Major cryptocurrency exchange Binance rolled out its NFT marketplace on Thursday 24th June. The marketplace allows users, including artists, creators, and crypto enthusiasts, to mint and trade non-fungible tokens (NFTs). It utilizes Binance’s blockchain infrastructure and features various forms of digital artwork and collectibles.
The much anticipated Binance NFT Marketplace is now live, the world’s largest crypto exchange announced. The platform gets underway with a premium occasion auction called ‘Genesis,’ its first ‘Mystery Box’ collection, and the launch of the recently announced “100 Creators” program presenting NFT content from local talent around the world.
What is NFT?
NFT is a new and relevant trend in the crypto space. I am sure by now you are wondering what NFTs are; they are Non-Fungible tokens. NFT is a data unit stored on a digital blockchain ledger, and it certifies that a digital asset is exceptional and cannot be interchanged. NFTs are used to present items such as audio, photos, and other digital files.
Also known as “CryptoFunk,” it is a digital artwork that recently sold out for $11.8 Million, and it operates on the ethereum blockchain-powered by Smart Contract. It has given content creators great opportunities to participate in the crypto market. As a digital art, it’s taken the crypto world by storm. It represents ownership of unique assets, like a deed representation of anything in the physical realm linked to the crypto industry.
Non-fungible items describe items that cannot be interchanged in the financial industry because of their unique properties. NFTs have solved a problem in the internet era today; as things are becoming more digitized in current times, there is a need for proof of ownership.
In current times the copyrights of physical assets want to resell the products they acquired online, and their brand is very personal. So the NFTs work to have a public record that indicates ownership that is easy for everyone to verify.
How do NFTs Work?
NFTs have unique properties such as;
- Each token on the blockchain has a unique identity.
- In the case of NFTs, they are not interchanged on the ratio of 1:1.
- Each NFT has an owner that is easily verified.
- They are based on Ethereum, and the trade takes place on the ether blockchain.
If you own an NFT, you can sell it or hold it in your wallet, keeping it secure. If you create an NFT, you should prove that you made it, determine its scarcity, and earn royalties each time someone else sells it. The process of trade is peer-to-peer, and there’s no need for intermediaries.
As earlier mentioned, if you are a creator/developer for an NFT, you decide the scarcity of your token. Thus, a creator chooses how many replicas will exist in the market, and the unique identifier is a barcode only known to the owner.
Royalties are paid to the original owner if a second person makes the sale; on platforms like Foundation and Zora, they support royalties paid back to an artist for about 8%. In addition, the process is automated such that there’s no need for follow-ups in payments as the owner is sure to make profits.
What are they (NFTs) used for
For content creators, it is difficult to make money as the content of creation is swallowed by supposed platforms, and NFTs make it easier to make money and own their products, and this takes care of the copy and paste problem on online platforms.
For the cryptocurrency market, precisely, the ethereum coin has made wallet ownerships very easy with the inclusion of IP addresses that are more memorable than regular number codes. For the crypto websites, the domain naming has been made easier. Investors can easily trade the ENS names on the NFT marketplace without a domain website.
The ENS names can receive cryptocurrencies and other NFTs and point to decentralized websites like ethereum and store personal profile information such as Twitter handles and email addresses. In addition, many cryptocurrencies are exploring how to tokenize physical properties to match their digital currencies.
Since NFTs are essentially title deeds for properties, they come in handy for the crypto market since they have already indicated the worth of a particular product. To match that up with crypto assets makes trade more straightforward and reliable.
NFTs and Defi are working together on exciting products and services such as loans. Since on Decentralized Finance, an investor takes a loan having provided collateral, NFTs have the value-of-worth solved already. Projects are on a journey to make NFTs collateral, and also NFTs work to offer shares in the crypto market.
Binance NFTs marketplace
Binance is holding an NFT Homecoming Webinar on June 29th for African creators who are minting their NFTs on the Binance NFT Marketplace as part of the “100 creators campaign”.
This webinar will promote NFT awareness following the Binance NFT marketplace launch (June 24th), get users more familiar with the platform and promote innovative creators from different cultures. Everyone is encouraged to join the webinar and participate to promote creativity and innovativeness across diverse cultures.