Non-fungible tokens (NFTs)
A non-fungible token or NFT is a unique and non-interchangeable unit of data stored on a digital ledger (blockchain).
A non-fungible token or NFT is a unique and non-interchangeable unit of data stored on a digital ledger (blockchain). They represent an asset such as photos, videos, music, 3D models, gaming items, text, or any kind of digital file that the token is linked to.
It is important to understand the concept of fungibility.
- Fungible items are assets that are equal in commercial value, have identical properties and are interchangeable (e.g. - dollar bills, cryptocurrencies, common shares). They can be interchanged because they are worth the same and there’s no uniqueness to them.
- Non-fungible items, on the other hand, have UNIQUE characteristics and are not interchangeable. We consider things such as collectables, 1/1 art pieces and items with sentimental value as non-fungible.
NFTs can work as a public record of digital ownership, similar to what a certificate of authenticity does in real life. In this case, such ownership is visible in the blockchain, which as mentioned before acts as a transparent record of all transactions.
Logically, this invention has been used to enable a new era of collectables and art in their digital form. We can trust that there is really just one unique owner of a certain digital asset, even if people download that asset and use it around the web.
Many NFTs go beyond the digital realm and offer the owner certain benefits in real-life, or 1:1 real-life representations of the art the owner purchased. However, some also lean more towards their uses in digital platforms, such as a user being able to display their NFTs in different metaverses or use them in video games and other digital environments.
Market data: NonFungible
If you want to monitor different blockchains:
- CryptoSlam! (this one is really cool)
Market report: Chainanalysis
Current use cases
- Digital art
- In-game assets (video games)
- Virtual real estate (virtual worlds)
- Rare collectables (e.g. tweets, memes)
Potential future use cases
- Anything that requires a certificate of ownership or authenticity
- Fast-tracking of processes involving ownership (e.g. real estate, cars)
- As a VIP ticket for exclusive access to certain experiences
- Marketing campaigns powered by NFTs
- As a fundraising mechanism for a campaign (it’s starting to happen)
The rich text element allows you to create and format headings, paragraphs, block-quotes, images, and video all in one place instead of having to add and format them individually. Just double-click and easily create content.
For dynamic content, add a rich text field to any collection and then connect a rich text element to that field in the settings panel. Headings, paragraphs, block-quotes, figures, images, and figure captions can all be styled.
NFT Community terminology
Acronyms and terms commonly used by people in the NFT and crypto space. Useful to make sense of online conversations on Discord, Twitter, Instagram, etc.
This is a list of useful definitions for the most common terms encountered in the blockchain, crypto and NFTs space.
NFT communities have certain ways of communicating and building their membership count.
Popular and famous NFT collections
This is a list of NFT collections that have achieved mainstream success and are now considered solid investments. In the NFT space, some of these are referred to as ‘blue chips’.
Most NFT projects are ‘collections’ – a set of NFTs which are all based on the same concept.
February 3, 2021
The blockchain can be defined as a decentralised, distributed and (most of the time) public ledger.