Technology has now made us socio-friendly. We share lots of memes, infographics, artwork, and other digital property. Mostly with our friends and family. It can be either for entertainment or information. Also, it can be to spread awareness on a specific agenda.
However, did it come to your mind? Who’s the creator of these properties? Or where is the actual origin of those digital assets? The solution is NFT.

What is NFT?

An NFT or Non-fungible tokens is, in essence, a collectible digital property. The value is held as cryptocurrency. NFTs are value-conserving investments, similar to art, which is a visual form. But how?
So, NFT stands for a non-fungible token. This is a digital token that’s identical to cryptocurrency. It has similar properties to Bitcoin or Ethereum. But unlike Bitcoin, it is not exchangeable. An NFT is specific and is not exchangeable like-for-like (hence, non-fungible).

Why NFTs are so crucial?

NFTs have become highly popular with crypto customers and companies alike. The reason is that NFTs brought in a revolution to the gaming space. Around $174 million is now spent on NFTs from November 2017.
Thanks to the arrival of blockchain technology. Gamers are now perpetual proprietors. It can be an in-game item and different specific property and make money from them. Players create and monetize objects like casinos and subject parks in digital worlds. This includes things like a Sandbox and Decentraland. Also, there’s the possibility of selling items that are accrued through gameplay. It can be in the form of costumes, or in-game currency.

How Did NFT Suddenly Become so Popular

Several industries use NFTs based on ERC-721. Below are some excellent features that make NFTs popular:
  • The entire data of NFT is secure in Blockchain. This means the tokens are not removable. No matter what, you cannot destroy or duplicate it.
  • The primary source of cost for NFTs is their scarcity. However, NFT developers can make an endless number of tokens. They’re saved limited purposefully to keep their value.
  • NFTs are indivisible. Therefore, unlike Bitcoins NFTs are not available in denominations.

NFTs Characteristics

1. Non-Interoperable

NFTs are considered non-interoperable due to their ERC 721 base. This means that the data saved in them are unexchangeable or utilized in any manner.

2. Rare

NFTs are scarce. Needless to say, this contributes to both the craze and price of NFTs. Therefore, if the quantity goes down from here due to any reason, the prices will shoot way higher.

3. Indestructible

People control NFTs through Blockchain, which provides them with more safety. This also makes them indestructible and un-removable at any cost.

4. Indivisible

You cannot send NFT partially to anyone (unlike different cryptocurrencies). It is because they’re non-fungible and don’t have a described value. For example, one bitcoin will own the same price after the transfer, but an NFT won’t.
Kayla Turner
Kayla Turner

Kayla is an adept article writer with vast hands-on experience in cryptocurrency and technology. She is outgoing and always looking for new challenges to conquer. Over the years, she has gain massive traction online for writing stellar content on cryptocurrency and blockchain technology in a crispy and easy to understand style. When she is not writing for the web, she loves spending quality time with friends, colleagues, and her family indoors and outdoors. Be sure to check out his profile online for more invigorating articles.