What are Non-Fungible Token (NFT) DApps?

Blockchain-based applications that integrate non-fungible tokens into its system are known as NFT DApps, and this article explains how they work.

By The 'Staunch

NFT DApps are blockchain-based applications that allow its users to create, purchase, sell and trade original digital products.

These original digital products may include; artwork, collectibles and in-game items.

These DApps empower gamers, artists and content creators by utilizing the transparency and security to transform ownership.

NFTs (Non-Fungible Tokens) are unique digital assets that can be used to represent ownership of items such as; art, collectibles and in-game items.

An examples of a popular NFT DApp is OpenSea NFT marketplace, where you can buy, sell and trade digital products and artworks.

It supports different blockchains like; Ethereum, Polygon, Solana and Axie Infinity, an NFT play-to-earn game.

The significance of NFT DApps is in their ability to establish, promote, introduce, challenge and democratize entry into the digital products economy.

How NFT DApps work

NFT DApps are built using smart contracts with self-executing features, and are also stored on the blockchain.

They’re used to automate various task, such as; transferring NFTs, buying and selling NFTs, or creating new digital properties.

One of the key features of smart contracts is that they don’t require intermediaries for approval and executions.

Dealing with a non-fungible token and decentralized application, means you’re also interacting with a smart contract.

The smart contract handles the logic to verify your ownership of a DApps NFT, transferring and original creation of a new digital product.

Below are the major use-cases where NFT DApps have been serving:

  • Marketplaces: Online places where you can buy, sell and trade NFTs
  • Lending and renting: These platforms allow you to lend or rent your NFTs to others
  • Gaming: Games allow you to own or trade in-game rewards and items as DApps NFT
  • Virtual realtor: Platforms that allow users to develop, profit, buy and sell virtual lands and properties
  • Social media: Few platforms that allow users to connect with other NFT collectors and enthusiasts.

Merits and demrits of NFT DApps

Just like every other smart contract, the table below shows certain benefits and drawbacks of using the NFT DApps.

MeritsDemerits
NFT DApps are decentralized applications that uses smart contract features.NFT DApps are very complex for beginners to use.
Every transaction is very transparent and recorded on the blockchain ledger.Ethereum-based NFT DApps are expensive to use due to high gas fees for transactions.
Privacy is guaranteed when using NFT DApps as your identity is not needed.They can be vulnerable to crypto investment risks like; scam or hacking
They’re more efficient, and without the need for intermediaries.
They can give meaningful ownerships to any digital product than traditional applications.

How to interact with an NFT DApp

Here is a step-by-step process of how interacting with an NFT dApp might work:

  1. You connect your crypto wallet to the NFT DApp
  2. Authenticate your identity on the smart contract
  3. Perform your transaction (e.g. minting, buying, selling or exchanging NFTs)
  4. Allow the smart contract to execute your request
  5. Confirm the result of the transaction.

These are the basic steps of interacting with an NFT DApps through the smart contract on any blockchain.

Wrapping up

NFT DApps provide a decentralized and transparent infrastructure for the minting, holding and exchange of unique digital assets.

They also offer a novel way for creators to democratize the entire ownership of their NFT products.

As you explore the evolving world of NFT DApps, opting for a white label solution emerges as a beacon of efficiency and innovation.

It represents a strategic decision that enables you to concentrate on your strengths.

Meanwhile, don’t forget that taking security seriously as you dabble with digital products is one of the smartest strategies for NFT investment.

To maintain high security standard and keeping your transaction footprint hidden, you can use a VPN (Virtual Private Network) to stay anonymous.

About the 'Staunch

Henry is the founder of Crypto Staunch. He studied accounting and finance at Godfrey Okoye University, but became a Cryptopreneur to pursue his interest in learning digital currency and asset investment. Since 2018, Henry Kings has writing about Crypto, DeFi & NFT to help other people get started in the space. His publications has been featured in Binance Square, Digest Africa, Tech Economy, International Business Times, CoinDesk and many other top Crypto media outlets.

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About The 'Staunch

Henry is the founder of Crypto Staunch. He studied accounting and finance at Godfrey Okoye University, but became a Cryptopreneur to pursue his interest in learning digital currency and asset investment. Since 2018, Henry Kings has writing about Crypto, DeFi & NFT to help other people get started in the space. His publications has been featured in Binance Square, Digest Africa, Tech Economy, International Business Times, CoinDesk and many other top Crypto media outlets.