What are NFTs and why should I care?
NFTs, or non fungible tokens, can be thought of as a special type of ERC-721 token. These types of tokens are particularly interesting because each one is unique and they can store information in addition to value. This means that in the future these tokens could allow you to:
create a visual identity for yourself (like a digital avatar)
- own limited edition items (like cards in your favorite collectible card game)
- decide how your money gets spent (for example if you're saving for college)
- carry data such as access permissions (for example public transportation like buses and the subway)
- share benefits with friends and family without sharing bank account numbers or other personal identification information.
NFTs (Non-Fungible Tokens) are the next step in the evolution of blockchain technology. While it may sound like a complicated term, NFTs are actually not that difficult to understand and care about if you're interested in the future of the industry.
Blockchain technology has seen an explosion in popularity over the past few years due to its ability to provide unchangeable transactions without the need for banks or middlemen. This has spurred dozens of new companies and projects who all want to get in on this ground floor opportunity before anybody else and attract as much funding and talent as possible. Unfortunately, many of these companies aren't actually creating anything new; they're simply repackaging existing ideas and technologies to make them seem innovative. They get away with this because nobody knows what blockchain technology is capable of, and most people don't understand the potential implications of these new projects.
NFTs are one such example of a repackaged idea. They've been around for a while in different forms, but they've only begun to gain traction in the past year or two. This is largely due to the rise of Ethereum, which has made it easier than ever to create and use NFTs.
Non-fungible tokens (NFTs) are a form of digital asset that is unique in some fashion. The attributes that make each token unique can be rooted from anything including ownership, scarcity, use case, or all three. They can represent virtual objects such as special skins for weapons or armor in a game. They could also represent collectibles like Cryptokitties. They can be audio interviews and even songs!
One key concept to understand about NFTs is that each represents something very different from the next . Even if two tokens have the same supply limit, they will not necessarily correlate in value because of their uniqueness.
The marketability of these assets varies based on underlying properties– what makes them unique.