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- NFTs convert the physical assets into digital assets.
- NBA top shot, the most famous place for NFTs to buy NBA moments in the form of digital cards.
- NFTs stand at a point of unpredictable future.
NFTs, or Non-Fungible Tokens, are simply distinctive crypto tokens that stay on a blockchain and cannot be duplicated. These are generally used to represent real-world objects, mainly artwork, such as in-game assets, videos, paintings, music, and much more. These tokens are traded online using cryptocurrency, which reduces the risk of fraud and theft. NFTs are non-fungible, which simply explains that unlike cryptocurrency, which is fungible, NFTs carry unique identity and data which makes it impossible to replace one NFT with another. Although, two unique NFTs can be combined to create another unique NFT.
Collectibles are what today’s NFT market is surrounded with. These collectibles include a variety of stuff, such as badges, digital cards, artworks, GIFs, skins in video games, tweets, etc. However, the most popular place for NFTs is NBA top shot where you could buy irreplaceable digital cards that contain precious NBA moments.
The group of people who developed ERC-20 smart contracts are the ones that developed NFTs using the ER-721 & ER-1155 standards. The ER-721 standard is used to develop the interface with details like metadata, ownership details, and security as well. Whereas, the ER-1155 standard is used to keep the storage and transaction costs at minimum by storing various types of NFTs in one smart contract.
NFTs were first developed in 2014 but are gaining popularity now due to increased trading of digital assets or artworks. The use of NFTs results in the conversion of physical assets into digital assets which reduces the hectic process involved in trading and lending loans, & also eliminates the involvement of third parties, thus, connecting artists directly to the audience.
The use of NFTs opens a gateway for all to own art/artworks which has stayed a privilege just for the wealthy ones, for years. Another popular use of NFTs is in cryptokitties, a concept launched in 2017, where cryptokitties represents cats that acquire a distinctive identification on the Ethereum blockchain. Each kitty was capable of being bought, fed, and reproduced to produce new offspring which also have a unique value and price. Not only this but the NFTs have also been used for charity by selling themed NFTs.
NFT is a great concept in today’s world but still, its future can’t be judged or determined. NFTs gained popularity recently which leaves us with very little history to make assumptions. Even so, NFTs are a good asset to invest in. In the future, every artwork, either physical or digital will come with an NFT fixed to it, containing the details of ownership that are indestructible and may last forever. NFTs recently hit a slowdown, although, it is far from being considered as its end. On the other hand, millions of dollars are being spent on high-profile NFTs, which shows how the NFTs are welcomed & given significance in the market. Overall, it’s a mix of high and lows, & too soon to predict the future and market for NFTs.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
