Non-Fungible Tokens (NFTs)

What are NFTs?

NFTs or non fungible tokens are cryptocurrencies or digital assets that represent a wide range of unique tangible and intangible asset. Some examples are artworks, sports cards, virtual properties and much more.

NFTs gained popularity because of their utility in the collectible and gaming market. The tokens make it easier to obtain and sell unique collectibles or in-game items. 

The benefit of owning a NFT instead of a physical collectible is that each token contains unique traceable information which makes it easy to distinct and verify the tokens.

Characteristics of NFTs

  • Indivisible

    It is not possible to divide NFT tokens into decimal units like you can with coins like ETH or BTC. They only exits as a whole and can be traded in this manner.

  • Verifiably

    One of the benefits that come with the tokens is the fact that the historical data is saved on the blockchain. This makes it possible to authenticate the token without the help of a third party.

  • Tradability

    NFT tokens are tradable which fuels the free market, you can use the tokens to make payments outside the traditional payments systems.

  • Transparency

    Information is saved on the blockchain so can be publicly accessed. This gives users the ability to see the history of the tokens and creates an honest transparent environment where fraud is difficult to impossible.

  • Non-interoperable

    Tokens in a game can not be used to buy items in another game or digital painting.

  • Indestructible & true ownership

    Tokens are saved in the blockchain, so once you buy something it can not be destroyed or stolen.

Use cases

Digital artworks can be published with the use of NFT blockchain technology. When showcasing and selling your product using this tech the history of you work is saved and owners can have bigger profits by receiving commission on resold works. Buyers can also learn more about the product they buy by consulting the blockchain.

Tickets for sports games and events are a popular and growing NFT use case. By providing blockchain generated tickets every ticket is unique and contains the needed information stored in the blockchain. Nowadays institutions are expanding to collectible tokens which can be used to collect, trade or buy merchandise with. 

Crypto Kitties is an online game in which you can collect, “breed” and sell virtual cats. Every cat is unique due to the genetic Algorithm saved in the blockchain. It’s “just a game” but the community is still growing and some NFTs are sold for staggering numbers. One of the most expensive is valued at 600ETH which is worth over 1 million at the time of writing this article. That’s no joke

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