Juliet BA non-fungible token, in English, a Non-Fungible Token, it is the famous NFT which has entered the current major trend in the world of cryptocurrencies. And, in all likelihood, it's not just a trend...You'll quickly understand why, believe me.
When we say that these tokens are non-fungible, this means that they are not interchangeable with other tokens. Unlike the other ERC-20 tokens for example, or unlike dollars or bitcoin, NFTs are not exchangeable.
For example, a 10 dollar bill can be exchanged for the equivalent in euros. This is why we say that national currencies are fungible. However, for non-fungible tokens, they have their own, unique value.
This is why they correspond perfectly to the world of art for example. But it is an error to think that this is its only use.
The non-fungible token can, by definition, represent different types of assets, whether digital or not. The bottom line is that it represents a unique asset with its own value (a deed of ownership, a work of art, an item in a video game, etc.).
The NFT can represent almost anything, even real-life physical assets (hence its advantage!)
For the moment, the vast majority of NFTs represent gaming objects and cryptographic works. Very clearly, we are going to see even more use of these NFTs in other sectors. For example, the college diploma and certificate industry would be an industry that would be ideal with NFTs.
What are the advantages of non-fungible tokens?
Now, it’s time to see the benefits of non-fungible tokens. You think that if there is such enthusiasm, it is because there is really something useful behind it, right?
In fact, what you need to understand is that for example bitcoin and other cryptocurrencies are primarily currencies. It is used to pay for items or services. OK.
That's already huge in itself. But, imagine with NFTs, a token represents something physical or virtual but it represents something concrete, fungible.
We can therefore have the deed of ownership of this object and this is recorded and visible in the blockchain. For example, if a work of art (digital or not) has its own token, we can carry out transactions (purchase and sale) via this NFT. We then have access to the history of this object and above all we know who this work belongs to. We know how much it was sold and bought back. It can be tracked and authenticated easily. No one can anymore come and falsify the work because it will be associated with this NFT.
No two NFTs are the same. Each token is original and cannot be replaced by an identical token.
In fact, the NFT can have different forms depending on the standard in which it was created. If the NFT is created on Ethereum, it will be an ERC-721 or ERC1155 type token. If the NFT is created on TRON, then it will be the TRC721 standard.
Each standard has its own particularities which will then provide a framework for the different NFTs. That said, the majority of NFTs today are deployed on Ethereum with the ERC721 standard.
You should know that until now, most non-fungible tokens have been deployed on the Ethereum blockchain but there are other blockchains that are interesting for the use of NFTs. We can cite TRON, NEO or even Wax with the marketplace Atomic Asset.
Why have some non-fungible tokens gained so much value?
Well, yes, if you are reading this article it is because perhaps you have heard about the staggering sums sold for certain tokens. Whether for flying cats like NyanCat or pixel images like cryptopunk ou Hashmask at several thousand euros, one wonders where such value comes from...
It all comes down to the fact that they are unique. Unique. This is mainly what influences the desire to buy and own this token.
After all, we are in an increasingly virtual society, so it makes even more sense in this context.
There are also pure collectors who wish to own the NFT in question, but there are also speculators among them. Even in the traditional art world, this is a very common practice. We not only buy works to contemplate them, we also buy them to resell them at a higher price later. It’s a way to diversify your portfolio indeed.
These are collectibles and the word "collectible" is actually used to refer to this idea of collecting items.
How to buy, receive and store your NFTs on your wallet?
In fact, having a non-fungible token is in relative practice, it's like having a classic token. This means that they can be stored on compatible asset wallets, such as MetaMask, Trust orMoney app for example.
In the same way as the ERC-20 standard tokens, a non-fungible token can be transferred and sent from one address to another.
Moreover, transaction fees for NFTs are not paid in gas but in Ether.
Also, there are several NFT marketplaces in which you can buy, sell and even create your own NFTs and resell them. Imagine a kind of virtual gallery where you can buy works in a few clicks.
😎Magic, right? It’s also a boon for artists. If you are interested, you can read our article to find out how create your NFTs and sell them.
What are the uses of non-fungible tokens today and their concrete applications?
As we said above, the very nature of a non-fungible token makes them usable assets for several sectors.
However, here are the most widespread uses of non-fungible tokens:
👉 Video game assets: In the world of gaming, NFTs have a prime place. With NFTs, we can represent weapons, bonuses, characters or any type of element which is therefore non-fungible. NFTs are an integral part of play to earn games.
👉 Collectibles (collectible digital works): This is honestly the big trend. There, the non-fungible token represents any digital work. However, even if the person has the NFT, they do not necessarily have the copyright. What we know with the record sales is that it is a popular market with strong demand. This explains why prices are literally exploding. Typically the Bored Ape Yacth Club (BAYC) are collectibles.
👉 Acts of Property (land or not): First of all, we saw this use in a virtual universe as with the case of Decentraland (MANA). There, on this platform, NFTs represent plots of land in different virtual worlds. Owners can rent or sell their plots. This use is here in a virtual universe but in fact NFTs would make perfect sense in real life. An NFT can represent an act of real estate cleanliness and ease in itself the land register from several countries, for example.
👉 Digital works of art: It's somewhat different from collectibles like CryptoKitties for example. It is also different from thegenerative art. There, these are unique works of digital art which have been tokenized and are then represented by a unique token. So, owning the NFT is also owning the work of art itself. The non-fungible token then serves as an act of ownership of the work. This type of non-fungible token also serves as an investment for informed speculators. Typically Beeple's works are considered works of digital art.
👋 See other articles that talk about this NFT revolution (Yes, on zonebitcoin, we are absolutely a fan of NFTs)
- The 5 generalNFT creators to create your collections (simply)
- NFT royalties: Commissions for life
- The best NFT marketplaces to find NFTs
- OpenSea: the NFT marketplace
- The criteria for invest in NFTs
- The guide for create NFTs
Note: No financial advice is given in this or any other article on zonebitcoin. This is information of which you are the sole judge and master. Be responsible with your investments and only invest as much as you are willing to lose.
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