clock menu more-arrow no yes

Filed under:

NFTs Explained: What are NFTs and how do they work in the DraftKings Marketplace?

Check out this quick breakdown on what NFTs are and how they work.

The DraftKings Marketplace recently launched, and you can now purchase, sell and browse their extensive collection of NFTs. Here’s a quick refresher on NFTs for those new to the game.

What are NFTs?

You’ve heard the phrase “NFT” thrown around countless times, but what exactly are NFTs? Well, NFT stands for non-fungible token. Non-fungible means that it is a unique item that cannot be replaced by another identical item. In contrast, a bitcoin is fungible, because it’s interchangeable with another bitcoin. Every NFT has a unique digital identifier that certifies authenticity and ownership of a referenced digital item, such as sports memorabilia, art, music, videos and more.

How do NFTs work?

NFTs are minted on a blockchain, which is a decentralized and distributed ledger that records information and transactions. The NFTs that will be released by Autograph on the DraftKings Marketplace will be on Polygon, which is an eco-friendly Ethereum Layer 2 network.

So, what’s the point?

For Buyers

For some people, buying NFTs is much easier than buying physical forms of sports memorabilia or art, as you can do it from the luxury of your own home. Also, as more of our lives moves online, many people are interested in owning unique digital collectibles and art rather than physical items, as they are easier to display to friends.

For Artists and other Content Providers

Creating NFTs provides new revenue streams and streamlines the selling process for artists and other content providers. Instead of going to galleries, shows, or more to showcase your work, potential buyers now have online access to a complete digital portfolio to purchase verifiably unique digital collectibles and art. Some NFTs also enable artists and other content providers receive payment every time their product changes hands, something that is not available in the physical collectibles and art market.

Can anything be an NFT?

Technically, yes! As long as it’s digital, anything can become an NFT.

Can I buy NFTs with cryptocurrency?

In some places, yes. However, currently that’s not the case on DraftKings Marketplace, where only USD is accepted at this time. DraftKings is exploring the possibility of accepting cryptocurrency on the Marketplace and may enable that in the future.

Where are NFTs stored?

All DraftKings Marketplace NFTs are minted on an eco-friendly Ethereum Layer 2 solution for customers to then store within their DraftKings Marketplace Wallet. After minting, NFT transactions are recorded on a centralized internal ledger that DraftKings manages. Once you purchase an NFT, it is immediately added to your digital wallet/portfolio.

NFTs on the DraftKings Marketplace

There will be five drops on each scheduled drop day in the DraftKings Marketplace, so users can check out the homepage and join the queue here. Head to the “Browse” section to check out the extensive selection of NFTs that DraftKings offers. Once purchased, users can only view their NFTs in the DraftKings Marketplace portfolio.

Now that you understand how NFTs work, head to the DraftKings Marketplace to get started on your collection.