What are NFTs?
This article will explain what NFTs are, how we use them in the real world and the difference between Cryptocurrency and an NFT.
What is an NFT?
NFTs (non fungible token) are cryptographic tokens. They are allocated a unique identification code that can’t be copied, they are then stored securely onto the blockchain.
Most NFTs sit on the Ethereum blockchain but NFT creators are now diversifying the creation of NFTs across other blockchain technologies. Newer greener blockchains are being utilised for the creation of NFTs such as Cardano, Solana and Tezos.
They are Breedable
You can combine 2 NFTs in order to create a new NFT. This is known as breeding in the cryptocurrency world. CryptoKitties is one of the first platforms which became popular for being able to buy, sell and breed NFTs. Their platform allows you to buy and sell cats, create collections, earn rewards, breed more cats, unlock rare information about that cat, solve puzzles with other players, limited edition cats and play games within the KittyVerse. All available within their community.
You can add Metadata
Metadata can be added such as ownership information, certificates, can include a signature or signed documents and any legal information.
How are they different from cryptocurrency?
An NFT is a unique token that represents a digital or physical asset of value, you can buy, sell and auction your NFT. Cryptocurrency digital coins and tokens can be copied. NFTs can bought with Cryptocurrency and uses cryptocurrency blockchain technology to create the NFT.
How do we use NFTs in the Real World
As collectable items
You can collect NFTs just like you would collect physical assets in the real world.
The NBA is allowing customers to collect memorable licensed digital moments.
CryptoKitties is a platform giving users the ability to collect, trade and playing games with digital cats.
Recently the UFC has struck a deal with crypto.com to sell digital collections.
Twitter CEO sold his first ever tweet as an NFT for $2.5M
Yes you heard it right, twitter CEO turned his first tweet into an NFT and sold it for $2.5M. You can sell anything digital or physical as long as it can be created as an NFT. This is an extreme use case, how many people can say they Tweeted first on Twitter? No one..
Buying, Selling and Trading on NFT exchanges and within virtual worlds in the Metaverse
People from all over the world are creating, buying and selling their own NFT collections across NFT marketplaces. This won’t stop anytime soon.
The first property to sell as an NFT was on the Propy platform. The property was previously owned by TechCrunch founder Micheal Arrington to showcase the power of blockchain technology.
The Decentraland marketplace enables customers to buy and sell digital property. Digital property prices can go into the millions.
As NFTs hold value and some can hold significant value, people have been borrowing money against the value of their NFTs. A company called NFTFI launched in 2020 and has had millions of people.he NFT is kept by the lender. A popular choice for people around the world who want to use their NFTs as collateral.
Private equity transactions
Modern investors are creating NFTs for their fine wine, selling fractional shares of art and music.
Because of it is completely unique, An NFT could represent a person’s identity. They could one day replace passports, or become our digital online identity avatar used by various platforms to verify identification. It could make the identity verification process much quicker, think “PayPal” but for the verification of your identity. More information on this, coming soon.
Okay, now you know more about NFTs you might be thinking okay where can I buy an NFT? And how can I create one? Or you just want to know more about NFTs?