This article is written with the assumption that you already have a basic understanding of blockhain; if you don't you'll want to do a bit of reading befire looking to NFTs. NFT - non-fungible token - A unique (or limited availability) tokenized asset on the blockchain network. Most commonly, NFTs are minted under the ERC-721 Ethereum protocol, though the Enjin platform's minting dapp is based on ERC-1155 tokens (which are backed by a predetermined amount of ENJ, that can be retrieved by the current HODL'r by destroying; or "melting" the NFT. Several other blockchain networks are implementing the NFT concept as well, but in this article the examples given, and protocols listed, will be focused on the Ethereum Network. A few examples of NFTs in current use include artwork, songs, and a wide variety of gaming assets. In very simple terms, an NFT is a probably authentic and provably scarce cryptotoken. Only instead of a 'coin' or a currency, NFTs take the shape of rare digital art, actionable rewards, music, and even written works. For (usually) little more than a bit of GWEI to process the network interaction,one can create a new token, which is written into the blockchain, from nearly any type of digital media. The potential this holds for both creators and collectors is immense. For some creators this is an oppurtunity for them to finally let others (on a potentially global scale) view, critique, or purchase their work. For others it may be a method of eternalizing a family photo, and for yet another it presents the possiblity to collaborate with another artist to create something truly unique that neither could accomplish alone. Listed are only a few examples for the artistic uses of NFTs. Other implemantations are fast emerging, and certainly we must keep a sharp eye trained on this space for the next revolutionary implementaion of the NFT protocols.
At the time of this writing, it is already nearly mind-boggling to cinsider the applications of the NFT. Millions of gamers worldwide are carrying loot and weapons with them from one game to another, where those items can continue to be of use if the games support their interoperability. Art enthusiasts of all kinds, even some who previously had very little interest in owning artwork, can easily browse the works of hundreds of creators, and just as easily buy a piece they would lie in their collection; all from the comfort of their couch at home. As an example of the yet--untapped potential of the smart-contract technology that powers NFT creation and collection: A legal document could easily be notarized and then minted into the blockchain, so that no party has to manage a physical copy, and the minted copy would become immutable and viewable on any Ether Block Explorer from any network worldwide. A postcard or greeting card could be designed with a certain person in mind, and minted as a unique creation, before sending it directly to their crypto-wallet; despite them being on the opposite side of the world. As a final example to consider: a property owner could use a NFT to represent the physical deed of ownership for a property, and send it directly to the purchaser of that property (who could return payment directly via these same crypto wallets; thus completing the sale without a middleman charging a fee, or a bank disallowing the transfer of a large sum of currency .
As a means of conclusion, for those still unsure about the base concept of the NFT: Fungible tokens (or assets) : Bitcoin, USD, Ethereum, etc. Each US Dollar in a stack of 1000 bukks, while varying ever so slightly ((id numbers, printing location etc) is representative of one US dollar. Each holds the same value and design as the other 999. Non-Fungible Token (Or Asset) - Each NFT is a unique 'token' , with a traceable blockchain address that can be used to verify authenticity. While the conent may be duplicated or distributed 1000 times, only the original minted creation can be proven to be authentic and unique.* *Even when created as, for example, a digitl artwork with 3 released editions, all minted in a matter of minutes, each of tose 3 tokens will still have a unique address by which its authenticity and scarcity can be verified.
Do you have any interesting ideas for the potentioal use of NFTs? Start the discussion! Comment below.