Flow Journey Introduction
Welcome to the first post in our series called "Flow Journey". While we're confident in our Web and Mobile app development skills, we are brand new to blockchain development and specifically Flow.
For those who don't know, Flow is a new blockchain that was built by DapperLabs. They built it after their experience with building their dApp CrytoKitties on a different blockchain (Ethereum).
Anyway, our team is exploring Flow and learning a lot and as such, we thought we would start blogging about it to share our journey and knowledge that we've learned along the way.
As articles come out, we'll keep a running list here:
- TIL that you can use established FTs for your NFT Marketplace (the article you're reading now)
- TIL I learned about some NFT Marketplace business models
- Where to go after the Flow Playground? The Flow Emulator.
- Using Flow Network Token on the Flow Emulator
- Connect JS-SDK to Flow Emulator “Response Closed without Headers”
- (more to come, check back often)
Fungible Tokens for your NFT Marketplace
Today, we're talking about FTs or Fungible Tokens.
For those that are new to blockchain development, Fungible Tokens are basically digital assets whose value is equivalent. For example, FUSD is a fungible token and 1 FUSD in 1 person's account is equivalent to 1 FUSD in someone else's account. Think of it as currency.
When you go through the the Cadence tutorials on the Flow website, they show you how to actually build your own Fungible Token to be used in a NFT marketplace. In other words, a way to create your own currency to use in your Marketplace.
Great tutorials, no question. But I had a big question afterwards.
If you're creating your own FT or currency, how would a marketplace work in terms of people buying your NFTs? More specifically, how would people use traditional money (or even established currency like FLOW or FUSD) to pay for your NFTs if you created your own FT?
Well there are 2 things I learned today while on the Flow Discord server. Big thanks to bjartek.find and Dene from Geniace: bjartek.find for answering my questions and to Dene from Geniace for presenting on their project which included a 'native FT' during the Flow Dev Office Hours which clarified my suspicions.
Answer number 1: You don't always create your own 'native FT'.
Thanks to bjartek.find, I learned that it is very common to create an NFT marketplace and use an already established FT (like FLOW or FUSD). The tutorials highlight how you would create your own FT, but that's not necessarily a common thing to do. Instead, you build your NFT marketplace and use FLOW or FUSD as your FT. This way, you don't have to worry about converting traditional currency or any currency for that matter. People will already have some FLOW and FUSD balance that they could use without any conversion.
Answer number 2: Convert to your Native FT
I'm definitely not an expert on this, but hearing Dene from Geniace talk - he talked about their native token and some of the implementation around it. Again, not an expert, but what I got from it, is indeed they would have to do a conversion or exchange to their native token. That I can only assume is way outside my knowledge base.
Long story short, if you're getting started, it looks like you can use a well established FT in your NFT marketplace.
Big thanks to the Flow team and the Flow community. Joining their discord server was one of the best things I've done so far in this journey.
Until the next one.