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It is a myth that Non-Fungible Tokens belong to the gaming world, while it is connecting the crypto world to the real world too.
Say Hello to CRYPTO KITTIES!
Crypto Kitties is one of the most prominent games existing in the NFT ecosystem. It is a digital collectible that works on Distributed Ledger Technology.
The Crypto Kitty Game lets users to collect and breed digital cats. That means if a person has one Ethereum coin, he can purchase kitties from the marketplace and breed them to make new ones. The technology behind Crypto Kitties is a Token. When somebody talks about tokens, one reminisces about ERC20 Standard tokens. But ERC 20 is a fungible token standard, and the Era has evolved to ERC1155 Standard, which creates both fungible and non-fungible tokens in a single contract!
Each cat has a different price and a rare identity. This is the perfect example of a non-fungible token.
What are Tokens? Know More About Fungible & Non Fungible Tokens
Tokens are the digital certificates stored in a blockchain. ERC-1155 is the first and only Ethereum token that enables users to utilize both fungible and non-fungible tokens in a single smart contract.
Fungible Tokens are divisible and non-unique. They can be exchanged or substituted and will hold the same value. The majority of cryptocurrencies operating in the market are based on Fungible Tokens like Bitcoin. For example, if a person is lent with $10,000 cash, and he returns two $5,000 banknotes, they hold the same total value even though they are different.
Non-Fungible Tokens have unique attributes and are non-divisible. They are authenticated on a blockchain and cannot be exchanged or substituted—supported blockchains Ethereum, Tron, EOS, NEO. The plane ticket is an example of a Non-Fungible token. Adam was sent to Manhattan in first class, but he returned to Seattle in Economy. Both the class have different services to offer; The First class cannot be replaced by the Economy, and the Economy cannot be replaced by First Class.
The significant marketplaces operating on NFTs are RARI, SANDBOX, and WAX.
Hashing The CRYPTOPUNKS!
CRYPTOPUNKS are similar to Crypto Kitties that came out a little while ago. They’re like small collectible characters based on the ethereum blockchain.
There are 10,000 unique 24×24 pixel cartoon characters created by an algorithm stored in smart contracts on Ethereum Blockchain. One can own crypto punk on an Ethereum wallet and observe a giant grid of all the crypto punks in the market.
Crypto Punks work on Ethereum ERC721 standard; ERC721 creates only Non-Fungible Tokens.
NFTs are Unique Rare Indivisible
NFTs are an upgraded version of traditional cryptocurrency. They are human interactive and support authenticity. Furthermore, NFTs enable users to secure Ownership, Trade the tokens in specialist markets, and erase the frauds!
Significant Use Cases of NFT Tokens
In no doubt, the NFT space will grow in the coming years. Since December 2020, a significant transition from ‘mainstream adoption of cryptocurrency to crypto art and digital art’ is observed. Crypto traders are referring to NFTs, and the normies are surging to prefer them over traditional cryptos. Some of the most popular use cases of NFTs are Digital Art, Virtual Land, Gaming, Collectibles, Finance, Virtual Assets, Real World Assets, and Identity Verification.
Digital Art- The concept of crypto art is based on the idea of Digital Scarcity and Proof of Ownership, which allows you to buy, sell, and trade digital goods as if they were physical objects. The free markets determine the price of an art piece, while the tokenized art pieces are traded in cryptocurrency and can be converted to traditional currency.
Recently, an NFT investor sold his tweet for $400!
Gaming- Imagine getting paid to play. A pro gamer Adam spends hundreds of hours mining gold on World of Warcraft, and he finally bought that chromatic sword for 500,000 gold. The chromatic sword can now be minted into NFT, and NFT can be sold for a Crypto coin. How amazing is that! Furthermore, with the help of NFTs, the desired items required by gamers can be transferred instantly.
Splinterlands is one of the best games based on Blockchains.
Non Fungible Token Standards
Ethereum, Tron, Cardano, EOS are trying to become the go-to bonafide smart contract platform where decentralized applications can be hosted, run, and used by people every single day. When one speaks of NFTs, the first Standard that comes to mind is ERC20, which is based on Ethereum. However, there have been significant technological advancements in Non-Fungible Token Standards.
NFTs are the FUTURE! They promote human interaction of technology and support technological growth. Clearly, they showcase the potential to replace the traditional cryptocurrency.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
