NFT 101: 7 Things You Need to Know about NFTs
NFTs have been making headlines across the digital space. From the creation of the infamous Cryptokitties, to Pizza Hut selling digital pizza slices for $8000+, it seems like everyone is cashing in on this new wave of investing. But what exactly is a NFT? Here are 7 things you need to know about the token that is paving the way of digital ownership.
- NFT stands for Non Fungible Token. Unlike a fungible token (ex: fiat or cryptocurrency), the value of a NFT is based on the good itself and its demand. Think of investing in NFTs like investing in property or fine art. They’re totally unique and non-divisible. Stored on the blockchain, each NFT contains a unique digital signature and metadata. Its uniqueness is what gives it the NFT name.
- It has multiple standards, like ERC-1155 and ERC-721, which are created for the safe trading and bundling of tokens.
- NFTs aren’t just pieces of digital art. They can range from anything – from designer sneakers, GIFs, music, virtual avatars, sports highlights, to any other item deemed collectable. There are so many functionalities, the possibilities are endless!
- NFTs are usually released in “drops”, similar to when an exclusive collection or tickets for an event are released for sale at different times.
- They contain built-in authentication, meaning that the NFT buyer has full ownership of the original token. However, the digital creator of the original NFT can use smart contracts to collect royalties from every transaction made.
- Businesses that use and measure client data can benefit from using NFTs too! Because of their built-in authentication and blockchain security, client data, records, and certificates are securely stored in a tamper proof system.
- NFTs, like idexo, are dynamic and upgradable. There are endless applications that can easily adopt and benefit from NFTs.
Want to learn more about how NFTS like idexo can be adopted into your app? Stay tuned to find out more!
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