NFT is an acronym in English that means “non-fungible token, its creation is based on blockchain technology, but unlike cryptocurrencies, NFTs are considered unique, which means that they cannot be replaced with something similar or that has the same value; other characteristics are that they cannot be divided and that they contain the information about its author and current owner.

The NFTs were created to give value to unique digital works that are susceptible to being collected and preserved, for example, the famous GIF animations, an online image, or a video. In other words, the NFT is the digital document in which the metadata that guarantees its authenticity is stored. This authentication system has become popular lately; however, it was already known of its existence since 2012, with the CriptoKitties, which are a kind of collectible “animated cats” and could be considered a kind of Tamagotchis (pets) unique virtual ones.

Term “non-fungible”

The term non-fungible refers to a work of digital art that does not have an equivalent; this is because it has its own philosophy and characteristics; therefore, it cannot be changed by others. In other words, a non-fungible token (NFT) is a special type of cryptographic token that represents something unique, as opposed to cryptocurrencies, such as Bitcoin, and many networks or utility tokens, which are fungible by nature.

NFT Features

NFTs are used to create verifiable digital scarcity and provide digital ownership and the ability to interoperate assets across multiple platforms; NFTs are used in various applications that require unique digital items, such as crypto art, digital collections, and online games. The best-known platform for NFTs is Ethereum when it comes to smart contracts with the cryptocurrency Ether (ETH), which created two standards for NFT.

The NBA has also paid attention to the NFTs since they sell small fragments of videos with all-time plays that are collectible and owned; this has generated since the beginning of the year about 200 million USD in transactions. Another company is the firm Gucci, which announced a filter for Instagram of digital sneakers, which could reach a total price of between 9 and 12 million USD.

What does the market launch of NFTs mean?

The launch of NFTs on the market raises the following question: What is the use of paying for work that others will enjoy in the same way? The idea is to give authenticity to a material, whether artistic or industrial, which will have a certificate on its property even if it is replicable.

What do you think about this topic? Did you know the term NFT?

If you want more information about our products and services, you can contact us or write your query below (comments section).

Image from xresch via under Creative Commons license.

Leave a Reply

Your email address will not be published.