#NFTs are poised to be the next big thing and it’s important you know a few things about them.
NFTs or non-fungible tokens are a type of cryptographic token that allow ownership of unique, digital assets like art, collectibles, insurance premiums (#DeFi), and others. Fungibility can be described as something that is interchangeable or identical to others like it. Conversely, when something is non-fungible it is completely unique or even serialized to a degree. In terms of art, think of an original piece when you break down the meaning of non-fungible tokens. NFTs are unique, provably scarce (limited number of issuance), and indivisible (cannot be reduced into smaller denominations).
The most prominent examples of NFTs would be ERC-1155 and ERC-721 standards on the #Ethereum#blockchain. ERC-721 allows for distinguishable #tokens with different properties with #CryptoKitties being the most notable example. The ERC-1155 standard is the next level in NFTs. The standard’s creator, #Enjin a project looking to advance blockchain gaming, allows developers to create fungible and non-fungible assets of in-game items.
There are several established players in the NFT space. As previously mentioned, CryptoKitties is a famous example of NFTs popularity. #Decentraland is a platform where users can buy plots of land that can be treated as real estate (sold later in time) or used for advertising purposes. Other open marketplaces like #OpenSea or #Rarible allow users to sell art, domain names (.eth or .crypto), collectibles, or even insurance contracts by Yinsure from #Yearn Finance.
Overall, with the NFT market being minimally valued at around $100M it is easy to see that the future of NFTs are bright for gamers, #collectibles, and hopefully new & exciting products in the crypto space. If you are interested in gaining financial exposure into the NFT sector considering checking out Decentraland (#MANA), Enjin Coin (#ENJ), #Rarible (#RARI, note only used governance purposes as of now), or even consider purchasing some NFTs yourself!
Do you think NFTs are the next big thing?