1. What is NFT
NFT sales are projected to reach nearly $10 Billion in 2021. Those unaware of the Blockchain space may wonder what is NFT? NFT which stands for Non-Fungible Token is a non fungible blockchain token which cant be copied or replaced easily. Unlike Blockchain currencies such as Bitcoin which can be copied or replaced easily as each Bitcoin is the same as the other, NFTs are unique and could represent a digital form of pictures, movies text or AI items. All such NFTs are sold on specific NFT marketplaces which have been developed by undertaking NFT marketplace development.
Right now the NFT space is buzzing with digital art trading. Artists are uploading their own unique art creations as NFT and making money through transactions. Colloquially, NFTs have entered the public consciousness as the Blockchain transactions of digital art. Some of the most prominent NFT marketplaces right now are: OpenSea, Rarible, Superfarm.
2. How An NFT Marketplace Works
NFT marketplaces allow sellers to sell their digital products and the buyers can buy these products using Blockchain currencies such as Bitcoin & Ethereum.
Once someone buys an NFT, they get a token which contains information about the product, its creator and the ownership.
NFTs work with smart contracts and token standards. Smart contracts are self-executing which contain all the information about the buyer, product and the ownership of the product. Smart contracts are generated when a successful transaction takes place.
To explain a bit more on the tokens, these tokens are driven by certain standards that help secure, authenticate and standardize NFT data across the entire marketplace. There are two major standards in use today: