The rising adoption of digital assets, particularly the emerging NFT (non-fungible token) ecosystem, has created a demand for a one-stop solution to cater to all their needs. The NFT industry is still in its infancy, and it will take some time before it becomes mainstream. Let’s try to understand what has led to the sudden boom of NFTs and does it hold to its name and hype.
What Are NFTs?
The rise of Bitcoin, cryptocurrency, and blockchain technology has made waves in various industries. The latest application of blockchain technology is in the form of non-fungible tokens (NFTs). NFTs are digital assets that are unique and cannot be replaced. This uniqueness makes them valuable, and their popularity drives up prices tremendously.
In 2020, the NFT market was valued at around $232 million. Then, in 2021, it was estimated at $22 billion, a significant increase. This uptrend is expected to continue due to its growing appeal in collectible trading and the growing importance of decentralized finance (DeFi). The market is expected to triple in size by 2031.
There is no doubt that the popularity of NFTs is driving their price tremendously. And while there are many reasons for this — from the other factors responsible for the NFT boom to the stringent ICO regulations — there’s one thing that makes NFTs stand out: their ability to carry value and function on any blockchain or distributed ledger platform.
Now, while most people understand that an NFT is a digital asset representing a tokenized asset on decentralized platforms, they usually fail to realize that different NFTs can carry different functionalities and represent assets in different formats.
Different Types of NFTs
Let’s first take a look at the most popular type of NFTs.
Non-Fungible Tokens (ERC-721)
These are ERC-721 Tokens because they are based on the Ethereum protocol and use its unique intelligent contracts feature to build unique digital objects. Also, ERC-721-based tokens are non-fungible. They are usually used to secure digital assets or represent in-game items, currencies, etc., on other blockchain platforms.
Fungible Tokens (ERC-20)
The ERC-20 token standard laid the foundation for API integration in smart contracts and focused on interoperability between different blockchain-based systems and networks. As these tokens are fungible, they are a perfect fit for new crypto projects, especially for their tokenomics.
However, this does not mean you cannot create an ERC-20-based NFT and use it to secure digital assets or represent in-game items on the NEO network or any other platform. Thus, each type of NFT has its benefits and drawbacks regarding security, flexibility, and usability.
Token standards play a crucial role in determining the success or failure of any NFT project. While creating any NFT using the appropriate technology may be possible, it also requires considerable expertise in designing and implementing the required features to provide optimal usability and security for the end users.
Why Do You Need A One-Stop NFT Solutions Platform?
Most projects employ the services of experienced and skilled smart contract developers to create the necessary functionality for their NFTs. At the same time, it is also imperative that these projects conduct extensive market research to understand the market’s needs and identify the most relevant use cases for which the NFTs will be created.
Finally, all projects and their respective teams must focus on building the NFT with the end-user in mind.
What are ChainUp's NFT Trading Platform Solutions?
ChainUp is a one-stop shop for businesses looking to go into the NFT trading space. Its NFT trading platform solutions offer various features that make it an ideal solution for exchanging digital assets between parties including easy integration, flexible deployment, and token transfer capabilities.
Features of ChainUp NFT Trading Systems
ChainUp allows an instant plug-and-play integration as well as both centralized and decentralized options. It also provides a comprehensive and dedicated configuration for various business models. Furthermore, ChainUp’s NFT trading systems have comprehensive features such as buying, trading, and storing digital collectibles, artworks, and other assets.
Blind Boxes
Allows blind box functionality where users can open and purchase gifts and rewards and receive randomized digital assets.
Multiple Wallets
Provides centralized or decentralized wallet builds. When the system detects a third-party decentralized wallet, it can automatically identify the chain and seamlessly connect.
Auction & Sale
Auction or “Buy it Now” mechanisms for fixed pricing or Bidding.
Royalties Function
Allows NFT artists/producers/developers to have automated royalties fee share.
NFT Ranking
The NFT ranking system draws insights from our extensive data algorithms and calculates relevant ranking statistics, including NFT prices, transaction volume, market trends, and user preferences.
ChainUp Provides Your NFT Marketplace Competitive Advantage
ChainUp has developed solutions that lower the barriers of entry to the NFT trading space, enabling businesses to set up a NFT marketplace for end users with ease.
Security
All NFT data is stored on decentralized storage solutions such as IPFS. The NFT data can also be customized to be on private servers, as the integration is highly scalable. Moreover, secure storage ensures the system’s stability and data reliability.
Fast Deployment
Complete platform deployment within 24 hours, with one-click contracts deployment support which allows convenient addition of new NFT collections.
Multi-chain Support
ChainUp’s NFT trading system support a variety of chains and clients may choose one of the chains to be deployed by the team. Clients may also set the platform native currency or other currencies to be used for transactions, and switch freely among currencies.
Accessible Backend Management System
Clients are able to manage the platform systematically through the backend system and quickly grasp the relevant data from platform operations and maintenance.
Conclusion
The value of NFT technology lies in its adaptiveness: NFTs can function as currency, souvenirs, subscription offerings, metaverse products, exclusive artwork, etc. In turn, the audience for NFTs is vast and expanding as the value of digital artwork increases.
ChainUp is a one-stop shop for NFT trading systems. Clients may leverage its solutions to set up a NFT marketplace for end users to trade and store digital collectibles, artwork, valuables and assets.
Whether you’re looking to set up a NFT marketplace or adopt other blockchain technology solutions, ChainUp has you covered. Follow ChainUp on LinkedIn, Twitter, and Medium for the latest updates and blockchain developments.
