NFTs, or non-fungible tokens, are digital assets that can be owned and traded on a blockchain. They’re similar to traditional collectibles like baseball cards or Beanie Babies in that they have unique properties that make them desirable. Many people think of NFTs as being primarily used for games or art, but there are many more use cases for these types of digital assets than just those two examples.
What is an NFT?
NFTs are a type of cryptocurrency. They are unique, can’t be replicated, and represent unique digital assets. The most common types of tokens you will see on a blockchain platform today include: Ethereum, EOS, Cosmos, and more. These tokens are all ERC-20 or ERC-721 compliant (explained later).
When it comes to non-fungible digital assets, they’re all stored on the blockchain via smart contracts to ensure their authenticity and uniqueness.
How does the NFT market work?
The NFT market is a secondary market. This means that you are not buying the NFT directly from the issuer but instead from another person who owns it. It’s like buying a used car or trading stocks on Wall Street.
Most people that buy NFTs use cryptocurrency to purchase them because it is faster, cheaper and easier than traditional fiat currencies (like USD). These cryptocurrencies can be purchased using an exchange service like Coinbase or Binance that allows users to pay with their credit cards as well as cash deposits at banks and ATMs (for example: CEX).
If you don’t want to use cryptocurrency, you could also go through a centralized exchange such as Coinbase Pro (which trades USD), which will allow you to purchase WAX directly with USD!
How are NFTs used in games?
- In-game currency
- In-game items and gear
- Achievements, badges, or trophies can be displayed in your profile.
- Collectibles, like rare trading cards or other virtual goods that have value outside of the game—like vintage basketball jerseys.
How are NFTs used in art?
NFTs have been used to represent real-world artwork, as well as other assets. For example, you can use an ERC721 token as a representation of a work of art or other collectibles, like baseball cards. Many people think NFTs are the future of digital art because they’re easily transferable and easily exchanged for cash.
Are there any other use cases for NFTs?
The answer is yes. There are many other use cases for NFTs beyond just buying and selling. In fact, they can be used to represent anything.
Let’s take a look at some of the more common uses of NFTs:
- An artist can create an ERC-721 token and sell it as an artwork representing their work. This could be something like a painting or sculpture that you hang on the wall or even a digital image that you save on your computer. The main point is that it represents something physical or digital in nature (a photo).
- A business could create an NFT representing their product so that customers can buy tokens with ETH during certain events, such as sale days or special promotions throughout the year (like Black Friday). The token would then represent a physical item—something like shoes or clothing—and buyers would receive them in return when they pay using ethers at checkout time.
Takeaway: They are more than just in-game items and pieces of art.
Whether you’re a gamer, an art enthusiast, or just someone who loves the idea of owning digital assets that can’t go away or get lost—and maybe even appreciate how this technology can help you monetize them—it’s time to get excited about NFTs. The world has changed since the days when you’d have to look up at your shelf and say “Oh yeah, I bought that video game ” Now you can take your favorite digital assets with you wherever they may go, and share them with friends who also own NFTs.
With all these new possibilities, it’s no surprise why so many people are getting into crypto right now: it’s exciting! And as we see more uses for blockchain technology emerge every day (from financial applications like cryptocurrency exchanges to social media platforms), there will only continue to be more ways for people in our society to benefit from this revolutionary technology.
In the end, NFTs are a great example of how blockchain technology is transforming the way we think about digital assets. By allowing users to own their own game items and artwork, they give creators an opportunity to connect with fans in a way that was previously impossible.