High-quality infrastructure is necessary for the rise of digital commodities

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What are NFTs?

A non-fungible token (NFT) is a digital item in which the ownership of each token is governed by the blockchain. Well-known NFTs include digital collectibles such as CryptoKitties and Decentraland's digital possessions. NFTs can be leveraged in many other ways, including:

• Tokenized collectibles, such as baseball cards

• virtual assets, such as domain names

• Tokenized Digital Art

• Game items such as rare skins and weapons

• Tokenized assets, such as property titles

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NFT must be built on the most secure blockchain system

Valuable assets should always be backed by secure proof of ownership — and blockchain has proven to be an ideal way to ensure the security and secure value transfer of said assets. This is mainly due to the immutable nature of blockchain technology. Given that NFTs can in many cases be considered valuable assets due to their intrinsic value or unusualness, it is best to store NFTs on a highly secure blockchain.

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Potential NFTs on Horizen

The Horizen ecosystem enables developers to create their own fully custom blockchains on the Horizen platform. This means that anyone can create their own blockchain for NFTs and games that already have NFTs built in. Horizen's interoperable blockchain could create an additional way for NFTs to be exploited. For example, if you built a game like CryptoKitties where some of the tokens were worth thousands, what if you wanted to store them somewhere easy to see with your other valuables? If another person were to create a collectible storage chain, users could move their CryptoKitties-style tokens out of the game to the storage chain, and then back again when you decided to trade or sell that token.

This is just one of many examples of how major companies such as Celsius, Sikoba, and Dragonchain have been working to build connections based on the Horizen platform.

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The state of the NFT market

The NFT market is highly concentrated on the Ethereum blockchain. However, newer blockchain solutions, including Horizen, are joining the ecosystem and aim to break into the digital collectibles, game assets and digital art markets. Below the graph of transaction activity for the five largest markets on the Ethereum blockchain.

The most active market for NFT transactions is currently AtomicMarket on the Wax blockchain. According to our data, there are more than 9000 users per month. Rarible had 6,500 active wallets during the same period, while Opensea had more than 5,000 active wallets. Overall, we are seeing a huge increase in trading activity and the adoption of non-fungible tokens in new and upcoming blockchain applications.