NFT stands for Non-Fungible Token. NFTs are data units that represent a unique digital asset that is authenticated and stored on the blockchain.
As the name suggests ‘Non-Fungible’ refers to non-interchangeable which means no two NFTs are the same but can be sold and traded. Hence each token is identified uniquely.
The Non-fungible tokens digitally represent any item, including online assets like digital artwork or real-world assets like real estate. These are primarily used to sell and buy digital artworks and with that GIFs, tweets, virtual trading cards, photographs of tangible goods, video game skins, and virtual real estate are just a few examples.
NFTs provide ownership characteristics that make it easy to identify and transfer tokens between holders. In NFTs, owners can additionally add metadata or attributes related to the asset.
- The NFT ERC-721 standard spawned and defined the basic interface—ownership details, security, and metadata—required for the exchange and distribution of gaming tokens.
- It was developed by some of the same people that created the ERC-20 smart contract.
- The ERC-1155 standard expands on the notion by lowering transaction and storage costs for non-fungible tokens and batching many non-fungible tokens into a single contract.
While you must have heard of Crypto collectibles which are non-fungible tokens that can be generated on non-fungible token marketplaces. NFT markets are decentralized exchanges that leverage a blockchain to allow users to build and trade with one another.
NFT Collectibles are valuable items that collectors seek and purchase. Collectors might range from short-term traders to crypto billionaires who enjoy accumulating items such as Art, music, video, sport, and games are just a few of the categories available.