If DeFi is the most well-deserved hot spot of the blockchain industry in 2020, since all kinds of liquidity mining gradually stabilize, where is the next booster to ignite the market? NFT must be one of the words that appear in your mind.
What is NFT?
What is NFT? The full name of NFT is Non-Fungible Token. Common digital currencies such as Bitcoin and Ethereum are Fungible tokens, which can be divided into smaller units and also can be exchanged one-to-one. The essential difference between NFT and common digital currencies is that each NFT is unique and scarce. It is more like a concept corresponding to a real object. Each NFT has its own characteristics and cannot be replaced by each other.
Speaking of NFT, most people’s first impression is the CryptoKitties that swept the world in 2017. Indeed, the concept of NFT was recognized on a large scale for the first time, dating back to the end of 2017, CryptoKitties played a vital role. The cat #896775 was sold for 600 ETH, which is about 270,000 US dollars; in the following two years, despite the value of tokens of most projects in the currency market is gradually falling, but the niche market of NFT never died down. From games to encrypted arts, domain names, cards, and other aspects, technological developments and artistic creations are always moving forward, and finally gained attention again in 2020!
NFT trading market overview
According to third-party data such as DappRader, Messari, etc., in July this year, the total number of OpenSea users on the NFT trading market exceeded 20,000, with an average monthly transaction volume exceeding US$1 million. In the global market, only according to the daily transaction data on wallets of the Ethereum NFT category, there is a 350% increase in the third quarter compared to the second quarter, while the transaction volume increased by 57% year-on-year; compared to 2019, the transaction volume increased by 368%, reaching a historical highest level at 20 million US dollars.
How to grasp the upcoming new wave of NFT? As a normal user, there are some ways to participate in the market of NFT: creating NFT, whether it is building houses, issuing cards, or works of art; participating in primary market issuance from existing NFT issuers; in addition, the simplest, straightforward method that even mass users without programming skills or artistic creativity can directly participate is to directly purchase NFTs that they like to collect or expect to appreciation through NFT trading platforms such as Rarible, OpenSea, and Super Rare.
The NFT trading platform controls user resources and entrances. Facing the potential for exponential growth in the future, the NFT trading platform has undoubtedly become one of the most-watched tracks in this segment. Judging from global market data, Rarible and OpenSea are currently the largest and most popular NFT trading markets in the world.
OpenSea is an NFT trading market built on Ethereum. It was established in January 2018. Users can buy, sell, and auction NFTs on OpenSea. More than 10 million assets have been launched, including hundreds of categories such as website domain names, virtual worlds, artworks, and collectibles. Rarible is also a trading market based on the Ethereum network. Its RARI token has significantly promoted the market’s popularity and value growth.
Unfortunately, NFT has emerged from a niche circle, and the growth potential of the Chinese market has not been taken seriously in the past. The first two platforms are not friendly to Chinese users. The recent NFT trading market Finannel is more friendly to Chinese players and deserves more attention.
Finannel’s potential is emerging
Finannel is taken from Finance and Channel. Finannel officially hopes that the concept of non-fungible tokens will be understood, used, and popularized by more people. Similar to OpenSea, Finannel supports the purchase and sale of non-fungible assets in a variety of fields, including digital arts, collectibles, game assets, cards, domain names, and other assets in the blockchain field. In addition, Finannel has the following features:
Support ERC721, ERC1155, and other protocols
Currently, there are two main popular protocols for NFT on Ethereum: ERC721 and ERC1155. ERC721 is the most common NFT standard, which is used by well-known NFTs such as CryptoKitties. The interface is very similar to ERC20 and it is very convenient to use. ERC1155 can be regarded as an improved version. It is derived from Enjin. Its main function is to improve the situation that only one type of asset can be issued in one contract of the ERC721 agreement. Any type of NFT asset can be issued in one contract. This can also be regarded as the most suitable token standard on Ethereum for game assets.
For example, if a user wants to transfer 100 “swords” when using the ERC721 protocol, they need to call TransferFrom 100 times, while using ERC1155, they only need to call 100 TransferFrom once. Therefore, supporting both ERC721 and 1155 protocols means that Finannel can support most types of NFT transactions in the current situation.
ETH wallet supported by Finannel
Low gas fee
Before Finannel launched, OpenSea charged buyers 2.5% transaction fees, and no gas fee for sellers. Compared with the 7.5% transaction fees of other platforms, OpenSea’s transaction fees were relatively low. However, on Finannel, when items are completed transactions, the platform only charges 1.5% of the price as a handling fee. This should be the NFT trading market with the lowest fees!
From virtual to reality, the NFT market is prosperous in the future
In August of this year, 2020 ChinaJoy has used NFT tickets as an admission voucher for the online exhibition (ChinaJoy Plus); in October of this year, the 21st piece (Block 21) in the Bitcoin-themed series of artworks of “Portraits of a Mind” New York’s Christie’s auction was sold at a price of US$131,250, setting a record for the highest NFT auction price. The NetEase Future Conference, which will be held in December, will also use NFT tickets as an admission voucher.
A series of facts indicate that the niche market of NFT is rapidly flooding into a large number of creators, investment institutions, game players, collectors, developers; such as Christie’s auction, NetEase, and other industry leaders. The attention and continuous participation of organizations and celebrities have also turned NFT into the closest boundary between virtual and reality in the encrypted asset market. The encrypted asset market is expected to enter the real world of mass users again through NFT.
Grasping the track leader and potential projects are the best choice for smart investors. You might as well start from experiencing the purchase of the first NFT on Finannel, and join this undercurrent, fast-growing industry feast. As for whether Finannel has plans to issue tokens in the future, or whether it will empower the value of the platform, we need to maintain continuous attention!