You must already be aware that NFTs offer a way to earn money by digitizing various assets. It is also possible to monetize intellectual assets while verifying the authenticity of various physical assets over the internet. The new concept of NFT Marketplace offer a lot of value to the investors who want to utilize the valuation of physical assets. This concept is going make use and treat physical assets that are tangible in nature.
NFTS or non-fungible tokens are the future of businesses, but to date, they included works of art, memes, music, etc. only, that could not be duplicated. Now, the marketplaces have started using physical assets like real estate for tokenization. So, you can call it a huge step forward.
Features of the NFT Marketplace For Physical Assets
You have to take into account some key features before you consider physical asset NFT marketplace development.
Auction House – You can sell the tangibles that have been converted into NFTs at auction houses. The user can determine the value of the asset. Then the buyers are allowed to place their bids on the said physical asset. The buyer who quotes the highest value gets the ownership of the physical asset. You can find this system quite similar to the English auction system.
Advanced Navigation – You can also reward the users, with search filters like categories, posting dates, names of the creators, and prices. The collection which is posted on the NFT marketplace is quite huge, so you need to search well to find the right fit.
Crypto Wallet – If you are posting a physical asset in the marketplace, it is imperative that you have to develop a crypto wallet for the same. Coinbase wallet and Metamask are some possibilities here. A crypto wallet allows a user to transact seamlessly.
Physical Assets Enlistment – Users can now mint their physical assets without any hindrance. Users who are also owners of the physical assets can convert them into non-fungible tokens and then enlist them in the marketplace. The user can also add a detailed description of the physical asset.
Create a Marketplace – Now, it is possible for users to post representations of various types of physical assets like real estate, machines, art, and vintage automobile.
Most people will fall for such NFT marketplaces for physical assets, as they appear more authentic than just digital assets. This concept has raged a storm in the NFT Marketplace today.
Physical NFT Vs Digital NFT
Are you still confused between physical assets and digital assets? Do not be. We are here to clarify the entire matter for you. Let us explain the concept of a digital asset in the first place. You can compare such assets to intangible ones, which you cannot touch with your bare hands. However, these were the first to come into the picture, in the market. In the very beginning, such NFTS was mainly used for people or users, who just wanted to hoard the digital assets. Artworks and artistic creations are some prime examples of such assets. Moreover, many artists are tokenizing their assets in the digital arena, today. Such digital assets also give a decentralized gaming experience to players and users. Such NFTs mainly offer the users with the power to monetize their game assets or winning items. You can make use of AR and VR to convert the gaming assets into NFTs.
Now, enter the physical assets. Once you know, how the digital NFTs worked, it gets easy. You will be amazed to know that the NFT marketplace offers a lot of possibilities. You can also get unique tokens made for real-world and tangible assets. It can be a house, a car, or a painting. These are available in reality with a barcode, which is very different from digital assets. Today, you will come across a huge market for such physical NFTs. You can invest in such assets without involving any broker.
Components of NFT
Now, that you know what the various NFTs are, you should have a clear overview of its components. For any sort of cryptocurrency token to be identified as an NFT, it should have the characteristics and components as given below.
1. No one should be able to duplicate it.
2. It should be counterfeit-proof.
3. You cannot create it on demand.
4. The NFT should possess the same ownership rights like any other cryptocurrency.
The NFT should represent something, which is unique and has an authenticity of its own. Most NFTs have:
Blockchain – Take the example of Ethereum, which is the most commonly used NFT blockchain today.
Smart Contracts – these are nothing but clauses, like an agreement, that are embedded in the hardware and software. They help in facilitating transaction between parties.
Address and transaction – These are essential concepts in the gamut of cryptocurrencies. The address serves as a unique identifier. To transact you need keys.
That explains how such transactions on blockchains take place. NFT should have the key components as well.