Non-Fungible Tokens, NFT, refer to tokens whose value is unique and different from others with the same properties. They are indivisible. A house or picture, piece of art, etc. are examples of Asset classes that are tokenized as NFT. NFTs are core to blockchain gaming and even Defi as they begin to grow in market capitalization. According to Coinmarketcap, the NFT market capitalization is about $2.5 Billion. December 2021 recorded the highest NFT sale of $91.8 Million for Pak’s- The Merge NFT. There is only speculation as to the potential greatness of NFT on an efficient and viable blockchain as Xinfin.
The Basel committee’s oversight body has approved that Banks will be able to have 2% exposure to crypto assets come 2025. What better layer1 blockchain is suitable for the Tokenization of assets if not a blockchain that is primarily designed for such- Xinfin blockchain?
Even physical cash and coins can be Non-Fungible.
Physical Cash and Coins as Non-Fungible. Physical NFT
Coin collectors know of a surety that no coins or physical cash are fungible or the same as any other. Simply because of the attribute of each coin or paper money. It is undisputed that each physical cash carries a unique number and other attributes such as dates and signatures. For collectors, rare coins or cash carries sentimental values which many can agree on. Transparency Market Research stated that coin collection is done with a projection of high demand:
“Coin collection for business purposes involves coins of rare metals. Coin hoarders collect such coins in abundance and hold them until the demand is high. To narrow the focus, the collector usually focuses on a particular period or nation and gathers the coins. Some collectors look for error coins and artistic coins, while some collect them all in general.”
While a general market capitalization has not been attached to this industry, James Royal from Bankrate reported that the 1974 Flowing Hair Silver coin was sold at an auction in 2013 for $10 million. And there are about 120-130 of them remaining out of approximately 1800 produced.
Does this sound like a physical NFT? Oh yes, sure it does. Are there platforms that do this currently? No, I don’t think so. NFTs are perfect for this asset class because they allow owners to input details or attributes of each coin in the smart contract. A better way to do this will be to find a reputable physical company that people in this industry trust to audit and store the physical collection just like Comtech is doing with DMCC for Gold on Xinfin Blockchain.
Another way to look at this is to store digital cash chunks into NFTs so they carry the value of the cash they store. A specific twist will be to add token grades and levels to them or make them stackable so people who lock their stablecoins in NFTs earn returns.
Non-Fungible Cash Tokens on The Blockchain
PrimeNumbers launched its platform a few weeks ago and interestingly, they are implementing a similitude to what I spoke about. Welcome the Staking NFTs. PrimeNumbers allows users to store their XDC tokens or PRNT (PrimeNumbers Token) in specific NFTs. Depending on the number of tokens stored in an NFT, they gain levels. Owners of NFTs like this have total control of their NFTs and they can decide to list and sell them. For XDC coin holders who have these stakable NFTs, they can decide to stake their tokens and entrust their XDC coins to PrimeNumbers masternode on Xinfin blockchain to receive a return of 6% APY. All participants of NFT staking have benefits like getting a share of the platform fees and 10% rewards in PRNT. You’ve got to listen to the AMA with the founder, Arturo Cantera, to get the full gist. (I also asked a question @Ayobami79)
Few NFT Projects on Xinfin XDC Blockchain
The first is PrimeNumbers. It is an NFT platform where users can create, list, and buy NFTs. It is the Open sea of Xinfin at the start but even better as the ship features. PrimeNumbers is an ecosystem of exciting platforms that will push value to the NFTs on XDC and blockchain in general. They are launching on multiple blockchains like Ethereum and Polygon but the starting point is Xinfin blockchain for obvious reasons. Primeport is the NFT marketplace for PrimeNumbers. Creators own their collections 100% (creators who have used opensea understand exactly what this means). The marketplace also allows users to list NFTs from other projects.
XDSea is a P2P NFT marketplace on the Xinfin blockchain where users can create, buy, sell and explore a plethora of NFT collections. You can be sure of gaining the right visibility with 11.7k followers on Twitter and 14k followers on Instagram.
XDCdomains provides domain holders with the feature of having their domain name tradeable as an NFT. You can find some of the domain NFTs listed on Primeport.
NFT on Xinfin is still in its infancy and there are unimaginable possibilities for early users. Think about it, games are yet to discover a blockchain with speed and super low fees like Xinfin.
The article is for information purposes and not financial advice. Please contact your financial advisor about that. Finally, make sure to find me on Twitter @Ayobami79 and send some Christmas presents my way ☺️)