Just how does the NFT marketplace work?

Since its inception, blockchain technology has developed into an exciting tool. It has been really exciting to watch the system on which all cryptocurrencies, non-fungible tokens (NFTs), decentralized finance and decentralized autonomous organizations are built evolve over the past decade.

Blockchains are essentially virtual ledgers that record all transactions through a public forum that makes it impossible to change, cheat or hack.

Furthermore, blockchains are decentralized, and this provides the transfer of control in decision-making from a centralized organization (such as a company or a bank) to a group of people through a distributed network.

This advanced technology is incredibly safe and has prioritized transparency and accountability, and most importantly – it has put the power back in the hands of the users. Blockchains verify that you are the unique owner of an asset.

That asset can either be a cryptocurrency or an NFT. Cryptocurrencies are similar to money. You can use cryptocurrency to pay for a good or service. NFTs are digital representations of valuable goods, memories or ideas that you can use cryptocurrency to purchase.

The power of blockchain is derived from the collective. It is a system that works as a whole for all who are invested, and it is a system that can be monitored clearly and concisely.

Cryptocurrency is global and can be exchanged relatively easily across continental borders without the need for exchange rates and unnecessary bureaucracy.

This is revolutionary as world markets become more intertwined into a global village. Crypto is sound because it is built on the blockchain which means every single touch point and transaction is tracked.

Cryptocurrency is exchanged just like regular traditional money, but instead of using a banking system, the currency is exchanged on a highly secure platform such as Metamask.

The blockchain ecosystem has enabled many businesses, including some of the top companies globally such as Gucci, Amazon, Emirates, Microsoft, Wikipedia, Save the Children among others, to receive payments enabling them to gain a competitive edge in the markets .

The new step in development was Ethereum, a blockchain with its own currency called Ether that allows developers to implement smart contracts. These contracts are lines of code associated with a digital asset and are unique in nature, traceable and verifiable.

These contracts can be used on anything digital and are extremely secure and cannot be destroyed, copied or hacked. All NFTs have the aforementioned smart contracts attached to them.

NFTs can be accessed by the global community from a number of NFT marketplaces that take hardly any commission or royalties from artists, allowing them to create more wealth with their content as opposed to the standard exchange where agents, art galleries and record labels take a significant share of artists’ profits.

In addition, NFT creators have the privilege to issue only a specific number of NFTs to introduce scarcity of supply.

NFT has opened a path that allows artists and brands to connect directly with their customers as every purchase is documented on the blockchain. This openness has developed virtual communities and loyal fans.

It has opened up genuine dialogue between creators and buyers on NFT platforms and continues to create remarkable opportunities for artists and creators.

Although the NFT market in Africa is nascent, it has incredible potential for growth and opportunity. It is only a matter of time before the relevance of NFTs on the continent will no longer be a moot point.

Big brands like Nike and MTN, athletes like Eliud Kipchoge and artists like the Nigerian musician BNXN know this and are starting to build in these areas.

The launch of Kasuku on the Marula network will connect Africa to the rest of the world in a historic and unprecedented way, giving the continent access to NFT marketplaces in a significantly straightforward manner.

The author is CEO and co-founder, Kasuku NFT