What is an NFT?
Non-fungible tokens (NFT) are digital assets that represent ownership of a wide range of unique tangible and intangible items, from collectible sports cards to virtual real estate and even digital sneakers.
What innovation does NFT bring?
NFTs provides a key benefit to NFT issuers and holders — the authenticity of an NFT is easily and publicly verifiable, protected by the cryptography underpinning the blockchain technology and not requiring a 3rd party.
What blockchain do NFTs usually sit on?
The vast majority of NFT tokens exist on the Ethereum blockchain and were built using one of two Ethereum token standards (ERC-721 and ERC-1155). These standards are supported by the wider ecosystem and services, like MetaMask and MyEtherWallet.
Specialised Ethereum dapps exist to facilitate creation and exchange of NFTs, such as Chiliz and Enjin.
Other layer-1 “general-purpose” blockchains (e.g. NEO, EOS, TRON) have also released their NFT standards and can be used for creation and exchange of tokens.
There also exist NFT-focused Layer 1 chains, for example Flow.
How big is the NFT industry?
According to nonfungible.com, the following are the industry stats for the latest month period to 3 July 2021.
What are NFT value drivers?
NFT as a productive asset. NFTs, much like traditional assets, can be a source of cash flow to owners, users, or creators. For example, a digital plot of land on Decentraland can be rented out to other users. An artist can build-in smart contract functionality enabling a royalty payment as part of each NFT transfer between users.
NFT as a collector item. NFTs that do not have cash flow mechanisms can be valued for other reasons.
What are the most expensive NFTs?
What are the main NFT games?
What are the main NFT art projects?
