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Intro to Non-Fungible Tokens (NFTs)

“NFT” is short for Non-Fungible Token. Many buyers are interested in them as unique assets, artwork or other creations that exist on the blockchain. This type of token can be viewed on a marketplace or a specialised NFT wallet, and has a world of possible uses and values depending on the intention of the creator. 

Non-fungible items are unique, and not simply replaceable by any other item. They are singular in nature. An easy-to-grasp real-world example of a non-fungible item would be fine art. For example, an almost-perfect replica of the Mona Lisa is incapable of actually being the original, and will therefore not be valued the same as the original. Imagine if you could prove ownership of that art on the blockchain, sell it or trade it on an open market, and enjoy a community of other collectors. This is the benefit of NFTs in crypto. 

Depending on the token type, NFTs are either one-of-a-kind or limited edition items, represented by a crypto token. For example, THORGuards launched an NFT project with 9,999 unique “characters”, each with an identifying ID. Some famous examples of NFTs include CryptoPunks and Bored Ape Yacht Club. Each NFT can be transferred, traded (or even burnt), just like any other token. Marketplaces such as OpenSea or a specialised NFT wallet, such as XDEFI Wallet, can also hold and view NFTs safely and securely. 

NFTs could contain a hosted link to a JPEG file, a video, music, or they could represent something else: an in-game item, metaverse assets, lottery ticket, VIP pass ticket, claim to ownership of intellectual or physical property, etc. Upcoming future use cases could even be a way to verify your personal identity. There continue to be new features for NFTs, and some collectors believe they are the best way to represent ownership and identity.

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