An Introduction To Non-Fungible Tokens
What NFTs are and what they can be used for.
Introduction to Non-Fungible Tokens
A non-fungible token is a category of cryptocurrency with some unique qualities. Unlike your typical fungible tokens, like Bitcoin and Ethereum, non-fungible tokens are:
Unique — cannot be replicated and one of a kind.
Indivisible — unable to split into any value less than 1. You gotta own the whole thing.
NFTs as a Collectable
Do you remember that one Pokemon in your Gameboy FireRed version that you spent hours leveling up to 100? Or maybe a signed jersey from Lebron James you got in the Staples arena after a Christmas day game? I’d bet you know exactly where those valuables are and keep them locked up in a treasure vault. Those collectables are valuable, if not for you then for someone else.
As the world continues to go more digital and experiences are continuing to go online, we need a way to establish ownership of digital collectables. NFTs are a way to do this. Because of their inherent qualities and its compatibility with the Blockchain, NFTs can serve some very interesting use cases.
NFT Use Cases
NFTs have been getting hyped up by the Defi community for the last couple of months. They have been around for a while and go through the typical hype cycles. Despite this, many of its use cases are still yet to be implemented, and I would bet some of them are yet to be discovered. The ones that I am most excited about are:
Collectables — as mentioned before, collectables are the most prevalent use case of NFTs and what most people are talking about. Imagine holding a unique skin from competing in the Fortnite World Cup and being able to trade it amongst accounts.
Real-World Assets — it just makes sense for certain things to live on the blockchain as a certified verification. Some of these things include real estate, artwork, and educational degrees.
Identity — you as a human being are truly one of a kind and should live on the Blockchain for security purposes.
