Why are the nft tokens are so popular these days ?
You may have heard some news about Elon Musk trending for his song listed as NFT and also twitter CEO Jack Dorsey selling his first tweet as NFT but have you wondered what are thses NFT's are and why are they getting popular ?
The term “fungible” is used to describe anything that is not unique in itself. A bank note, the stocks of a company, a candy in a Halloween candy gift box, and so on. You can exchange one for another without any change in value.
Non-fungible items, on the other hand, are the exact opposite. They’re unique or rare and cannot be replaced with other similar items. Say, an antique pocket watch gifted to you by your grandfather. It’s completely unique and represents information or emotion that cannot be fully replaced with anything else. It’s non-fungible.
The same goes for art pieces such as Mona Lisa by Leonardo da Vinci or Starry Nights by Vincent van Gogh. There can be copied versions of every art piece, but the original is only one. And it’s non-fungible.
Take any of these items and represent them using unique crypto tokens on a blockchain and you’ll have non-fungible tokens, or NFTs. These NFTs are stored on a blockchain and they act as proof-of-ownership of any real or virtual asset. Furthermore, being based on the blockchain makes NFTs secure and immutable, preventing anyone from changing their data.
This ability of NFTs to represent the uniqueness of items in a provably secure manner is poised to benefit a wide range of industries. NFTs can be used in gaming to represent unique in-game items, buy and sell unique artwork, own copyrights to music albums, represent property rights, and do much more.
There are many NFT marketplaces like Cryptokitties, opensea, mintable. The platforms provide to buy , sell and even to create your own NFT assests.
Source : CryptoKitties
Source : OpenSea
Well here is the link for top 100 NFT coins by market capitalization[LINK]
To summerise this article let's discuss some NFT's use cases again
NFTs brought a new character to the collectible world. Traditional professionals are now onto digital assets. As well as being rare, NFTs help from clarity thanks to their recording on a public ledger, adding a layer of security to collectible assets that people appear to be attracted to.
NFTs are popular in the gaming industry since these tokens solve some of their internal difficulties. For example, popular games today such as PUBG and Fortnite ban the purchase of rare features and items such as weapons. With NFTs, these items can easily be transferred and used.
When we talk about Decentraland, members can buy virtual land. Another example more familiar to home is ENS (Ethereum Name Service), which uses NFT’s for its.ETH domains to help to buy and sell.
NFTs are perfect for competing for identification fraud. Examples of things that can be digitized to represent identity include qualifications, medical reports, and looks.
Moreover, digital creators can turn their products into NFTs for copyright ideas. NFT’s use to verify identity involves turning physical game tickets into non-fungible tokens to avoid counterfeits.
I think you might have got the idea of what are NFT's now and how can they change the future of ownerships of digital items, thank you.