If you were looking for the easiest way to immerse yourself in the world of blockchain, crypts, and NFT, then here it is!
Welcome to Funrise — it's a place where everyone can try themselves as a trader, creator, collector, and visionary.
We operate with complex concepts and technologies here, but we talk about them in simple language. We will not drown in terminology and try to look abstruse. And while others collect NFT cards from the NBA or buy tweets, we offer you to make your unique collection of digital assets.
In the HOW IT WORKS, we tried to describe processes such as writing to the blockchain, creating NFTs, buying and selling them as simply as possible.
Now we would like to explain to you the theoretical part.
So, let's go!
Blockchain is a technology for recording of information in digital form. Transaction history information is stored inside the block, each block contains information about the previous block, so they are linked in a chain. The information in the blocks is encrypted. Each segment of the blockchain is stored on a separate computer. There is no one repository where all the information is concentrated. There are many segments connected in a chain. Therefore, the blockchain is called a decentralized system.
Blockchain is widely used for two main reasons: blocks are decentralized - this means that third parties are not involved in approving transactions in the chain. And the blockchain is immutable (protected from hacking), because any change in it requires the consent of all network participants — consensus.
According to its principle of operation, the blockchain resembles torrents: blocks of a single chain are distributed among many users on the network. The peculiarity of this block chain is that it cannot be faked. You can't extract a piece and change the information in it, it's just technically impossible.
What is written in the blockchain remains in it forever. It gives a guarantee of authenticity.
The combination of cryptoshipping and disparate storage allows us to speak about the high reliability of the blockchain. Currently, this is one of the most stable and transparent data recording systems. At the same time, it does not matter what data is recorded: blockchain technology is universal.
We love blockchain precisely for its reliability and transparency. Therefore, on the Funrise platform, all transaction data is recorded in the blockchain.
All transactions in the blockchain are conducted in cryptocurrency. But this does not mean that for trading you need to know the rates and quotes and generally understand the crypt. It's not true.
Our smart platform itself will show the amount needed to top up the balance, convert it when buying into cryptocurrency and back to USDC when withdrawing to the balance. This is as transparent and convenient as possible.
NFT is a digital property with a set of rights. NFT can be 3D models, videos, images, audio recordings and other content in any of the available formats.
The main feature of NFTs is their uniqueness, expressed at the code level. NFT is a one-of-a-kind object that reflects the ownership of anything, from a gif with a picture of a kitten to a castle in the Alps.
Why do people trade NFT?
NFT technology has globally raised the question: what is the value of things in a world where almost everything is virtualized? An answer is the sale of the most unexpected objects — memes, gifs, posts — that nobody has any idea to evaluate.
The technology made it possible to "hang" a special tag on each object, where the name of its owner is written instead of the brand name. It's a kind of "user-centricity economy". And since there are no established rules, like everything new, this raises a lot of questions and skepticism.
This is an absolutely natural way for any innovative solutions. For example in the late 80s, just two years before Apple released its first home computer, president of Digital Equipment Ken Olsen uttered the phrase: "There is absolutely no need for a person to have a computer at home." And here we are.
People trade NFT because it is an easy way to make money on sale or resale. For example, it costs you nothing today to spend a couple of dollars to buy a selfie of a novice blogger. Now imagine that tomorrow it turns out to be the second Madonna or Michael Jackson. The amount of such an asset can immediately transform in six digits.
In addition, NFT technology democratizes the idea of collecting. To start collecting the history of the Internet, social networks or a separate blogger you do not need to spend half of your life trying to join a closed and competitive community of professional collectors. And the cost of most assets allows any user to try a new role.
It turns out:
- People trade NFT because it is an opportunity to earn and realize their ideas
- There are no rules. They are being formed before our eyes
- Anyone can try to trade NFT. Nothing but curiosity is needed for this
How does the NFT market work?
The NFT market is divided into several thematic segments: art, games, sports, collections. Historically, art and games have been and remain the largest segments, but the more people start using NFT technology, the wider the scope of its application becomes.
The NFT market is young (despite the emergence of NFT technology in 2017, the process of mass adaptation began only in March 2021), it is actively developing, experiencing its ups and downs, it is characterized by volatility (instability), but this is natural for a new and emerging environment. The market volume for 2021 exceeded $12 billion, which is almost twice as much as last year.
Many people are optimistic about NFT technology: it has already become clear that its scope of application is huge, and speed, transparency and cost-effectiveness are attractive not only for user tasks solving, but also for large companies and brands.
With the appearance of the goods themselves - assets - there were also places for their sale - marketplaces. These are platforms where users can trade with NFT. Each marketplace often has not only its own concept of working with content (for example, the NBA marketplace specializes only in selling the best moments of games), but also its own audience policy: some platforms are open to everyone, some function exclusively as closed communities.
At the same time, asset trading is arranged in almost the same way as the classical one: the same principles of successful sales, supply and demand, popularity and "packaging" apply here as everywhere else. Therefore, if you +/- know why the same products on the shelf in the store look and cost differently, then this knowledge will be enough to try yourself as an NFT merchant.
- The NFT market is young, developing, but has already proven its worth
- Most popular segments: art, games, sports and collections
- Marketplaces are like supermarkets: they are different
- The rules of trade are the same everywhere
What can you do with NFT?
Sell, buy, resell, donate, collect and destroy.
Here on Funrise, you can purchase an NFT and become its owner, or you can create your own unique NFT, which someone will then buy.
In general, NFT is a unique opportunity to get recognition of your creativity, whether it's a painting, video, photo or anything, in monetary terms.
Buying an NFT, you get both access to a file - a digital asset, and a record in the blockchain that confirms your ownership. This "certificate of ownership" should not be lost, burned or destroyed, because it is a blockchain.
As soon as you click the "Create NFT" button, the file is uploaded to the repository and then the process of creating an NFT begins. It takes a certain amount of time: NFT does not appear in your collection instantly. A record in the blockchain will contain a link to a virtual object, data about its creator and owner, and a list of rights to the object, but what these rights will be is up to the creator of the object.
The rights / Copyright govern (-s) the terms of the subsequent use of NFT. Sometimes the creators do not burden the object with any restrictions. Everything is very individual.
It is important to remember that you cannot cancel the creation of the NFT after the start. It is impossible to carry out a refund operation, including money. Therefore, we strongly recommend you to carefully read the terms of purchase, the rights and the description of the purchased object. If something raises questions, feel free to write firstname.lastname@example.org. We are happy to help and advise.
NFT can be resold in the future. The original file remains in the repository, and only the owner of the NFT can delete it.
Well, lets go Funrise