Non-fungible tokens, or NFTs, have been making waves in the world of digital art and collectibles in recent years. It’s attracted the attention of almost even celebrities, legendary artists and authors, and the mainstream media. Even ex-President Trump couldn’t say no to it, he minted a collection for sale.
But what exactly are NFTs, and how do they differ from other digital assets?
At their most basic level, NFTs are unique digital tokens stored on a blockchain to serve as ownership tags for whatever content or resource it is mapped to. NFTs can represent a wide range of digital assets, including artwork, music, videos, codes, and even tweets.
One key aspect of NFTs is their non-fungibility. This means they are non-interchangeable and can’t be exchanged one for another. In other words, each NFT is unique and has a value that is independent of other assets. This is in contrast to cryptocurrencies like Bitcoin, which are fungible by nature and can easily exchanged one for another. In short, one $BTC equal one $BTC, but one NFT doesn’t equal 1 NFT, even if it’s mapped to the same content.
A Short History Of NFTs
The history of NFTs can be traced back to the early days of cryptocurrencies. The bitcoin blockchain was the first blockchain on which NFTs were experimented, however it wasn’t well suited for the purpose. NFTs hit mainstream after development transitioned to Ethereum. In the form of pixelated profile pictures, popularly known as Cryptopunks and the virtual cat breeding game, Cryptokitties, NFTs caught the first wave of attention & hype . Even with the ups & downs the NFT market has exploded, with a wide range of artists, musicians, and even celebrities creating and selling NFTs.
Did you know that concept which birthed NFTs was founded the same year the first functioning implementation of the Proof of Stake went live? The First NFT, named Quantum, was minted just two years after the first PoS blockchain went live in 2014.
NFT Marketplaces Rise Alongside
The rise of NFTs brought about a new way of valuing digital assets, allowing artists and creators to monetise their work in ways previously impossible. However, the NFT market has also faced criticism, with some arguing that it is driven by speculation and hype rather than true value.
The rise of these NFTs has been accompanied by the emergence of NFT marketplaces, which serve as platforms for buying and selling NFTs. These marketplaces have become an integral part of the NFT ecosystem as they serve as avenues for creators to showcase and sell their NFTs, and for collectors to discover and acquire new pieces.
The current NFT marketplace landscape is diverse and rapidly evolving, with new platforms popping up regularly. While some marketplaces focus on specific types of NFTs, such as art or music, others are open to a more general selection. While some marketplaces are decentralised and almost completely leverage the blockchain across all of its features, some others are centralised and operate more like traditional online marketplaces.
There are already a number of successful NFT marketplaces that have gained significant traction in the market. OpenSea, for example, is one of the most popular NFT marketplaces that focuses on art and collectibles, with a decentralised approach. At its peak trading volume in January 2022, over $4B was traded on the marketplace. Another notable marketplace is Rarible, which boasts of its NFT aggregation feature. The marketplace allows collectors get NFTs from not just Ethereum, but Solana and Tezos with 0% fees if you lock the platform token.
The Qualities Of The Best NFT Marketplaces
When it comes to choosing an NFT marketplace, there are a number of key characteristics to consider. These characteristics can help to ensure that the marketplace is trustworthy, efficient, and user-friendly, and can ultimately contribute to the success of your NFT buying or selling experience.
One of the most important characteristics of the best NFT marketplaces is security. With the increasing popularity of NFTs, it is important that the marketplace has robust security measures in place to protect against fraud, hacking or any smart contract exploitation. This includes measures such as secure payment processing, encryption of creator and collector data, and protection against phishing attacks. It’s an important security measure for the best NFT marketplaces that user wallets are disconnected from the NFT marketplace when not in use, to avoid any case of data or funds extraction during a future exploits. BictoryNFT marketplace implements the standard security measures to combat contract exploitation and any phishing attacks. Interestingly, it takes it further by leveraging the on-chain ID protocol on which it is built to add an extra level of user authentication for more protection.
Another important characteristic is liquidity, which refers to the ease with which NFTs can be bought and sold on the marketplace. A marketplace with high liquidity will have a good supply of buyers and sellers, allowing for more efficient and seamless transactions. The best NFT marketplaces incentivizes buying and selling with the platform tokens or discount such transactions for the holding the platform token.
- User-friendly Interface
It’s not enough to be secure and maintain NFT trade liquidity, the best NFT marketplaces also need to have a user-friendly interface that is easy to navigate and use and the successful ones usually do. This makes buying and selling NFTs more enjoyable and reduce the risk of errors or misunderstandings. Clear FAQs are also made available so that the user can answer their own questions in no time. Should the issue be too complicated to handle on their own, the best NFT marketplaces have a standby 24/7 customer support to guide users through the journey. The entire suite of Bictory Finance products can be described as web3 functionalities with a feel of web2 designs. BictoryNFT encapsulates all of the difficult aspects of onboarding and minting and only leaves what’s necessary and easy for a sleek user experience.
- Wide Selection of NFTs
Variety is the spice of life and this is true as well for NFT marketplaces. The best NFT marketplaces also offer a wide range of NFTs collections from various creators, including well-known artists, as well as up-and-coming creators and across various cultural and educational backgrounds. This allows for more choice and diversity in the NFTs that are available for purchase. There is a higher chance for collectors to find the NFT art that speaks to them. BictoryNFT is home to artists from all over the world and they with a socio-cultural art diversity. Our ecosystem of creators is growing and collectors and quite satisfied by the wide range of NFT art which can be found on there.
- Fair Pricing & Fee Structure
Fair pricing and fee structure is another primary characteristic of the best NFT marketplaces. This means that NFTs are priced in a way that is reasonable and reflects their value, ensuring that buyers are not overpaying and that sellers are receiving a fair price for their work. Although creators and project authors are usually given the freedom to set their prices, the best NFT marketplaces consider collectors by enabling a friendly fee and royalty structure that also prioritises them. BictoryNFT is a creator-centric NFT marketplace, as such the structures are designed to favour the creators first but not without considering collectors too. Creators are not charged for minting NFTs on BictoryNFT but will be pay a transaction fee on completion of transaction, collectors do not pay any fees. BictoryNFT will however, stick with NFT royalties.
- Multi-chain Support
Multi-chain support is another key quality of the best NFT marketplaces. Not only does it allow for flexibility in the types of NFTs that can be bought and sold, it makes it easier for creators to showcase and sell their NFTs to a broader audience as it exposes the NFTs across almost completely different communities across different chains. It’s worth mentioning that BictoryNFT is the first NFT marketplace to support Concordium and Solana. The Solana-side goes live soon!
In the wide wild west of web3 where rugpulls and unfulfilled promises are the order of the day, the best NFT marketplaces have a professional reputation and hold up their integrity. As such, they are trusted by both creators & collectors in the NFT community. It builds confidence in the marketplace and contribute to its overall success of itself and the Web3 space in general.
NFT Marketplaces have been a significant vehicle in the mainstream emergence of NFTs mainstream. They facilitate the valuation and the trade of these blockchain-based ownership-tag tokens of any digital or physical resource and the best ones out there keep solid security measures to protect its users, creatively foster deep liquidity, keep a friendly interface, keep the fee structures fair, allow multi-chain support for a wide variation of NFTs and above all, maintain their integrity and reputation. If a collector or creator must find the best NFT marketplaces to use, they must consider all of these qualities and if a marketplace doesn’t have all (Most do not), come to a compromise about which is most valued.