What Are NFTs: An Overview of Non-Fungible Tokens

Non-fungible tokens (NFTs) are rapidly gaining popularity in the cryptocurrency world. But what exactly are NFTs, and why should you care about them? In this article, we discuss the basics of NFTs, their advantages, and their unique applications.

What is an NFT?

At its most basic level, a non-fungible token (NFT) is a digital asset stored on the Ethereum blockchain. Unlike other forms of cryptocurrency such as Bitcoin or Litecoin, which are interchangeable and can be easily divided into smaller units, each NFT is unique and cannot be replaced by another. This makes them ideal for representing ownership over digital items such as artworks or collectibles. NFTs offer several benefits over traditional digital asset ownership models.

They are immutable – meaning that once an item has been created it cannot be changed or reversed – making them much more secure than other models. Additionally, because they exist on the Ethereum blockchain, transactions involving these tokens are transparent and publically accessible to anyone who wishes to view them.

Advantages of Using NFTs

Because they use blockchain technology, non-fungible tokens provide several benefits over traditional digital asset ownership models:

Immutability – As mentioned above, once created an NFT can never be altered or reversed making it much more secure than other mediums for storage.
Transparency – All transactions involving NFTs are visible to anyone with access to the blockchain providing added security and greater visibility into who owns a particular asset and when it was purchased.
Faster Transactions – Because all transactions involving non-fungible tokens take place on the Ethereum blockchain they happen almost instantly making them faster than most traditional transfer methods.
Low Fees – Since transactions don’t require third-party services fees associated with transferring funds via traditional methods are eliminated making it much cheaper to move money from one account to another using NFC technology.

Unique Applications Of NTFs

In addition to being used as a medium for owning digital assets such as artwork or collectibles, there are many other unique applications where non-fungible tokens could be used in the future:

Smart Contracts – Smart contracts can be used to create self-executing agreements between two parties without having to go through a third-party service such as a bank or lawyer making them much faster and more efficient than current methods of contracting agreements.
Digital ID Verification – By using NFC technology users could store their personal information on a decentralized database which could then be securely accessed by any company that needs to verify an individual’s identity for things like background checks or employment purposes eliminating time-consuming paperwork processes as well as reducing chances of identity theft since all data would exist securely on the blockchain away from potential hackers.
Online Gaming– Online gaming platforms have already started taking advantage of NFC technology by allowing players to purchase exclusive in-game items that have been verified by an immutable record giving players certainty that no one else can own those same assets providing added value for game developers and gamers alike.

Here’s a list of Popular NFTs of the moment:

CryptoKitties
NBA Top Shot packs
Decentraland items
Hashmasks artworks
MLB Crypto Baseball cards
SuperRare artworks
Makersplace digital works of art
Axie Infinity

Conclusion

Non-Fungible Tokens (NTFS) provide several advantages over traditional methods for owning digital assets due to their immutability, transparency and fast transaction times combined with low-cost fees associated with transfers make them ideal candidates for storing valuable information safely on the decentralized ledger while also allowing others access if needed with increased levels of trust and confidence compared to other platforms currently available. With continued development in this space expect more applications utilizing NFTS in various ways in the near future!