The term “non-fungible tokens” (NFTs) is used to describe a type of cryptocurrency that represents something physical, such as sports memorabilia, fine art, collectibles, etc. A blockchain-based system makes it possible to track the history of each individual item, making it easier to verify authenticity and prevent counterfeits.
A recent example of how NFTs are being applied is the sale of a limited edition print of the Mona Lisa by French artist Damien Hirst. In late January 2018, Christie’s auction house announced that it had sold the piece for $57 million — the highest price ever paid for a work of contemporary art. This was achieved thanks to the use of an Ethereum-powered smart contract, allowing buyers to bid online while the auction took place.
Where does NFT come from?
NFT stands for “non-fungible tokens.” In short, it refers to a type of cryptocurrency where each unit is unique and cannot be replaced by others of the same kind. This makes it different from fungible coins, which are interchangeable units of currency.
The concept behind NFTs stems from the fact that there are many things in life that are unique and irreplaceable. An individual person, for instance, cannot be replicated exactly. Even if someone else looks just like you, you still know that you are the only one in existence. Similarly, no two pieces of music are ever alike, nor are two works of literature.
For this reason, people often refer to items as being non-fungible. If you ask anyone what the difference is between Bitcoin and Ethereum, they’ll likely tell you that one is fungible while the other is non-fungi ble.
Examples of NFT
The National Football League has announced it will launch a blockchain-based digital collectible called NFL GameTimeNow. The product will allow fans to buy, sell, trade, and even play games featuring real players.
NFTs are basically virtual items that can be purchased, traded, and used within video games. They can be bought, sold, and traded on platforms like OpenSea, where people can use cryptocurrencies to purchase, sell, and trade assets. Fans can use the tokens to unlock rewards, including player gear, and win prizes.
NFL GameTimeNow will feature over 30 different teams, including the New England Patriots, Houston Texans, Los Angeles Rams, Kansas City Chiefs, Denver Broncos, Carolina Panthers, Philadelphia Eagles, Green Bay Packers, Cincinnati Bengals, Pittsburgh Steelers, Oakland Raiders, Seattle Seahawks, Minnesota Vikings, Miami Dolphins, Buffalo Bills, Tennessee Titans, Jacksonville Jaguars, Arizona Cardinals, and Washington Redskins.
Who uses NFT?
The concept of owning physical assets like art, collectibles, and even digital goods has become increasingly popular over the past few years. But with the rise of blockchain technology, some believe it could change how we view ownership forever.
In 2017, blockchain startup Enjin launched a game called CryptoKitties where players could buy and sell virtual cats. This sparked a wave of interest in what was known as “collectible digital items.” In 2018, the team behind CryptoKitties announced plans for another project called ERC721 tokens. These tokens represent unique digital objects such as video games, books, and software licenses. They’re similar to Bitcoin because they can be traded online without the use of third parties.
But unlike most cryptocurrencies, ERC721 tokens aren’t based on blockchain technology. Instead, they rely on a different type of distributed ledger called the Ethereum network. Because of this, the tokens themselves don’t contain any value. Instead, each token represents an asset owned by someone else. When you purchase one, you simply receive a receipt that proves you now own the item represented by that token.
So why do people want to own these things? Some see it as a form of investment. Others see it as a way to support independent artists or developers. Still others see it as a way of supporting small businesses. Whatever the reason, there’s no doubt that many people are embracing the idea of owning something tangible rather than intangible.
And despite the fact that the majority of these projects still exist within the realm of fantasy, there are already some companies trying to bring these concepts into reality. One example is Enjin Coin, a blockchain-based gaming currency. Another is the Brave browser, which allows users to tip creators directly via the web. And another is the upcoming Decentraland, a decentralized 3D virtual world that anyone can download onto their computer.
While the future of NFTs is uncertain, there’s little question that the trend is here to stay. So whether you’re interested in buying a piece of history, investing in a budding artist, or exploring a new frontier, NFTs might be worth considering.
