The majority of business holders have begun to use its secret platform to create tokens. Now is the time to talk about the most advanced and modern form of tokens: non-fungible tokens (commonly known as NFT). The use of Non-Fungible Tokens is becoming more common in our daily lives. Non-fungible Tokens, according to some experts, can shape the future of blockchain and will be a huge concern in 2021. In this article, let's take a look at what Non-Fungible Tokens exactly are, why many start-ups and major business industries are prepared to utilize NFT tokens in their operations, and how to choose an NFT Token development company to launch your NFT marketplace business.
1. What is a Non-Fungible Token?
A digital asset that reflects real-world objects such as art, music, in-game items, and videos is known as an NFT. It is possible to buy and sell them online, frequently with cryptocurrency, and they are typically encoded with the same underlying software as many other cryptos. Non-fungible tokens are those that are unique, non-interchangeable, and cannot be replaced by any other similar tokens.
Individual images or even the entire collage of images can be seen for free on the internet. People are willing to spend millions on something that can be simply captured or downloaded, why are they ready to do so? Because an NFT permits the buyer to own the original item. Not only that, but it comes with built-in authentication, which acts as proof of ownership. Those "digital bragging rights" are almost more valuable than the item itself to collectors.
The majority of NFTs are available on the market, and they are based on the Ethereum protocol called ERC-721. This ERC-721 provides the foundation for non-fungible asset creation and trade. Ownership over assets including both physical assets like land, houses and also virtual assets such as digital assets can be represented using ERC-721 tokens.
a. Use Cases for Blockchain-based Non-Fungible Tokens
Artists do not have safe galleries to display their work to attract customers. Due to the openness and decentralization of blockchain, anybody in the network can see the artwork and contact the seller directly, which reduces the need for intermediaries.
When an artwork is tokenized, it generates a specific value that is unique, irreplaceable, and uncopyable, which are referred to as Non-Fungible Tokens. It is possible to avoid the theft of artwork. It's also known as the Tokenization of Art.
b. Features of Non-Fungible Token Development
The development of Non-Fungible Tokens offers investors new opportunities. Tokens that aren't fungible can be used to certify property ownership and identification. On the immutable blockchain network, it can be utilized to uniquely express partners or owners of real estate as well as land. Movie tickets, plane tickets, and certain other tickets are unique and can be expressed on the blockchain network using Non-Fungible Tokens, which will assist to prevent fraudulent activities such as ticket exchanges.
Non-fungible tokens serve an important function in the crypto space. These NFTs are intended to represent a particular asset and hold specific value in the digital ecosystem. NFTs are also utilized in KYC procedures for academic degrees and other types of educational credentials, medical data, software licenses, and other types of information.
c. Popular Standards for NFT Token Development
NFTs were created using a widely used standard token, which includes ERC-721, ERC-998, ERC-1155, and TRC-721. Let's look at how these standard tokens will help with the development and design of non-fungible tokens.
- ERC-721 Token Standard: It is a sort of global standard token that represents non-fungible digital assets. It was the first standard token on NFT. ERC-721 offers a unique address that will identify the asset's owner and it also enables various functionalities such as moving tokens from one account to another account. Due to the smart contract implementation, it will be simpler to keep track of the generated tokens on Ethereum. The ERC-721 standard token was created to allow anybody to create tokens that are entirely unique from one another on the Ethereum blockchain.
- ERC-998 Token Standard: It is an enhanced version of the ERC-721 standard token, also known as Composable. It means that the assets within the token will be composed or organized into a complicated position and traded as a single transfer of ownership. It adds valuable addition to the existing standards.
- ERC-1155 Token Standard: Beyond ERC-721, ERC-1155 will improve the standards. It represents a variety of asset classes while also reducing the multiple smart contracts and transaction time. The transaction fee for ERC-1155 will be reduced. It will have the ability to change the DApps landscape within the blockchain network.
- TRC-721 Token Standard: TRC-721 was one of the protocols used on the Tron network to issue NFTs, and it is fully compatible with ERC-721. TRC-721 will let users digitize their collectibles by allowing each token to have its own unique value. TRC-721 represents any kind of tangible asset that can be found in the real world.
2. Why are Many Businesses, from Startups to Large Firms, Interested in Utilizing NFT Tokens in Their Operations?
IBM has announced a blockchain-based platform that can be used by non-fungible tokens in conjunction with RFID (Radio Frequency Identification), which is a broad term for technologies that use radio waves to automatically identify people or objects. IBM uses RFID to track automobile sales, and this platform is also using auto registration. As a result, selling an automobile is simple. If your automobile, for example, was tokenized, you could simply accept payment for the item and transfer over the token, which would represent vehicle ownership. Instead of showing ID, registration documents, and ownership documents, it will save time.
Non-fungible tokens are also being considered by governments as a way to assist decrease fraud in the present land record system.
"Cryptokitties" is the first use case of Non-Fungible Tokens. The player can purchase, sell, and trade unique digital assets in the form of virtual cats in this game. The ERC-721 Protocol is the most popular platform in use to develop non-fungible tokens.
Non-fungible tokens create a form of digital scarcity that can be confirmed validity without the use of a centralized authority. The value of the tokens is determined by this fundamental scarcity.
3. Why Choose SotaTek for Non-Fungible NFT Token Development?
Hopefully, this article has been helpful to you and you now have a better understanding of what Non-Fungible Tokens are and how they can improve start-ups and businesses. You've come to the right place if you're seeking the best Non-Fungible Token Development Company or want to create your own Non-Fungible Token for various business purposes.
SotaTek, a leading NFT Token Development Company, offers end-to-end NFT development services and solutions worldwide. We have provided industry-leading NFT development solutions to a range of crypto businesses on various blockchain platforms such as Ethereum, Polkadot, Binance Smart Chain, and others. SotaTek's outstanding team of Non-Fungible Token developers is capable of developing NFT tokens of any complexity that are unique and secure. With our unparalleled token development services, we guarantee to develop and deploy a non-fungible token of superior performance that is tailored to your business's requirements. Contact us immediately if you need a non-fungible token created from scratch.