Non-Fungible Tokens (NFTs) - what are they?
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Non-Fungible Tokens are tokens that have a unique identifier, they are not interchangeable, and cannot be duplicated because they have unique characteristics.
NFTs can be used to represent any kind of digital asset. They could represent a digital art piece, an in-game item, or a cryptocurrency.
They are created and validated on the blockchain which is decentralized and transparent by design. This means that once the token has been created, it cannot be modified or changed. NFTs are being introduced to the blockchain world with great success because of their ability to represent any kind of digital asset in an immutable way.
The first non-fungible token (NFT) was the CryptoKitties. It’s a game where people can buy, sell, trade, and breed digital cats. These cats are the first NFTs that were produced in 2017 and are still sold today.
Since then, there have been tens of thousands of new NFTs created and sold, with millions of dollars exchanging hands. Some believe NFTs are the future of all digital goods.
While it’s true many have made a lot of money trading NFTs, I personally don’t quite understand all the hype and think it’s quite silly how much money some of these less-than-creative tokens have earned. However, I do believe there is a lot of potential and opportunity in these technologies overall, we just need to utilize them in intelligent ways.
Published: March 25th, 2022