NFT - The very basics of Non Fungible Tokens

0 34

So once more here i am sharing what i could scavenge from the web about this topic in particular. I've been looking at it since it's becoming more and more popular, even tho the whole concept didn't make sense to me. It's a JPEG file anyway and anyone can get a copy, so why bother, right?

Wrong. I couldn't be more wrong about it.

By definition, a NFT or Non Fungible Token it's a cryptographic token that defines an asset uniquely. It can represent both a digital asset such as an image, but it can also track real-world assets, such as a house or car, or a song, for example. As you can uniquely define assets, this means you can also prove ownership over said assets, and moreover, prove their authenticity.

The big difference with every other token around the Ethereum network is that, every other token can be divisible, so it can get fractured and transacted. You don't want that when the whole porpuse it's to actually track something unique. So each NFT token directs to one unique asset and can't be interchanged with other assets. It's a whole ID if you wanna put it that way.

It uses the ERC-721 Ethereum standard that allows developers to identify unique assets so this is how it achieves its purpose.

You may ask, why do we need NFTs or what they can do for the cryptospace?

NFTs are a great use case for gaming economies so that digital assets can’t be altered, the scarcity can be controlled, and gamers can trade these digital assets.

Gaming economies. We do love our gaming and we do love our skins and our heros and our outfits in-game. We can actually decentralize the trading, the supply and the value of those skins. We won't rely on big corporations like Valve or w/e to put the price on our skins or to decide if they modify it or not. We have the power once more.

So we do have some uses cases for it and it's without a doubt an excellent application of the blockchain technology. You may like it or not, but you can't deny that we may see more and more of Non Fungible Tokens in the future. As we run from centralized controls we may need some organization or some uniqueness to keep us on track. And this is it.

Is it for everyday guys.... or are we looking at a new way of showing you're rich but virtually?

Im really torn in this part. It may be good for tracking some everyday stuff but i truly believe it's a milking cow for the rich. I hope i am proven wrong in the near future, but about now it only seems like this is it.

If you wanna read more about NFTs, please, do your own research as i always say.

Thanks for the read!

2
$ 0.83
$ 0.82 from @TheRandomRewarder
$ 0.01 from @cmoneyspinner

Comments