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The NFT is a widespread technology that is open to all crypto users. Any artist can create, purchase or even sell their NFT at different well-known NFT Marketplaces. There are various NFT Marketplaces available in the global marketplace; you can choose any of them based on your preferences. The market of NFT is immense, its decentralized platform, and accessible and trustworthy framework makes it a great option for digital assets in the global marketplace. Metaverse companies gain the benefits of NFTs to innovate their solution to the next level. This technology changed the infrastructure of the virtual world and rose to prominence in 2021.

The concept of NFT can be seen as revolutionary for the blockchain industry as it defined many new standards and ideas which resulted in offering many innovative solutions to make the specific industry more reliable and efficient. Many of us consider it as a reliable option to earn huge profits from our digital collection while others consider it as the major concern of fund loss. Nowadays, the NFT explosion in the global marketplace has reached worldwide as most of artists and investors prefer it to gain profits.

Kevin McCoy introduced the first-ever known NFT named Quantum in the year 2014. This NFT shapes the infrastructure of the global marketplace. You will be surprised to know that on 28 Nov 2021, one of a kind Quantum art piece sold for over $1.4 million in the auction of Sotheby. You can imagine Quantum as a pixelated image of an octagon that is made up of several circles, arcs, or other shapes and each of these shapes share a common center. In the quantum, the larger shapes surround the smaller ones and the view of the Quantum seems like a hypotonic shape where fluorescent hues are pulsing all over the shape.

PrimaFelicitasis atop blockchain development companythat has extensive knowledge of NFT Marketplace Developmentand offers various innovative services such as Multi-chain Marketplace Design, Multi-Wallet NFT Marketplace Development, Discrete Smart Contract Development, Multi Chain Marketplace Deployment, etc.

Top Myths Uncovered About NFT

The growth of NFT is slightly turning into myths and misinformation. Here, we covered these myths resolved around the NFT world.

NFTs are not Cryptocurrency

It is considered one of the biggest misconceptions reflected in the NFT industry which shows the tremendous impact on the growth of NFT. It means that the biggest myth of NFT is that it is a cryptocurrency. It should be noted that both these technologies are quite different from each other. If we talk about the major difference, cryptocurrencies are fungible items whereas the NFT is a non-fungible token.

NFTs are not a novelty with no value

Another misconception of NFT which reflects a huge impact on its growth is that it is a novelty holding no real value to its owner. Although NFTs have introduced a new buzz in the global marketplace, their concept is not too old as compared to digital art and exhibitions. If we talk about the differences between the two, the NFT can be seen as a reliable option for artists to monetize their art further whereas digital art is just a platform where you can upload your art efforts publicly.

NFTs are not a get-rich-quick scheme

Many of crypto users have the misconception that the NFT is a get-rich-quick scheme which means that it is not a quick process of making money. You need to be patient while you are investing anywhere. One point should be noted that it is not mandatory that you will earn profits from your investment, loss can also occur. Therefore, these points should be clear in mind that NFT is not a money-making technology where you will earn only profits without any involvement of risk. To get a clear idea about NFT, you need to research the market of NFT. It will help you to get knowledge about the fluctuations in the market which became the actual cause of the gain or loss that occurred in the investment.

NFTs are not easily accessible to everyone on the internet

Many of the users have tried to take a screenshot of the listed NFT from the NFT marketplace but you will definitely fail to perform it. The reason is that the NFT acquires the single ownership of the digital assets; no one has the authority to even copy your NFT. It shows the major aspects for the security of the specific NFT user. The reason behind this statement is that if a particular user will get successful to copy your NFT, they can easily transfer ownership to themselves and earn higher profits by selling the specific NFT.

The ownership of the NFT is stored on the blockchain network and it maintains the single ownership of the virtual assets.

NFTs are imaginary

It is also a common misconception from the user’s point of view which shows a huge impact on the growth of the NFT industry. Many users don't consider it a reliable platform for investment purposes. The misconception is that they see NFT as a technology that is illusive in nature. According to them, it doesn’t have the ability to exchange virtual currencies for physical money.

NFT are useless

The NFTs are useless is the most common myth that revolves around the NFT industry. Although NFT is a promising technology that shows its presence globally, many users misunderstand the real essence of NFT. You can consider it a myth that shows a huge impact on the NFT standards set in the global marketplace. According to them, the NFT is a distrustful technology where a number of scams and threats are involved in its process.

NFT are helping money launderers

This is also a common myth spreading globally related to the NFT industry. Many of the users have a misunderstanding that the concept of NFT really changed the life of crooks and tax cheaters by the concept of money laundering.

It should be noted that the cash is much more crime-driven as compared to virtual currencies. As blockchain technology is transparent in nature which means that improper actions on the network can easily be traced. It is quite important for security concerns as a large number of funds are associated with the network.

Tracking of the wallet addresses and recovering the stolen funds is quite an easier task for the blockchain technology.

Smart contractscan be described as digital contracts where the terms of the deal between two or more parties are set in the form of code. They are capable of verifying if the terms of the deal have been met or not. 

Smart contract run on the blockchain, so they are kept on a open database and can't be altered or changed. Storing more data on the blockchain will be highly expensive and consumes a lot of energy and that’s why most NFTs are not stored on the blockchain. Therefore, the owner can always access the work by the link of the smart contract.

Smart contracts are chunks of code that carry out transactions automatically. These codes just check certain conditions and then perform the required action to complete the transaction, reducing the time, cost, and effort related to traditional contracts. Smart contracts are more secure, fast, and transparent as they are stored on the blockchain.

-They remove the need for intermediaries, ultimately increasing speed and lowering costs.

-They cannot be changed after being deployed on the chain, increasing security and transparency

-They can be well customizable before deployment, making them versatile for various uses.

-They are deterministic and only perform what they have been programmed to do.

-There is a chance or risk of human errors as they are fully automated.

The good functioning of the NFT marketplace solely depends upon smart contracts. NFT smart contract development brings in huge opportunities for entrepreneurs and NFT investors to build their own NFT marketplace. 

NFT smart contract supports the trade of various NFT digital collectibles such as:

NFT Smart Contract for Marketplace, NFT Smart Contract for digital collectibles, NFT Smart Contract for Minting, NFT Smart Contract for Stacking, NFT Smart Contract for P2P Exchange, NFT Smart Contract for Lending.

The smart contract audit process identifies vulnerabilities such as the following:

-Reentrancy attack: A reentrancy attack occur when a function is created that makes an  call to other untrusted contract before it resolves any effects. The attack occurs in between the smart contracts, where an attacking smart contract take over the code in a vulnerable contract to drain it of its funds.

-Integer overflows and underflows: It can occur that during the arithmetic computation of the smart contract, output surpass the storage capacity. As a consequence, it can result in an wrong calculation of the amounts. 

-Early execution opportunities: The structure of the smart contract code should be done properly. Otherwise, it can provide an early warning of the market trade. In other words, it provides information that could give the person the advantage of trade in their favor. 

-The inefficiency of gas:Trading on the blockchain, there is a transaction fee which is called gas fees. Some smart contracts are not optimized to reduce the expenses involved with gas fees. This results in higher transaction fees and the Smart Contract could be not executed.

The best approach that can be followed to provide the audit for the smart contract.

Step 1: Specification

Step 2: Running Tests

Step 3: Running automated Symbolic execution tools

Step 4: Manual analysis of the code

Step 5: Creating the report

This approach reduces the time of the whole process by letting the audit and code fixing go parallelly.

Enforcing ownership and authenticity

Smart contracts used to buy NFTs can help to carry out ownership and confirm data. If these NFTs are listed on public blockchains, information about ownership and details can be accessed by anyone. 

Preventing counterfeiting

Through NFTs, smart contracts can also help identify counterfeiting. Because run on the blockchain, smart contracts can automatically check an NFT details (time and place) of creation. Smart contracts can also catch creative ownership, combat fake certificates, and help eliminate the issue of counterfeit products.

Facilitating business transactions

With smart contracts, business transactions can be improved in two ways: speed and safety

Read more:  Web 3.0 Development Company 

PrimaFelicitasis atop Web3, blockchain and Metaverse development companywhich has extensive knowledge of NFT Marketplace Development and offers various innovative services such as Multi-chain Marketplace Design, Multi-Wallet NFT Marketplace Development, Discrete Smart Contract Development, Multi Chain Marketplace Deployment, etc.

PrimaFelicitas belongs to the league of companies proficient in developing the best NFT Marketplace Development which delights its global clientele through seamless engagement and brilliant work ethic.