What are Non-Fungible Tokens?
Non - fungible tokens are a new form of digital token that allows for the trading of unique , collectible assets on the blockchain . The first example of this was CryptoKitties , which raised over $ 12 million in less than 24 hours in December 2017 . These types of tokens are not interchangeable with each other, so they can be used to create unique collections that are user-sovereign.
On Ethereum, ERC-721 Non - fungible tokens (single edition NFTs) are the most popular non - fungible token standard and allow for the creation of unique , collectible assets on the blockchain .
ERC-1155 non-fungible tokens (multiple-edition NFTs or semi-fungible tokens), on the other hand, allow you to create multiple editions of the same item.
For example , a piece of land in a virtual world may have an ERC-721 non fungible token to represent it, to ensure that land only has one owner. Meanwhile, items your avatar wear may be represented by an ERC-1155 token since multiple users may own copies of that same item.
There are of course other blockchains with their own NFT standards, but they are generally based on the two types mentioned.
Why are Non - Fungible Tokens So Popular ?
There are many reasons why NFTs are gaining traction . For one , they can be used to create unique items for gamers . NFTs can also be used to create unique items for merchants and collectors . They are also a great way to reward the loyalty of gamers and fans .
NFTs may also be used to reward your employees and staff for their hard work, and can even be given to your community for their contributions. As a business owner , you can also use them to reward your customers for being loyal and buying from you .
Ownership of an NFT may also confer the crypto user with airdrops of other NFTs or regular fungible tokens. An airdrop is when an organization, or a DAO, distributes free digital assets to a group of people. Airdrops are typically done to promote a project or company. These are often used to broaden the audience of a company's product or service.
NFT Airdrops are a great way to get exposure for your crypto project!
What can you build with NFTs?
The NFT concept creates a world where ownership is scarce, and any item can prove its own ownership. Ownership can be traded, and the items that are traded have untamperable history. As a result, NFT can be used in the following ways:
-Trading in the form of bartering
-Asset and space ownership in games and virtual worlds
-Ownership of digital art
-Access to exclusive events and content
-Ownership of virtual items
-Funding investments through participation in ICOs
The NFT concept can be used in many other fields as well .
- Supply chain
- carbon credits tracking
- digital certificates / documents authenticity
- voting - crowd funding
Non-Fungible Tokens (NFTs) are blockchain-based digital assets that can represent ownership of physical goods, intellectual property, or other items. They are different from traditional fungible tokens which are used to represent currencies and other digital assets. Unlike fungible tokens, there are many types of NFTs and one individual token cannot be substituted for another. Ownership of a NFT is verified by the blockchain which is decentralized and cannot be changed by any one entity. NFTs are most commonly associated with virtual currency , but they can also be used to represent real - world assets and items .