what is Nft's?
Imagine that you could buy a piece of digital art on the internet for a Reasonable price and get a unique digital token that proves you own the art , wouldn't that be wonderful well that chance is now available because of nft's.
Nft's are taking the world of digital art and Collectibles by storm just like everyone thought Bitcoin was the digital answer to money people now say nfts are the digital answer to collectibles because of this the lives of digital artists are changing result of the huge sales to a new crypto audience, if you are interested in nfts and want to explore more about them you have come to the right place stay tuned let's dive in and read what all the fuss is about what a non-fungible tokens:
Non-fungible tokens are digital assets with information about who owns them that is written into smart contracts because of this information each nft is unique and you can't just swap it out for another token they can't be traded for each other because no two nfts are the same on the other hand banknotes can be easily traded for each other if they have the same value a one dollar bill is the same as another one dollar bill Is a token that can be used in different ways you can send someone one Bitcoin and they can send you one back and you'll still have one Bitcoin of course bitcoin's value could change during the exchange since fungible tokens are divisible you can also send or receive smaller amounts of one Bitcoin measured in satoshi's think of a Satoshi as a scent of a Bitcoin, Non-fungible tokens are usually not splittable you can't send someone part of a concert ticket because it wouldn't be worth anything by itself and couldn't be redeemed but in the past few months some investors have tried out the idea of fractionalized non-financial assets which are still a legal gray area and could be seen as securities what makes nfts so special;
Non-fungible tokens have their characteristics and are usually tied to a certain asset they can be used to prove ownership of anything from digital items like game skins to physical assets other tokens can be used anywhere just like coins or banknotes the same things can be done with fungible tokens when they are traded they are worth the same amount how are non-fungible tokens used.
Non-fungible tokens can represent digital Collectibles like cryptopunks, NBA Top Shot and surari they can also represent digital assets that need to be different from each other to show their value or scarcity they can stand for anything from virtual land to works of art to ownership certificates on nft marketplaces they are bought and sold until recently only specialized marketplaces like open sea and wearable ruled the field but recently some of the largest cryptocurrency exchanges have started to move in in June 2021 binance a cryptocurrency exchange opened its nft Marketplace in October 2021 coinbase a competitor said it would also open an nft Marketplace in the first 48 Hours more than 1.4 million people signed up for the wait list.
How do nft's work?
Tokens like Bitcoin and ERC 20 tokens based on ethereum can be changed into other tokens ERC 721 is the standard for ethereum tokens that can't be exchanged for other tokens platforms like sandbox and decentraland use this standard you can also make non-fungible tokens on other smart contract enabled blockchains with tools and support for non-fungible tokens even though ethereum was the first widely used nft the ecosystem is growing Solana, Neo , tezos, EOS , flow , secret Network and Tron are some blockchains that now support nfts with non-fungible tokens and their smart contracts you can add details like the owner's name Rich metadata or secure file links the ability of non-fungible tokens to prove digital ownership in a way that can't be changed is an important step forward in a world that is becoming more digital they could see how blockchain's promise of security that doesn't depend on trust could be used to own or trade almost any asset as blockchain is still a work in progress so our non-fungible tokens their protocols and smart contract technology still it's not easy to make decentralized applications and platforms for managing and making tokens that can't be used with other tokens another problem is coming up with a standard there are a lot of different projects being worked on in blockchain development for it to work it might need unified protocols and the ability to work with other systems.
The future of Nft's :
Most of the talk about non-fungible tokens is about art games and crypto collectibles more and more well-known brands are licensing their content for nfts the fantasy Soccer game serari has over 100 football clubs on its platform and the Smurfs Minecraft and Doctor Who have all been turned into nfts Twitter got its own set of nfts in June 2021 and a few months later it said it would check its users nft avatars in video games non-fungible tokens could represent things like skins which could then be moved to other games or traded with other players non-fungible tokens make it possible to make security tokens and tokenize digital and physical assets tokens could be used to share ownership of real-world assets like property suppose these security tokens can't be used to buy other tokens,
In that case it's easy to figure out who owns the asset even if only part of the ownership is sold non-fungible tokens could also provide proof of qualifications licenses for software warranties and even birth and death certificates the smart contract of a non-fungible token proves the identity of the recipient or owner in a way that cannot be changed the token could be kept in a digital Wallet to be easy to access and show one day we might be able to store proof of every certificate license an asset we own in our digital wallets.