We all became familiar with the definition of a cryptocurrency, a digital asset designed to perform as a source of exchange, maintaining and verifying its records on a decentralized system (a blockchain).
So what makes the digital art known as NFT or Non-fungible tokens any different than the usual cryptocurrencies that we know?
NFT Meaning – in plain English
Non-fungible tokens or NFTs are cryptographic tokens on the blockchain.
Registered with a unique code that makes them distinguishable from each other; Each NFT token represents something unique; unlike cryptocurrencies, NFTs cannot be exchanged or traded, which makes them Non-fungible.
What makes NFT Tokens so unique?
We all had days in primary school when we got awarded a certificate, which represented something unique.
Similarly, ‘Cryptographically’ speaking, this makes NFT tokens just as unique and valuable, more like a certificate of authenticity recorded on the blockchain, that purely proves that something is uniquely yours, which makes it impossible for one non-fungible token to be equal to another since every NFT is its own one of a kind.
How did NFTs become a thing?
NFTs started back in 2017, first seen as Cryptopunks. Cryptopunks are a form of ERC-721 Tokens, which American studio Lava Labs made. There are only 10,000 unique Cryptopunks that are digitally scarce through the use of blockchain technology.
CryptoKitties came out next, which went viral, raising $12.5 million worth of investments. Canadian studio Dapper Labs designed CryptoKitties. The idea behind CryptoKitties was based on a game on the Ethereum blockchain.
In December 2017, The game’s popularity congested the Ethereum network, causing it to reach an all-time high in the number of transactions and slowing it down significantly.
Where can I acquire an NFT?
There are a few online platforms that allow you to purchase NFTs, but you should keep in mind that it depends on what kind of NFC are you trying to collect since there are thousands of shapes and designs, however
here’s our list of general recommendations:
a marketplace for trading crypto collectables and non-fungible tokens (NFT) such as ERC-721 and ERC-1155.
2. NBA Topshot:
Nba Topshot is one of the most popular NFT markets. It has processed more than $250 million in sales from 100,000 buyers over the last February 2021.
which is a decentralized crypto exchange where you can also trade for NFTs.