NFTs have come into great limelight and shot up in value in recent times. Anyone who is even slightly into technology has understood that NFTs will have a significant role to play in the future of the internet.
Non-Fungible assets are something of value that cannot be interchanged. The demand for NFTs is gradually increasing, and they are becoming valuable. Let’s discuss why.
NFTs have value because they verify the authenticity of a non-fungible asset, making them unique and valuable. To help you gain some perspective, let’s talk about Picasso’s paintings as non-fungible assets. It means you can easily make copies of the original artwork, but you can never replace it. An original Picasso is irreplaceable. NFTs make digital content irreplaceable and valuable.
The concept will become more apparent in the next section, where we will discuss what NFTs are.
What are NFTs?
NFTs are digital certificates that represent an irreplaceable asset or a non-fungible asset. Each transaction is listed on a blockchain network so that users can easily look into the purchase history and even the details of the creator. Digital creators benefit from the protection offered by the encryption on the blockchain, helping them with monetization as well.
Though NFTs are often seen as cryptocurrencies, there is a defining difference between them. Cryptocurrency is fungible and can be traded easily for another coin of equal value, whereas NFTs, as mentioned earlier, represent non-fungible assets.
Yet another difference between cryptocurrencies and NFTs is that the fungible tokens or cryptocurrencies can be broken down into smaller units. NFTs, on the other hand, cannot be broken down further.
What makes NFTs valuable?
There are several defining aspects to determine what makes an NFT valuable. Let’s see how we can determine the value of an NFT.
Here are some of the factors that can play an important role in determining the value of an NFT:
- Underlying value – this is the value associated with the creator.
- Potential value – this is the future value of the art in the context of emerging artists or creators and/or celebrities.
- Buyer’s perception – this depends on how interested or excited a particular buyer is about the purchase.
- Creator’s legacy – the price of the other pieces created by the same artist or creator.
How are NFTs created?
Creating NFT art can be complicated and require a fair understanding of advanced coding. Appy Pie takes all these challenges away and makes it possible for anyone to create NFT art. The new NFT generator from Appy Pie has simplified the entire process and lets you create NFT art for free.
Here is a three-step process that will let you make your own NFT art with Appy Pie’s NFT builder.
- Pick a design template.
Appy Pie’s NFT generator offers a massive collection of templates. You can select one of these ready-to-use templates or even create your own design from scratch.
- Customize your NFT
The platform offers great flexibility in terms of customization. You can tweak every little element of your NFT artwork.
- Export your NFT and start selling
Once you are happy with the way your NFT looks, you can export it in your preferred format and list it on any trading platform like OpenSea for sale.
Types of NFTs
Considering how new the technology is, there is no limit to what can and cannot be considered an NFT. There are massively diverse use cases and unique tracts for NFTs as the scope for innovation in this area is still growing, and the infrastructure is still developing.
Hence when we create a list of different types of NFTs, we need to remember that the list is open to additions as there is a possibility of new NFTs emerging in the future.
At the moment, we have created a list of notable and sensible NFT variants available in the marketplace.
- Collectible items/Trading cards
- Event tickets
- Music and media
- Big Sports Moments
- Virtual Fashion
- Real-world assets
- Domain names
What is the future of NFTs?
As per the experts in the field, CNET recently released the following predictions for the future of NFTs.
- Crypto will move further into the mainstream.
- NFTs will create new ownership opportunities and remix old ones.
- Hacks and ransoms get bigger
- Stablecoins will get more popular
- New rules for crypto will be put in place
NFTs are the hottest trend of the day, but the value of this unique new piece of technology is yet to be ascertained. But it is evident that NFTs will have a major impact on the future of the internet.
There are many factors that go into determining the value of an NFT, and certain types of NFTs warrant greater value than others. While it may be perceived as highly technical to make an NFT, with Appy Pie’s NFT generator, you can easily create your own NFTs without worrying about coding or any technical aspects.