Fractional NFT Marketplace Development
Fractional NFT Marketplace Development
What are Fractional NFTs?
Fractional NFTs form the next generation of the rapidly growing industry in crypto, decentralized, and blockchains. The process of dividing NFT ownership into lesser fractions is known as NFT fractionalization. This allows one NFT to be owned by multiple users.
Fractional NFTs are fairly self-explanatory- NFT (usually ERC-721 standard), is taken and locked in a smart contract, where it can be broken into fungible ERC-20 tokens of equal value. From there, one can buy as many NFT shares as one likes.
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Features offered by Fractional NFTs
How does F-NFTs work?
An NFT is just a token that uses Ethereum’s ERC-721 standard. Before NFT can become fractionalized, it first locks in a smart contract, which is just a blockchain-coded system that automatically executes when predetermined conditions are met.
The smart contract then divides the ERC-721 token into several fractions in the form of ERC-20 tokens based on instructions given by the NFT owner. The owner specifies the number of ERC-20 tokens to be created, its price, metadata, and other properties. Each fraction, or ERC-20 token, represents the partial identity of the entire NFT. Fractions are then traded at a fixed price for a set period of time, or even sold out.
Imagine if we could fractionalize Norwegian Norwegian singer Edvard Munch’s The Scream, which sold for about $ 120 million at Sotheby’s in 2011.
An NFT representing the artwork would be restrictive and expensive, and only a very small number of wealthy investors could bid for it. However, if NFT for The Scream was fractionalized into 10,000 ERC-20 tokens using a smart contract, then it would be possible to own a fraction of the famous artwork for just $12,000 a piece which is very affordable and can easily attract buyers.
Benefits of NFT Fractionalization
Some of the benefits of fractional NFTs for investors and artists:
1- F-NFTs benefit artists by effectively monetizing artistic works.
2- Investors of all sizes can now own NFTs through F-NFTs.
3- NFT owners can drive interest in their assets by offering greater participation through fractionalizing ownership.
4- The creators of fractionalized NFTs can sell a fraction of their NFTs without having to sell the entire thing.
5- An annual curator fee can be earned by owners who convert NFTs into F-NFTs.
Use cases of Fractional NFTs.
Use cases of Fractional NFTs
1- Fractional NFTs and Gaming- Most play-to-earn crypto games allow you to buy, sell, and own various in-game items, some of which are NFTs.Such multiplayer games can use F-NFT to allow players to assemble and buy and sell expensive in-game items by investing in their fractionalized shares. Axie Infinity, an NFT-based online video game is already exploring the possibility of fractional NFT trading by selling fractionalized ownerships of the rare Axies, one of their most popular NFT assets in the game.
2- Metaverse and F-NFTs- The metaverse is a notion that is becoming more popular. F-NFTs have the power to allow individuals, groups of individuals, investors, and even companies to join up to purchase virtual land and other assets in the virtual world.
3- Real estate and F-NFTs- NFTs can significantly speed up the process of property-buying by replacing intermediaries with smart contracts to enable simple and safe transference of ownership.Converting the real estate property into NFT and there are other important benefits such as immediate payment of ownership and the whole process simplified.
4. NFTs can greatly speed up the real estate process by swapping partners for smart contracts to enable easy and secure ownership transfers. Converting the market to NFT also has other important advantages such as faster payment of ownership and the whole process simplified.
Why Mobiloitte for Your Fractional NFT Marketplace Development?
Our NFT and Crypto development services, which already has a huge impact on the markets, is a great evidence to our pioneer work in the development of NFT. We can keep 100% of our promises with our dedicated NFT development team. Do not worry about ideas, development or deployments. We will guide you through the process and help you with any technical issues.