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The ownership of an NFT asset is recorded on the blockchain, and can be transferred anytime by the owner, allowing NFTs to be sold and traded. NFTs are typically digital files such as photos, videos, and audio.

What are NFTs ?

What is an NFT?

NFT means non-fungible token, and non-fungible makes a token unique and non-replaceable. Let’s take Ethereum as an example. ETH is fungible since you can trade your ETH for another token and vice versa. However, NFTs are more like pebbles, unique trading tokens that if you trade one for another, you will always receive something different code wise.

The ownership of an NFT asset is recorded on the blockchain, and can be transferred anytime by the owner, allowing NFTs to be sold and traded. NFTs are typically digital files such as photos, videos, and audio. Because NFTs are uniquely identifiable, they differ from regular tokens, which are fungible.


NFTs can be anything. They can be a jpg image, a gif, a music file, or digital art.

As a baseline, most NFTs are part of the Ethereum blockchain. Ethereum is a cryptocurrency, like Bitcoin or SHIB, but its blockchain also supports an infrastructure for NFTs, which stores extra information that makes them work differently from an ETH token. It is worth knowing that other blockchains can implement their own NFT integration systems.


Popularity Surge and NFT Craze

The NFT concept isn’t new, but the public awareness was piqued starting with CryptoKitties in 2017. The NFT market experienced a huge growth during 2020 as big companies have started introducing this concept into their marketing, while in the first three months of 2021, more than 200 million dollars were traded in NFT markets. Digital art has become a day-to-day trade for many people struggling to sell their creations in real life or on non-blockchain related websites. Artists can get recognised and supported through the NFT marketplaces found on all the
blockchains that have NFT integration.


Blockchain Gaming

Gaming on the blockchain has been around for a while, but with the surge of NFT popularity, the developers have come up with new ways to give permanent ownership of in game assets to their player base. The project owners can monetise their game through selling of NFT assets such as digital plots of lands, characters, weapons, cosmetics and much more.


The ERC Standard

Various token standards support many blockchain use-cases. Ethereum was the first blockchain to support NFTs with its ERC-721 standard and is at the moment the most widely used. Many blockchain developers have added a plan to support NFTs as well.
ERC-721 was the first representing standard for non-fungible digital assets on the Ethereum blockchain. ERC-721 is a Solidity smart contract standard and provides core methods that allow tracking the owner of a unique identifier, as well as a permissioned way to transfer any asset to others.

If you are a gamer, an art collector or just a person who wants to do some asset trading, you should definitely check what NFTs are all about!

Written By

Petrache Ionut

May 27, 2022