Non-Fungible Token (NFT)

What are Non-Fungible Tokens (NFTs)?

Briefly summarised, Non-Fungible tokens (NFT) are tokens that are unique and cannot be replaced with something else. This might sound abstract, but, NFTs are the perfect fit for digital collectibles, art, luxury goods and all sorts of other physical and digital products that can be verified on the blockchain.

Though, it’s much more than that! There’s for examples projects that enable companies to issue their event/festival tickets as NFTs, or certificates of authenticity that are issues on the blockchain.

In a time where it’s difficult for artists to make money, NFTs have enabled plenty of artists who understood the value to grab this opportunity early and earn a lot of money by creating their digital art or proof-of-ownership for physical creations.

What are NFTs used for?

NFTs are created using smart contracts. The NFT community initially started to mainly create their tokens on the Ethereum Network, as it’s the largest blockchain to offer smart contracts and is most trusted by the cryptocurrency community.

Though, because of the gas fee climate where it became very costly to create them on the Ethereum Network, NFTs also found their way onto the Binance Smart Chain, Polkadot, Wax, Solana and other networks.

There’s however discussions among the different communities, where concerns are expressed for smaller networks used because their gas fees are low. As various community members warn for the potential risk of these networks to fail, leaving you empty-handed.

Beeple’s collage, Everydays: The First 5000 Days

We’ve see the main used use case of NFTs so far is to create and collect collectibles. For example, Beeple, a well-known artist, managed to sell one of his digital pieces for a whooping $69M USD back in March.

Or there’s NBA Top Shot where users can collect over 10 million different Top Shot Moments, better explained as short video fragments of special moments during basketball games.

Another cool NFT use case are Ens.Domains, where users can register names such as 420.ETH (owned by me, Marco) to store all of my addresses, receive any cryptocurrency, token or NFT in one address. Rather than having to share my long 0xd34123412… address, I can simply share 420.ETH with people and enable them to send me these above mentioned assets in a much simpler way. Ens Domains is already supported by over 200 different platforms and wallets, including Coinbase, Huobi, Etherscan, Uniswap, and many other applications.

Where can I buy NFTs?

NFTs can be bought on different platforms, depending on the network used or community you’re looking for. There’s a couple of marketplace we’d recommend using if you’re interested in exploring the world of NFTs further.

These platforms are: