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NFT: Marketing Definition And Use

What is an NFT?

An NFT or Non-Fungible token in English is a non-fungible and non-exchangeable token in French and refers to a unique and authentic digital property.

An NFT is a cryptographic token stored on a blockchain (commonly Ethereum). A cryptocurrency like Bitcoin is an example of a fungible good. In other words, NFTs cannot be replaced by similar goods without needing to be differentiated.

How do NFTs work?

NFTs work using blockchain technology. The blockchain makes it possible to record the ownership and characteristics of each digital asset. Typically, NFTs are based on specific blockchain protocols, such as Ethereum, supporting ERC-721 or ERC-1155 standards for NFTs.

What are NFTs used for?

These NFT tokens are used to authenticate images or any other object on the Internet. In concrete terms, these are intelligent contracts registered in a blockchain. These contracts identify a file, its attributes, and the owner’s identity.

Examples of using NFTs

NFTs, or non-fungible tokens, have revolutionized the universe of digital assets and the blockchain world by offering an exclusive method to design and market singular digital elements. Here are some examples of NFT uses in recent years:

Cryptopunks

Cryptopunks appeared in 2017 thanks to developers Matt Hall and John Watkinson. Using an algorithm, 10,000 different and unique digital characters are generated. Each of the characters has their attributes and accessories.

CryptoKitties

The release of CryptoKitties is a radical turning point in the history of NFTs. Axiom Zen, now Dapper Labs, dreamed up Crypto Kitties. These are separate virtual cats that can be acquired or bartered on the Ethereum blockchain. Crypto Kitties and the hype they generated helped popularize the concept of NFTs. Indeed, as digital collectibles, NFTs have considerable value.

NFT trading platforms

In 2018 many NFT trading platforms were born (OpenSea, Rarible, etc.). These platforms give users the ability to acquire NFTs or trade them. Thanks to these e-commerce platforms, the NFT market has created new digital projects.

NFT-based video games

The gaming sector has also developed video games that have turned the universe of the metaverse upside down. The Sandbox or Axie Infinity has integrated NFTs to represent virtual objects, characters, or environments. Users can, through these games, acquire NFTs while playing. These NFTs can then be sold or traded on trading platforms.

NFT-based metaverses

Metaverses are virtual worlds where Internet users can interact and exchange digital goods. Decentraland or Somnium Space have thus adopted NFTs to represent real estate in their respective virtual universes. Metaverses based on NFT operations allow users to feel a true sense of ownership for the digital assets they obtain.

Also Read: Tips For Making Money From NFT Games

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