Crypto Academy Week 10 - Homework Post for @levycore

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Hello community! How are you all?! Second week of crypto academy season 2 is here. This is ny first homework for @levycore and also my first homework for this week so let’s get started!

Lets start with:

What is an NFT?

As Professor @levycore explained, NFT are a type of tokens and only one owner portrays them. The full form NFT is non-fungible tokens. The cryptographic token which is not interchangeable, NFT is byproduct of that.
NFTs are very powerful tokens in such a way that they supply non-fungible assets on the blockchain.
In the digital world, NFTs are “one of a kind” assets that can be purchased and sold like any other piece of property, but they don’t have a physical shape of their own.

How do NFTs work?

I will just give my understanding from the lecture. Let’s just put it like this. They are ethereum blockchain but with extra coded information in them. The market would most likely narrate the importance of those coded pieces of information in digital format.
Now digital formats can easily be repeated/duplicated. But in NFTs Artwork can be "tokenized" to establish a digital ownership certificate that can be purchased and sold.
On blockchain, all the record of “who owns what” is kept and that cannot be copied fraudulently because computer all the world keep the maintenance check on that blockchain.
Furthermore, the developers of NFTs will decide on scarcity based on asset limitations.

Source

Given above are some of the projects using NFTs. We are specifically going to talk about CryptoKitties.

It is ethereum-based game. Basically the tokens in the game are non-fungible. There are virtual cats and users can collect and breed them. Each token of the game represents a unique digital cat.
In 2017 it was at its peak. The daily active users grew up to more than 14000 at that time.

Daily transactions on the Ethereum network hit their previous peak during the CrypoKitties craze. Source: Etherscan, OKEx Insights

CryptoKitties and other ERC-721 tokens, which are currently only available on the Ethereum blockchain, are provably uncommon, which means that their underlying code guarantees their uniqueness.

Initial Coin Offerings and scams dominated media coverage of the blockchain industry at the time of CryptoKitties' launch. CryptoKitties pioneered the ERC-721 token standard and shifted public understanding of the blockchain industry by launching one of blockchain's first non-financial use cases.

Now, where to buy cryptokitties?

You can search the CryptoKitties marketplace for Kitties for sale after you've set up your cryptocurrency wallet. There's a tag, a bio, and a price for each Kitty (in ether). Every Kitty also has "cattributes," or specific genetic traits, such as eye shape, eye colour, and fur, that decide its appearance, as well as a generation number that indicates when it was made. The kitties from earlier generations are more valuable than newer generation kitties. If you find a Kitty you want to buy, simply click "buy now" to take possession of the digital asset right away. Alternatively, you should make an offer to the Kitty's owner, who can decide whether or not to accept it. Offers can be made on any Kitty in the game, not just those on the market.

You can also create your own kitties. How? By breeding two of your own Kitties or by using a “public sire,” which is a kitty that its owner has made available for breeding. There is also a fees every time you breed a kitty and that is 0.008 ETH. There is also a transaction fee and that fee is not fixed. It is based on Ethereum network congestion.

After a Kitty has been bred, it must go through a "cooldown speed," which is a mandatory resting time. The time period varies from one minute to one week, and the more kittens a Kitty makes, the longer it takes to cool down. You can create an auction to sell your Kitty, which will make your Kitty available in the marketplace. You have control over the starting bid, the final price, and the auction's length.

That is all from my side. Thank you.

This Homework is plagiarism free. I wrote what I understood from the lecture and about cryptokitties, I did some research on the internet and wrote what I understood. Everything I have taken directly from the internet, I’ve mentioned the source.