Non-Fungible Token from Stobox | Stobox NFT

Everything about NFT token. We explain why and what types ob business should create an erc721 token. Proceed here to learn more!
13 MAY, 2021
Capital Raising
Everything about NFT token – list and prices: learn about the difference between fungible and non-fungible token with Stobox. We explain how to create an erc721 token. Proceed here to learn more!

NFTs offer options to create and trade rare and unique digital assets

NFT cryptocurrency is a blockchain technology allowing to equate digital belongings to physical ones. It is created on the basis of Ethereum, and its superpower lies in being non-fungible – in this particular feature, it differs even from Bitcoin. This means that your one Bitcoin value is equal to somebody's one Bitcoin value, whereas erc721 token is an absolutely unique token: another similar certificate merely can't exist.

Let's dive a little deeper into this particular feature. Say you have a five-dollar bill and five one-dollar bills. Both these things are interchangeable; you can either pay for goods with them and compared together, their value is precisely the same: both in terms of the object it describes and in terms of value. However, if there was a unique 8-dollar bill, released for a special occasion, the one that only you own, it could be compared to the NFT's term of value: the 8-dollar bill is still a payment method, but it's collectible.
Therefore, non-fungible token allows you to get ownership of a product that exists exclusively online thanks to uniqueness and exclusivity in its – NFT's – essence. Because of this, the token has its own value – it cannot be shared or replaced by any other. It contains information about its owners and the transactions it has gone through. You can now assign an erc721 to any digital object, which will give personal ownership of that object.

Recently, Stobox issued the Lucky Ox NFT Merch Collection. Apart from buying actual clothing items, you can also purchase NFT T-shirt, hoodie, or cap.
Other than issuing the NFT merch collection, Stobox is curating the issue of DAO NFT, which is the product of Artetris DAO. Artetris DAO is a community governed platform, which brings progressive artists, collectors and art enthusiasts together. The project aims to provide access to a small group of art practitioners and enthusiasts for exclusive artists, close the divide between NFT adopters and typical recognized artists, expand the visibility of art and strengthen links in the art community, as well as highlight important global social concerns in the artists' works. Stobox is happy to contribute to the art sphere and work on instruments that are going to give promising artists their deserved credit.

The idea of NFT is that an object acquires a digital signature just as a work of art contains the author's signature: this is a particular feature ensuring the artwork is original. Today, in terms of digital art like GIFs, videos, memes, digital paintings and all the possible other forms, the NFT market is an instrument allowing digital artists to monetize their work. The good news is that purchasing an NFT token isn't equal to buying intellectual property. Therefore, it's legal for the Internet community to continue using these products in their interactions.

What can you do with NFTs today?

The marketplace for basic operations in this area – that is, to issue or sell NFT – is evolving towards making these operations cheaper and more straightforward. Issuing and supporting NFT on the Ethereum blockchain can be expensive, so some companies consider issuing these tokens on other blockchains – this technology makes the release of NFT cheaper and, therefore, more affordable. The commission rates are going to be lower as well.

The nuance of reducing commissions is important because the possibility to sell the erc721 token is not guaranteed; the ability to vend them is determined by the market and the narrative, not by some specific economic indicators. When the release of NFT becomes very affordable or free, the average person or artist will have their risks eliminated. They will lose nothing; instead, they'll gain an upside. The entire NFT market will become more commonplace, as manufacturing companies will hire workers to develop this product.

Another aspect is the development of more advanced NFT technologies. A good example is NFT-staking: you will be able to put them in pledge and receive an income thanks to it or use it as collateral.

Fractionalization of NFT's is also a possible scenario. This is the technology allowing to fractionalize one erc721 item into several parts, to which different people will be able to co-invest. This, again, makes the NFT's future look more available and close to every day.

How can you apply NFT to middle-sized business practices?

1. There's a number of businesses conducting tracking. Using NFTs, these companies can build in the code inside it, which will be connected to a certain item. Such a procedure will enhance the tracking operation.

2. Companies can use NFT tokens in order to consolidate the community around them by issuing their branded NFTs. This will help people identify themselves with a brand and feel a part of a united community. If you want to learn more about the current subject, please see our video about digital tools on enhancing the bonds with community.

What is NFT's nearest future?

There is an opinion that the NFT market is overheated, and it's moving at the speculating level. Stobox strongly disagrees: the closest example is the art market, which has been out there for hundreds of years. The fact of people buying unique objects proves a point: it's valuable to be a part of a certain narrative.

The only possible shift in this area is possible because some types of non-fungible tokens will no longer be unique: the first tokenized tweet is exceptional because it was the first tweet ever to be converted to erc721. After all the millionaires do this, the value of this item, which is the first tweet of a famous person, will, in principle, be a little less because, as an asset class, such NFTs are less exclusive. This is the only case where NFT price may be slightly reduced.
There will also be cases of releasing NFTs as a medium, granting its owner access to some scope of privileges. In this case, these tokens may represent some ranks or achievements, which can also entitle a special bonus within this application. Apart from business ecosystems, such usage can be applied in gaming platforms or cryptocurrency exchanges. For example, a cryptocurrency exchange may issue erc721 tokens that entitle you to reduced fees for specific amounts of transactions (for example, 0.1% commission turns to 0.01%). Accordingly, businesses will engage their company through NFT, which gives various additional rights within their ecosystem.
13 MAY, 2021
Capital Raising
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