Non-fungible tokens have been in the news recently for all the positive reasons. This unique collaboration between DeFi and NFT protocols is becoming one of the most exciting projects in the blockchain industry. This article reveals some of the popular projects in the NFT universe and the world of limitless possibilities within this thriving ecosystem.
Source: Finance Magnates
Introduction to Non-fungible Tokens
Non-fungible tokens (NFT) are cryptographic tokenization of a unique item like pictures, music, Identity, virtual gaming land, and lots more. These tokens represent something unique and are not mutually interchangeable by their specification. Non-fungible tokens are perfect for creating verifiable digital scarcity. NFTs are particularly beneficial for applications that need unique digital items such as digital art, digital-collectibles, and in-game objects.
What is the NFT Universe?
NFT Universe is basically a DApp running on the Ethereum Blockchain with the possibility of a merger with the Polkadot Ecosystem in the future when Polkadot will support NFTs. It might look simply like a game, but it’s much more than useful in gaming applications; the NFT Universe is an entire DeFi Ecosystem within a gamified User Interface.
On a smart contract platform like Ethereum, the use of the ERC-721 token has paved the way for the development of “media legos” that can be programmed or composed, leading to a whole new ecosystem of possibilities.
Many people are already leveraging the booming opportunities in this ecosystem, with many discoveries and possible digital use cases evolving. The NFT technology is more of a blank canvas used to create beautiful new designs with a unique identity and stored value.
For example, recently, a hand-painted “self-portrait” by Sophia, the world-famous humanoid robot, was sold at auction for nearly $700,000. This artwork is unique and valuable; hence, it was tokenized to retain a non-alterable identity.
There is vast potential within this ecosystem, with the recent growths suggesting more good to come. The NFT arena has facilitated almost $180M in total transaction volume to date. Let’s take a deeper look at some of the dominant areas of the NFT ecosystem and their projects to see the opportunities that lie with development in this decentralized platform.
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Non-fungible Token Art
NFT art, also known as “Cryptoart,” is one of the fastest-growing NFT niches. Artists, Musicians, Designers, and many others can now create NFTs via blockchain-based minting platforms to enjoy more control over their works’ sales.
SuperRare is one of Ethereum’s foremost cryptoart dapps for 1/1 edition NFT releases. This decentralized application has already Facilitated nearly $10M in volume to date. The project’s team still handpicks SuperRare’s “Early Access” roster of artists, so minting is only open to artist or applicants who have been accepted onto the platform. The project’s inventory has been and continues to be outstanding, a testimonial to the SR team’s curational talents and its artists’ notable works.
This Ethereum based art platform is centered around programmable art. The idea holds that the Async Art pieces possess Master and Layer tokens. The Master token represents the total and constantly changing artwork. In contrast, Layer tokens can be obtained and then used by their collectors to create new images in the Masterpiece. These are Ethereum powered Living and breathing artworks.
The Nifty Gateway focuses on friendly UX and viral-friendly drops around established artists like Pak, Beeple, Trevor Jones, and others. Gemini owns this crypto exchange platform, and it is evolving as one of the most sought-after NFT marketplaces.
Rarible is unique because the platform allows you to mint your own NFT in a way that pleases you without requiring any permission. It is the place of choice for creators who flock to the platform because the minting process is free, easy, and without any barrier. However, there is a need for caution; due to this platform’s do-it-yourself nature, many fake items are not uncommon because people mint fake versions of NFTs and sell them as the original.
This is a generative art platform built on the Ethereum blockchain. It allows generative artists to upload customized algorithms tailored to the marketplace in limited-edition drops. A unique NFT artwork is generated when users make a purchase while a drop is live, pinning the algorithm and generating a unique code from the artist.
Physical collectibles are gradually becoming a thing of the past; thanks to Ethereum, it offers an easy and viable way to make high-quality digital collectibles. These collectibles include native digital assets or digital assets tied to real-world collectibles.
CryptoPunks is the OG NFT project which was launched in the summer of 2017. This first NFT project was released through Ethereum and paved the way to the ERC-721 token standard dominating the NFT ecosystem. Only 10,000 punks exist, which makes them rare and exquisite collectibles. More recently, they’ve taken on a second life through DeFi projects like the NFT index fund protocol NFTX. This protocol has released a $PUNK fund backed by choice CryptoPunks.
This project is another Ethereum OG NFT project which was created shortly after the CryptoPunks excitement. This project was so popular that in December 2017, it caused Ethereum’s first significant congestion event. These collectible and breedable NFTs have seen a recent surge in late 2020 and early 2021 with the increasing popularity of the NFT universe.
Avastars is a fully on-chain NFT project that has their media and metadata entirely stored on the Ethereum blockchain. This pioneering project was developed by studio nft42 and can be considered CryptoPunks 2.0. These collectibles are secured by Ethereum and can be retrieved directly from the blockchain without requiring a third-party application.
Aave, a popular DeFi app has developed a digital collectible project – the Avegotchi. These ghost-centric digital beings on DeFi x NFT steroids are similar to Tamagotchi monsters. They can be collected, built up, used to fight, or stake them to earn yield as interest-yielding DeFi tokens.
Hashmasks is the latest digital collectibles project on the NFT platform and has made a significant impression within a short period of existence. This project has facilitated over 10,000 ETH in trade volume with a week after it was launched. It has gained considerable attention that the NFT index fund project NFTX speed up releasing a $MASK index fund product.
Blockchain games are navigating towards a “play-to-earn” future, thanks to the power of Ethereum. This trailblazing idea allows players to play, earn more assets and can trade them along the way. In some cases, players can also “own” the games they play, giving them the privilege of using governance tokens to make decisions about the franchises they love.
Axie Infinity is a Pokemon-like Ethereum game. Users can collect, breed, and battle the iconic Axie monsters for glory and profit through NFT gaming assets that can be exchanged and sold. Axie Infinity is the largest Ethereum game right now, and it’s also one of Ethereum’s most-used apps at the moment. That feat is a recognition of Axie Infinity’s grand design.
For lovers of Football, Sorare is a rising fantasy futbol game. This game has gained significance by partnering with some of the world’s biggest global professional futbol franchises. The platform allows players to create fantasy squads using unique digital trading cards and then go head-to-head in a competition to determine who’s the best futbol manager.
Gods Unchained (GU)
This is the Ethereum ecosystem’s response to the Gathering, a trading card game. GU allows players to create card decks of diverse, excellent varieties and then battle them to win on-chain special tokenized prizes.
This project brings Virtual reality to a new level on the Ethereum blockchain. It allows VR projects to tokenize their digital real estate making it unique, scarce, and easily tradable globally as NFTs. This possibility enables VR projects to lead the way to an open metaverse, a new internet platform defined by virtual realms instead of static pages.
Decentraland is virtual land parcels that are tradable for the project’s native coin MANA. It is one of Ethereum’s earliest and most used VR projects, and in recent years, has become a popular destination for VR games and activities.
Cryptovoxels is another example of Ethereum’s early VR projects that’s gained prominence through the excellent and mindful leadership of its development team. Cryptovoxels permit users to buy parcels as NFTs and then develop them by building novel digital installations, like NFT art galleries on them.
Earlier in the days, NFTs were associated with traditional media types, like art, music, gaming assets, etc. But these days, NFTs are used to represent almost anything, from utilities like domain names to personal identities. More of these cases are expected to rise in the coming months and the years ahead.
Ethereum Name Service
The Ethereum Name Service (ENS) is a new way for an Ethereum blockchain developer to create and manage decentralized domain names on the Ethereum blockchain platform. These decentralized domains are easier to trade and facilitate as they are minted as NFTs. These NFTs, e.g. ethereum.eth, make it straightforward and easy to carry out transactions as opposed to long alphanumeric addresses.
Decentralized finance and non fungible tokens stand out in the Ethereum Ecosystem. More recently, the blockchain world has witnessed an overlap of these bright stars on the Ethereum chain. Their combination has produced exciting projects bringing innovative disruptions to the system.
This is the NFT index fund protocol. The NFTX serves as the governance token for projects like Crypto Punk that were originally illiquid. It brings a decentralized means of management to the ecosystem. An example is the $PUNK, a tokenized index fund for CryptoPunks.
The NFTfi is a platform that serves as the marketplace for NFT-collateralized DeFi loans where users can borrow or lend choice NFTs. If the borrowers default in payment, ownership of the underlying NFTs is passed on to the lenders.
NIFTEX is a protocol used for breaking down NFTs into easily exchangeable ERC-20 tokens. This fractionalization makes NIFTEX bring the possibility of joint ownership of in-demand NFTs. Collectors can also buy out all the ERC-20 token fractions of a shared NFT to gain total ownership.
Yearn Insurance NFTs
Yearn is a yield aggregator protocol popular with many successful projects on DeFi. Yearn’s yInsure insurance NFT resonates very well in the NFT and DeFi sectors. They make tokenized insurance policies available for trading on NFT marketplaces like Rarible and OpenSea.
What Platforms and Chains do NFTs run on?
Worldwide Asset eXchange (WAX)
The WAX Blockchain is the king of NFTs. It provides the most secure and comfortable way of creating, purchasing, selling, or transacting NFTs from any location worldwide.
The WAX tokenization platform features a full suite of blockchain-based tools that supports instant and secure payments. For example, the easy-to-use WAX Cloud Wallet makes it easy to create an account with just two clicks using social logins.
Members of the Worldwide Asset eXchange have access to a global community of collectors, sellers, creators, gamers, traders, buyers, merchants, dApp creators, and game developers.
The creation of the ERC-721 token has made it possible for developers to create “media legos” that are programmable or composable, leading to a whole new ecosystem of possibilities.
This smart contract platform allows you to tokenize really anything you can imagine. The DeFi + NFT protocol mergers are now bringing about some exciting blockchain projects within the Ethereum ecosystem.
Flow, a decentralized blockchain platform, was created for gaming and has recently been home to the development of non-fungible token use cases. This platform is already gaining attention with its NBA Top Shot making the news recently.
Source: Dapper Labs
This blockchain protocol has a scalability feature that makes it easy to support Decentralized Applications with mainstream demand. The widely-used Cadence programming language was used in writing Smart contracts on Flow, and it uses power applications that can serve billions of people.
This platform is a collaboration among several big shots globally like the NBA, Samsung, and Warner Music Group. Flow is accessible by everyone for the development of Dapps. Flow facilitates the creation of new unique digital assets in the crypto business environment that can be used in open market transactions.
The growing NFT ecosystem is innovative and diverse. The media legos,” like DeFi’s “money legos,” provide limitless possibilities of unique use cases to the ecosystem. NFT Universe has a promising future that will even be more revolutionary and disruptive over time; that’s why we encourage you to contact Applicature, a blockchain marketing company to upgrade your platform or develop new tools to accommodate the growing ecosystem.
The projects discussed above are early shining stars on the NFT stage. They have successfully made significant contributions and brought new dynamics to the Ethereum platform. There will be more NFT projects in different spheres of society in the future. They are a blank canvas, and you can have an idea of what to paint on them; let’s be your painter at applicature; we have the experience and technology required to transform your ideas into valuable assets. Contact us, and let’s discuss your crypto-economy ideas.