NFT’s or Non Fungible Tokens (Non Fungible Tokens) means more or less that it is unique and cannot be replaced by something else. For example, a bitcoin is fungible: if you exchange it for another bitcoin, you will have exactly the same thing. However, a single trading card is not fungible. If you exchange it for another card, you will have a different card, as it is unique.
The technology behind the NFT’s, such as the ERC 721 token, which is the protocol used by the ethereum network to verify the NFT’s, manages to show the ownership of a file, thus making it unique and without forgeries. Since the contract, at all times, you can see who owns that file or that NFT.
Although there has been a lot of bad press because of all the speculation that has gone on with NFT’s, there is a great application behind it and uses that can change industries completely. Speculation happens in all new technologies that have great potential, but this does not make the technology and what it can achieve any less valid.
Before going into more detail on the usefulness of NFTs, it is important to know where you can find them. Although there are projects where you can buy from their own website, usually large marketplaces are used to buy and sell NFTs. In addition, you can find a lot of additional information, as everything is registered in the blockchain, such as the last sale price, and all the information history related to that NFT.
Usually, each blockchain or network has a main Marketplace to buy and sell the NFT’s of that network. For example, in ethereum we have opensea, and in solana, we have the Solanart Marketplace. If you want to know more in detail how a Marketplace works, here is a guide.
In recent months there has been a lot of criticism as NFT’s have become more and more popular, either by misinformation such as the aspect that they pollute a lot, that they have no value, being only a JPEG or that there is a lot of speculation.
These criticisms come from people who do not really know the use that NFT’s can have and have nowadays, and the great utility that they can bring.
Apart from being a JPEG, by owning an NFT, you can verify at all times who owns that NFT, and this creates exclusivity. We have started to see very important NFT’s projects like Bored Ape Yacht Club, where by owning one of their NFT’s, you can be in a private discord group, attend private parties in the future or even a private club just for owners.
Also, we have seen other collections of NFT’s, where for owning an NFT, you will receive a % of the profits generated with the project. A way to invest in projects that have potential, and receive dividends in addition to the increase in value of the NFT.
The fact of being in a private group at the beginning may seem of little value, but if it is a NFT with a high value, it is very likely that you can find famous or important people in the discord group with you, and it is a good way to network with people interested in this sector. When a NFT is worth more than $100,000, you can expect that in the discord group there will be mainly millionaires.
Another great use is in gaming. NFT’s allow you to create games where you can sell characters or game objects as NFT’s on the martkeplace, and have a great liquidity of your assets. Games can become a way to get money in the very near future, by being able to get rewards for playing, and using a system of NFT’s, where you can sell them or interact with them and other players.
Artist NFT’s is also a new way to get exclusive access to your favorite artist. We have already seen some artists entering the world of NFT’s, and offering exclusive content to the people who own the NFT. As in the future, we will even be able to see calls, or meet your favorite artist if you own one of their NFT’s, or backstage access to a concert. How useful it can be for the artist is up to each individual. But with this technology, it opens up many possibilities by being able to verify at all times who the owner is without the possibility of manipulation. One of the first artists to release their collection of NFT’s was 3LAU.