- What are NFT and the difference between other tokens
- How to create it (which blockchain)
- Examples of NFT
- Current trends
What are NFT Tokens?
Most of the coins and tokens we use today, such as Bitcoin, Ether, Monroe, Maker, BNB, TCR and etc, are interchangeable or so-called Fungible. This means that the value of each unit of one of these coins or tokens is not different from the value of another token of the same type. For example, the price of one bitcoin that you own is no different from the price of another bitcoin that someone else owns because they are inherently the same, and if you exchange them together, nothing special happens as they are worth the same. This feature is called Fungible. But the story of NFT tokens is quite the opposite.
Fungibility is a vital feature for tokens that represent a currency and have a function such as money. Imagine, if different Ether tokens had different values, nothing could be priced using it at all, and as a result, it would not be used as a transfer token. But the decentralized world which everyone is talking about is not limited to money. Blockchain technology has come to transform beyond money.
Consider a decentralized blockchain game listed where everyone uses their own private key to own their digital assets in the game and no one else can control them, unlike normal games. For example, suppose in a game you have been able to find a special sword and upgrade it to a few levels, and this game is designed in a way where all skins or items are completely unique. For these digital assets to be registered in the game on the blockchain, each asset must be defined in the form of a blockchain token.
But the point is that if this token is Bitcoin, assuming it is Fungible, then the sword that is supposed to be registered as a token on the blockchain and can be only accessed with your private key can never be unique - because with the asset token No one else will be different on this blockchain. This is where another type of token should be defined for these specific purposes, such as in-game assets or digital identity tokens that require each transaction to be unique. These types of tokens are called Non-Fungible Tokens or NFTs.
Tecra Space and NFT ideas
Tecra Space crowdfunding platform attracts various innovative projects. One of the projects that are awaiting its evaluation is the NFT Token concept - a platform for creating tokens related to real assets. The tokens are supposed to act as certificates of transactions. For example, an NFT token associated 1:1 with a diamond will contain on-chain information that will distinguish exactly that piece (size, cut, carats). Owing to that idea, we will be able to identify high-value items and track their property history. The platform will offer the feature for creating tokens for a small fee for business owners. The client will be able to store and exchange tokens from their digital wallet.
Additionally, Tecra Space has plans to implement NFT in the following way: various projects on our crowdfunding platform will offer so-called investor packages. They will be a form of reward for the funds allocated in the project. To make the packages easy to define and implement, we will use NFT tokens. For the purchase of a large number of project tokens you will receive NFT - each of them will be a source of unique bonuses or a limited edition gift. It can be, for example, a skin, special item or other type of a game add-on, certain perk or the opportunity to participate in a unique event. The function of such a token will depend on the Creator, and Investors will determine its value. We will know more details about it once the functionality is introduced to our platform - stay tuned!
Blockchain and NFTs
Ethereum is currently one of the most popular and famous decentralized application platforms (Dapps). In this platform, there are prefabricated standards in the form of smart contracts that Dapp developers can use to define their tokens. For example, the ERC-20 standard is the most popular standard for making Fungible tokens, such as the BNB token of the Binance exchange. But non-replaceable tokens, or NFTs, on the Ethereum platform, are often defined as ERC-721.
Applications of NFT Tokens
Most crypto communities do not know much about NFT. This definition is known by various terms such as non-fungible token or nifties or crypto set, and users may even have been familiar with this concept since 2017 in the CryptoKitties game environment; Ethereum users invested heavily in digital cats at the time.
One of the most popular implementations of NFT tokens is CryptoKitties, where you can design unique cat characters on the blockchain and even buy and sell them. These cartoon cats are actually ERC-721 NFT tokens based on the Ethereum blockchain, the rules and conditions for making and transmitting them are defined in Ethereum smart contracts.
As mentioned, another application of the NFT token is the issue of digital identity. Each person's identity is a unique set of information. NFT or non-interchangeable tokens are required to store this information on the blockchain and to create a decentralized network. In this way, each person can independently access their information and even use a key that is only available to him/her to give this information to anyone who wishes.
In general, NFT tokens can be used to record unique information such as digital assets like gaming equipment and characters, intellectual property of music, movies, digital identities, medical information, and anything of distinctive value on the blockchain. In fact, these types of tokens can give us control over many non-financial assets in decentralized contexts.
It is easy to see what the NFT economy has been like since CryptoPunks and CryptoKitties.
The cryptocurrencies that emerged on the Ethereum platform in early 2017 were actually a collection of pixel characters, making up around 10,000 unique items. They were free at first, but their role in the project changed completely after users showed great interest in them.
Increasing public interest and stability gave the NFT more steadiness and continued to do so today. CryptoPunks are so popular now that some of them are even sold for 60 ethers.
The sales volume of NFT projects is about $ 180 million
According to the NFT market information history on the NonFungible website, the sales volume of NFT projects on the Ethereum platform from the beginning to the present (at the time of writing) is over $180 million.
If we look at this area from above, we can see what significant progress has been made so far. "NFT experts Andrew Steinwold says about this emerging industry”
If we consider the beginning of NFT in 2017, this market is still 2.5 years old, and in this figure, it is very small compared to the 11-year life of Bitcoin and a few hundred years of traditional markets. Based on this, and considering the $ 180 million NFT market, it can be concluded that despite being new, projects in this field pursue a specific goal and are attracting many users.
People will make great use of NFT in the future, and this market, with its capabilities, will not fade away any time soon. Steinwold points out some of these capabilities and areas of development:
- Virtual worlds (like VR in Cryptovoxel and Decentraland)
- Game assets (such as trading cards in Gods Unchained or Axie Infinity creatures)
- Cryptoart (similar to what is available on platforms like SuperRare and Async Art.)
- Cultural tokens (such as virtual costumes on Cryptovoxel or music album tokens)
- Other uses (such as occasional tickets, membership fees, real-world examples, professional services)
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