In recent years, the crypto world has witnessed a remarkable evolution in the form of Non-Fungible Tokens (NFTs), a groundbreaking concept that has taken the art, gaming, and entertainment industries by storm. In this article, we will explore what NFTs are, how they function, and their connection to Ethereum standards. Additionally, we’ll delve into the popular platforms that have paved the way for NFTs to flourish. Furthermore, we will discuss NFT cycles, their promising future, and their emergence as a subculture within the broader cryptocurrency space.

What is an NFT?

An NFT, or Non-Fungible Token, is a unique cryptographic token residing on a blockchain that serves as a digital certificate of ownership for distinct digital assets.

In more simple terms, NFTs are like special digital certificates that prove you own something unique, such as digital art, music, or videos. The NFT shows everyone that you’re the official owner of that particular digital thing, and the information about ownership is safely recorded on the blockchain. People can buy, sell, and trade these digital certificates, making NFTs a way to claim ownership of unique digital items in the online world.

NFTs stand out from cryptocurrencies like Bitcoin or Ethereum due to their non-fungible nature, meaning they are not interchangeable on a one-to-one basis. Instead, each NFT is singular and irreplaceable, establishing them as the preferred choice for representing ownership and validating the authenticity of both digital and physical assets. This quality makes NFTs an indispensable tool in the realm of digital collectibles, art, virtual real estate, and various other digital goods.

NFTs have been in existence since 2014, but it wasn’t until 2021 that they truly captured the world’s attention, marking a pivotal moment in their evolution. By the end of 2020, the NFT space witnessed a groundbreaking event that showcased their skyrocketing popularity. Artist Pak’s creation, “The Merge,” sold for a record-breaking $91,000,000 at the time, marking the beginning of a highly successful era for NFTs.

How do NFTs Work?

NFTs operate within the framework of blockchain technology, the decentralized and transparent ledger system commonly associated with cryptocurrencies. While blockchain primarily underpins cryptocurrencies like Bitcoin and Ethereum, it also serves as the foundation for Non-Fungible Tokens.

Notably, NFTs find their most common home on the Ethereum blockchain, although many other blockchain platforms like Solana or Polygon also support them. NFTs come into existence through a process known as “minting,” where digital representations of both tangible and intangible items are transformed into unique tokens. These items can range from digital art, GIFs, and video clips to collectibles, virtual avatars, real-life assets, certificates, video game skins, designer sneakers, music, and even tweets.

In parallel to physical collector’s items, NFTs are essentially their digital counterparts. Instead of receiving a tangible painting to hang on your wall, the purchaser obtains a digital file.

However, what truly sets NFTs apart is their exclusive ownership rights. Each NFT can have only one owner at any given time, making it easy to verify ownership and facilitate secure transfers between owners. Moreover, NFTs have the capacity to store specific information within them. For instance, artists can sign their digital artworks by embedding their signatures within an NFT’s metadata, further enhancing the uniqueness and authenticity of these digital assets. This distinctive combination of blockchain technology and exclusive ownership is what makes NFTs unique and valuable.

Ethereum Standards for NFTs

Ethereum has introduced several standards for NFTs, with ERC-721 and ERC-1155 being the most prevalent. ERC-721 is the original standard for NFTs, while ERC-1155 offers greater flexibility by allowing both fungible and non-fungible tokens within the same contract. These standards provide a framework for developers to create, exchange, and interact with NFTs seamlessly.

Most Popular NFT platforms

NFT platforms have played a pivotal role in the exponential growth of the NFT market, with OpenSea emerging as a clear leader in the space. OpenSea has become a big name, offering a vast marketplace for buying, selling, and trading NFTs across various categories. The core cryptocurrencies used on OpenSea are Ethereum, Solana, Polygon, Avalanche, and BNB. For costs, OpenSea charges a fee equal to 2.5% of every transaction.

Also, it’s worth noting that the NFT landscape is diverse, with other platforms gaining traction as well. Blur, Rarible, SuperRare, Binance, and Nifty Gateway are among the popular platforms and marketplaces, each catering to specific niches within the NFT ecosystem.

The Future for Crypto and NFTs: Market Cycles

Despite the remarkable success of NFTs, the market has recently faced a decline in its total capitalization. Presently, the NFT market has a total market capitalization of approximately $5.187 billion, a big decrease from the $12 billion it reached in 2022. Several factors, most notably the ongoing bearish cycle affecting the broader cryptocurrency market, have contributed to this dip.

Over the past two years, NFTs have experienced a challenging bearish cycle despite their dedicated and passionate user base, which has cultivated a unique subculture within the broader cryptocurrency space. It’s important to recognize that the NFT market remains still correlated to the fluctuations of the overall cryptocurrency market.

However, there are promising signs on the horizon. Recent developments indicate a potential turnaround, with the NFT sales volume surging by over 22% in the past month. This growth suggests that a bullish phase could be on the horizon, providing renewed optimism for both NFT enthusiasts and the broader crypto community. As the crypto landscape continues to evolve, the future of NFTs remains bright, promising further innovation and growth in the digital asset space.

Minterans are ready for the bull run

Mintera is gearing up for the upcoming bull run with the launch of an unique NFT collection called “Minterans” featuring 1000 unique, handcrafted miners. The Minterans collection will be minted on the Ethereum blockchain and made available on OpenSea on December 19th, with a full collection reveal scheduled for December 21st. Each NFT will be priced at an affordable 0.01 ETH. Participation requires pre-registration, emphasizing the exclusivity and limited availability of these NFTs. Additionally, owning a Minteran will offer exclusive utility within the Mintera ecosystem. Holders can anticipate perks such as enhanced GMY rewards, access to private channels, and more. Watch for more updates from Mintera as we navigate towards the bull run horizon.