This is interesting: Let’s talk about NFTNFT is the hottest thing that is making investor and developer minds explode all over the world! Twitter CEO, Jack Dorsey, sold his first tweet as an NFT for millions of dollars, and the TIME magazine is selling its covers as NFTs for ETH. We want our subscribers to keep learning about cryptocurrencies, so we are happy to tell you more about this currency.
Non-fungible Token (NFT) — since it is NOT interchangeable, they can act as proof of authenticity and ownership in the digital realm. This feature allows using them for tokenizing intangible objects, where they serve as proof of ownership. These rights are recorded on the blockchain, which cannot be forged or altered in any way.. So, NFT has two important properties: UNIQUE and LIMITED.
NFT are issued on the Ethereum blockchain. In the NFT a lot of standards are adopted, but the most prominent of which is ERC-721. Or for example, the recently improved standard is ERC-1155, which allows single contracts to contain fungible and non-fungible tokens, opening up a whole new range of possibilities. Like other tokens, NFT can be stored in a personal wallet.
What is NFT used for? As we have already said, such tokens prove your ownership of something. These tokens could be a collectable item, an investment product, or something else. Also NFT can represent small chunks of real-world assets that can be stored and traded as tokens on the blockchain. This can provide the necessary liquidity for many markets that would otherwise not have a lot of participants. Such as handicrafts, real estate, rare collectables, rare whisky, rare wines. In essence, NFTs allow popularizing markets while reducing bureaucracy.
Experts are on board with this statement! Prof. Dr. Fabian Schär, a professor for Distributed Ledger Technology/Fintech at the Faculty of Business and Economics at the University of Basel believes that NFT is an exciting innovation, but that doesn’t mean that every drawing becomes valuable simply because it has an ERC-721 or ERC-1155 token representing it. After the initial hype wears off, only the best projects will stay in the space.
We believe that this is a promising technology that will find its place in our lives soon enough!
