Hello Developers, You all are familiar with Blockchain Technology. Today We will talk about Non-Fungible Tokens (NFT). It's also popular as Blockchain NFT. So let’s start,
Quick Highlights -
NFT - Non Fungible Token. That is used to represent the ownership of unique items and it is not interchangeable because each has its own properties. Consider a Song File, Art, Painting, Website Domain, etc each has its own properties because of that it can be exchangeable. You can assign an NFT token to each item which represents ownership. Whoever has NFT Token is an owner of that item.
On that other hand, Fungible Token - Can be exchangeable, It has fixed value. Considering you have $100, I can exchange 10 Notes for $10, because at the end price is $100. Here, Value is the same and you can exchange with anyone. So this is called a Fungible Token. Dollar, BitCoin Price will be fixed for each item so it can be exchangeable like 1 Bitcoin = $1. If I have 1 Bitcoin and you also have 1 Bitcoin then price/value is same for all.
Nowadays everything becomes digital, there is a need to set the properties of items like scarcity, uniqueness and proof of ownership. For example MonaLisa Painting - If you check you will get many copies of MonaLisa Paintings if it is a bit hard to find original paintings of MonaLisa which are designed by Leonardo da Vinci.
Let’s compare the spectrum of NFT vs Current Trends over Internet,
|NFT||Current Trends Over Internet|
|NFTs are unique, not two NFTs are same||Multiple Copy of a file, like Song, Artwork, it is same as original|
|Each NFT has unique owner, anyone can verify public records||Ownership are stored on specific servers|
|NFTs are compatible with Ethereum. You could trade your Artwork||Companies have their own medium to exchange Artwork.|
|Creator can retain ownership rights over their work and get royalties on resale||Ownership retail with specific streaming services and get profile from sales & num of streaming users|
NFT is new topic to the world, Since companies has started their NFT Services, Let’s check some example,
Foundation helps creators mint and auction their digital artworks as NFTs on the Ethereum blockchain.
Metagrail is a digital collectibles platform empowering creators to launch evolutive objects that support multiple simulations.
Buy and sell Lands, Estate, Avatar wearables and many more. All are NFT assets maintained in an Ethereum Smart Contract.
Create your wallet with NFT Domain name, So you have unique ownership.
NFT Domain - .eth is registered on Ethereum via Ethereum Name Service (ENS). You can create your own NFT Domain from here.
NFTs have some properties:
If you own NFT:
If you create NFT:
NFT Creator manages scarcity of their assets.
For example, consider a ticket for Football Match, Organiser of an Match decides how many tickets to sell, let’s say Stadium Capacity is 3000. So each 3000 NFTs are created and each NFT is assigned for each seat.
Creators of NFTs get royalties every time when NFT are sold. This is still a developing concept. Foundation and Zora are platforms which support royalties for their artists up to 8% every time NFT is sold on.
NFT is widely used for Digital Content like Song, Artwork, Gaming Items like buy a Land for game it’s your own property, Domain Names like .eth, Let’s check all in more detail
Nowadays the Movie/Television/Entertainment industry transforms to online. For example, movies. Songs, Podcast are available in live streaming and available any time by paid subscriptions. Content creators make money by publishing on Life Streaming platforms.
Harnessing the power of NFTs, now creators can manage scarcity, they have ownership on their hand, they can sell it. Also on every person-to-person sale the creator gets royalties.
NFTs get more interest from game developers. Now you can buy/purchase virtual assets for your game like Land. NFTs bring benefits for both game developers and players.
For game developers, they can create NFTs and when it is sold on a player-to-player game developer will earn royalties. On the other hand, for players, they can buy game items in the form of NFTs. Players can sell it and get return values in the form of money. Players also sell to other player as well.
Now, If game developers no longer maintain a game then also on every sold-one developer will earn royalties. On other hand for players it’s memorabilia and have a value outside of the game
Nowadays if you see multiple copies are available in the market it seems the same as Original. To prove ownership in such a case, NFT is assigned to each unique physical item. So no worries how many duplicate copies are available in the market, whoever has NFT is the owner of the physical item. This information is publicly available & verifiable.
Now, The Ethereum Name Service uses NFTs to provide you Ethereum address with an easier-to-remember name like walletname.eth. Means you can ask someone to send you ETH via wallet name.eth instead of 0x23233...
Thanks for reading Blog!
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