How does Fractionalized NFT Market Work?
Non Fungible tokens have token standards that allow them to
support and preserve the NFT characteristics. If Ethereum is the blockchain,
then the token standard is ERC-721. Or one similar. In fractional NFT, NFTs can
be locked with smart contracts. The smart contract will then split the NFT into
different pieces, resulting in ERC-20 tokens. ERC-20 tokens can be fungible, so
their tokens will not represent ownership of any particular NFT.
The Fractional NFT can be bought by the buyer. This is an
ERC-721 asset that is divided. You can put this up for sale in different types.
They can either set a time limit for the token to be sold or allow them to
remain on the market until the last one is sold. Fractional NFT will be traded
and staked in the Fractional NFT Marketplace, which has brought about many
revolutionary changes in traditional NFT marketplaces.