Two major NFT-related events that happened in March this year grabbed the attention of the masses. Digital artist Beeple sold the non-fungible token (NFT) of his Everydays: The First 5000 Days artwork for a staggering $69.3 million through an auction at Christie’s.
In another event, the blockchain firm Injective Protocol bought an original Banksy for $95,000, and burned the print art in a livestreamed video. Then they sold its digital copy as an NFT for a staggering $380,000! The original piece was no longer in existence, which added to the NFT’s uniqueness and perceived value.
More than just digital art
A non-fungible token on the blockchain allows users to verify the uniqueness of the object and track who owns the token. It’s similar to a certificate of ownership for a unique object. An NFT includes rich metadata, safe file links, owner ID, and other identifiable information, which make an NFT unique and unexchable.
Non-fungible tokens have become immensely popular, and they are no longer just about digital art. Nike, the US footwear giant, has patented sneakers as NFTs. CryptoKicks, Nike’s NFT sneakers, enable users to “breed” different types of shoes and create custom sneakers. The company could produce them in the real world.
You can use NFTs to verify ownership of uniquely valuable assets on the blockchain. These assets could be anything from photos, videos, GIFs, text, licenses, certifications, medical records, music, video game skins, virtual real estate, virtual trading cards, and more.
Doors open for NFT lending and borrowing
With the growing popularity of NFTs, we’ve seen a new trend where people prefer to borrow NFTs for a set period rather than paying the full price to buy them. Borrowers get to temporarily own the NFT they want for a fraction of the cost of purchasing them. Lenders who own NFTs have been capitalizing on the trend to earn passive income by renting out their idle NFTs.
Hoard Exchange is an NFT marketplace where you can buy, sell, and trade NFTs. Users go to Hoard to trade in-game items, domain names, digital art, and other assets. It also provides the infrastructure for developers to integrate in-game items with the Ethereum blockchain. Game developers use Hoard to mint non-fungible tokens for use in their games.
Hoard’s NFT marketplace has a dedicated “Rent” feature that allows NFT owners to determine the rental price, the NFT price, and the maximum rental period. People interested in borrowing the NFT will have to put the NFT price as collateral along with a set rental fee for the desired lease duration before they can rent. If the borrower fails to return the NFT to the lender on time, the collateral is transferred to the lender (NFT owner).
It enables you to temporarily own and use an NFT you otherwise don’t want to purchase. Lenders don’t have to worry about fraud or theft because the collateral’s value is equal to the price of NFT. When the borrower returns the NFT on time, the collateral is returned to them.
Despite the hype and explosive growth over the last year, the NFT landscape is still in its infancy. More and more people are turning to NFTs to verify ownership of digital and real-world assets, earn passive income, and do much more. NFT marketplaces like Hoard Exchange are enabling buyers, sellers, and traders to find innovative applications of non-fungible tokens.