All what you should know about Non-fungible tokens (NFTs), their advantages and disadvantages.

Greetings to all members on this platform, I am very excited to be among the third batch graduate for the Tron foundation course. I would like to use this opportunity to express my gratitude to @engrsayful for having time and taking us through the course till our completion. I pledge to implement and go by what I have been taught and also learn more to acquire extra knowledge upon what I have acquired.

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Non-Fungible Tokens (NFTs), What are they?

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If you're wondering what NFTs are and how they work, you've come to the right place.

NFTs (or non-fungible tokens) are digital assets that have a unique identity and can be transferred between users in a secure way. They are related to the bitcoin blockchain, but they differ from it because they have an owner who has certain rights over them. Each NFT can be owned by only one person at a time, it's impossible to double-spend them, and they can't be copied or counterfeited.

In order to make sure that this is true, NFTs are registered on the Ethereum blockchain using smart contracts; these contracts allow users to transfer ownership of their NFTs securely by putting them up for sale in an auction process called an "auction." The auctions are run by third parties called decentralized exchanges (DEXs). In this way, DEXs provide liquidity for NFTs while making sure they're not being duplicated or stolen by hackers who might try to take them from their rightful owners through some kind of attack like malware or phishing attacks.

One example is CryptoKitties, which was one of the first major NFT to gain traction. It allowed users to purchase and trade digital cats which were unique from one another in terms of appearance and attributes. CryptoKitties are collectible cats that you can buy, sell, and breed with other users. Each cat has a unique identifier (UID) and is stored on the Ethereum blockchain as a smart contract. This means that each cat has its own set of characteristics that are stored securely on the blockchain. Another example is CryptoPunks, which allows you to create your own punk character and then trade it with others! The possibilities for this technology are endless.

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What makes them so important?

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NFTs have been adopted by many companies as a way to create new revenue streams. In addition to serving as collectibles on their own merit, there is also potential for them to be used as rewards within games or other applications where they would provide value beyond their base function as an asset with intrinsic value (such as in games). This means that we'll likely see more use cases emerge in the future as developers begin experimenting with this technology, especially since these tokens are easy to create.

Advantages:

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• NFTs are more accessible to the average person because they don't require a bank account or credit card. They can be traded on any platform, and can be used for in-game purchases or sold for real money.

• NFTs can be used as an investment strategy, especially if you think the value of the game will increase as it grows in popularity.

• NFTs are easily transferable between players, which encourages trading and community building.

• NFTs provide a way to make microtransactions without having to sell your soul to Apple or Google.

• You can easily create them yourself with just a few clicks on your computer.

• Since they're digital assets, they can be easily stored in an online wallet or downloaded onto your mobile device.

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Disadvantages:

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• In order to keep track of your collection of NFTs, you will need some kind of app or website where they are stored. This means that there are some costs associated with holding NFTs (such as monthly fees) and some technical skill required to use them properly (like setting up wallets). You also need an internet connection

• Since there's no one else selling ads or subscriptions on behalf of creators using NFTs, there won't be as much money coming in as there would be if there were multiple middlemen taking their cut off the top each time someone bought an ad or subscribed to something.

I would end my article here, and I hope that you guys did enjoy it. Watch out for more exciting series from me in my subsequent articles. If you found my article useful, kindly resteem, upvote and leave a comment here under my post.

Thank you all for your time and attention.