Introduction to Basic NFT’s - Qlael Practicalintroduction

Different about Non-Fungible and Fungible asset 

The definition of a fungible asset states that any asset can be fungible when the units are easily interchangeable with each other. You cannot distinguish different units of one fungible asset. As a matter of fact, every unit of fungible assets has a similar market value and validity. For example, one fifty-dollar bill would be equal to another fifty-dollar bill in terms of value and validity. You can find other examples of fungible assets in precious metals, commodities, cryptocurrencies, fiat currencies, and bonds.

Nonfungible assets are not interchangeable with each other and have unique properties that separate them from each other. Even if NFTs may look similar in some aspects, there are many prominent differences between them. Some of the notable examples of non-fungible items in the real world include concert tickets and artwork. Even if two concert tickets are the same in terms of design, a front-row ticket would have more value than a back-row ticket. Similarly, two paintings may look similar, albeit with certain rare elements differentiating them.

What are NFT’s?

Non-fungible tokens are basically digital assets that feature identifying information documented in smart contracts. NFTs or non-fungible tokens are presently the hottest trends in the domain of blockchain and crypto codes. If you dive deeper into the technicalities of enterprise NFTs, you will discover that they are basically unique digital codes. The unique digital codes depend on the same blockchain technology as cryptocurrencies, such as Ethereum. On the other hand, NFTs are unique and give you the privilege of ownership over digital assets. The existence of NFTs on a blockchain is formidable proof of the NFT blockchain interplay.

Properties of NFTs

  • Uniqueness

The foremost trait on which nonfungible tokens rely is uniqueness. The information in the code of NFTs illustrates the properties of the tokens in detail, thereby differentiating them from others. For example, a digital art item could have information about individual pixels in the code of its NFT.

  • Traceability

The on-chain documentation of transactions for an NFT includes all details of the NFTs. You can easily trace the history of NFTs from the time of their creation till the present time. It is also possible to identify the different times when the non-fungible token changed hands. Therefore, you can easily verify the authenticity of NFTs with the traceability trait.

  • Indivisible

Another important highlight you will notice in the NFT marketplace would refer to indivisibility. You could not purchase half of the artwork, and the same applies to NFTs. You cannot transact with NFTs as fractions of a complete NFT as it is impossible to divide NFTs into smaller denominations.

  • Rarity

Nonfungible tokens also feature scarcity that can improve their attractiveness for buyers. As a result, the assets would be highly desirable alongside ensuring that the supply does not surpass the demand.

Applications of NFTs

  • Digital Identity

NFTs can serve a vital role in changing how you visit museums, galleries, and landmarks. You can think of ways in which NFTs can be used to verify the authenticity of guests at such events and places.

  • Marketing

NFTs could also find promising use cases in the domain of marketing. Taco Bell has been one of the frontrunners in using non-fungible tokens for marketing purposes.

  • Gaming

The use of NFTs in gaming has also been one of the prominent highlights of the NFT ecosystem. While online games have items that you can buy and sell for money, the items are under the control of the centralized game server. However, the introduction of play-to-earn games has transformed the concept of gaming. Players can participate in the NFT games to earn items, which they can sell on marketplaces at higher prices. Axie Infinity is a glaring example of using NFTs in a game.

  • Digital Art

NFTs are a stepping stone for the development of digital arts. With NFT, artists can create programmable arts. Creators can program their art pieces to change or act differently based on certain conditions. The buyer can verify the authenticity of a digital art before buying it. Creative theft is a major issue, and digital artists can fight against this issue by using NFTs to present their work.(Indrawan Vpp)

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