NFTs: What are NFTs? How Do They Work?

Are you excited about digital art, cryptocurrency, Web3, and the Metaverse? Maybe you’ve heard about the Bored Ape Yacht Club, and you’re curious about non-fungible tokens (NFTs), how they work, and where to trade them. If you’re new to NFTs, read on to get up to speed with the emerging world of NFT art platforms. Getting a handle on the basics is the best way to introduce yourself to this exciting new technology as you prepare to explore the best NFT platforms on the web.

What Are NFTs?

NFTs are uniquely identifiable units of data that are stored on a digital ledger of transactions called a blockchain. These cryptographic tokens use smart contracts to guarantee the authenticity and ownership of the physical and digital collectibles they represent, like art, music, real estate, and more. NFTs cannot be copied or replaced, but they can be sold and traded.

What Is the Blockchain?

The blockchain is a system that uses cryptography to link blocks of information, like transaction records and smart contracts, together in chronological order. The information is distributed across the nodes of a computer network. All blockchain users collectively control the data entries, which makes them unalterable, irreversible, and secure.

How Do NFTs Relate to the Blockchain?

A person can identify an NFT by locating its digital certificate, metadata, and position on the blockchain. The owner stores the coded address that points to the NFT in a digital wallet. The metadata (or content, like artwork or music) is stored in the cloud, and the smart contract is found on the blockchain.

How Are NFTs Different From Cryptocurrency?

NFTs and cryptocurrency are different kinds of digital tokens that can exist on the same blockchain. Cryptocurrency units are interchangeable and replaceable because they have the same value. By contrast, each irreplaceable NFT has a singular identity, and its value is based on its characteristics, desirability, and rarity.

How Do People Buy and Sell NFTs?

A person can exchange cryptocurrency for an NFT, just like they might exchange dollars for a baseball card. The following steps will explain how to buy and sell NFTs.

1. Install a Crypto Wallet

You’ve probably heard that you need a digital wallet to hold your cryptocurrency if you’ve ever explored buying Crypto. In contrast to popular belief, wallets are not used to hold digital currency. They give you a private key that will allow you to safely access your blockchain assets.

This applies to both your NFTs and the cryptocurrencies with which to buy them. You’ll need a single wallet, but it should be built on the same blockchain as the NFT you plan to purchase. The Ethereum blockchain is home to the great majority of NFTs, making an Ethereum crypto wallet your best bet.

You can avoid creating a separate crypto wallet by using Artozo’s in-built wallet. The in-app wallet provided by Artozo is not only more secure than “hot wallets,” but it also saves you time and effort.

2. Join a Crypto Exchange 

To buy your first NFT, you’ll need to convert your funds into digital tokens, which you can do now using your wallet.

Ethereum, the second largest cryptocurrency, is built on the same blockchain that stores most NFTs. Therefore, it is highly recommended that you invest in Ethereum’s native currency, ETH. If you want to purchase Ethereum (ETH), you will need to open an account with a cryptocurrency exchange.

Consider the exchange’s volume of trade, fees, coin selection, liquidity, security measures, and insurance before making a final decision.

Artozo is among the reputable platforms that accept major credit cards in addition to crypto for trading NFTs.

3. Sign up for an NFT Marketplace

It is not possible to trade NFTs on the same exchange as you purchased cryptocurrency. You’ll need to become a member of a market where NFTs are displayed, purchased, sold, and traded. After creating an account in the NFT marketplace, you can connect your digital wallet to it.

There are many NFT marketplaces available, similar to the many cryptocurrency exchanges.

When buying NFTs, you’ll get better deals and more potential purchasers if there are a lot of other people using the same marketplace. While other major marketplaces may demand a commission of $70 to $100, Artozo only requires $2.

You can sell your NFT back on the same exchange you got it from, however, this time you’ll “get” cryptocurrency from the buyer and the buyer will “receive” your NFT in his or her own digital wallet.

In truth, nothing is taken from or given to you or the buyer. Both the cryptocurrency coins and the NFT will be where they have always been on the blockchain, but new data will be written to reflect the ownership shift.

How Do NFTs Allow Direct Trade?

Buyers visit an NFT marketplace to find, select, and purchase their NFT of choice from its current owner using cryptocurrency. The NFTs are stored, exchanged, and transferred using digital wallets. All transaction records are permanently logged on the blockchain.

Where Do NFTs Get Their Value?

An artist’s talent, reputation, creative efforts, and social standing, combined with the story of the artwork and its aesthetic excellence, determine the value of the NFT that represents it. Rare, “hard-to-get” NFTs that are desirable or socially useful are worth more than simplistically designed, easy-to-acquire NFTs from lesser-known artists.

What Does a Community Have to Do With NFTs?

NFT communities are made up of people who share something in common. Members create value by debating and deciding which NFTs are most desirable, all while seeking a return on their time, interest, and financial resources. Group cohesion and continued discussion can help an NFT maintain and appreciate in value after its initial sale.

What Is an NFT Trading Platform?

NFT trading platforms are systems that host NFT-related services, like trading NFTs on a marketplace or storefront. Different platforms offer a diverse variety of features and benefits to users.

What Kinds of NFT Platforms Are Popular Now?

Today, there’s an NFT platform to suit every taste. Some NFT platforms are like department stores; others are like expensive and exclusive luxury boutiques. There are corporate platforms, indie platforms, and crypto-only platforms. Look for a platform that specializes in art, music, video game assets, sports memorabilia, or whatever collectibles you like.

Check out this NFT platform list to learn more:

  • Artozo
  • OpenSea
  • CryptoPunks-Larva Labs
  • Rarible
  • Nifty Gateway
  • Foundation

What Do the Top NFT Platforms Have in Common?

The top NFT platforms are reliable, well-designed, and user-friendly. They are compatible with a variety of popular cryptocurrencies and wallets and feature a large or highly curated selection of NFTs.

What is Artozo?

Artozo is a Solana Blockchain-based NFT art platform and marketplace that includes an NFT Community Rating System, staking, reward program, ARTZ( their native cryptocurrency), and in-App Wallet. The fast, high-performance architecture, intelligent design, feature-rich offerings, and low transaction fees make Artozo highly competitive with the best NFT platforms online today.

What are ARTZ Tokens?

ARTZ tokens are the native cryptocurrency of the Artozo NFT platform. They can be exchanged for NFTs and rewards on the platform, or put into an external wallet for storage or exchange for other cryptocurrencies. Among the many rewards offered by the platform, the following are some of the most favorite by the user community.

NFT Staking

The Artozo Platform will run unique Staking promotions where participants can win a portion of a predefined reward pool. ARTZ Tokens will be used as the medium of exchange for the prize pool established for each Staking event.

ArtUp Boosters

Users can raise an NFT’s Level rating by purchasing ArtUp Boosters. The boosters can be purchased at each Level as well as from Levels earlier in the progress. Adding an ArtUp Booster to an NFT enhances its Level and, by extension, its worth. 

Users can buy ArtUp Boosters from the Store, and the Platform will also occasionally give them away as Mystery Box prizes or other types of Rewards.

NFT Voting & Rating Reward

Users who actively participate in Artozo’s Platform by voting on and rating NFTs are rewarded. Using the good and negative votes of the Community, each NFT on the platform will be assigned a Rating. For each NFT, the total number of positive votes will be divided by the total number of negative votes. This Rating has a direct impact on the NFT’s value for acts such as staking.

What is the Artozo In-App Wallet?

Artozo has a platform-managed in-app wallet that requires no additional extensions, applications, or secondary wallets. The wallet allows artists and collectors to exchange cryptocurrency and NFTs within the platform. It will eventually enable users to transfer crypto to other blockchains like Ethereum, Polygon, BSC, and more.

Who is Pavlo Kharmanskyi?

Pavlo Kharmanskyi, a Ukrainian, founded the Artozo NFT platform. A collector and trader of NFTs, Pavlo Kharmanskyi got his start in the industry in 2021. The growing NFT and crypto markets were an obvious fit for him since he has over a decade of experience in the Fintech and IT sector and a history of working as a software developer.

Kharmanskyi and a few close pals became interested in NFTs in particular, and they started learning about the processes involved in making, buying, and collecting NFTs on various platforms.

Bringing together their expertise in technology and the Ukrainian art scene, Kharmanskyi and his close friend Andrew Savchuk were able to link their personal concerns to larger issues facing the expanding market. With the help of his pals, Pavlo amassed a Telegram community of 25,000 people around the concept of building a platform to address existing challenges in the NFT market.

Kharmanskyi and his team’s goal was also to make collecting enjoyable and valuable by including gamified components that rewarded the User for nearly all of their activities.

What Will the New NFT Platforms Bring to the Table?

As the Metaverse opens up and the world moves into Web3, new NFT platforms like Artozo will foster democracy and inclusivity so that more people can join and participate in NFT communities. Platforms will lower barriers to entry and reward community members for their contributions. The next phase of NFT art trading has arrived, and Artozo is leading the way.

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