They are a relatively new type of digital asset. NFT tokens are designed to represent ownership of something whose main characteristic is that it is unique and above all scarce. Tokenized physical assets, rare or unusual digital resources, stocks, or virtually anything else to which you can attribute uniqueness and scarcity.
Because NFTs are unique, no two are alike and therefore cannot be replaced with another identical token. This is a property known as non-fungibility and is enforced by smart contracts or smartcontracts whose main functionality for NFTs is to avoid duplication.
For the case of publicly visible blockchains they allow, however, for demonstrable scarcity and thus their unique and special characteristic.
You can find NFTs in a wide variety of different forms, depending on the standard they are built on, for example:
ERC721 and ERC1155 for Ethereum NFT.
TRC721 for TRON.
Each of these standards has its own benefits and limitations, which can affect the different typologies of NFTs that can be created, similar to a flash drive that is limited by its available storage capacity.
The vast majority of Non-Fungible Tokens are currently based on the ERC721 standard.
Non-Fungible Tokens (or NFTs) are unique Blockchain-based tokens that can represent virtually anything, including physical assets.
Fungibility.
Similar to major digital assets such as ether (ETH) and bitcoin (BTC), NFTs are stored as data on a Blockchain and held in NFT-compatible wallets.
But unlike most digital assets, NFTs have a property known as "non-fungibility" which, in the case of digital assets, is essentially a fancy term for uniqueness.
Each NFT possesses its own specific set of attributes that make it unique. This uniqueness means that an NFT cannot be replaced by another identical unit because there are no other identical units.
Quite the opposite of the U.S. dollar which is fungible, since a five dollar bill is generally worth as much as any other, regardless of its serial number or other attributes.
Most NFTs are based on the Ethereum blockchain, but other Blockchains also support them, as is the case with TRON and NEO.
Why some non-fungible tokens have value.
Because NFTs are unique and can vary in their rarity, desirability and usefulness, a market has developed around these very influential.
Collectors and dealers buy and sell NFTs, and their value is established by speculation, supply and demand, and other factors.
Like many collectibles, NFTs are worth as much as someone is willing to pay for them, which can reach considerable figures.
You may already know this, but I remind you how some NFTs have reached unheard of values. Such is the example of a rare Cryptokitty known as Dragon that reached a value of 625 ETH or $170,000. A Decentraland pack also reached an astronomical sale value of $215,000.
Remember: non-fungible NFT tokens have gained considerable popularity in recent years due to their potential to tokenize virtually anything and grant true ownership of digital assets to their holders.
Receiving, storing and sending non-fungible tokens.
As I discussed earlier, NFTs are stored in compatible Wallets or digital asset wallets.
For Ethereum NFT, MyEtherWallet is one of the most popular options, as it can be used to easily manage any Ethereum-based NFT, and can also be used to access NFT stored in ETH-compatible hardware wallets.
Just like standard Ether (ETH) and ERC20 tokens, NFTs can be transferred from one address to another. But it is important to note that the transaction fee is always paid in ether, as NFT tokens are usually indivisible in nature and cannot be used as gas.
How non-fungible tokens are used today.
The number of potential use cases for NFT continues to grow over time, with more and more innovative examples appearing. However, there are a few particularly popular use cases that I mention to you below:
In-game assets (In-game assets): tokens can represent in-game items, such as weapons, power-ups, vehicles, characters and more. Using the item could burn (destroy) the NFT or lock it with a timer until it can be used again.
Collectible cards: today, a large number of NFTs represent cryptographic collectibles such as Cryptokitties, Axies (Axie Infinity), Cryptopunks and sports collectible cards.
LAND properties: in Decentraland, NFTs represent parcels of land in different districts of the game's virtual world. LAND owners can leverage and monetize their plot, e.g. by renting it out to other players or using it for advertising.
Domain names: NFT tokens are currently used as blockchain domains. They are, in essence, tokens that represent ownership of a particular crypto domain, such as name.eth or token.crypto.
Works of art: in this instance they may represent individual works of art that have been tokenized and are now represented by a unique token. Ownership of the NFT is equivalent to ownership of the underlying artwork.
Like standard digital assets, non-fungible tokens are also used as speculative investment instruments traded on NFT marketplaces such as OpenSea and The Sandbox, managed by experienced traders and investors.
Remember: A large proportion of NFT today represents elements of Gaming and crypto-collectibles, but they have multiple potential use cases, many of which are still being explored.
Which wallets work with NFT fungible tokens
Coinbase
Coinbase Wallet or also known as "Tosh Wallet" until Coinbase acquired it and changed its name to Coinbase Wallet.
It is a great wallet designed with multi-currency support and NFT integration and is available for IOS and Android.
It supports ERC-271 token, ERC-20, as well as all major tokens on other Blockchains. One of the most interesting features is the bounty section where you can perform cryptocurrency tasks, but as of today it is not included in the preview version.
Advantages
It has an excellent user interface for tokens and NFTs.
User name management
DApp browsers (Web3 browser)
High security with your personal data protected
Supports many currencies
When you lose your phone, it is possible to restore the wallet easily.
Integration with Coinbase Exchange
Free and ad-free
Disadvantages
Still building features
Username feature is only viable for other Coinbase users.
Enjin
Enjin is a cryptocurrency wallet that supports Bitcoin, Ethereum, Litecoin and ERC20 ERC721 ERC1155 Tokens and is available for IOS and Android.
Enjin coin, the company that created the Enjin wallet aims to empower the user base of game developers with true ownership, prevent fraud, increase their revenue and explore the frontier of Blockchain gaming.
Advantages
Very good security features (best security I've seen in a mobile wallet).
Excellent user interface for tokens and NFTs.
When you lose your phone, it is possible to restore the wallet easily. At the same time, the phone wallet is protected by your password until you delete all tokens
All ERC20 tokens are supported
It is possible to add custom ERC20 with custom abbreviation when your contract address is known
Advanced transaction mode, it is possible to set a gas limit and transaction cost (Gwei can be selected between 0.1 and 160)
The value of all stored currencies is displayed in fiat
Free and without advertising
Disadvantages
Closed source code
No estimation of transaction time.
Remember: One of the best features of NFTs is their security.
Conclusion
To conclude, put yourself in the following situation: what if you could create digital assets similar to Bitcoin, but add a unique identifier to each unit? This would make each of the units different from the rest (i.e., non-fungible). Basically, that's an NFT.
If you still have any questions, ask me!
