What is NFT?

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In the blockchain and cryptocurrency space, there are different types of tokens as the technology progresses. There are utility and security tokens. There is also the NFT.

Understanding the fungible and non-fungible

For example, Bitcoin (BTC) is a fungible cryptocurrency. It is exchangeable with another Bitcoin of the same value. 1 BTC exchanged with 1 BTC. Another simple example is the dollar note. Ten dollar note exchanged with another same value note. That is fungible.

Unlike the fungible token, NFT is not exchangeable. The NFT deployed using the ERC721 token using the smart contract in a blockchain, allows it to store unique information such as ownership and characteristics.

The functions

The ability to store unique information allows the industry to explore wide varieties of usage for NFT. For example, an NFT can represent a specific asset, either virtual or real-world assets.

Digital collectibles

The most popular usage of NFT is in digital asset collectibles. Similar to real-life collectibles, some of the digital assets are limited, unique, and valuable.

Blockchain games will usually use NFT to create uniqueness and exclusive ownership. For example, CryptoKitties is a blockchain gaming that allows players to breed, collect, and trade virtual cats. In the game, each NFT represents a cat with additional information such as image, breeding history, previous ownership, and serial numbers.

Believe it or not, Major League Baseball (MLB) Champions game uses NFT as one of its features. The game is a licensed MLB-games that allows players to collect limited and unique official digital bobbleheads of MLB players.

Even the popular game, Minecraft, will release NFTs soon.

Digital proof

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The NFT will be useful as a sign of proof or certificate for users attending events or purchasing tickets. It will help in authenticating the originality and increase in the value of ownership.

Real-estate ownership

An NFT can represent the ownership of a property unit by including the necessary unique information. Through the use of optimized blockchain for real-estate, transactions between involved parties will be faster, immutable, transparent, and unique. 

These are just a few examples in the case uses of NFT. Similar to the ability of blockchain technology can improve other industries, NFT will surely be a valuable improvement to it.

Do you own any NFTs?

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