Growth of Non-Fungible Tokens — but what are those?

NFTs started to get the attention after the launch of the well known CryptoKitties crypto game. Game provided users with the ability to collect, breed, sell, and store virtual cats. In 2020 the popularity of NFTs is growing as the concept is seeing a massive amount of funds flowing into the industry. But actually…. What are NFTs?

What are non-fungible tokens?

Non-fungible tokens (NFT) are a completely unique sort of tokens that are not interchangeable because of their individual one of a kind attributes. Tokens possess precise attributes that make it impossible for them to be replaced or exchanged.

They are ERC-720 compliant and had been commonly used in the storage of crypto-collectibles consisting of arts; imparting a means of proving authenticity and ownership, and in crypto gaming. Non-fungible tokens are tokenized versions of digital or real-world assets. Other tokens are fungible, in the same way as coins or banknotes. Fungible tokens are identical, they have the same attributes and value when exchanged.

NFTs have also been instrumental in the increase and improvement of virtual lands, and as a result, enabled possession of lands inside the digital area. The financial capacity for digital lands are very vast because it permits buyers to build up a solid and secure business for advertising or online sales inside the digital area.

What NFT can be used for?

Art: Digital artists can have a nightmare protecting their copyright — and it can be difficult for talented creators to make a living. Through NFTs, someone can buy a creation and proudly showcase it in a virtual space, with blockchain offering proof of ownership. Artists can get a bigger cut of the payment, too… and even portion out a residual profit from future sales, to create a recurring revenue stream.

Collectibles: As we’ve seen with CryptoKitties, NFTs are being used to create entirely new types of collectibles — it’s even possible to buy tokenized versions of your favorite celebrities or sports stars. These tokens are also dragging traditional collectors’ items into the 21st century, such as baseball cards, coins, and stamps.

Gaming: Selling rare weapons and skins is currently prohibited by many popular titles such as Fortnite. It can also be near impossible to use these assets in other games, too. With NFTs, coveted items can be easily transferable — solving one of the biggest annoyances that avid gamers face.

Virtual assets: The Ethereum Name Service — which offers. ETH domains — has turned each of these domain names into non‑fungible tokens so they can be bought and sold, while Unstoppable Domains has done the same for .crypto addresses. Other platforms such as Decentraland and Cryptovoxels allow you to buy plots of virtual land.

Real-world assets: Work in this space is at an early stage, but it’s possible to tokenize real-world assets like property, with NFTs being used to prove that someone owns a piece of land.

Identity: We all have attributes about ourselves that are completely unique — ranging from our appearance to our education qualifications and medical histories. NFTs could digitize all of this, and give us greater control over our data.*

Final thoughts

The standardization of NFTs allows a higher degree of interoperability, meaning that unique assets can be transferred between applications with relative ease. We think that NFTs have the potential to be one of the key components of a new blockchain-powered digital economy. They could be used in many different fields, such as video games, digital identity, licensing, certificates, or fine art — and even allow fractional ownership of items. Storing ownership and identification data on the blockchain would increase data integrity and privacy, while easy, trustless transfers and management of these assets could reduce friction in trade and the global economy.

⚡️Chain.Game, named by the community as the “Blockchain Steam“, is a crypto gaming platform that is committed to providing a handy digital distribution service platform that connects 3rd party publishers and gamers, and is promoting a win-win ecosystem for crypto and game collaboration.

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*provided by Cointelegraph magazine