{"id":843,"date":"2021-02-07T01:10:35","date_gmt":"2021-02-07T01:10:35","guid":{"rendered":"https:\/\/cryptonita.co\/?p=843"},"modified":"2021-02-09T12:03:28","modified_gmt":"2021-02-09T12:03:28","slug":"what-are-non-fungible-tokens-nfts","status":"publish","type":"post","link":"https:\/\/cryptonita.co\/?p=843","title":{"rendered":"What are (Non-fungible Tokens) NFTs?"},"content":{"rendered":"<p><strong>Simple explanation_\u00a0<\/strong>\u00a0<br>Non-fungible tokens (NFTs) are blockchain-based tokens that can be linked to anything from digital art to physical assets. Currently, the majority of NFTs are tied to one-of-a-kind digital collectibles (ex. art, playing cards). But the possibilities for NFTs are vast, and creators of all types have already started taking notice.<\/p><p><strong>Slightly more technical_\u00a0<\/strong>\u00a0<\/p><p>Within their code, NFTs contain:<\/p><ul class=\"wp-block-list\"><li> 1) uniquely identifying information like the creation date and metadata that defines characteristic of the asset<\/li><li>2) smart contracts that allow for seamless, friction-free transactions<\/li><\/ul><p>This data adds value by 1) preventing forgery\/copies 2) displaying a transparent, verifiable, immutable (unchangeable) history of ownership.\u00a0<\/p><p><strong>Non-fungible vs fungible_<\/strong><\/p><p>Non-fungible things are distinctly unique snowflakes. Everyday examples include plane tickets and your pet dog. Fungible things include subway tickets, US dollars, Bitcoin. In each of the fungible examples, any one of these can be easily exchanged for another one from the same category.<\/p><p><strong>Skyrocketing valuations_&nbsp;&nbsp;<\/strong><\/p><p>NFTs can be linked to assets from diverse categories of collectibles &#8211; from virtual pets like\u00a0Cryptokitties, to 3D artwork, to digital football trading cards. All around the world, thriving markets are rapidly evolving centered on highly sought-after assets. Through digital collectibles markets like\u00a0<a href=\"https:\/\/opensea.io\/\" target=\"_blank\" rel=\"noreferrer noopener\">OpenSea\u00a0<\/a>and\u00a0<a href=\"https:\/\/www.superrare.co\/\" target=\"_blank\" rel=\"noreferrer noopener\">SuperRare<\/a>, creators, collectors, and traders meet to purchase and sell assets. Speculation, scarcity, supply, demand, and desirability are all factors that determine the value of pieces. Similar to traditional collectibles (like original\u00a0Pokeman\u00a0cards, Beanie Babies, and Picasso paintings), an NFT is worth as much as anyone is willing to pay for it.\u00a0\u00a0\u00a0<\/p><p>Let\u2019s explore some impressive valuations being set by early adopters in this niche.\u00a0\u00a0<\/p><ul class=\"wp-block-list\"><li><a href=\"https:\/\/decrypt.co\/50637\/17-year-old-artist-sells-digital-artwork-for-21350\" target=\"_blank\" rel=\"noreferrer noopener\">$21,350<\/a>: for a digital artwork created by 17 y\/o artist&nbsp;Fewocious&nbsp;&nbsp;&nbsp;<\/li><li><a href=\"https:\/\/www.forbes.com\/sites\/tommybeer\/2021\/01\/23\/how-did-a-lebron-james-video-highlight-sell-for-71455-a-look-at-a-burgeoning-product-called-nba-top-shot\/?sh=6974797a184b\" target=\"_blank\" rel=\"noreferrer noopener\">$47,500<\/a>: for a tokenized video clip of a LeBron James dunk highlight&nbsp;&nbsp;&nbsp;<\/li><li><a href=\"https:\/\/cryptonewsstudio.com\/2020\/12\/kylian-mbappe-trading-card-sells-for-65000-on-ethereum\/\" target=\"_blank\" rel=\"noreferrer noopener\">$65,000<\/a>: for a&nbsp;Sorare&nbsp;trading card representing footballer Kylian Mbapp\u00e9&nbsp;&nbsp;&nbsp;<\/li><li><a href=\"https:\/\/www.altcoinbuzz.io\/cryptocurrency-news\/crypto-art-sales-surge-as-beeple-shifts-nft-collections-at-record-prices\/\" target=\"_blank\" rel=\"noreferrer noopener\">$777,777<\/a>: for a portfolio of work by digital artist&nbsp;Beeple&nbsp;&nbsp;<\/li><li><a href=\"https:\/\/news.coingenius.ai\/hashmasks-sells-16000-nfts-related-to-artwork-for-9-million\/\" target=\"_blank\" rel=\"noreferrer noopener\">$9,000,000<\/a>: for a collection of 16,000 pieces of NFT art on the&nbsp;Hashmasks&nbsp;platform&nbsp;&nbsp;<\/li><\/ul><figure class=\"wp-block-image size-large\"><img data-recalc-dims=\"1\" loading=\"lazy\" decoding=\"async\" width=\"640\" height=\"902\" src=\"https:\/\/i0.wp.com\/cryptonita.co\/wp-content\/uploads\/2021\/02\/SEX.jpg?resize=640%2C902&#038;ssl=1\" alt=\"\" class=\"wp-image-844\" srcset=\"https:\/\/i0.wp.com\/cryptonita.co\/wp-content\/uploads\/2021\/02\/SEX.jpg?w=704&amp;ssl=1 704w, https:\/\/i0.wp.com\/cryptonita.co\/wp-content\/uploads\/2021\/02\/SEX.jpg?resize=213%2C300&amp;ssl=1 213w, https:\/\/i0.wp.com\/cryptonita.co\/wp-content\/uploads\/2021\/02\/SEX.jpg?resize=600%2C845&amp;ssl=1 600w\" sizes=\"auto, (max-width: 640px) 100vw, 640px\" \/><\/figure><p>The digital work above sold for 420&nbsp;ETH&nbsp;(~$650,000) on Feb 4. Since blockchain is fully transparent, <a href=\"https:\/\/opensea.io\/assets\/0xc2c747e0f7004f9e8817db2ca4997657a7746928\/9939\">you can easily view the entire history of this digital artwork.<\/a> The Switzerland-based&nbsp;Hashmask&nbsp;platform hosts a collection of 16,000+ unique NFT portraits created by 70+ artists.&nbsp;<\/p><p><strong>Underlying tech_&nbsp;<\/strong>&nbsp;<\/p><p>NFTs are made possible by smart-contract-enabled blockchains. The first platform to support non-fungible assets was Ethereum\u2019s\u00a0<a href=\"http:\/\/erc721.org\/\" target=\"_blank\" rel=\"noreferrer noopener\">ERC-721<\/a>\u00a0standard. This tech was adopted earliest by<a href=\"https:\/\/cryptofans.news\/crypto\/cr\" target=\"_blank\" rel=\"noreferrer noopener\">\u00a0CryptoPunks<\/a>\u00a0and popularized by\u00a0CryptoKitties\u00a0in 2017. Other platforms are emerging with NFT support, including FLOW, EOS, NEO, and TRON.\u00a0\u00a0<\/p><p><strong>How to buy NFTs_&nbsp;<\/strong>&nbsp;<\/p><p>As this sector expands, a flurry of NFT markets is emerging. Examples include&nbsp;Rarible,&nbsp;OpenSea, and&nbsp;Enjin&nbsp;Marketplace. Once a user is registered to these platforms, the buying process is super straightforward. The user interfaces are clean, straightforward, and user-friendly. One small hurdle is that you will need an Ethereum-enabled wallet to complete transactions. This is how you will purchase and store your tokens. There are hardware and software wallets that work for this process. My favorite hardware wallet is Ledger Nano. If you<a href=\"https:\/\/go.referralcandy.com\/share\/6PTM7JW\"> <\/a><a href=\"https:\/\/go.referralcandy.com\/share\/6PTM7JW\" target=\"_blank\" rel=\"noreferrer noopener\">use my link you can get one for 20% off<\/a><a href=\"https:\/\/go.referralcandy.com\/share\/6PTM7JW\">.<\/a> #shamelessplug&nbsp;&nbsp;<\/p><p><strong>What is next for NFTs_&nbsp;<\/strong>&nbsp;<\/p><p>Let\u2019s save that for another post, another day. But until then, let me know what you think about this nascent and growing market for crypto collectibles.&nbsp;&nbsp;<\/p>","protected":false},"excerpt":{"rendered":"<p>Simple explanation_\u00a0\u00a0Non-fungible tokens (NFTs) are blockchain-based tokens that can be linked to anything from digital<\/p>\n","protected":false},"author":1,"featured_media":850,"comment_status":"open","ping_status":"open","sticky":true,"template":"","format":"standard","meta":{"nf_dc_page":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[22],"tags":[51,31,52,25],"class_list":["post-843","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-quick-take","tag-cryptoart","tag-cryptokitties","tag-hashmasks","tag-nft"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v24.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>What are (Non-fungible Tokens) NFTs? 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