It may sound pretty strange, but a large number of people still have not heard about NTF and its endless opportunities. Most have heard that there is a specific blockchain game in which people are investing large amounts.
This article will not be devoted to crypto games but rather to the technology these games are based on. We have prepared an interesting piece of material and will try to explain everything as simply as possible.
We hope that after reading this article, you will be as impressed with the opportunities of NFT as we are. What does NFT mean? Let’s try to find out!
What is NFT Crypto & Non-Fungible Tokens?
So, what is NFT? Well, NFT stands for non-fungible tokens, where fungibility means the possibility of something being replaced by another identical object. The NFT concept is pretty easy to explain with examples from our daily life.
For example, let’s imagine the production of baked goods. Staff released 500 kg of donuts per shift. If we take 2 kg of donuts from there and put 1 kg of donuts in two baskets, then these baskets will be of equal value. By replacing the contents of the baskets with other donuts of the same batch, we will not notice the difference. Moreover, if we return our 2 kg back to the total mass of donuts, it will be impossible to distinguish between their belonging to any batch. This is the main property of fungibility.
Another striking example of a fungible token is the US dollar. The US dollar is fungible and not unique at the same time. When we receive a one-dollar bill, we do not care who owned it earlier, and we can still buy a certain amount of goods for this amount.
What is NFT crypto? Well, most cryptocurrencies also fall into this category, because they strive to achieve the property of fungibility so that a token becomes a medium of exchange, a unit of account, a store of value, etc. Moreover, fungibility is inherent in Bitcoin and Ethereum.
Now, let’s consider the following example — a movie ticket. Brenda and Adam have bought a movie ticket, Brenda will go to the melodrama at noon, and Adam will go to the last part of Harry Potter at nine in the evening. Both have a ticket to the cinema, so after exchanging them, the guys will remain in the same conditions as before the exchange, right? Of course not, it’s obvious.
The latest new Harry Potter chapter is head and shoulders above any melodrama, but it is not only about the value of a single ticket. Different showtimes, differences in places, ticket prices, and the location of cinemas in the end.
What is NFT crypto? In short, NFT is the digital expression of objects like movie tickets.
What Is NFT Art: Key Pros of NFT Tokens
What does NFT mean? What are the main pros of NFT tokens? Well, firstly, by creating a unique dataset (our NFT), we eliminate the need for some centralized party to give expertise to the token, assessing its authenticity, creation time, and other parameters. The blockchain has already taken over this function.
In the current realities, given the relatively slow speed of development of blockchain technology, there are not many obvious examples of the need to use NFT. However, we are sure that this technology can become a breakthrough rather soon.
How to Use NFTs?
What is NFT art? Let’s consider some examples. The first is collecting — from digitilized antiques (stamps, baseball cards, presidential letters, and more) to contemporary art.
More and more artists, writers, and creators in other genres are patenting their works on the blockchain. This gives them the ability to manage their works and also reduces the cost of monetization. For example, NFT in the world of music can radically change our view of protecting an artist’s rights.
The second example is more insane but has a right to exist — personal identification, namely the verification of the right to own some property. Both movable and immovable property (houses, cars, TV, etc.) can be issued in the form of a token.
Secondly, NFT tokens are already essential for the gaming industry. Why do we think so? Because with the help of NFT, it will be possible to implement the following cool features in games:
- NFT makes it possible to transfer in-game items from one game to another. For example, having obtained a rare in-game artifact in the Saturday clan battle, you can quickly transfer it to a completely different game and can use it at your discretion.
- Like the inventory in-game items from the point above, we can transfer the history of our achievements, ranks in leader beards, experience points, and an avatar in the end to other games!
- NFT in conjunction with the blockchain, allows players to have a common account. You will not need to keep dozens of login-passwords from games as one account will be enough. Your mates, for example, from Gods Unchained, will be able to easily recognize you in a new game with your previous nickname and avatar.
What Does NFT Mean: Final Conclusions
What is NFT? As we mentioned before, NFT is still an extremely young technology. The entire ecosystem of developers and users has to do a lot of work for this idea to go to the masses and take its root. The two main problems we face with unique tokens are the lack of user-friendly interfaces for working with them, which confuses new users when buying/selling an asset.
The second problem is the limited scalability of the blockchain and, therefore, the resulting problems in the number of supported transactions per second in a given dApp.
Finally, we would like to say that non-fungible tokens are an exciting new idea. We would love to see how NFT tokens will be used in the gaming industry to create a new level of player interaction in multiplayer games.
What is NFT art? Have you ever purchased some NFTs? Feel free to share your experience in the comments!