THINGS TO KNOW ABOUT NON FUNGIBLE TOKEN (NFT)
Launched in 2017, but it is not until 2020–2021 that NFT will become hot in the Crypto market. And arguably the next explosive trend, like how DEFI has been and is booming.
This article, Tokenplay summarizes useful information to know about NFT.
What is NFT?
NFT is an acronym for Non-Fungible Token, a special type of cryptographic token that represents unique collections. NFTs are used in specific applications that require unique digital items, such as cryptographic art, digital collectibles, and online games. This is in contrast to cryptocurrencies like Bitcoin and many fungible network or utility tokens. Fungible tokens can be exchanged with each other because they have the same value similar to a simple exchange between paper currencies of the same denomination.
For example, Van Gogh’s Starry Night painting is a Non-Fungible property. It is valuable because of its preciousness. If you “debt” me the Starry Night painting, you can’t give me money or a painting like it. It must be that painting, painted by Van Gogh himself.
This creates the rarity and uniqueness of a Non-Fungible. Therefore, in the future Non-Fungible products may have very high value and not be priced according to any standard.
SPECIAL CHARACTERISTICS OF NFT
Irreplaceable — Be Unique!
NFT cannot copy, cannot divide.
In blockchain, NFT is a token with its own value and distribution characteristics. Another difference with homogeneous tokens is that non-financial transactions are not divisible.
The most popular token standard for NFTs is ERC-721. Through Ethereum’s ERC-721 standard, it is possible to prove that a digital file is a single “original file” to solve the problem of digital file duplication and confirm the authenticity and uniqueness of the digital file. It Non-fungible tokens always prove digital ownership.
Applications and Content Encryption
- Art: Authors can apply NFT to create a work of art and have proof of ownership in the Blockchain system. They will probably get a portion of the fees from this NFT transaction.
- GAMES: There have been many NFT application game projects. You can own in-game characters, in-game items and trade them for 1 coin. Tokenplay is one of the potential and ambitious NFT projects in the Gaming world. Tokenplay will soon launch and bring interesting and unique things this June.
- Real Assets: NFT application to digitize assets on Blockchain platform such as: Real Estate, Matter of any value.
- Application for DeFi: NFT has been and is being integrated into the field of decentralized finance (DeFi). NFT can work on many different Blockchain platforms such as: Ethereum, EOS, NEO, BSC, Kivachain, etc.
For example:
DeFi protocol, Yearn Finance has developed the Y.Insure insurance product for crypto assets. Y.Insure uses the NFT mechanism (ERC-721) to represent the unique attributes of an insurance policy.
POTENTIAL OF NFT
To decide whether to invest in NFTs, investors often look to the future of NFTs. It’s no surprise that the NFT has tremendous potential:
- A new technology in line with the development trend of technology.
- Multidisciplinary application.
- The market capitalization is growing every second.
It is interested and applied by many financial, economic, sports and artistic organizations in the world.
In 2020, a series of European teams such as Arsenal or Juventus, Westham … have contacted the Winklevoss brothers to launch cards to collect famous football players.
FC Barcelona cooperates with Chiliz (1 NFT token) to create a token for FC Barca itself named: BAR (Fan Token for FC Barcelona built on Chiliz Chain)
CONCLUDE:
NFT has the potential to become an important part not only of the blockchain ecosystem but also of the broader economy.
You can make as much money from NFT as selling NFT products created by yourself. Protect your assets with NFT, trade different NFTs.
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