What are NFTs? A beginner’s Guide
What are NFTs?
If you’ve just embarked on the path of cryptocurrency, you’ve probably already heard of these famous tokens, commonly known as NFTs. If there is still any doubt in your mind, we will try to explain in detail what exactly these NFTs are, and what they are used for.
Introduction to NFTs?
NFTs, which stand for Non-Fungible Token, are tokens that allow the sale of works issued on the Internet, through digital property titles that are forgery-proof, unique, and non-interchangeable. In other words, NFTs are unique digital assets that can be bought and sold like any other asset.
On the other hand, NFTs can be considered as particular, equal, and identical units of currency. They can be similar to real money. Also, these tokens can be valued as certificates of ownership, for virtual or physical assets.
In short, NFTs can be used to prove the possession of a physical or virtual asset, and its authenticity. This means that it will be the original creation and not a copy.
What do NFTs bring to users?
For creators and buyers, copyright infringement is a frequent and constant problem, especially in the context of file sharing and copying. In this case, NFTs solve this problem by acting almost as proof of ownership of an asset.
NFTs also provide authenticity, meaning that the information is not falsifiable. Indeed, most of the data available on the blockchain is accessible to everyone. Therefore, it is an excellent solution to keep the information of a contract, a license, or any other document on which a user has a property right.
Finally, a digital asset is difficult to use on another platform. But in the case where this virtual asset is materialized by an NFT, this changes everything. Because NFTs bring transferability, thanks to the fact that they represent a real property right and can be resold on other market places.
What can I buy with NFTs?
Any kind of digital asset, or a numerical asset that a creator wants to make unique, can eventually become an NFT. However, as soon as the user owns the token, for any purpose, he/she becomes the unique holder of the token, allowing only him/her to resell it.
The majority of NFTs are often digital artworks, videos, or images. In some cases, we can also find video games, songs, and even tweets.
Finally, the use of NFTs extends to many different areas, as these tokens offer creators a significant and great way to make a lot of money. NFTs are also a great opportunity in many fields as they allow to fight against copies.
Examples of NFTs
You must be thinking about what NFTs are actually. Here we see some examples of NFTs that exist today.
- An in-game item (Gameland, game character, game weapons, or any other item)
- A unique digital artwork (Dynamic painting, pixel art, digital photography)
- A domain name
- A ticket to an event
Examples of Top NFT Tokens
Here are examples of a few popular NFT tokens that you can trade or hold for a huge profit.
- Axie Infinity (AXS)
- Sandbox (SAND)
- Chiliz (CHZ)
- Decentraland (MANA)
- Enjin Coin (ENJ)
The future of NFTs?
In the field of digital art, NFTs seem to have a very promising future. In fact, NFT tokens are going to allow artists as well as investors to offer buyers a non-copyable digital property certificate for every assigned digital asset, which was not yet possible.
Not only artists but also investors are interested in NFT, which will allow this cryptocurrency to have greater notoriety in several fields.