Nonfungible Token (NFT)

Non-fungible tokens (NFTs) are digital tokens that are managed by the blockchain to transfer ownership of your digital masterpiece. Examples of NFT are game skins, game art, digital art, domain names, etc.

Non-Fungible Tokens Explained

Do you remember those holographic Pokémon cards? 

We all wanted that card when we were kids, some cards have ultra-rare items that came with a hefty price tag and ran the risk of being stolen.

Now imagine if they were to digitize these collector items what is stopping people from hacking, stealing, or duplicating these digital cards.

This post will clear all your doubts about non-fungible tokens. Also, be giving top NFTs tokens and use cases of it.

In 2017 a company by the name of Axiom Zen released that game on an Ethereum called crypto kitties. 

This game has a lot of players to buy, collect, Brie and eventually sell these virtual cats. 

Every single Kitty was uniquely owned by the user and each kitties value was subject to change depending on the market.

No kitten could be duplicated or transferred without the user’s permission because their individual identity was verified through the blockchain this kitten craze took off and people spent an estimated total of 7 million dollars on these cats. 

According to the New York Times, a single crypto kitty sold for $140,000 with an average price of $25 each. This digital ownership gave rise to the nonfungible token also known as NFT. These tokens are best used to create digital scarcity like Collectibles and to verify owners unlike other tokens though. 

Let’s make it more simple, Imagine you have 5 holographic Charizard cards. Let us convert these cards into NFTS by minting 10 separate tokens.

Every Charizard card is verifiable by the blockchain whoever owns the private key is the true owner of the Charizard cards.

Non-Fungible Tokens (NFT) Example

The gaming industry and the art industry both show strong use cases for NFTs.

Best examples for NFT Tokens is that you spent hundreds of hours mining for gold on World of Warcraft and you finally brought that chromatic sword for 500,000 gold that chromatic sword can now be minted into an NFTS and the NFTS  could be sold for Bitcoin imagine that getting paid to play.

The same concept applies to Art.

If you spent hundreds of hours drawing something on Adobe Illustrator selling a physical print just wouldn’t be the same minting. Converting Your drawing or Arts into an NFT is a secure way to sell and transfer ownership of your digital masterpiece. 

Top Best Non-Fungible tokens list (NFT)

Popular Projects of NFTs are:

DECENTRALAND

Decentraland is a decentralized 3d virtual space which is called LAND. This project is maintained in an Ethereum smart contract. In decentraland you can create avatars, wearables and buy estates.

The Sandbox

The Sandbox is a virtual place where users can build a gaming experience in the Ethereum blockchain. By creating digital assets with sandbox you will get a utility token called SAND. With Sand Token you can trade land, assets, gems, create and play games. You can also stake SAND.

Async Art

Async Art built on the blockchain where you can create art.

These projects are pushing the NFT industry and blockchain gaming as a whole and have created their own tokens that allow you to Mint and burn-in and out of the engine token directly.

This provides endless opportunities for gamers looking to trade or make a few bucks.

Async art has also created a platform for people to invest and own our pieces that have been tokenized.

Non fungible vs fungible

Fungible tokens vs Non fungible tokens and why we’re going to be so important in the future. 

So break it down. 

What is the difference between fungible vs  Non fungible fungible?

So fungible they are divisible and they are non-unique. So a $1 bill, if you get a New York, will be worth the same dollar bill as you can get in Texas. They are divisible or They are just not unique. 

The same thing with Ethereum, One eth is worth one eth there is no matter where you get it. One bitcoin is worth one Bitcoin no matter where you get it. 

However, non fungible tokens are unique and they are non divisible. 

So 1 non-fungible token may be worth way more than another nonfungible token of the same type example would be crypto kitties. 

So crypto kitties are built on the erc721 token non-fungible, non-visible unique token. And that one crypto kitty may be worth $1, but the other crypto kitty non-fungible erc721 token may be worth $1,000 which is a stark contrast to an erc20 token.

For Example, one ticket to your favorite concert in the front row seat it’s worth a lot more than one ticket in the back row behind a column in the same concert.

So remember fungible they are not unique and they are divisible. The one you have $1 for Honor pennies or 4 quarters or 10. This is the basic of fungible vs non-fungible tokens.