March 15, 2021

What is NFT and It's Revolution in General 2021

Posted By Alwin | 95 Views

Do you know about the recently trending Non-Fungible token in the crypto market? Which is a Non interchangeable, identical asset form, unlike other cryptocurrencies. Go through the below content to know more..

NFT Revolution:

NFT are Non-Fungible Tokens, Which are rapidly getting popular in the fields like Online Gaming, Crypto art, digital collectables. And these tokens are interestingly more Unique Crypto tokens. Unlike Fungible tokens, Non fungible tokens cannot be interchanged. These tokens are basically Digital collectables depending on the blockchain. As NFTs cannot be interchanged, this provides them the prerogative in gaming platforms.

New evolution of NFTs:

The primary standard for representing the non-fungible digital assets is ERC-721. Crypto Kitties released the NFT tokens in late june 2017 which has become more popular and eventually raised a $12.5 million investment. Even though the creation of NFTs have not been that much popular in past few years, it is showing a great hike this year.

Dapper labs (fun and game in a blockchain) join hands with the national Basketball Association (NBA) to create a non-fungible token set of its own. Lately, the NBA's NFT marketplace proclaimed gorgeous sales figures: Consumers have purchased over $230 million worth of NFT products.

Since the NFTs are becoming more popular in the crypto world, it has started emerging in various fields like crypto art, collectables etc.,. Recently , "King of Leon" an american rock band released a music album as a Non-fungible token (NFT). and this was considered as the First-ever NFT based rock album.

What makes NFT unique ?

Reason is that the Fungible tokens are the one which can be bought and sold easily.

NFT are more unique and Identical tokens which can be bought and owned only in the digital form. NFT adds more value to the asset you own.

Anyone can develop their own Non-Fungible token with the asset they Own in digital form for example : Digital art, Gaming, Images, Twitter message, Land or car etc.,

In case of digital art, NFT will provide you with the Ownership and Proof of Authenticity.

Difference between Fungible and Non-Fungible tokens:

Fungible Tokens

Non-Fungible tokens

Fungible tokens can be bought and sold easily.

NFT can only be owned in digital form

It is not Unique.

It is Unique as it provides value to the asset you own.

Example :

include car, bike, mobile phones, etc.,

include ERC20, Bitcoin etc.,

Example :

The very good example is Art work, Music albums which cannot be replaced

Can be directly interchanged with one another.

Cannot be directly exchanged with one another like Bitcoin, Ethereum etc.,

Features of NFT:

Non-Fungible tokens have some major features which makes them identical when compared to Fungible tokens. That includes:

  1. Since the blockchain stores the data of the NFT, the token cannot be destroyed, duplicated or removed and it is trustworthy. No data can be changed once purchased.
  2. Like bitcoins, Non-Fungible tokens cannot be separated into smaller individual denominations
  3. Real owner can be traced easily as it is stored on the blockchain and eliminates the requirement of the third party
  4. NFTs derive their worth from the very fact that they're scarce. NFT developers will develop unlimited volumes of NFT tokens, to increase interest they will modify the tokens.

How NFT become popular and how it works:

NFT is becoming popular due to their uniqueness. It is identical compared to other cryptocurrencies and reliable as it works on the blockchain. Anyone can generate the NFT.

NFT works by storing data on the blockchain and generating smart contracts. It is transparent in which anyone can view the owner. Ethereum token standards ERC721 and ERC 1155 are used to develop the Non-Fungible tokens.

Use cases of NFT:

Gaming :NFTs are famous in gaming industries. Many gaming industries have launched their NFTs.

Crypto art:Digital artworks as Non-fungible tokens.Recently, Music album has been released as NFT.

Financial Services:NFT insurances are available.

Virtual Land:Digital lands can be used for generating NFT.

Future of NFT:

Non-Fungible tokens are becoming more familiar in recent times as the value of the tokens are also increasing day by day. Even the traditional professionals are starting to enter into the digital world by making their participation in the NFT world. The use cases of the NFT are also increasing especially in the gaming platforms and traditional artworks.

Even NFT tokenized insurance is also being released nowadays. So, It is expected that NFT will show further hike in the market in the upcoming days.

Conclusion:

Even Though, NFT is a new topic in INDIA, Experts believe that soon it will trend because India has more traditional artists who can sell their art in the form of tokens. So start to make your Non-fungible token.

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