The entire blockchain industry, including virtual currencies, is currently entering a winter period. Compared to 2021, when Bitcoin and Ethereum hit record highs, it must be said that the current situation is somewhat difficult, as not only the popularity but also the transaction volume and active users are decreasing.
On the other hand, transactions in the digital asset "NFT" often bring good news. This time, we will provide an overview of the "NFT marketplace" that plays a central role in NFT transactions, as well as explain the characteristics and differences of each.
What is NFT Marketplace?
NFT Marketplace is an NFT work buying and selling platform where creators can list and sell their own NFT works, and buyers can trade their own NFT works with other buyers. I think you can understand this by imagining a ``digital data version'' of Mercari or Rakuma, where goods are bought and sold between individuals.
Here's what you can do on the NFT Marketplace:
List and sell NFT works
Purchase NFT works on sale
Secondary sales of purchased NFT works
Basically, NFT works have a system in which profits are returned to the original creator even when they are sold secondary by the purchaser. However, depending on the marketplace, secondary sales may be prohibited, or there may be restrictions such as only creators approved by the management can list their works.
Currently, most NFT works in circulation are created based on the Ethereum blockchain, which is a virtual currency. Therefore, most NFT marketplace Development uses Ethereum as a payment method.
So, how should you decide which NFT marketplace to use out of the many available? Before explaining that, I would like to briefly explain NFT for those who have the question, ``What is NFT in the first place?''
What is NFT?
To understand the meaning of the word NFT, NFT is an abbreviation for "Non-Fungible Token," and in Japanese it is "Non-Fungible Token." Non-fungible means ``irreplaceable,'' and NFT uses blockchain technology to guarantee unique value for content that may otherwise be copied based on appearance alone.
Simply put, NFT refers to one-of-a-kind digital data created using the highly tamper-resistant blockchain as its data base. The idea is that digital content comes with a "certificate" that guarantees its unique value.
With NFTs, attention tends to be focused only on their spectacular designs and artist names, but the essence of NFTs is "proof of uniqueness."
Why NFTs are needed
Everything in the world can be broadly divided into two categories. They are "things that can be replaced" and "things that cannot be replaced." The aforementioned “NFT = non-fungible token” is literally the latter.
For example, banknotes and coins are fungible and can be replaced. In other words, a 10,000 yen bill you own has exactly the same value as a 10,000 yen bill held by someone else. On the other hand, people place value on things that are unique and rare, that is, things that cannot be replaced.
Physical items such as real estate, jewelry, and paintings can be ``proved as unique'' through certificates and appraisals. However, digital information such as images and videos can be copied by anyone because the data displayed on the display is just a signal.
As a result, digital content tends to be perceived as something that can be replaced, making it difficult to prove its value.
In fact, with the spread of the Internet, copies of music, images, and videos are being circulated, and as a result, the number of owners is increasing, making it difficult to properly evaluate things that would otherwise be valuable.
In NFT, various information that can be identified is recorded for each NFT. Therefore, even in the digital realm, it is possible to distinguish between genuine and fake products, ensuring uniqueness and rarity.
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NFTs are needed right now because they offer the potential for ways to enjoy and do business with digital works that were not possible before.
How to choose an NFT marketplace
Now that we have briefly reviewed NFTs, let's take a look at how to choose an NFT marketplace.
There are many types of NFT marketplaces. Each has its own characteristics, so when choosing which exchange to use, pay attention to the following three points.
Select the genre of NFT you want to trade
The genres of NFT works handled vary depending on the NFT marketplace. Some exchanges have strengths in the number of game assets and trading cards they handle, while others handle a wide range of different genres.
Select by virtual currency brand that can be used for buying and selling
Please note that the brands of virtual currencies that can be used for payment vary depending on the NFT marketplace. NFT marketplaces are based on the aforementioned blockchain technology, and each marketplace uses a different type of blockchain.
Ethereum, which is the basis of NFT technology, can be used at most exchanges, and some NFT marketplaces allow payment in Japanese yen or credit cards.
Choose based on fees incurred during transactions
The fees incurred during transactions are also an important point when choosing an NFT marketplace. Some exchanges have relatively high fees, while others have no trading fees.