Currently, the most dominant blockchain by choice for NFTs is Ethereum. Blockchain technology has positioned itself as the next phase of a decentralized internet, permitting the execution of computer code and storing of value. Due to the ability to execute the computer code, Ethereum can be used to make safe transactions, trade cryptocurrencies, buy, sell, and store NFTs, and execute the functions of decentralized games and applications in general.
Thus, an NFT marketplace is a blockchain-based online platform where you can buy, sell and store non-fungible tokens. In other words, the blockchain is a distributed database that stores information on NFT-related transactions on the NFT marketplace. Non-fungible tokens are stored on a public blockchain that contains pieces of information such as who created the digital asset; who bought it and at what price.
What is an NFT?
An NFT (non-fungible token) can be defined as a digital asset characterized by its unique qualities that are held within its metadata. The expression non-fungible means that it cannot be altered, replaced, or changed in any possible way. Once an NFT has been created, it stays on the blockchain’s public ledger for everyone to see.
Non-fungible tokens give their holders ownership of the work as it encompasses a built-in authentication mechanism as proof of ownership. Even though NFTs have been present since 2014, they have gained a massive amount of popularity due to trading digital art. The NFT market was worth $41 billion in 2021, namely the amount that is close to the total value of the global art market.
$41 billion
The worth of the NFT market in 2021 -- almost on par
with the total value of the global art market then.
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