NFT is a simple definition of cryptocurrencies that can be provided that is irreplaceable and derived from their name, which suggests that these currencies are irreplaceable by the fact that each currency is different from the other, that each currency is registered in the smart contract, and therefore cannot be directly replaced by another digital currency, nor can it be traded, as there are no two similar currencies of the same currency.
On the contrary, banknotes can be replaced by another if they are of the same value, making no difference to the holder.
Even cryptocurrencies such as Bitcoin are replaceable currency where some bitcoins can be sent to someone. Some of them are kept in the wallet with no currencies different, both sent and remaining.
Bitcoin will remain the same; value may change depending on time, but it is essentially the same.
Bitcoin is also dividable, with a small amount of Bitcoin (Satoshi) being sent while non-exchangeable currencies are not dividable.
The non-refundable currency can be likened to the attendance ticket for a particular event with the person's name on it, and this ticket cannot be divided.
Non-replaceable currencies have unique attributes and are usually linked to a particular asset.
They can be used to prove ownership of digital items within games or ownership of actual physical assets.
In addition to the possibility of using non-replaceable currencies in games, they can also be used in many other areas, including distinguishing them to prove their value or rarity.
These coins can represent everything from virtual plots to artworks to property licenses.
Non-replaceable currencies are not traded on cryptocurrency trading platforms, instead of purchased or sold in digital stores such as Openbazaar or Decentraland-based LAND.
How do non-replaceable cryptocurrencies work?
Cryptocurrencies such as Bitcoin and Ethereum are replaceable.
Currencies built following ERC 721 are non-replaceable.
For the record, these non-replaceable cryptocurrencies are not the preserve of Ethereum but can be created on neo-blockchain, Tyron, EOS, as these networks support the operation of non-replaceable currencies.
Non-replaceable currencies and intelligent contracts allow detailed attributes, such as owner ID, rich metadata, or secure file links.
The power of non-replaceable currencies is to prove digital ownership consistently.
These non-replaceable cryptocurrencies are still under development, as is the blockchain on which they are based.
Highlights and non-replaceable cryptocurrency projects:
Terra Virtua project:
As we've been told, non-replaceable cryptocurrencies derive their value from their rarity, which has led many brands to begin licensing their content for use in digital acquisitions and prominent companies at the forefront of providing the digital acquisition market, Terra Virtua.
Terra Virtua describes itself as "the home of digital collectibles," allowing fans to create a digital "Fan cave" where they can view their NFT.
In September this year, the company released a series of licensed NFT inspired by the "Godfather" trilogy.
Decentraland project:
As we told us at the beginning of the article, gaming is a fertile area for irreplaceable digital currencies, with NFT increasingly demonstrating its presence in the gaming space.
Decentraland is the first fully decentralized gaming world, built on the ERC-20 mana digital currency.
Users can spend MANA to buy goods and services and cut ten × 10 m of virtual land; the project also supports the irreplaceable land digital currency.
Decentraland initially offered MANA, received $20.7 million, and sold within five minutes.
Decentraland's world is similar to Minecraft.
Simple full graphics and creations from user creation, including everything from art galleries (where NFT can be displayed) to simple in-game games.
Decentraland supports several different NFT and LAND and supports other NFT such as Axie Infinity and CryptoKitties.
The future of non-replaceable cryptocurrencies NFT:
Often, non-replaceable currency innovations are implemented in gaming and encryption.
Increasingly, well-known brands are licensing their content to THE NFT, with the fictional football game Sorare registering 100 football clubs on its platform, while games such as Smurfs, Minecraft, and the BBC's Doctor. They have been converted into NFT currencies.
For games, non-replaceable cryptocurrencies can represent in-game items, which may allow them to be transferred to new games or traded with other players.
However, the potential and technology of non-replaceable cryptocurrencies are much broader, with the possibility of applying copyright and intellectual property rights, booking tickets, and selling and trading video games.
Non-replaceable currencies add the possibility of creating secure currencies and encoding digital and tangible (real) assets.
NFT technology and currencies are expected to play a prominent role in the blockchain and crypto industry and digitize many things in a transparent and perfectly secure way.