Club5050-Understanding No-Fungible Tokens (NFTs).
Hi everyone.
Today I want to talk about non-fungible tokens popularly known as NFTs. This post will be covering a whole lot about non-fungible tokens including, what non-fungible tokens are, how they work, their uses, how different are they from cryptocurrencies and projects that uses non-fungible tokens.
Non-Fungible Token mostly known to be NFTs is a special asset in a digital way that can not be trade with any other non-fungible token. This is because the word fungible means mutually interchangeable, meaning a fungible asset can be exchanged for another fungible asset but in the case of non-fungible token we can not exchange due to the addition of the word non to the fungible making it not changeable. These NFT assets may be, music, artwork, aviators etc.
This simply shows that every single NFT is a unique (special) asset. These NFTs can be moved from one account to another with the help of blockchain technology. This blockchain technology develops a digital tail between traders which confirms transaction.
In our normal day life, an example will be a special collectible asset like an art, which you have a certificate of ownership certifying to its legitimacy. The blockchain technology of non-fungible token restore the need for proof of ownership.
As in 2014 there were some NFTs which were not well known as compared to currently. NFTs became famous investment just recently. Due to the fast growing of investing in cryptocurrency, the ideology of sending some digital assets online for investors to purchase also came into existence.
Non-fungible tokens (NFTs) are mostly displayed or advertised and issued through some online market platforms like Rarity, NFTcatcher and many others. When this is done, investors can now check through a list of assets before deciding which NFT asset to purchase.
To buy the NFT digital asset you must have a crypto asset to purchase the asset and open an account on that particular NFT market platform that is linked to the crypto asset wallet holding the assets.
Non-fungible tokens are coded to have different IDs that no other asset can have. This gives NFTs the characteristics of originality and scarcity which makes them more attractive when linked to the NFTs market platforms.
Some NFT market platforms often deal with certain blockchain technology which can cause financial problem for the organization. This means that NFT platforms has to be very careful with the choice of blockchain to use. And also know that not all the NFTs uses the same blockchains.
NFTs have given an opportunity to artists, celebrities and organizations to go online and monetize the assets they have.
Many people think NFTs are the same as cryptocurremcies not knowing that there are so many differences between them. Moreover, Non-fungible tokens are totally different from cryptocurremcies because;
• Non-fungible token uses Cryptocurrency to carry out its transaction: Non-fungible tokens uses the same blockchain network that cryptocurremcies uses but there is a vast difference in the asset set up.
• Crypto asset can be traded for another crypto asset but NFT can not be traded for another NFT: You can not trade one NFT for another NFT because, every single cryptographic asset is made of a special identification code which makes NFTs different from each other.
Below are some of the uses of non-fungible tokens (NFTs)
• Art: The blockchain system gives certificate of ownership. For digital artists, maintenance of copyright over their asset is hard this days.
But with NFTs, a buyer can purchase an asset and boldly advertise it in NFTs platforms knowing the history about that particular asset.
Also, artists can get a huge cut of payment for their work, which does not guarantee the need for middleman charges and making peer to peer payments
• Identification: Non-fungible tokens keep a special data about a specific asset, making NFTs an important case for identification on the blockchain.
Just like we human beings, each and everyone of us has some special attributes and identification information. Your personal profile, education and medical history can be made digital with NFTs. This will even make things easier for you as an individual because you be have full control over your personal data.
• Entertainment And The Media: When internet first came, there were a lot of fraud cases in the entertainment industry but with the establishment of blockchain, every single film could be attached to the blockchain as an NFT, stopping sharing of files without consent.
• Sports: The durability of blockchain networks stops counterfeit tickets , with tokenized sports game tickets being marketed on the blockchain, a correct useful situation of a non-fungible token.
Each and everyone of the tickets is similar, but each one has some special features to the registered owner of the ticket on the blockchain.
Again, we can now see that the sports NFTs are becoming famous with prosperous athletes becoming tokenized on the blockchain based on their performances.
These are the leading NFTs projects in collectibles, games, art etc. All the below mentioned projects are currently using Non-fungible tokens and are well known.
• Rarible which is a Moscow-based project established in 2020 by Alex Salnikov and Alexei Falin.
• NBA Top Shot which is an authorized licensed blockchain platform founded in collaboration with Dapper Labs.
• CryptoPunks which is one of the earliest non-fungible token and is made up of 10,000 specially generated characters.
• Hashmasks which was introduced by Suum Cuique Labs in Switzerland. It gives digital art collectibles formed by over 70 artists from around the globe.
NFTs are nowadays growing but still need more exposure. Looking at the adoption of these NFTs by some of the well known organization like, Samsung, Nike etc offers it a great opportunity to be further accepted by many organizations.
NFTs have the greater chance of reconstructing digital ways and granting an answer to the digital property rights. Moreover, when everything is brought together art and other collectibles will serve as an efficient way to get new customers.
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