NFTs Non Fungible Tokens

NFTs or Non-Fungible Token is a type of cryptographic tokens that can represent “Ownership” of “Digitally Scarce Goods” such as Collectibles, pieces of Art, Videos, or Music.

Before Starting our journey of learning about what NFTs are, let's see what “Non-Fungible” means.

Fungible? Let's take an example to understand what Fungible means

Assume Robin(Green) has $10 and Sarah(Yellow) also has $10.

Robin can replace his Note with Sarah’s Note without this affecting either Robin or Sarah. So, Fiat money is a good example of Fungible.

Fungibility is the characteristics of goods or commodities where each individual unit is indistinguishable and interchangeable from each other.

On the other hand, let's assume Robin has his favorite limited edition, Pokemon Card. This is a good example of something Non-Fungible.

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Each of these limited edition cards is treated as a collectible and they have individual properties. A card with one Pokemon doesn't usually have the same value as a card with another Pokemon. Even if there are 2 exactly the same cards are considered, then the year of publishing or the condition of the card is also taken into account.

Another example of Non-Fungible is a piece of art or a painting that is unique and is only 1 such painting.

Such example is “The Monalisa”, created as only One original painting.

Mona_Lisa_(copy,_Hermitage).jpeg

So now we understand what Non-Fungible means.

Now let's talk about the most common properties of NFTs.

NFTs are:

Provably Scarce-- A limited number of copies. The fewer the copies-the Rarer the Nft. the extreme example being “Only One” of such art. The number of tokens can also be verified on the blockchain. Hence, it's provable.
Unique - Each NFT has Different properties that are Unique and are stored in the tokens Meta-Data.
Indivisible - Most NFTs cannot be divided into small parts. So, you cannot buy or sell small parts of an NFT.
Ownership - NFTs guarantee the ownership of the Asset.
Fraud Proof
Easily transferable.

NFTs can be easily implemented on any Blockchain that supports Smart contract Programming. Some examples are:-

ERC-721 Standard
ERC-1155 Standard

Both of them are on Ethereum Blockchain.

Uses of NFTs:-

Blockchain-based gaming.

Blockchain-based gaming Uses NFTs in various forms. One example can be a game called “World of Warcraft”.

In these games, players can hold NFTs Such as Armours, swords. And Shields.And various other collectibles in the game.

Each NFT in the game Can have Different values According to their rarity, Quantity, and difficulty to obtain them.

Some more examples of these NFD games are-

1) DeCentraland. 2) God's Unchained. 3) Axie Infinity.

There are various play-to-earn blocking games. Where you can obtain different kinds of nfps. And these entities can later be sold or traded to other players who want to obtain them.

DOMAIN NAMES

Another example of something rare and scarce Can be “Domain names”. For example, marketplaces like-

Unstoppable domains- with “.crypto” extension
Ethereum naming service- with “.ETH” extension.

Domain names Can be bought From these two Domain names in Market places and can be used By anyone.

As we all know, the addresses of The wallets of our crypto have a really long code And sometimes it's really difficult to send Your crypto from one wallet to another wallet by buying your domain name.

For example- You own “Robin.ETH”.

Then Anyone can Directly send youTheir crypto By typing your domain name in the address And the crypto will be sent to the domain name “Robin. ETH”. Remember that these domain names are unique and anyone else cannot have the same domain name Once you have bought. One more advantage of these domain names is that you don't have to pay yearly to own these domain names. You just pay once as it’s an NFT and you will own this unique domain name as an NFT for the rest of your life.

NFT Market Places

Marketplaces for digital art are another use of NFTs. Some of these marketplaces are:-

1) SuoerRare 2) Rarible 3) Curate

These marketplaces are used to list your NFTs And here you can trade your NFTs with anyone and helps a lot of new artists and creators.

Whenever their art in the form of NFT is sold, a certain percentage of the commission is automatically sent to the creator, and this way they can have a steady and continuous earning throughout the lifetime of that NFT whenever it is traded on marketplaces.

NFTs have a huge potential in the future and they're going to Play A big part in the blockchain world. In the past few years.The amount of money which has flown into. The NFT has increased exponentially. Some NFTs like Crypto punks Or Cryptokitties Have their worth In millions of dollars.