Everything You Need To Know About NFT Marketplaces

Everything You Need To Know About NFT Marketplaces

When we need a good, we often search for a marketplace- an open square, a plaza, or even a bazaar- where our items of interest are publicly traded. The same is true when we wish to sell something ourselves. 

Traditionally, artists go through two markets to sell their products. Initially, works are sold on the Primary Market. This is the immediate market that artists can reach after completing their artwork. The secondary market, however, represents where the artworks are resold afterward. This could be via private channels with dealers or at auctions. 


The outcomes are typically acknowledged as transparent and objective because it is possible to watch the price formation during auctions. Thus, auctions are frequently regarded as the best bet for selling artworks. In this setting, a successful transaction involves securing a display space for auctioning at an event, transporting the artwork, and marketing to an audience with the right pockets. 


Given that primary art consumers have long been art collectors who have attained a certain status level in society, the future of art in a technologically-driven world powered to magnify more value through automation and inventions has often been questioned. But can you imagine a decentralized and democratized marketplace where artists have direct access to consumers who are constantly in demand for their digital aesthetic products? In this case, the traditional art collector and intermediary domains are broken up so that more people can trade and have a better relationship with each other. This is made possible by innovatively utilizing technology.


NFTs


NFTs (Non-fungible tokens) are the inventive new technology for digital goods that enables the disruptive marketplace described above. In preserving the value of art, the uniqueness of Non-fungible tokens is their irreplaceable characteristic. Cryptocurrency, like every other currency, is fungible. They can be exchanged one for another, and the results would be precisely identical to each other. "Non-fungible" basically indicates that it is one-of-a-kind and cannot be substituted with anything else. In this way, NFTs are non-interchangeable cryptographic assets with unique identifying codes and metadata on the blockchain. 

The blockchain acts as a distributed ledger that publicly records all transactions between investors, buyers, and traders. This is made possible by the thousands of connected computers worldwide that make endless calculations unanimously for transparency in verification. The 'T' in NFT represents a token or digital certificate of ownership given to the investor (or buyer) of an asset (an NFT). The process of creating an NFT is called minting. Because records on the blockchain are unalterable, art can be minted as tokens, which are used for trading with anybody across the world.


The NFT marketplace