Beginner’s Guide to Non-Fungible Tokens
Non-fungible tokens (NFTs) are one of the hottest topics in the crypto space right now, and there’s no sign of that slowing down anytime soon. They’re already being adopted by artists, brands, sports teams, developers, and more thanks to their ability to provide digital scarcity, authenticity, and value through decentralized platforms like the Ethereum blockchain. So why are NFTs so popular? Here’s what you need to know about them to start using them today!
What are NFTs?
In order to explain what non-fungible tokens are, we must first talk about fungible tokens. A fungible token is a cryptocurrency coin like bitcoin or Ethereum, which can be broken down into their smallest denomination and still be worth their value in that unit. Each unit of these coins is considered equal to any other unit of that specific coin.
What are some of the use cases for NFTs?
The purpose of NFTs can vary from use case to use case. The two main categories of non-fungible tokens are collectibles and gaming. In gaming, players can buy game items that exist only in digital form. Some of these items might be usable in-game (like weapons), while others might simply be cosmetic (like fancy outfits). Collectibles tend to have more tangible value because they are valuable outside their game environment.
What is a CryptoKitty?
CryptoKitties (or CryptoPuppies, CryptoBunnies, etc.) are non-fungible tokens. What does that mean? It means each one is unique and if you breed two of them together, you won’t get another copy of either one; they produce something new.
What can I do with non-fungible tokens, other than collect them?
You can put them on display. Since NFTs are unique and can never be replaced, you can share them on social media or post them online for others to view. There are also marketplaces where you can sell or trade your NFTs. In fact, many developers use NFTs as rewards for completing tasks or challenges in their games and apps—and some of these digital goods appreciate in value over time!
Where do I buy NFTs from?
The first place you’ll want to look is on an exchange, like OpenSea or Rare Bits. These exchanges provide a platform for buyers and sellers of NFTs to connect directly. You can also check out NFT community sites like Decentraland, CryptoKitties, or Blockade Games.
How do I store my digital artwork?
If you’re an artist or considering turning your art into digital form, there are several ways to preserve its uniqueness and value in a blockchain environment. The first is to simply use a blockchain platform like CryptoKitties with which users can breed new cat breeds by mixing and matching existing cat traits.