NFT

NFT

NFT

What Is a Non-Fungible Token (NFT)

Non-fungible tokens or NFTs are cryptographic assets on a blockchain with unique identification codes and metadata that distinguish them from each other. Unlike cryptocurrencies, they cannot be traded or exchanged at equivalency. This differs from fungible tokens like cryptocurrencies, which are identical to each other and, therefore, can be used as a medium for commercial transactions.

The distinct construction of each NFT has the potential for several use cases. For example, they are an ideal vehicle to digitally represent physical assets like real estate and artwork. Because they are based on blockchains, NFTs can also be used to remove intermediaries and connect artists with audiences or for identity management. NFTs can remove intermediaries, simplify transactions, and create new markets.

UNDERSTANDING NFTS

Like physical money, cryptocurrencies are fungible i.e., they can be traded or exchanged, one for another. For example, one Bitcoin is always equal in value to another Bitcoin. Similarly, a single unit of Ether is always equal to another unit. This fungibility characteristic makes cryptocurrencies suitable for use as a secure medium of transaction in the digital economy.

NFTs shift the crypto paradigm by making each token unique and irreplaceable, thereby making it impossible for one non-fungible token to be equal to another. They are digital representations of assets and have been likened to digital passports because each token contains a unique, non-transferable identity to distinguish it from other tokens. They are also extensible, meaning you can combine one NFT with another to “breed” a third, unique NFT.



Types of NFTs

NFT art

  • Giving artists a chance to tokenize and profit (rather generously) off of their artwork is one of the top selling points of NFT art. It refers to any type of digital art that is stored on a blockchain. The artwork is then owned by the token holder and can be traded or sold just like any other NFTs. NFT art also allows for artists to build a global fan base without the assistance of galleries, distributors or curators
NFT music

  • From Grimes and Kings of Leon to Lindsay Lohan and the Rolling Stones—musicians have been tokenizing their tracks and selling them as NFTs. Music NFTs witnessed a significant boost this year, with sales increasing from US$50,000 in September 2020 to US$27 million in March 2021. DJ and founder of Royal, an NFT music platform, noted, “A true fan might want to own something way earlier than a speculator would even get wind of it. Democratizing access to asset classes is a huge part of crypto’s future.” Additionally, with NFT music, artists don’t need to rely on record labels to usher in sales from their music.
NFT game

  • Play video games, earn cryptocurrency. Some of the newest video games are departing from the traditional video game model and adopting a more profitable one. With NFT games, players get to collect exclusive rewards that they can later trade as NFTs. One of the first games to implement this was CryptoKitties. The game allows players to breed and trade digital cats using Ethereum-based smart contracts.
NFT fashion

  • Just because you can’t wear it physically doesn’t mean you can’t carry it in style…on your device. Be it Karl Lagerfeld or Gucci—nearly all fashion designers want a piece of the NFT pie. For that, they are designing exclusive bags, video games, couture and more to be sold on NFT marketplaces. NFT fashion provides a new revenue stream for designers. Some of the most well-known designers and brands that have ventured into the world of NFTs include Louis Vuitton, Yves Saint Laurent, Alexander Wang and Prada.
NFTS

Some Amazing NFTS

The world’s first Athletic Career Token
Worth: $5,000
Paris Hilton’s Planet Paris
Worth: $1,000,000
Bored Ape Yacht Club
Worth: $24,400,000
LeBron dunk
Worth: $210,000
Coca-Cola NFTs
Worth: $575,000
Louis Vuitton video game
Worth: $69,000,000