Beginner's Guide to NFTs: What Are Non-Fungible Tokens?
Interested in learning more about non-fungible tokens (NFTs)? This guide dives into what NFTs are, how they work, how they’re being used, and what their future looks like.
In a nutshell, NFTs are “digital assets that contain identifying information recorded in smart contracts”. Every single NFT is unique – or non-fungible – and has unique attributes, as opposed to banknotes that can be interchanged easily. They can take the form of digital collectibles such as the CryptoKitties collectibles, as well as virtual land parcels or artworks. To create an NFT, you need smart-contract-enabled blockchains with NFT tools and support, using fungible tokens like Ethereum.
The article by Decrypt provides a step-by-step guide on how to buy NFT tokens on marketplaces such as OpenSea, Rarible and SuperRare. It also dives into the various NFT creators and projects which are making waves in the sector such as CryptoPunks and the Bored Ape Yacht Club, and examines how NFTs are impacting the decentralised financed (DeFi) space.
While NFTs have mostly stayed within the artwork, gaming and crypto collectible sectors, they have the potential to expand to other areas such as copyright and intellectual property rights, ticketing, the sale and trading of video games, as well as the metaverse. The article also speculates that the ‘smart contract’ of an NFT could mean its application to certificates, warranties, licenses and other assets. Read the article for more details!
