"NFT-NON FUNGIBLE TOKEN"

INTRODUCTION-

NFTs is the eldest and most hyped baby of ethereum.With back to back news about art pieces and .jpg files sold in millions, to rise of Ethereum as 2nd largest cryptocurrency at close to $4000 a token , NFTs are considered to be the backbone of all of that.

Lets's start by understanding what are Non-Fungible Tokens from the very basic.In simple terms An NFT is a digital asset that represents real-world objects like art, music, in-game items and videos. They are bought and sold online, frequently with cryptocurrencies, and they are generally encoded with the same underlying software as many cryptos or we can say based on the same technology of blockchain.

They were 1st coined in 2014 and presently,in 2021 they are popping as it is one of the means to sell and buy digital artwork,songs etc.Understand using this example - I believe you must have sometime in your lifetime played a videogame and got a popup to buy skins,weapons with 0 tangible utility at all.That's an example of an NFT.

NFTs VS CRYPTO-

NFT stands for non-fungible token. It’s generally built using the same kind of programming as cryptocurrency, like Bitcoin or ethereum, but that’s where the difference comes into the picture.Physical money and cryptocurrencies are “fungible,” meaning they can be exchanged for one another. They’re also equal in value i.e one rupee will always be equal to another rupee,one $ always = another $.

NFTs are different. Each has a unique digital signature that makes it impossible for NFTs to be exchanged & are not equal to one another hence are considered as non-fungible.

HOW DOES IT WORK ?

NFTs are typically held on the Ethereum blockchain, although other blockchains support them as well.An NFT is created, from digital objects that represent both tangible and intangible items, including:

1. Art pieces
2. GIFs
3. Videos and sports highlights
4. Collectible items
5. Virtual avatars and video game skins,weapons
6. Designer sneakers
7. Music audio
8. Tweets ( Jack Dorsey sold his first ever tweet as an NFT for more than $2.9 million)

PROPERTIES OF NFTs-

Unique - each NFT has different properties that are usually stored in the token’s metadata.

Scarce - there is usually a limited number of NFTs with an extreme example of having only 1 copy, the number of tokens can be verified on the blockchain, hence it’s extreme scarcity.

Indivisible -most NFTs cannot be split into smaller denominations, so you cannot buy or transfer a fraction of your NFT.

Similarly to standard cryptocurrencies, NFTs also guarantee the ownership of the asset, are easily transferable and are fraud-proof.

WHERE TO BUY ?

• Decentraland is an interesting example as the players are able to buy parcels of digital land that can be later resold or used as advertising space within the game.The link for the same is -
• Other examples include marketplaces for digital art such as Rarible, SuperRare and even aggregators of marketplaces - OpenSea.
• Yet another example of something scarce that can be represented as NFTs, are domain names, for example Ethereum Naming Service with .eth extension, and Unstoppable Domains with .crypto extension.

CONCLUSION-

With over $100M worth of NFT traded, and $6M just this month, the NFT space is one of the fastest-growing niches in crypto and has huge potential, ranging from digital kittens to complex financial products.So, what do you think about the future potential of NFTs? Do let me know.

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