Non fungible Token (NFT for short). But what does this mean?
There are objects whose irreplaceability in the physical world we take for granted.
But what about the online space? It's not so obvious here because it's easy to copy and duplicate a picture or an email. However thanks to the blockchain technology non-fungible tokens have emerged. The main strength of NFT tokens are their uniqueness. For each NFT it is necessary to specify during the creation process exactly what the purpose is and what makes the digital asset special. Another important feature of NFTs is that they are available in limited quantities as the developers have the option to launch a token with a very limited number of units like a few dozen. It is important to note that while Bitcoin is redistributable, i.e. 1 Satoshi hundred millionth is part of 1 BTC. In the case of NFTs, therefore, there is no sub-distributability they only have value as a whole.
Usability of NFTs
Many things can become NFTs allowing us to take ownership of things that were previously easily out of our reach because of their replicability in the digital space.
An obvious example is a piece of digital art or a ticket to a concert, or any event where counterfeiting is an issue.
Importance of NFT tokens
Uniqueness is nothing new in the digital space, just think about domain names of which there is only one at a time. Many people are willing to pay tens of millions of forints for 1-1 domain name. The great novelty of NFTs is that they can be used to tokenise almost anything, anything can become a unique digital asset that can be identified, transferred, but not copied or shared. NFTs certainly have a big future ahead of them. There are already platforms that specifically allow trading of collectible NFTs. Dozens of major football teams have gotten on board in recent months creating digital cards for fans similar to NBA teams.
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