NFT or non-fungible token (Non-Fungible Token) is a type of cryptographic token that uses blockchain technology to create a digital asset that cannot be duplicated.

The agnostic token differs from well-known fungible cryptocurrencies such as Bitcoin (BTC), Ether (ETH), or Monero (XMR). For example, you can exchange bitcoins for other bitcoins.

Although NFTs are used in various industries, they are primarily used in gaming and digital collectibles and are often built with the ERC-721 standard and on the Ethereum platform. It should be noted that in 2021, the use of non-exchangeable tokens on other blockchains, such as the BEP-721 protocol of Binance Smart Chain, also began to develop.

What is Video NFT?

These two exchanges belong to the same collection, But their work differs from each other, which we will explain more at the beginning of the video.

What is exchangeable or similar?

The exchangeability of an asset means exchanging it with a similar purchase without a price drop. Also, exchangeability determines the characteristics of capital, such as divisible or its value.

For example, a $10 bill is the same as any other $10 bill. When you borrow a $10 bill from someone, you don’t have to give them back the same bill; Because they have the same value.

What is an NFT?

Fungible tokens can be traded, and their price remains fixed. If cryptocurrency, one bitcoin has the same value as another, and its value is fixed regardless of its owner or history.

NFTs are generally limited and unique and identified by special codes. Individual characteristics determine their uniqueness; Therefore, they are as non-tradable as real-world assets such as gems, works of art, or collectibles. However, the case is different with Non-Fungible Tokens or NFTs; the price of an NFT token differs from that of similar tickets.

For example, let’s say I have movie tickets to see The New Exorcists, and you have access to Star Wars. We both have tickets, But are these tickets exchangeable? Therefore, non-exchangeable tokens like these tickets are the digital manifestation of assets that can contain information that has various uses and unpredictable value.

Features and benefits of non-exchangeable tokens

• Rarity: The value of non-exchangeable tokens comes from their rarity. Although developers of NFTs can make as many of these tokens as they want, by limiting their number, they increase their rarity.
• Indivisible: Although it is not the law, most non-fungible tokens are not divisible into smaller units, So you either buy an entire piece of digital art or you don’t buy it at all.
• Uniqueness: This is the most crucial feature of NFTs. NFTs have a tab of static information that records their essence. Look at this feature as a certificate of authenticity.
• Transferable: Unlike tradable exchangeable tokens, non-exchangeable tokens are traded on specific markets. However, their value depends on their uniqueness.
• Genuine: non-exchangeable tokens are based on blockchain technology; Therefore, you can be sure of the authenticity of your NFT; Because it is almost impossible to fake something in a decentralized, immutable ledger.
• Property right holder: This feature also refers to NFT’s use of decentralized platforms where no owner can change data after it is registered.

Why are NFTs valuable?

Thanks to the advent of blockchain technology, gamers and collectors can become immutable owners of in-game items and other unique assets and earn money from them. In some cases, players can build structures such as parks in the virtual world and make money from them, Like The Sandbox and Decentraland games. Also, players can sell individual digital items they make while playing on secondary markets, Such as costumes (in-game clothes), avatars, and in-game currencies.

Artists can sell their digital works directly to audiences worldwide without needing auctions, thus keeping a larger share of the sales profit for themselves. Also, royalties can be programmed into digital art, and every time the artwork is sold to a new customer, the artwork’s creator receives a percentage of the sales profit.

William Shatner, known as Captain Kirk in the Star Wars series, entered the field of digital collectibles by issuing 90,000 digital cards of his image on the WAX ​​blockchain store, receiving $1 per card each time these cards were sold. If they sell it again, it earns money from their copyright.

What are the uses of NFT?

The development of NFTs at some point in time led to the creation of many cryptographic works of art, But these irreplaceable and rare tokens are not limited to the field of art and are also used in real estate, gaming, finance, etc.

NFT in Art

Irreplaceable tokens guarantee the rarity of virtual and digital artworks and enable the validation of these works. For example, everyone can view or download CryptoPunk characters created on the blockchain platform; But no one can claim their ownership.

Apart from discussing the artistic value of these works, sometimes proving their ownership is very important and NFTs are a solution to this problem.

NFT for collectors

Many people collect collectibles in today’s world. NFTs have also entered this field and have a significant share of the sales of collectible items in marketplaces such as OpenSea. Sometimes, the non-exchangeable tokens introduced for artwork are also used for collectibles. For example, CryptoPunks is a collection of paintings sold as collectibles.

NFT in DeFi (Finance)

Non-fungible tokens can act as credit or an entry ticket to a new pool. To take advantage of this feature, the user can place some of his passes in a pool as shares for a certain period (Staking) and, in return, receive a reward (another type of irreplaceable token) or use it as a license and entry ticket for the next pool. Slow If NFT is used to enter a new collection, once the group is accessed, the irreplaceable token has no value and is lost.

NFT in gaming

After the development of NFTs, many crypto-games have been created that allow in-game payments (such as purchasing items or continuing the game to higher levels) through digital currency. In exchange for winning the game or reaching certain stages, give the user ownership of unique non-exchangeable tokens. They do.

Some of these NFTs in crypto games may not have a particular use. Still, others have different services, such as fighting capabilities, and others bring a set of appearance features for the in-game characters with a very high financial value for selling that character.

NFT in music

The application of NFT in music is more or less the same as the application of NFT in the world of art. Like photos or art items, audio and music files can be attached to non-fungible tokens. By putting the NFT label on music, one of the biggest problems of artists active in this field is eliminated. Musicians usually do not receive a fair share of the sales of their works and music, and many times these works are transferred from hand to hand in cyberspace without using copyright.

Music streaming platforms that are defined on the blockchain platform monitor and track the copyright of each work. Combining music with NFTs is an efficient way to support artists’ and musicians’ careers and rights. However, the implementation of this idea is still associated with some problems.

Identification

Non-exchangeable tokens are ideal for combating spoofing. Examples to illustrate this point include the digitization of identity, including university degrees, medical records, and even our appearance. Also, digital artists can convert their works to NFT for copyright reasons. Examples of applications of NFTs in identity detection include turning physical game tickets into non-exchangeable tokens and detecting counterfeits.

Why are non-fungible tokens necessary?

NFT tokens have the potential to be an essential component of the blockchain-based digital economy and be used in various areas such as video games, digital identity recognition, licensing certification or fine arts, and even fractional ownership of objects. Storing data ownership and identity on the blockchain increases data integrity and privacy. Also, the easy transfer and management of these funds without the need for trust can reduce friction (fees) in trade and the global economy.

Individual skills

Non-exchangeable tokens help monetize a person’s talent or time. For example, one can use NFT in newsletters, podcasts, or videos.

What is the most expensive non-exchangeable token?

As NFTs become more popular, the world’s most expensive NFT changes daily. This title was previously held by one of the tokens of the CryptoPunk collection named number 6965, which had a price equal to 800 ethers (including the cost of each ether at $2000, a cost of more than 1.6 million dollars); But then, one of the works by an artist named Beeple was sold for $6.6 million, breaking the record for the most expensive NFT.

ERC-721 token

ERC-721 token is a term to describe non-fungible tokens. As the name suggests, this standard is a guideline for building NFTs on the Ethereum blockchain.

In addition to Ethereum, NFTs can exist on other decentralized networks such as EOS and NEO. However, these platforms must be capable of smart contracts and a box full of NFT tools. Smart contracts in this field allow the existence of descriptions with details such as metadata.

List of the best NFTs ever created

As the NFT space grows exponentially, so are the products and projects based on non-fungible tokens. These products range from gaming to markets. Next, the top 5 NFT projects are mentioned:

• OpenSea: The premier marketplace for NFT art and collectibles. This market includes ENS (Ethereum Domain), virtual animals, and virtual land plots. The critical point of this market is the possibility of buying various cryptocurrencies such as Ether and Dai (DAI).
• Async.Art: The art marketplace is another non-exchangeable token where you buy and sell your NFTs and create tickets. The platform even allows buyers to purchase or change a section or layer of a painting. The platform also provides artwork creators to define their appearance and behavior easily.

• CryptoKitties: CryptoKitties is a blockchain-based virtual game that allows players to buy, raise and trade virtual cats. This game consists of combining virtual cats and producing generations that are valuable in terms of collection. Kitties (cats in this game) can be bought with Ether (Ethereum network token). According to estimates, this game has 1.5 million users and more than 40 million dollars in transactions. Some of these virtual cats have been sold for more than 300,000 dollars. The average price of these virtual cats is $65.76; However, the Ethereum network fee should also be considered every time you buy or sell.
• Ethereum Domains (ENS): This domain name server project was born in 2017. The.ETH domains are non-exchangeable tokens that use the ERC-721 protocol and are tradable on NFT markets.
• Decentraland: One of the top NFT projects focusing on the decentralized virtual world. In this project, participants can buy or sell virtual land, and each “inhabitant” of this game has a unique digital passport.

How to buy NFT

Up to this point in the article, you may have wondered how to buy Non-Fungible Tokens (NFT). NFTs can be obtained in one of the following ways:

• By playing or dep (decentralized application)
• Buy NFT through the markets of this token
• Trade this token with someone else

How to access DEP and get NFT via mobile

• To access the DApp, install one of the browser-based wallets on your phone.

• Trust Wallet
• MetaMask
• (MyEtherWallet (MEW
• Coinbase Wallet

It should be noted that some of these wallets, such as Coinbase Wallet, are also functional on desktops in addition to mobile.

• Enter the browser section of the wallet and enter the desired DEP website link in the address section; For example, https://www.cryptokitties.co/.
• After entering the desired app, sign up and connect your wallet to the app. From now on, you can start playing or trading NFTs.

WAX blockchain

WAX, short for “Global Capital Exchange,” is a blockchain specifically built for virtual trading items such as collectibles and rare items within video games and virtual worlds. The WAX ​​blockchain acts as a decentralized marketplace and platform for DEP. Instead of relying on a game developer or a centralized network, users can own their digital capital and trade it on the WAX ​​platform with people of their choice.

One of the reasons non-exchangeable tokens on the WAX ​​blockchain are so popular is their ease of purchase. You can easily create a WCW wallet with a username and password or a social media account like Twitter, Facebook, or Reddit on this platform.

How to trade NFT on WAX

To trade NFTs on the WAX ​​blockchain, you can purchase NFTs from the secondary markets listed below. These markets are called secondary in this sense; tokens originate from somewhere else, But they are sold in these markets, Like Amazon, the primary market, and eBay, the secondary market.

• To buy non-exchangeable tokens on the WAX ​​platform in the secondary markets, you need a WAX token, which you can find on the websites listed below, and then send the purchased WAX to your account with a .wam extension.
• Log in to your WAX Cloud Wallet, select the desired NFT and buy according to market instructions.

The list of secondary markets on the WAX ​​platform are:

• Myth.Market
• Collectables.io
• AtomicHub.io
• SimpleMarket.io
• WAXplorer.com

Where can I view the purchased NFT?

Purchased NFT can be viewed in your WCW wallet or the marketplace where you made the transaction and blockchain browsers such as wax.bloks.io.

Are we ready for an NFT bull market?

Not yet. The NFT hype will die down soon; Because its current prices are artificial. Also, there are concerns about price manipulation. For example, a CryptoKitties virtual cat was sold for 600 Ether, which did not even have any traits to justify this price.

However, if you are still not interested in NFTs, don’t look away either; The ecosystem is changing, and like DeFi, NFTs may be the next big step in crypto. Moreover, there are currently excellent investment opportunities in NFT.

The rise of these tokens depends on the millennial generation’s view of them. Why? Because at the end of this decade, those born in this generation will have a lot of stagnant income, and due to the susceptibility of NFTs, they will invest in these tokens. Also, millennials are shifting from investing in physical objects to virtual assets like Bitcoin (BTC).

The future of NFTs

In the last couple of years, NFTs have seen a massive rise in cryptocurrency, and many people have spent billions of dollars on buying some of these non-fungible tokens. As we said, NFTs have applications beyond works of art and collectibles, and their capabilities and benefits cannot be ignored.

However, perhaps during this time, NFTs got a little too excited in the limelight, and now there are doubts about their actual value. It should be noted that the NFT space is still nascent; Therefore, we should expect the emergence of new platforms alongside the current NFT projects in 2021.

From now on, we should see the slow movement of NFT from games like crypto kitties to painting, DeFi, digital identity, etc. The scope of its applications depends only on the imagination of the digital currency community and developers.