We had an ICO craze for 2017.
We are currently going through a hypercycle of growth and explosion in DeFi space.
Even before we recover from the fatigue of DeFi headspin, the NFT craze is shoved into our faces.
What is NFT?
NFT stands for Non Fungible Tokens.
A non fungible token is simply a rare digital collectible or any digital token that is very scarce and which cannot be duplicated or replaced.
Examples of NFT’s?
One of the best examples of NFTs is Crypto Kitties.
Who could forget the 2017 boom that just hammered the Ethereum network with congestion.
Crypto Kitties were Ethereum based characters created on the blockchain with unique code which cannot be copied, duplicated or replaced.
As an experiment of a project, Cryptokitties created a hyper-mania in the crypto community and one of the kitties, called Dragon was sold for a whopping 600 ETH.
What sets NFTs from the rest of the crypto?
They are Unique
NFTs cannot be replicated, there is only one of any given NFT. If a project has N number of tokens, each token is unique in its own way, and does not match the other.
One cannot sell a fake copy, as they are available on the blockchain
You completely own the rare token and can store, sell or transfer at your will. Counterfeiting is completely out of the window.
Fractions is not possible
An NFT is not separable or cannot be bought or sold in fractions, it comes as one unique whole token.
The most important characteristic of NFT is that it’s very scarce and unique. For instance, even though Bitcoin is scarce from a macro perspective, it doesn’t matter if you owned the 18 millionth token or 1st bitcoin. When they get transferred, all of them have the same value.
However, with NFTs, each token has its own unique identity and cannot be mixed or merged with others (or fractionalized).
Places where NFTs can play a role
NFTS can be implemented in Art, Gaming, Ticket or a digital collectible
This is an example for art, where each kitty is set at a unique price and can be owned and traded.
Decentraland came up with digital real estates where people can own a piece of land in a virtual world.
Unstoppable domains is the best example of NFTs where the .crypto domain you own is unique and your own, which you can sell at a desired price if there is a trade.
The gaming market is soaring with NFT mania, where the players can buy and own various gaming tools such as guns, swords, avatars, and different tools at different levels of game.
Why So much Hype: what future of NFTs holds?
The possibilities of NFTs are endless.
Fans can buy, sell, hold and show off their stuff knowing that it is authentic, no more counterfeits.
Sports teams can release their own individual player NFTs to monetize their brand.
Biggest utility of these NFTs will be in the gaming world where players can trade their NFTs on the game.
No wonder, companies such as Samsung, Nike, Ubisoft and many others are getting into NFT.
Unlike the ICO craze of 2017, the craze, utility and the lifespan of NFTs is going to be long and transformational.
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