Describe one popular project that uses Non-Fungible Tokens (NFTs)

Introduction

Non fungible token (NFT) is used to represent digital files such as audio,video and photos and it’s not restricted to the buyer of the NFT. NFT as a unit is spread on a digital ledger called blockchain and recognize a digital asset to be unique and not interchangeable. NFTs can be tracked on the blockchain technology to provide the owner with proof of ownership that is a separate form of copyright.

There are several projects that uses NFTs one of them is Cryptokitties and WAX. Cryptokitties is a popular project that uses NFTs and was launched in 2017 by a developer Dapper Labs. The cryptokittes protocol brought the NFTs to the mainstream and was the first to use the ERC-721 standard which allows for the use of digital assets. its tokens are non-fungible representing a different digital cat and has recorded more than 1 million transactions daily. It allows users to purchase, collect breed and sell virtual cars. It’s operates on ethereum underlying blockchain network. For this write-up I will be focusing on WAX:

Source

An example of a popular project that uses NFTs is WAX:

WAX is being built on a custom-made variant of EOS. The group think that a high-throughput blockchain uses delegated proof of stake (DPoS) which important for due to the high quantities of transactions for in-game items. Although EOS allows WAX DPoS implementation, and presents a framework to implement smart contracts and transactions, it doesn’t aid all the aspects of the WAX platform.

The custom-made blockchain will consist of tailored voting mechanisms, dispute resolution, and other features. These tokens will be used to bridge the Ethereum blockchain with the WAX blockchain by presenting support for the alternate of ERC721 tokens. The custom blockchain will feature a native protocol token that supports all activities and performance on the platform. The WAX blockchain will have four (4) important account types: contracts, users, guilds, and transfer agents. Contracts are code stored in the WAX platform state, succesful of execution through other accounts. Proposal contracts will be harnessed to determine nodes and enable voting. Settlement execution contracts will enhance the exchange of items. The platform will assist a constrained variety of other contract types.

Users money owed will manipulate the native protocol token and/or digital goods, to listing objects for sale, transact between each other, settle the transfer of goods, or create and carrier contracts. Guilds are confirming nodes on the platform, elected by customers keeping WAX tokens. Guilds will be accountable for creating blocks of transactions on the network, which should be signed and established through different Guilds. They get hold of expenses for these services and share a element of the prices with their pledged stakeholders.

Transfer retailers will be responsible for in-game transfers of digital assets between users. Agents are assigned settlement execution contracts, which require them to stake a bond corresponding to a fraction of the transaction cost and efficiently perform critical contract services.

These offerings include;

(1) Communicating with vendor and consumer to prepare pick-up and delivery of items.

(2) Custody of the virtual asset from the seller.

(3) Verifying the authenticity of the virtual asset.

(4) Fulfilling tasks to the settlement execution contract.

(5) Delivery of the virtual asset to the buyer.

Upon successful completion of required tasks, sellers will be awarded a transaction fee. Public key cryptography will be used
to establish impervious communication channels between customers and agents, allowing them to trade records necessary to transfer or acquire virtual goods. Users, guilds, and switch agents will be capable to charge every other based totally on their interactions and transaction history. Ratings will also be calculated the usage of facts from disputes and settlements. Disputes on the platform will be facilitated via arbitration and enforced via contracts.

For example, if a user disputes against a
transfer agent, they would create a contract with all the details of the transaction and bond 1/2 the disputed amount. It will then be reviewed by a neutral agent and after a last decision; the dropping birthday party forfeits their bonded tokens to the victor by means of the contract.

The WAX group is constructing a browser-based SDK to seamlessly onboard new users into the WAX Platform. This is named WAX Connect and will additionally provide a set of functions to permit users to build checklist widgets, function faraway pockets transactions and more. The group is additionally constructing WAX Core: an SDK that encapsulates the functions of nodes and wallets on the blockchain. The Core SDK is supposed for developers aiming to build on the platform.

WAX carried out a two tier pre-sale in Oct. 2017, accompanied with the aid of a public sale in Nov. 2017. For the functions of all token sales, the WAX improvement crew set a valuation of 1,500 WAX per one
ether (ETH).

The WAX pre-sale was conducted in Oct. 2017, the place 300 million tokens had been bought to institutional buyers for 70,000 ETH (a 65% discount), and 210 million tokens had been offered in a public pre-sale for 70,000 ETH (a 50% discount) Between the income a whole of $45.5m was once raised in ETH. In Nov. 2017, 136.9 million tokens were sold for 20,000 ETH to the public in the principal sale. No reductions have been given, and $9.6m was raised in ETH4. A complete of 1.85 billion WAX was created following the sale. Token sale individuals acquired 35% of whole grant (640.8 million WAX). Founders and the improvement crew obtained 20% of supply (370.0 million WAX) with a six month lock up period. Early contributors and advisors acquired 30% of tokens (277.5 million WAX) and the last 30% (555.0 million WAX) used to be retained
for future distribution to builders and publishers in the market place.

Thank you @levycore for the lesson and @steemcurator02