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Non-Fungible Tokens (NFTs): What Are They And How Do They Work?

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Non-Fungible Tokens (NFTs)

Non-Fungible Tokens (NFTs): What Are They And How Do They Work?

Overview

Non-Fungible Tokens (NFTs) and other associated crypto and blockchain projects witnessed a massive rise in 2020. NFTs data project (NonFungible.com) reported that the sales of NFTs came close to $1 million in September 2020. The advent of blockchain technology and cryptocurrency has enabled the development of many projects. One of such projects is the NFTs.

There has been massive media buzz around these non-fungible tokens. In this post, we shall explore the concept of NFTs, what they are, and how they work. Whether or not you have heard about NFTs, this post will hold you by the hand and guide you through.

Also Read: Top DeFi Projects to look out for in 2021

What are Non Fungible Tokens (NFTs)?

They are cryptographic tokens that are indivisible and unique and are used to create digital scarcity and verify ownership. As the name says, non-fungible tokens cannot be interchanged. Like every other cryptocurrency, they are built on the blockchain but not interchangeable like other cryptos. No two NFTs are the same, unlike other cryptocurrencies that have identical coins/tokens.

Non-Fungible Tokens (NFTs)

These non-fungible tokens can be used to represent artworks, collectibles, real-world assets, in-game items, etc. You cannot interchange one NFT for another, and the whole cannot be broken down into smaller parts. These NFTs are mainly built on the Ethereum blockchain using the ERC-20 token standard.

Today, we have quite a number of non-fungible token projects doing greatly in the crypto space. We shall look into some of these projects later in this post. These NFTs became popular when CryptoKitties went viral and raised $12.5 million investment.

Characteristics of Non-Fungible Tokens

Here are some of the primary characteristics of non-fungible tokens:

  • They are rare

The value of non-fungible tokens (NFTs) comes from the fact that they are scarce. Developers can create any amount of non-fungible tokens, but they often limit the tokens to increase scarcity.

  • Indivisibility 

Non-fungible tokens cannot be divided into smaller fractional units. You can either buy a digital art piece, or you don’t buy it at all.

  • Uniqueness 

Non-fungible tokens are unique as no two NFTs are the same. All NFTs have a permanent information tab that keeps a record of their uniqueness. You can see this information as the certificate of authenticity.

Difference Between Fungible And Non-Fungible Tokens (NFTs)

A fungible crypto asset is an asset that is interchangeable with any other unit of the same asset. For example, one ETH is the same as any other ETH in circulation. Fungible tokens are also divisible; hence they can be broken down into smaller units that share the same properties. In essence, fungible tokens are indistinguishable from the other. These features make it possible for an asset to be used as a payment mechanism.

On the other hand, non-fungible crypto assets are indivisible and unique. Although all NFTs are built on smart contracts like ETH and DAI, these contracts contain specific information that makes each NFT different. Therefore, you cannot interchange one non-fungible token for another. Also, the whole cannot be broken down into a fraction of units.

Advantages of Non-Fungible Tokens (NFTs)

These non-fungible tokens bring a new dimension to digital interaction, and they have three major advantages.

  1. NFTs are transferable 

They are bought and sold on a special marketplace, and their value depends on their uniqueness.

  1. NFTs preserve ownership rights.

NFTs use decentralized platforms where no owner can alter the data once it has been committed to the system.

  1. They are authentic

Non-fungible tokens are powered by blockchain technology. Therefore, you have confidence that the NFT is genuine. It is highly improbable for someone to create fake NFTs using a decentralized, immutable ledger.

Read: Is Bitcoin the new Institutional Grade Safe-Haven Asset?

Non-Fungible Token Projects

Let us consider some of the trending non-fungible token projects so that you can have a better picture of what we have been saying. These non-fungible crypto assets projects include the following:

  • Ethernity

Ethernity is a project founded by long-standing crypto investor Nick Rose Ntertsas. The project is dedicated to exploring digital art using non-fungible tokens (NFTs). By working closely with leaders in the blockchain, music, and entertainment worlds, Ethernity aims to NFT-based art to the mainstream. They hope to use the proceeds for philanthropic purposes. Ethernity is one of the leading non-fungible token projects in the market.

  • KnownOrigin

KnownOrigin is also one of the best non-fungible token projects. The platform allows artists to showcase and sell their digital works and other collectibles. Before now, buying artworks has very high entry barriers for everyday people. It is always difficult to prove the authenticity of artwork without the help of an art expert. KnownOrigin helps users easily identify an artwork’s authentic owner, thus having confidence in their purchase.

  • Cryptograph

Cryptograph is also one of the best non-fungible token projects you can find out there. Recently, Paris Hilton sold her digital painting of a cat for 40 ETH through Cryptograph. The platform allows users to sell collectibles such as famous drawings, diagrams, or paintings. Celebrities like Ashley Greene and Seth Greene have posted their work on the platform for auction.

Non Fungible token Uses Cases.

Today, we have several non-fungible tokens uses cases. CryproKitties is arguably the most popular application of non-fungible tokens. The application allows for the buying, selling, and breeding of adorable digital cats. The project was launched on November 28, 2017. Within a space of two weeks, it had more than 150,000 users with over $15 million in transactions. The platform became a viral sensation when a single CryptoKitty was sold for $170,000. It attracted a new audience of gamers to Ethereum with more global mainstream attention.

Other non-fungible token use cases include the following:

  • The creation of crypto or digital collectibles
  • They can be used to manage ownership of digital arts while also allowing artists to retain their copyright.
  • Non-fungible tokens (NFTs) can be used to create a digital system that allows users to control their data from a single point.
  • It allows for the fractional ownership of high-value items like real estate.

Conclusion

The non-fungible tokens (NFTs) space is still in its infancy, and there is no knowing which project to bank on. You should see new platforms edge out some of the current ones to lead the NFT projects in 2021. Currently, NFT is gradually abandoning gaming and CryptoKitties and moving on to DeFi, digital identity, and painting.

 

 

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Top 10 Blockchain Startups in Nigeria 2020

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Over the years, modern technology has been dominated by companies based in first world countries. However, technological resources shouldn’t be located exclusively to a minute part of the world. In reality, the possibility of technology invading every sphere of human endeavor with its potentials can only be achieved when tech resources are distributed globally, as well as their use in helping local populations who are already showing a degree of commitment to improving their developing communities. More so is the advantage of knowing which of the crypto companies to invest in and how. With this list of the top 10 Blockchain Startups in Nigeria 2020, you can never be wrong in your choices!

In Nigeria, Africa’s largest economy, a number of blockchain startups are growing to meet the need for a cryptocurrency-thirsty populace. This is regardless of the fact that cryptocurrencies are not yet accepted legal tender in the West African country. Between April and June this year (2020) alone, $34.4 m was transacted in Bitcoin in Nigeria, the largest share on the continent. As stated by Usefultulips, South Africa followed behind with $15.2 m; Kenya with $7.8 m; Ghana, $ 640,000 and Tanzania $600,000.

It should not be alarming, therefore, that useful platforms through which cryptocurrencies are traded are springing up in handful places around the country.

Of all these platforms, I bring to you those that I consider the top 10 of Blockchain startups in Nigeria. See them below:

Top 10 Blockchain Startups in Nigeria 2020

(1) Quidax

Co-founded in 2016 by Uzo Awilli and Buchi Okoro, Quidax allows its users to freely purchase as well as sell cryptos in their local currency. Trading in Ethereum, Ripple, Bitcoin, Litecoin alongside other cyptocurrencies can be easily done on Quidax.

(2) BuyCoins

Provided by Bitkoin Africa, BuyCoins was founded in 2017 by Timi Ajiboye, Tomiwa Lasebikan and Ire Aderinokun. BuyCoins has a funding of $120,000. Users on BuyCoins have the opportunity to buy and sell cyrptocurrencies within a very short range of time.

BuyCoins conduct their services via their app, taking off prospective traders the stress of seeking other traders in the crptocurrency market. BuyCoin supports Bitcoin Cash, Litecoin, Bitcoin and Ethereum. Cryptos can be traded via their app which is available for IOS and Android devices.

(3) Bundle

Bundle is provided by and backed by Binance and was founded by Yele Bademosi. With Bundle, users can sell or buy Ethereum, Bitcoin and BNB. They also offer their customers the opportunity to buy cryptocurrencies using bank or card transfer. Proceeds from sales of cryptos, could also be withdrawn and deposited into your commercial bank account. With just N500, you can trade in BNB or Bitcoin.

(4) Yellowcard

Yellowcard provides users services for purchasing cryptos via the internet through debit cards or bank transfer. With this, they (users) can load their back accounts in the local currency, before paying for the digital coins they’re interested in. Currently, Yellowcard is in support of dash and Bitcoin core and would be adding tether (USDT) and Bitcoin cash (BCH) in the days ahead. Yellowcard is founded by Chris Maurice

(5) Patricia

With a dynamic operating mode, Patricia makes trading in cryptos like Ethereum, discounted gift cards, Bitcoin, Perfect money, etc. easily available to prospects.

(6) ABiT Network

Founded by Gauis Chibueze (aka Bitcoin Chief), ABiT Network provides blockchain e-commerce services throughout Africa. Some of ABiT’s products include ABiT Play, ABiT Go, ABiT Farm, ABiT Reps, ABiTCrowd, ABiTrader, and Tatcoin. For instance, with ABiT Reps, ABiT offers youths the opportunity to earn by telling others about ABiT products. Their apps can be found on different online stores such as Android and IOS.

Top 10 Blockchain Startups in Nigeria 2020

(7) CryptoTvPlus

CryptoTvPlus is one of the leading media agency on the continent. They provide the latest info on events, updates, project reviews in the digital currency market. They have an active online presence on Facebook, Twitter and YouTube with an application for easy access on Google play store. Founded in 2018, Cryptotvplus has a revenue of $ 15.40 million.

(8) Bitfxt

Bitfxt is another Nigerian cryptocurrency startup. Recently, in February 2020, they secured N5.45 billion from UK-based Payitup clearinghouse Ltd in a bid to expand their cytocurrency infrastructure. Traditionally, Bitfxt deals in Bitcoin and allows trade from prospects all around the globe.

(9) Roqqu

Founded by Uchenna Nnodim, Roqqu provides a speedy platform for the buying and/or selling of cryptocurrencies. Within thirty minutes, withdrawals are completed using Roqqu. They support EOS, STEEM, Ethereum and Bitcoin transactions. Like other cryptocurrency trading platforms, Roqqu has an app on Google Play store for easy trading. Traders on Roqqu are referred to as Roqquians.

(10) NairaEx

Founded in 2015, NairaEx has recorded over hundred thousand users with over one million transactions. They are one of the most popular in the digital currency market on the continent. NairaEx is a top blockchain company in Nigeria where cryptocurrencies such as Litecoin, Bitcoin Cash, Ethereum, and Bitcoin are traded. They are a reliable company for the exchange of Bitcoin and other cyptos through common payment platforms. NairaEx allows users to fund and withdraw within the same day.

11.Conclusion

The majority of the blockchain companies mentioned and discussed in this piece and others not mentioned here are founded and spearheaded by young Nigerians. These are highly spirited individuals who are seeking novel solutions to ancient problems in their immediate environment.

Ranging from agriculture, to the energy sectors and the financial payments service industries, these startups are making life better for many. You should find a way and align with the current trend. There is something for you if you invest in cryptocurrency today.

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