NFTs are unique digital assets that can be traded online and used as collateral for loans. They can be bought and sold on the blockchain, so you don't need to rely on a centralized authority to verify transactions or transfer ownership. In the world of crypto, NFTs are most commonly used on the Ethereum blockchain as collectables. Because they can be used as representations of anything and everything, they have the potential to change how we interact with digital goods forever.
Fungibility refers to something being interchangeable with others of its kind — so a one-dollar bill is just as good as another dollar bill because they're all worth the same amount of money. Fungible assets can also be substituted for each other without affecting the overall value of the whole system (for example, one kilogram of gold is worth the same amount as another kilogram).
The idea of NFTs is not new — there are existing examples of blockchain-based games like Cryptokitties that use non-fungible tokens (NFT) to represent digital assets. The difference is that NFTs can be used in any industry where it makes sense to tokenize something — including real-world assets such as artworks, sports memorabilia, and property titles.
The concept of non-fungible tokens (NFTs) has been around for several years now. Still, it is only recently gaining traction thanks to advances in technology, particularly in artificial intelligence and machine learning.
NFTs can be used for:Collectables
NFTs are often called collectable assets, and they can be bought, sold, and traded like any other collectable. Some of the most famous NFTs are CryptoKitties and CryptoCelebrities. Both projects allow you to buy and sell unique digital kittens or celebrities on their platform.
Another popular use case for NFTs is in-game items. They can be used to track ownership of in-game items that can't be easily duplicated (like weapons or armour). For example, if you own a particular word in your favourite game, you could transfer it over to another platform (like Ethereum), where it would become an NFT token with a unique ID on the blockchain. By doing this, people can prevent cheating by ensuring there is only one copy of each item on the blockchain. This makes it possible for us to have multiple people playing with the same sword at once without worrying about someone else taking it from them!
Digital assets — like CryptoCelebrities, let users buy digital copies of celebrities like Drake or Beyonce.
Props — like Props by Propy, Props lets users buy real-world properties in the U.S., Spain, and Ukraine using cryptocurrency.