NFT ( Non-fungible tokens) are in high demand in the market right now. In this article, you will get to know why they are in demand.
But first, let’s understand what is fungible means that they can be exchanged with another identical item, and are mutually interchangeable.
A non-fungible token (NFT) is a unit of data stored on a blockchain that signifies a unique digital item. An NFT is a cryptographic token, but various cryptocurrencies such as bitcoin and many networks or utility tokens, NFTs are not mutually interchangeable, i.e. not fungible. An NFT is created by uploading a file to the NFT auction market, such as Open sea, Raible, and KnownOrigin. This creates a copy of the file which is recorded on the digital ledger as an NFT, which can be bought with cryptocurrency and resold. Although an artist can sell an NFT illustrating a work, the artist can still conserve the copyright and create more NFTs of the same work. The consumer of the NFT does not achieve restricted access to the work, nor does the buyer gain ownership of the “original” digital file. A person who uploads a certain work as an NFT does not have to prove that they are the actual artist, and there have been various cases where art was utilized for NFTs without the creator’s approval.
NFTs are the new and shiny technology, and the internet is its mainstream platform, as you might have probably guessed — cats.
It was created in 2017, cryptoKitties is a virtual game where people can raise and trade virtual cats.
CryptoKitties are one of the world’s first blockchain games. As you might know, ‘Blockchain‘ is the technology that makes things like bitcoin possible. Crypto Kitties are not the digital currency, but it offers the same security.
Each cyrptokitties is one of its kind and 100% owned by you. It can not be destroyed, replicated, or taken away.
But are the NFTs just the latest trend?
They could be the latest trend, let’s check it out:
- NFTs can also be time-consuming and tricky, and energy-intensive to develop decentralized applications for NFTs.
- There are also teething problems, too technical to go into here, around the protocols used to create them.
- NFTs presently exist on a single blockchain that is Ethereum.
The new modern NFT technologies, like Flow, use proof-of-stake and can use much less energy. Crypto Kitties has plans to shift from Ethereum to Flow.