The term “NFT” has become a buzzword already in this crypto market world. But, most of them are confused about What the NFT is?. If you are not sure about this? and how does it work exactly. This article helps you to know about NFT’s, including what they are?. Ok, Let’s start from the basics.
What is NFT Token?
NFT – Non-fungible token, a digital asset that represents real-world objects like art, music, in-game items, and videos. They can be bought and sold online, frequently with cryptocurrency. Physical money and cryptocurrencies are “fungible”, that means it can be traded or exchange from one place to another. These values are also equal like one dollar value is always equal to the other dollar. Cryptocurrencies’ fungibility makes a trusted one which means every transaction process occurs secured over the blockchain. NFTs are different. Each of them has a separate digital signature which makes it impossible for the NFTs to be exchanged.
What is NFT Marketplace?
NFT marketplace is a decentralized platform where you buy and sell your assets using NFT tokens. NFT platforms require buyers and sellers to have crypto wallets for performing transactions. These NFT tokens can’t be traded on the crypto exchange platform but you can perform this on the dedicated marketplace especially built for NFT tokens. NFT tokens are sold through auctions.
How does an NFT marketplace work?
NFTs are the part of Ethereum blockchain. Ethereum is one of the major cryptocurrencies like Bitcoin, but its blockchain supports these NFTs which stores more information that works differently from others, let’s say an ETH coin.
Users need to register on the platform to showcase their works. And also connecting a digital wallet could help to store NFTs and cryptos. This platform might ask for some set of regulations. After you get approval, your works will show on the platforms for sales and you can set a bid value for your prospects. Users can decide, which payment tokens they would like to accept for their works, and also you can set a secondary fee if the platform suggests. Usually, NFT marketplaces charge some amount of fee to showcase your works and also from the purchase.