Non Fungible Tokens: Cryptocurrency with special features

As Cryptocurrency has become fashionable and even more technologies seem to be developing different types of currency, it seems even more special that we now find digital currencies in digital art forms as well. Strange as it may sound, the new fashion and as it seems a new form of cryptocurrency is NFT (Non Fungible Tokens) and it has already been released on the market. Let us explain in more detail what this means:

How do NFTs relate to BitCoins?

Yes, but what are Non Fungible Tokens?

First of all, it should be mentioned that Non Fungible Tokens have been around since November 2017 and over $ 174 million have been spent on them. This means that it is a technology that has evolved and is now moving in the market.

Non Fungible Tokens with a simple sentence are cryptocurrencies that have a unique design from each other and unlike other cryptocurrencies such as Bitcoin, can not be exchanged in parts. For example, a half ticket for a concert is not worth nor can a part of it be used, but only as it is. So since NFT Tokens cannot be subdivided and usually involve an Asset entirely, they also allow the complete ownership or intellectual property of an object. NFTs are essentially used to differentiate digital objects that are identified from others in order to prove their value. In particular, NFTs can only be exchanged for regular cryptocurrency transactions except for sale or purchase. The most essential and important qualification of NFTs is the ability to certify digital property.

NFT Artwork

These coins have some unique features related to their security. In particular, they are not interoperable, which means that they cannot be interconnected between different systems compromised by common standards, they cannot be subdivided. In short, a Non Fungible Token can not be broken into smaller ones, nor can it be destroyed, because every NFT is registered in the Blockchain (a cryptocurrency database format) and therefore cannot be copied, destroyed or deleted. Finally, NFTs are certifiable, because their creation and purchase are recorded historically, which means that the information in the database can not be changed so that it is possible to change the data.

And what exactly do they serve?

An example of this market movement is by William Shatner, or Captain Kirk, from Star Trek. William in 2020 published 90,000 digital cards with various images of himself in the WAX Blockchain. Each card purchase was about $ 1 but because of William’s copyright on them, he receives a passive income each time one of them is resold. Here the difference between the ownership of the object and the ownership of its rights is obvious.

Even more recently, in the last week of February 2021, Non Fungible Tokens had a rapid rise in the market. As an example of financial revenue, Beeple had revenue of over $ 3.5 million selling artwork through Nifty Gateway, a site that sells digital items that can be owned by the buyer. The creators of Nyan Cat made about $ 600,000 while the 3LAU musician made over $ 11 million in album sales over one weekend.

Why so much fear about Non Fungible Tokens?

Practically for artists it is a form of empowering artists by avoiding many intermediaries. Apart from the circulation of digital objects, however, these cryptocurrencies have a value due to the market-demand relationship. A digital cryptocurrency that can be digitally owned and generate passive income is certainly worth mentioning, but it is also in full swing at this time which means that for a while the value of such currencies will rise. Even more worth mentioning is Gaming as in games like The Sandbox or Decentraland players can monetize objects or entire structures such as buildings etc.

Decentraland artwork

It is worth mentioning the possibility of creating such a currency through pages such as WAX Developer Hive. As they mention on their official page, although it is not yet fully functional, there is the creation of the NFT Token. The interested party creates a Smart Contract that in essence directly concerns the information that will be contained within the token in order to create an object, sticker, cards, etc.

Finally, what is worth noting, and possibly supporting the existence of further development around it, is that this particular cryptocurrency affects the market and certifies the ownership of objects. In addition to the direct buyer-creator relationship, NFTs enable the existing Database reliability. At least until something is found that opposes their use and their value falls or their use decreases.

Kostas Nikolaou

Posts published: 92

Graduated as a Sound Technician and currently doing my Master's Degree in Sound Design for Video Games. I am playing music as long as i can remember myself and i am a huge fan of FPS and RPG games.