Nowadays, everyone’s talking about weird Non-Fungible Tokens (NFTs), but what are these strange new tokens, and why do people keep referring to them as weird? Not only does this mysterious phrase intrigue me, but it also makes me question how people even know about the existence of these NFTs in the first place! To answer that question, I will be writing this blog to explain what exactly NFTs are and how they are changing the world we live in.
What are NFTs?
Non-fungible token.
I am not sure if that clarifies the situation.
Sorry, I was mistaken. The term “non-fungible” refers to something that is unique and cannot be replaced by another item. An example of fungibility is a bitcoin – trade one for another and you will get the same value.
Trading cards that are one-of-a-kind are not fungible. You would have something completely different if you traded it for another card. A Squirtle was exchanged for a 1909 T206 Honus Wagner, which StadiumTalk describes as “the Mona Lisa of baseball cards.” (I will take their word for it.)
How are they made?
NFTs are made through the use of blockchain technology, which provides a secure and transparent way to manage digital assets. In order to make an NFT, you need to have a platform like Ethereum. You would also need to write your smart contract (to keep track of who owns what) and create an initial supply for your token. There are many ways that you can buy or sell these tokens on the market – often in exchanges or peer-to-peer transactions.
Who creates them?
NFTs are created by game developers. They are a digital representation of something that can be found in the game, for example, a sword or a hat. Once you purchase an NFT, it is yours to do with what you please. You can trade them on the marketplace, sell them for crypto-currency on CryptoKitties’ marketplace or even sell them back to the developer for ETH (Ethereum) and have them destroyed.
Where can I find them?
NFTs, or Non-Fungible Tokens, are digital assets on the blockchain that are unique and cannot be replicated. They can be anything from a CryptoKitty to a rare ERC-721 collectible like a dogecoin frog. These tokens can represent anything you want them to represent (say, your favorite internet meme), and they’re traded on the Ethereum network using smart contracts.
How do I buy them?
NFTs are created by sending crypto tokens to a smart contract. The contract then generates an ERC-721 token for the user. They’re called non-fungible because each one is unique and can’t be replaced with another.
For the most part, you’ll purchase them on exchanges like Coinbase Pro or Binance.
What can I do with them?
An NFT can be so much more than a collectible or even just a digital good. These tokens are programmable, meaning that they have the potential to be used in so many ways and for different purposes. For example, imagine if you were able to buy food at a grocery store with your favorite cryptocurrency instead of cash. You could then sell your groceries back to the store in exchange for another type of cryptocurrency that has been programmed to only work within the confines of this type of transaction.
Are they a good investment?
NFTs are a new way of trading goods, but it cannot be easy to tell if they are suitable investments. I think that if you’re considering buying some NFTs, you should watch them for a while first to see how the market reacts to them. That way, you’ll know if the price will go up or down and make an informed decision.
The bottom line
NFT stands for Non-Fungible Token. You might wonder what this means and why everyone’s so excited about them. In short, it’s like a token but with specific properties. For example, a Watch NFT could have the color blue, which you can make anyone wear to show support for your event or even show their timezone. You can also look at the first NFT watch sold by Jacob & Co. which is interesting.