Crypto Academy Week 10 - Homework Post for [@levycore ] // NON FUNGIBLE TOKEN

Hello @levycore

Thank you for this lesson, I found it a little difficult to understand at first, but after going over it and doing research, I learned more about Non Fungible Token.

Before I start to deal with a project of NTF I will like to explain in simple terms what I understood about this NTFs.

NON FUNGIBLE TOKENS

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To begin, let me define the term "FUNGIBLE." Fungible refers to items that can be interchanged with each other, such as BTC/USD and Steem/ETH, and the value of these listed fungible items determines them.

Non Fungible refers to items that are not interchangeable and their properties are unique and used to determine them.
Art works, poems, short videos, music, and real estate are non-fungible because they have specific properties and ownership, so they cannot be interchanged into this or that. However, the maker or owner of the item determines how much it is worth, so listing these objects on exchange sites would be labeled as Non Fungible Tokens.

NTF can't have two owners at the same time, and it can't be changed. If you look at the history of NTF, it started in 2015, and the first project was launched in 2017, and there are now a growing number of projects available.
The NTF industry has seen massive growth as a result of its numerous projects and users, in December 2021, it recorded a volume of $12 million, which increased to $500 million in March 2021.

Below are some unique properties of NTF listed in the Ethereum website:

"In other words, if you own an NFT:

You can easily prove you own it.
No one can manipulate it in any way.
You can sell it, and in some cases this will earn the original creator resale royalties.
Or, you can hold it forever, resting comfortably knowing your asset is secured by your wallet on Ethereum.
And if you create an NFT:

You can easily prove you're the creator.
You determine the scarcity.
You can earn royalties every time it's sold.
You can sell it on any NFT market or peer-to-peer. You're not locked in to any platform and you don't need anyone to intermediate.

Cryptokitties is the project I'll be discussing. I did a lot of research on this, and I opened an account two months ago, but since I was new to crypto, I didn't deposit Ethereum to buy a kitty.

CRYPTOKITTIES

This project was launched in 2017 and is widely regarded as the first to employ standard NTF techniques,Users on this DApp buy virtual cats, breed them, and sell them to other new users, the token used here is an ETHEREUM ERC 721 token.

There are different cards in the market that represent different breeds of kitties (Virtual Cat) with unique traits, so when you purchase this card, it serves as a unique NTF token for you alone. The developers of the Cryptokitties DApps have royalties over all the kitties, so any transaction done on the platform also charges some Gas fees.

HOW TO PLAY THIS CRYPTOKITTIES GAME

• Search for the site using chrome : https://www.cryptokitties.com

• Click on start meow

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• You will be directed to download a google extensive tool which is a wallet call metamask, download and install it.

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• Return to the site and click on I have installed metamask,you will be prompted by metamask

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• On the metamask prompt, click unlock, and then continue to accept the terms and conditions after reading them.

• Create a password , you will be given some unique words to copy and save; these words will be used to recover your password.

• Return to the dashboard and select My Kitties. Because you haven't purchased any kitty yet, your dashboard is empty.

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• You must deposit Ether into your Metamask wallet before going to the market and purchasing a kitty. After purchasing the kitty, you can care for it and sell it later. Alternatively, you can buy two kitties and cross them to create a new breed, which you can then sell in the market.

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THIS IS HOW THE SYSTEM WORKS

• PRIMARY MARKET: This is where you can buy your kittens, other animals, pet cars, and planets, and it is owned by the developers.

• SECONDARY MARKET: Every trader is eligible to sell or buy in this market.

• ASSET INTERACTION: After purchasing various assets from the primary market, we refer to the relationship between the assets as their interaction.

• INTEREST ON ASSETS: You can earn interest on your assets based on the number of assets you owe on the platform and how they interact.

• Individuals profit from the secondary market through interest and the sale of properties, whereas developers profit from the primary market and transactions in the secondary market where gas fees are charged.

In conclusion, this project is based on users purchasing virtual cats (kitties) as NTF to rear and try to produce different breeds with them by letting two kitties cross in order to make more profit, so if you buy a cat in the market, it becomes your property and no one else can have it until you decide to auction it off.