NFTs on Solana: What are they and how do they work?
NFTs on Solana
NFT( Non-fungible tokens), to understand what NFTs are in cryptocurrency, you need to understand the word “ fungible”. Fungible is a word one uses to describe things that are the same and can easily swap places with each other. Imagine you have a bunch of identical toy cars. They're fungible because if you give one away, you can replace it with another one, and nobody will notice the difference. SOL token is also considered fungible because each unit (Solana) is the same as every other SOL token. One Solana is indistinguishable from another Solana of the same value.
WHAT ARE NFTs IN SOLANA
When something is non-fungible, it means it's special and one-of-a-kind. Imagine your favorite teddy bear – there's only one exactly like it, and you wouldn't want to trade it for any other toy.
NFTs in cryptocurrency are digital assets that represent ownership or proof of authenticity of a unique item or piece of content using blockchain technology which ensures that the ownership records are secure and can't be tampered with.
WHAT ARE THE CURRENT AND FUTURE USE CASES OF SOLANA NFTs
Even though NFTs haven't been adopted everywhere, those who support the technology think that the groundwork is being laid for wider uses, especially when we look at Solana NFTs.Solana NFTs have captured significant attention and have become a reality, particularly within arts, games, and DeFi. The future of the Solana NFTs looks promising, soon Solana, will keep supply chain data authentic and reliable because of its immutability and transparency.
NFT OWNERSHIP AND PROOF
Proof of ownership of an asset is very important in today’s world because it shows who has the exclusive right to a specific physical asset, so NFTs also require proof of ownership.
In NFTs, ownership alone can not be sufficient to prevent fraud, but with a proof mechanism a way to confirm the legitimacy of ownership can help, which provides both tamper-resistant and transparency. An example of such a proof mechanism is “THE BLOCKCHAIN”.
HOW DO NFTs ESTABLISH OWNERSHIP ON THE BLOCKCHAIN
The process in which NFTs (Non-Fungible Tokens), prove who owns a digital asset on the blockchain is simple.
The process starts by using smart contracts(a special computer code comprising details about the NFT, such as its unique identifier, metadata, and ownership information )and the blockchain. Each NFT has a special code, which is called the unique identifier, which shows that the NFT is one-of-a-kind. When you buy the NFT, the blockchain records that you're the owner, and this record can't be changed except when it's being sold. The metadata also keeps important details about the asset, its creator, and its history which is linked to the blockchain. Then, the NFTs can be bought, sold, or traded across different platforms and marketplaces because they adhere to common standards such as metaplex on the solana blockchain.
FRACTIONALIZED NFTs (F-NFTs)
With the current remarkable success of NFTs, which have been capturing the attention of some artists and creators, there is still a lack of liquidity associated because of the high price of certain artworks, moreover, as NFT prices continue to climb, making them too expensive for many people to afford, the creation of FRACTIONALIZED NFTs was made possible.
Here, Fractionalized NFTs bring the idea of dividing ownership into play, ensuring more people can enjoy the advantages of ownership. In simple words, fractionalizing an NFT means breaking its ownership into smaller parts and allowing multiple people to have a share in a single NFT. In 2018, Fractional Non-Fungible Tokens (F-NFTs) were introduced as a way to offer a new form of “shared ownership”. Projects like Degods and Frakt have already adopted this innovative form of NFTs.
WHAT ARE THE BENEFITS OF NFT FRACTIONALIZATION
The benefits of fractional NFTs will help both artists and investors, and these include:
1. Fractional NFTs help artists make money from their art more effectively.
2. Now, investors of any budget can own NFTs through fractional NFTs.
3. NFT owners can generate more interest in their assets by allowing shared ownership through fractionalization.
4. Creators of fractional NFTs can sell a portion of their NFTs without selling the whole thing.
5. Owners who convert NFTs into fractional NFTs can earn an annual curator fee.
As NFTs revolutionize the art market, the way we interact with digital content also changes. We have seen NFTs transcend from their origin to become a symbol of authenticity, ownership, and creativity. There are numerous use cases of NFTs but in the guide, we will be discussing a few use cases;
1. NFTs IN GAMING:
NFT games are a unique kind of game that uses a special way to create a relationship between its players. In these games, players can do things like making new game items, and characters and then sell or trade them with other players which is a way to enjoy playing the games and also earn money. The way NFTs are used in gaming is unique because NFTs are used to turn game items into investment opportunities, also NFTs are used in gaming to record special game items by putting them on the blockchain so that a player can see its history, its owners, and prices.
The NFT makes sure that the transactions happen openly and honestly. The new game items are put into special NFT smart contracts giving each item a unique code that proves it's one-of-a-kind, which makes it attractive for investment. As NFT games work as an interactive gaming environment for its players, it can also work as a marketplace at the same time. How is it possible?
First, they captivate the players with interesting in-game items and enjoyable gameplay, and then they introduce the mechanics of the NFT marketplace, explaining how it operates, where to acquire, create, and more. This means that players can not only enjoy an engaging game but also generate income by participating in activities like creating, purchasing, and selling NFTs. This essentially transforms a typical video game into a play-to-earn NFT game. This process can also work in reverse.
Examples of Solana NFT games are Star Atlas, monkey-league, Aurory, Solchicks, etc.
These games have gained recognition in the solana ecosystem as highly polished products with the potential to sustain thousands of daily users. Which are often referred to as play-to-earn NFT games.
Star Atlas is a massively multiplayer online (MMO) space exploration game built in Unreal Engine 5 on the Solana blockchain that utilizes NFTs to create a truly decentralized and player-owned gaming experience. This project was created by a team of experienced professionals who are combining gaming, blockchain technology, and NFTs to offer an immersive and connected gaming experience.
Through the use of blockchain technology, Star Atlas introduced a unique level of ownership and rarity to in-game items, where each item within the game, whether it's a spaceship, planet, or resource, is represented as a non-fungible token (NFT) on the blockchain. This helps players with genuine ownership of their digital possessions, enabling them to trade, sell, or use them in various games and platforms.
The first Star Atlas mini-game, Faction Fleet, is available in the web browser.
How to access Star Atlas
1. Connect your wallet ( phantom or Solfare), buy Sol or USDC
2. You can access Star Atlas games either through play.staratlas.com. for Faction Fleet or through The Star Atlas Showroom, which can be downloaded through the Epic Games Launcher
3. You can obtain spaceships by purchasing them through the Star Atlas Marketplace.
However, Star Atlas is a groundbreaking blockchain game that leverages NFTs and gamification to reshape the gaming industry and unlock new possibilities for players.
NFTs AND IDENTITY
Identity verification is the process of confirming that someone is who they say they are when they interact with people either online or offline. The need for NFTs is important to prevent identity theft and fraud, ensuring that only authorized people can access certain resources or information.
There are several ways that NFTs can be used for identity verification
1. One way to use non-fungible tokens (NFTs) for identity verification is to create an NFT that represents a person's identity. This NFT could contain information such as the person's name, date of birth, and government-issued identification number. The NFT could then be verified by a trusted third party, such as a government agency, and the person's identity could be verified by presenting the NFT.
2. NFTs can be used for identity verification in online voting systems. By creating NFTs that represent the identities of registered voters, it would be possible to verify that only eligible voters are casting ballots.
Benefits Attached to Using NFTs for Identity Verification
1. Since NFTs are decentralized, they are not controlled by any single entity. This makes them resistant to tampering and fraud, as there is no central point of vulnerability that could be exploited.
2. NFTs are immutable, meaning they cannot be changed once they are created. This makes them a reliable way to verify the authenticity of an identity, as it is impossible to tamper with the information contained in an NFT after it has been created.
NFTs are a new and rapidly evolving technology with the potential to revolutionize many different industries, including art, gaming, identity verification, and so on. Solana NFTs are particularly promising due to the Solana blockchain's speed, scalability, and low transaction fees. The future of NFTs is very bright. NFTs have the potential to revolutionize many different industries and change the way we interact with the digital world.