cannot affect the value it has and each piece that is a part of the currency is equal in value to every other piece. If you have a $1 bill next to you right now, then it is as valuable as my $1 bill next to me. This means that when a currency does not have fungibility, it is unstable and it has a high chance of collapsing as a result.
Use Cases for Non-Fungible Tokens
Non-fungible tokens are blockchain assets that are designed with inequality in mind. They work as a database entry for any type of good.
The first example we will be looking at is Hashmasks.
Hashmasks is a living digital art collectible that was originally created by over 70 artists globally and has a collection of 16,384 digital portraits that are fully unique. Through holding on to artwork, you accumulate NCT tokens on a daily basis and they allow you to choose a name for your portrait.
As such, Hashmasks introduced a combination of digital art as well as collectibles that have a value hierarchy that is determined by the creator and the consumer of the artwork. Hashmasks provides a set of traits that prove general guidance to the consumer and have created implicit traits that are not accounted for. The naming is done through the Name Changing Token, which can be interchanged with other participants of the artwork. Every single name is unique and can only belong to one NFT.
An NFT cannot be replaced or swapped for another token as no two are alike, and while they may be similar to banknotes that have a unique identifier, they simply cannot be exchanged for one another even if they do indeed have the same value, and are even on the same blockchain for that matter.
Non-fungible tokens can be used for digital assets that need to be differentiated from one another in order to prove their value as well as scarcity. In other words, they can represent ownership licenses, and what we specifically love to see in our artworks. Keep in mind that these tokens are not traded on some of the standard cryptocurrency exchanges you might be aware of, but they are sold on digital marketplaces instead.
They are also making a huge impact in the world of online gaming. If you have ever played a game online, and the chances are high that you have indeed played at least one video-game app on your smartphone, here’s how it goes. Players can acquire weapons, clothes, and even some specific items in video games that truly make it a collector’s heaven. Now, imagine if these were all non-fungible tokens. These would be tradable for in-game tokens as well as real-world cash as a result. The online digital economy for fictionalized goods has a lot of potential this way, and the project known as Decenraland is extremely ahead of its time with its in-game blockchain economy.
Now, to get you in the loop, Decentraland is a virtual reality platform that is powered by Ethereum. Within this virtual world, you can purchase land that you can later explore, build on and monetize and there’s absolutely no limit as to what you can within it. It is also one of the first digital platforms that are owned by the users and not by some large corporation. The non-fungible asset, in this case, is known as LAND, and this is the space that you can interact with.
Once you acquire a plot of LAND, you can do with it whatever you desire, and this includes creating games, applications, 3D scenes, educational content, and so on. Now, keep in mind that the number of LAND is capped and each plot of land has 33 feet x 33 feet when it comes to space, however its height is infinite. This system’s token decentralized token is known as MANA. MANA is an ERC-20 token that you can use in order to purchase LAND, and it also provides you with the opportunity to pay for in-game goods as well as services.
There’s also Cryptovoxels, where players have the ability to buy land and build stores as well as galleries. Cryptovoxels is a virtual world that is built upon Ethereum and has seen explosive growth. It is a virtual reality world that allows you to buy and sell virtual properties and digital assets, and as such, the project can be categorized as part real estate, and part digitalization. This project also has an amazing community due to the fact that it provides digital builders with a truly unique experience. If you have ever played games such as Minecraft, the chances are high that you will feel familiar with this world.
Digital architects can truly shine in this world, and the only limit for a player is the imagination that the player has. Many artists are building non-fungible tokens on Ethereum and this has led to the platform becoming a home for the most inspired people.
By this point, you probably get the idea about what non-fungible tokens are, and how they have been implemented throughout vide-games, so let’s dive into platforms.
Now you might be asking yourself, what exactly can NFTs be used for, and how you, as an individual, could possibly enter this world and create your own? With the rise in popularity of NFTs, so have platforms that are truly trying to bring them to light, and empower the users as well as independent creators that want to shine.
NiftyKit is known as a web application specifically designed to let some of the most creative minds earn what they are worth in the digital universe. The main way it differentiates itself from many other platforms is the fact that, for one, it is truly unique in its concept, and second, it requires no technical knowledge of cryptocurrency, blockchain, or non-fungible tokens. The service takes care of the back-end associated with all of it. Since you just learned a bit more about non-fungible tokens, you have a competitive edge, so let’s see what you can do with that knowledge.
Digital collectibles are a way for artists, creators, musicians, and brands to monetize fan engagement. – The NiftyKit Team
The NiftyKit platform is a project that was created out of requirement, necessity, a need for artists as well as creative minds to find newer and more efficient, but most importantly, profitable ways of engaging with their audiences and gaining a higher level of exposure. The world is constantly shifting, and real-world events can be restricted, so why should this limit our world’s artistic mines from truly shining?
As such, NiftyKit was developed with the intention of creating a tool that can help artists continue to build and maintain the bond they have between fans through the usage of exclusive digital collectibles.
Now you may be thinking that all of that is extremely cool and neat, however, how does it function?
It’s extremely easy to get started with minting your first digital collectible on the platform, and all you really have to do, to begin with, is upload your digital asset, customize the digital collectible with the design tools that already exist on the site, and you can begin to mint the new design.
To create your digital collectible, you need an image, video, or audio file. You can upload the asset, or upload it from an URL, then you need to give it a title and a description to begin the entire process.
Created Using Niftykit
Now comes the minting part. If you do not have any cryptocurrency or have simply never mined it in the past, you can create your first digital collectibles in minutes and spend time on what you genuinely enjoy doing instead. NiftyKit makes it simple for you to get your digital collectibles in the hands of your fans, and all you are left to think about is creating even more content.
The most unique aspect about this platform and the main reason why it was developed has a lot to do with this, is the fact that you have no limit as to how you can use your digital collectible in order to market yourself, your brand, or movement that you are trying to push onto the world.
You can conduct giveaways, contests, brand awareness events, use it for your personal or freelance business as a way to generate leads, you can even sell it. You might just want to use it to drive user engagement, and that is great too, but you can also use it for a loyalty program and even host in-person events.
Benefiting from NiftyKit
Now, once you actually mint the collectible, you can share it with your fans or list it on trade at the digital collectible third-party marketplaces.
There are plenty of marketplaces out there, however, at the time of writing the most popular ones include:
The beauty of this token is the fact that it is a representation of your work, and it will be minted forever on the blockchain, solidifying any token holder with verifiable proof of ownership as well as benefits that can be unlocked while holding onto the digital asset.
If you haven’t noticed by now, you really don’t need cryptocurrency to get started, as the platform handles all of the fees and sets everything up for you, so you can actually acquire your own collection of digital collectibles without having to pay up crypto in order to mint your first one.
Many other platforms, specifically traditional ones that do not rely on blockchain technology, can limit you. NiftyKit allows you to create your own branded token, making you truly have an all-exclusive experience.
Now, moving on to the back-end, when NiftyKit actually mints your work onto the Ethereum platform, your NTFs can be sold, listed, or traded based on your decision as to what you want to do with them. The only thing you need to worry about here is that the website you are trying to sell or list them for trade on is compatible with ERC-721 tokens, as this is what these NFTs are based on.
If you create art, and this means both visual art, musical art, video games, maybe even creating a brand, NiftyKit is a specialized platform intended to help you mint these digital collectibles or non-fungible tokens and collaborate with other people so you can sky-rocket your collection’s growth.
As discussed throughout this article, there have been many implementations of NFTs in the past, however, none have come close to supporting artists and giving value to its community quite like this.