NFT's (Non-Fungible Tokens)

NFTs are cryptographic assets on a blockchain with unique identification codes and metadata.

NFT have one official owner at a time and they're secured by the Ethereum blockchain. They can't be traded like Cryptocurrencies and no one can modify the of ownership or copy/paste a new NFT into existence. Digital art is only way to use NFT's. They can be used to represent ownership of any unique asset. NFT Stings for Non-Fungible Token. These things are not interchangeable for other items because they have unique properties. NFT's is centered around collections, such as digital artwork, sports cards, GIF, Unique Picture & Short clip Videos, logo, and ETC. 

NBA Top Shot Movement NFT's

Now NBA is selling NBA Top Shot, a place to collect NFT's NBA moments in a digital card form. Some of these cards have sold for millions of dollars. 

Tokenized Version of the First Tweet

Recently, Twitter's Jack Dorsey tweeted a link to a tokenized version of the first tweet ever written where he wrote 

"just setting up my twttr" 

and the first twit bid up to $2.5 million. 

Most famous use case for NFTs is that of Cryptokitties

Launched in November 2017, Cryptokitties are digital representations of cats with unique identifications on Ethereum’s blockchain. Within a few short weeks of being launched, Cryptokitties racked up a fan base that spent $20 million worth of ETH purchasing, feeding, and nurturing them. Some enthusiasts even spent upwards of $100,000 on the effort.

Now to Understand NFT's:

Like Cryptocurrencies they can be traded or exchanged one for another. For example, one BTC & ETH is always equal in value to another BTC & ETH. This fungibility characteristic makes cryptocurrencies suitable for use as a secure medium of transaction in the digital economy.

NFTs made each token unique and irreplaceable there by making it impossible for one non-fungible token to be equal to another. They are digital representations of assets and have been likened to digital passports because each token contains a unique address or code which makes nontransferable identity to distinguish it from other tokens. you can combine one NFT with another to “breed” a third or introduced a series of unique NFT. NFTs also contain ownership details for easy identification and transfer between token holders. Owners can also add metadata. For example: artists can sign their digital artwork with their own signature in the metadata.

How do NFT's work?

NFT's are different from ERC-20 tokens. NFT's develop from the ERC-721 standard which is developed by the same people who develop the ERC-20 smart contract.  

NFT's can also divide a digital real estate asset among multiple owners than a physical one. That tokenization behavior need not be constrained to real estate. it can be extended to other assets, such as artwork. like a painting do not always have a single owner. It's digital equivalent can have multiple owners, each responsible for a fraction of the painting. Such arrangements could increase its worth and revenues.

Earn Royalties from NFT:

Some NFT's will automatically pay out royalties to their creators when they sold. you can manually set percentage on every sell of your sold NFT. Original owners/ Maker of Euler Beats earn an 8% royalty every time the NFT is sold on. some platforms like Foundation and Zora support royalties for their artists. This is completely automatic so creators can earn royalties as their work is sold from person to person every time. 

What is ERC-20?

ERC-721 defines the minimum interface of ownership details, security, and metadata which is required for exchange and distribution of gaming tokens. The ERC-1155 standard takes the concept further by reducing the transaction and storage costs required for NFTs and batching multiple types of non-fungible tokens into a single contract.

What is ERC-1155 standard?

A standard interface for contracts that manage multiple types of token. A single deployed contract may include any combination of fungible tokens, non-fungible tokens or other configurations like semi-fungible tokens.

NFT's & Decentralized

Decentral and a virtual reality platform on Ethereum’s blockchain, has already implemented such a concept.  As NFTs become more sophisticated and are integrated within financial infrastructure, it may become possible to implement the same concept of tokenized pieces of land, differing in value and location, in the physical world

Frequently Asked Questions (FAQs)

Which Wallets are use for mint NFT's?

There are a lot of wallets use to mint your NFT's, but MetaMask, Trust Wallet, Coinbase Wallet are the best option you have to mint, Each token minted has a unique identifier that is directly linked to one Ethereum address.

What are some examples of non-fungible tokens?

Non-fungible tokens can digitally represent any asset, include only assets like digital artwork, real assets such as real estate. NFTs can represent include in-game items like avatars, digital and non-digital collectibles, domain names, event tickets, selfie, Picture, Video, GIF, Mems, Comics, any character any things.

How can I buy NFTs?

Many NFTs can only be purchased with ETH, BUSD, BTC  cryptocurrencies. some of this cryptocurrency and storing them in a digital wallet is usually the first step. You can then purchase NFTs via any of the online NFT marketplaces, including OpenSea, Rarible, and SuperRare.

Are non-fungible tokens safe?

NFT's which use blockchain technology like cryptocurrency are generally secure. The distributed nature of blockchains makes NFTs difficult although not impossible to hack. One security risk for NFT's is that you could lose access to your NFT's if the platform hosting the NFT goes out of business.