Non-fungible tokens (NFTs) are like collectibles – they function as unique objects with their own history. Just like you can’t replace your Star Wars figurine with another, you can’t use one NFT to make another function.
The phenomenal rise of cryptocurrency has opened up an era for many use cases, including blockchain-based technologies. And NFTs, which are tokens that are unique & can’t be replicated, is fueling this new technology. With that innovation in mind, now there are assets like art, music, digital images that you can now own permanently. A crypto collector recently bought $532 million Cryptopunk NFT. Unique NFTs cannot be replaced like for like – for example, each Bitcoin has similar value but each NFT can not have similar properties. This is because they’re different and one-of-a-kind. There’s always only one!
What Is NFT?
“Non-fungible” means that it is one of a kind and cannot be replicated. A Non-Fungible Token (NFT) is an asset that represents digital real-world objects like music, art, 2D avatars or images, videos, or any other collectible items. NFTs are a new asset class, they’re backed by blockchain technology and they’re a great way to invest in a booming industry. They have been around since 2014, but they’re becoming more popular recently. Just last month, a set of 101 Bored Ape Yacht Club NFT was sold for $24.4 million (roughly ₹ 179 crores) at Sotheby’s auction house.
It’s not always clear at first what NFTs are. When you buy an asset, you’re really just buying a limited license to use it.
Non-Fungible Tokens are causing an enormous shift in the gaming industry. They are paving way for new game development processes, solving the problem of item rarity, and even enabling new types of gameplay mechanics to become possible.
We’re witnessing a shift in how games are designed and created due to non-fungible tokens. It is a digital asset that is unique or rare. This means that each token has its own value that is not relative to any other token, so it’s impossible for one person to buy up all the tokens and destroy their value.
NFTs are valuable because they represent the items you own in a digital space. In other words, each token represents something different from another token as every item has its own set of attributes that make it unique from another item.
Non-Fungible Tokens protect creators by ensuring that they own their work and can set permissions such as who can view, use, or modify their work with ease. This new form of protection also ensures that creators will get paid for every transaction involving their work without any third party involvement.
Disclaimer: The above references an opinion and is for information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.