You could also use them for digital collectibles such as cards, trophies, rare artwork, or even CryptoKitties. For example, you can use them to represent physical goods such as precious metals or real estate. The most important characteristic of non-fungible tokens is that each token has its own properties and identity. Using the ERC-721 standard as a basis, these tokens can have all kinds of characteristics like color, weight, power level, etc., when it comes to games. In addition, they cannot be destroyed and every instance is unique. They are created and transferred using smart contracts. Non-fungible tokens or assets (NFTs) are objects in a virtual world that are uniquely identifiable. This makes fungible currencies like dollars easy to use in day-to-day transactions but also makes them difficult to track because every unit has essentially identical value and function.

It also means that any single unit can be used interchangeably with any other unit without changing its value or function. Fungibility means that one unit of currency can be substituted for another identical unit with no effect on value or usability, so $1 will always equal $1 no matter where it comes from or who holds it. But how do you define what a non-fungible token is? In short, it boils down to two main traits 1) each token is unique and 2) each token can hold its own data.īoth of these characteristics set NFTs apart from other types of cryptocurrencies such as bitcoin or ether, which are considered fungible tokens because they all share similar properties.

If you haven’t heard of them yet, don’t worry – non-fungible tokens are still new in the crypto sphere and weren’t even mentioned by name until 2017. What are non-fungible tokens?Ĭrypto sphere-fungible tokens (NFTs) are a hot topic in blockchain development. If you’re interested in creating an ecosystem where users can buy and sell unique, in-game NFTs, keep reading! This guide will walk you through everything from establishing your team and choosing your business model to hire developers, designing your marketplace, and more. With the NFT marketplaces projected to generate over $3 billion dollars in revenue by the end of the decade, now’s the time to learn about their development so you can launch your own branded marketplace.

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