- Simplified explanation about NFT
Just now·4 min read
A Non-Fungible Token
NFT (non Fungible Token), is also know as crypto collectible, unlike cryptocurrencies where all token are created equal, each nft is unique and limited in number. It is one of the major pillar that are supporting the new digital economy pwoered by Blockchain.
Several project have been made experimenting with NFTS, such as games, digital identities, licenses, certificates and arts. With this technology, it is possibel to have fractional ownership of high value items.
What is nft?
NFT is a type of cryptographic token on the blockchain than represents a unique asset. This can be afully digital asset or a tokenized version of real-world asset. Because nft are uniques, this trait can serve as proof of authenticity and ownership.
Fungibility, mean that one unit of assets can be exchanged and cannot be distinguished from one another. For example, fiat currency, because each unit can be exchanged for other equivalent units. One dollar bills can be exchanged for other one dollar bills. This is very important for asset that are intended as medium of exchange.
The fungible property is good for currency, but not good for collectibles. Now what if we add unique identifier for each asset, distinguishing them from the other? thiw will make each asset different from one another, also known as non-fungible, aka NFT (non fungible token).
How it works?
There are variety of frameworks for building and deploying nft. Most notable of all is ethereum blockchain, there is also Binance Smart Chain, wax, polygon, etc.
With the newer and improved standard, it’s possible to contain both fungible and non fungible tokens on a single cotract. This open up new possibilities. The standardization of NFT issuance also result with token that can be transferred to different application with realtive ease.
If you want to check out the trend of NFTS, you can do so on nonfungible.com. NFT can be traded on open market such as opensea. This marketplace connect buyr and seller, with adifferent prices for each token. As price will change in response to market supply and demand.
The real value of these token, is determined more by the poeple who consider it valuable. Basically, values or shared beliefs, it doesn’t matter wheter it’s bags, car, money, precious metals — these things have value because people believe they are. So it’s no different from digital collectibles.
Popular Project that use NFT
various projects are currently using nft as item to be colleced, traded, or used in the apps, here is some of the most popular nft project:
Cryptopunk is called alpha ot the CryptoArt movement. It start in 2017 by Matt Hall and John Watkinson create a software that would generate thousand of different, strange-looking characters. At first it should be used for making smartphone game. But they ended up with ground breaking concept that become inspiration for the ERC- 721 standard, this support most digital art and collectibles (NFT).
In the past, they could be claimed for free, but now the cheapest is 19.4ETH ( $42.609) There are in total 10,000 unique cryptopunk available. with some of the most expensive one reach $7,5mill.
NBA top shot
NBA to shot is a blockchain based trading card game. It’s started as joint venture between National Basketball Association and Dapper Labs in July 2019. Every single card is a NFT. NBA will cuts highlights from basketball match, than sent it to Dapper Labs. Dapper will proceed deciding how many highlight they are going to sell and release them.
So far, there have 5 sales wort over $20.000 with the recently LeBron James highlight sold for more than $71.000
Alien World is currently number 1Dapp games, with its own economy system. Player can mine in game resource called Trilium. This function as the game currency, and also can be staked to have influance on the planet governance system.
Every ingame asset is represented with nft token, this include the tools used to mine, land ownership, weapon, and avatar. Player than can choose to use it in-game to generate more wealth or exchanged it to other crptocurrency.
Currently Trilium(TLM) is listed in Binance exchanger. 1 TLM = $0.2
Blockchain Technology have grow beyond conventional Financial applications. By Representing Physical assets in the digital world, NFT will play important rule to be a bridge between real world asset to blockchain ecosystem.
The area to use NFT is very wide, and it’s very likely we will see more promising and exciting innovation for blockchain application.
- Date of publication:
- Fri, 04/23/2021 - 06:03
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