NFT
NFT stands for Non-Fungible Token.
What is Non-Fungible Token and how it’s different from Fungible Token?
Tokens are basically vessels containing information about a subject matter.
Fungible Tokens are uniform and there is no variation among them. Non-Fungible Tokens are unique.
For example, any sort of money is fungible (as it’s uniform) For example, in the case of Bitcoin, the subject matter is money, which is uniform across all the units; therefore, fungible.
Non-Fungible Tokens, on the other hand, contain information that is unique. For example, digital pictures, logos, etc.
In other words, NFT is a code for digital objects. These tokens are placed in the blockchain, timestamped, and disseminated through a decentralized network. This enables the creators and/or owners of the NFT to claim ownership of that digital object.
Once the ownership rights have been established, the digital object can be sold or rented on the blockchain (using cryptocurrency as the medium of exchange). In addition, this technology enables creators to earn royalties on every subsequent resale.
See below an example of NFT projects:
At this stage, it seems that everyone is creating something and calling it ‘art’, in hopes that someday the logo or emoji they have created will have value.
It’s hard to comprehend that random creations will have value in the future.
However, if the digital object is a trophy (or status) earned in a computer game, then it potentially has value. Therefore, the most use case of NFT is in the gaming community.