A simple EXPLANATION as to what Non-Fungible Token (NFT) is.
When CryptoKitties last year was launched , it took the world by storm and everyone fell in the craze of buying some unique collectable Kitties to be able to breed and then make tons of new kitties and sell it off for profit.
Some of these Kitties pulled in HUGE value as it gives out very unique stats and it can breed out rares as well.
Now it all sounds nice and cool however at its peak, CryptoKitties ate up just below 35% of the entire transaction of the ETH blockchain making everything else slowwwww and super high fees.
OK ... why am I talking about Cryptokitties ? And what's it got to do with Non Fungible Tokens ?
Non Fungible Tokens or NFT , is a token which is represented as something UNIQUE , IRREPLACEABLE and NON INTERCHANGEABLE.
To explain it in a easier way in the game CryptoKitties. Everyone has a unique Kitty even though it looks the same, and seems to be the same however it could have very different parents or even different time of its birth. This makes every Kitty unique and the value of these Kitties are determined by the characteristics of its parents and so on.
So imagine what else this can be used for, more games ... unique art work, school certs which are unique and can't be changed and many more. However the easiest way to understand NFTs is to relate it to game or arts and crafts.
Because of NFTs getting into the limelight, we now have exchanges which is use to trade collectables. For example
RareBit ( https://rarebits.io/ )
You can buy some of the most unique items here. But in my honest opinion, this is just the start to many new use case for NON Fungible Tokens.
Within the next few months, there would surely be more games or apps coming up and utilizing NFTs , like it or not this is here to stay and who knows we may get some of these mainstream games like World of Warcraft or Pokemon adapting to these changes.
Hope this gives you a brief understanding as to what NFTs are as there would be people asking you about it real soon ! That's something which is almost guaranteed.
Posted from my blog with SteemPress : http://steemitup.club/a-basic-understanding-of-what-is-non-fungible-tokens-or-nft/
This reminded me when the craze of the Facebook game Make A Baby was made and I even was part of the fan based redesign fashion team (that was supposed to help the game) and it took everyone by storm for that.
But at that time, it was not a blockchain game.
Posted using Partiko Android
yeap its literally the first steps into digital collectables.
Who would have thought that rarity will make a come back. When internet came online, unique is not possible as internet make copies of same thing easier.
Posted using Partiko Android
so true .. its just going to be a whole new market segment for collectors of digital assets
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