Introduction
The world of digital art is booming! Digital assets are changing the way people interact with their collections. From buying, selling and trading artwork to building a portfolio or keeping track of their investment, the possibilities for using NFTs are endless. This guide will walk you through everything you need to know about non fungible tokens (NFTs) and how they work in the real world today: from how they were created to what makes them unique from fungible tokens like Bitcoin and Ethereum.
What is a NFT? What makes them different?
NFTs are unique digital assets that are stored on the blockchain. They can be used as a collectible, an investment, or to represent an item in a game. The term NFT stands for “non-fungible token” and refers to any digital asset that is not interchangeable with other tokens of the same type -- similar to how a real-world item like a painting or comic book cannot be substituted by another one with identical features and characteristics.
By definition, all ERC721 tokens are NFTs because they possess four key characteristics: uniqueness, identity/provenance, limited divisibility and transferability through smart contracts (which we'll discuss later).
What are Non Fungible Tokens Used For?
Non fungible tokens are used in a wide variety of ways. For example:
NFTs can be used as digital art. Art collectors can use NFTs to own unique works of art and then sell them in the future.
NFTs can be used as collectibles, e.g., rare baseball cards or Pokemon cards that were once popular but no longer in production. These items may not have any monetary value but they still hold value for the owner who has chosen not to sell them yet or keep them on display at home.*NFTs are commonly used for games such as CryptoKitties and CryptoCelebrities where users purchase virtual pets using cryptocurrency.*NFTs are also traded as an investment vehicle, similar to stocks or bonds where people buy shares in companies hoping that those companies will grow over time and make more money.*
How do you create a NFT?
If you’re planning on creating your own NFT, the first thing you need to do is create a smart contract that defines the rules of your token. The rules are enforced by the blockchain itself.
A smart contract can be defined as “a computer protocol intended to digitally facilitate, verify and enforce the negotiation or performance of a contract”.
You will then need to deploy this smart contract on a decentralized platform called Ethereum or EOS that runs on top of Bitcoin or Ethereum blockchain respectively.
Will NFTs survive the test of time?
Looking at the future, it's safe to say NFTs are here to stay. What is exciting about this technology is that it creates a new platform for digital art, where non-fungible tokens can be used as an asset class and traded on exchanges, while still maintaining their unique characteristics as an artwork.
In addition to monetary value, NFTs also hold artistic value because they allow people to constantly discover new things through unique attributes (just like any other piece of art). For example, if you were looking at a painting by Picasso and discovered that it had been painted with the artist's left hand instead of his right hand; your perception of that painting would change forever! It could either make you appreciate Picasso even more or devalue his work entirely depending on how much importance you placed on this particular aspect of his paintings...
Buy NFTs and keep track of your collection.
If you’re interested in buying NFTs and keeping track of them, there are several ways to do this. You may want to use a digital wallet or gallery, an exchange, or a marketplace—and all of these options can be accessed from the same place.
The world of digital art is booming!
NFTs are a new type of digital asset that are different from cryptocurrencies like Bitcoin and Ether. They’re also different from blockchain (the technology underlying crypto), virtual goods, and traditional pieces of art. NFTs can represent just about anything: physical items like cars or houses, intangible things like tickets for an event and even personal relationships through marriage certificates.
The biggest difference between non-fungible tokens (NFTs) and most other types of assets that exist in the world today is that each NFT has its own unique characteristics. For example, you might have one tokenized car with black leather seats while your friend owns another car with blue seats—these would both be considered non-fungible tokens but each would have their own set of characteristics that make them unique from one another.
Conclusion
NFTs have been around for years, but they’re now finally becoming popular in the digital world. As more and more people start using these tokens, we’re sure to see them grow even further in popularity over time. So whether you’re just getting started collecting NFTs or looking to expand your collection; check out our guide on how best to do so!