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NFT or Non- fungible token is a type of digital files that has a unique identify which is been verified by its owner on a Blockchain like a digital market for crypto currency to be exchanged. In another word, NFT are unique digital identifier that can not be copied, substituted or subdivided, and also they are kind of digital assets that can take the form of GIfs, tweets and more.They exist on a blockchain currency and gives the buyers digital ownership right.
NFTs are also a cryptographic file or token that represents individual characteristic sets apart.NFTs and FTs or better still Fungible token are different but with similarities in them. Fungible token are experiment in subversion of NFT using some shrinking film materials and processes also maybe for fun and other needs.
NFTs are also a cryptographic file or token that represents individual characteristic sets apart.NFTs and FTs or better still Fungible token are different but with similarities in them. Fungible token are experiment in subversion of NFT using some shrinking film materials and processes also maybe for fun and other needs.
Difference between fungible and non-fungible tokens
| Fungible | Non-fungible | |
|---|---|---|
| Exchangability | fungible token are assets which can be interchangeable and also it can be exchanged with other assets with same NFT kind. | They are unique assets that are not interchangeable and they can not be exchanged with other NFT if it's same kind |
| Divisibility | they are divisible assets that is to say, the items can be divided or broken into any number of units as far as the value remains the same | They are non-divisible assets,and they can also represent a whole entity which can not be sub-divided into multiple units |
| Informality | fungible tokens do not have unique value proposition like NFTs because, the tokens are in uniform | They have unique value proposition and each of the token has an ID number |
| Tokens standard | They use ERC20 standard to create the fungible tokens on Ethereum blockchain | They use ERC721 standard for representing of their tokens |
| Use case | The issuance and Transections of tokens, like TRX, OMG, SNC and more | The issuance and Transections of crytokitties and cryto collectibles |
NFTs serves as collectables put together in a collection of catalogue it's serves also like a currency as it can be sold and bought that's to say it's interchangeable, it makes use of meta mask especially as it's blockchain and transactions are been made using the Etherium crypto ETH as the major means of exchange, for NFT mostly it deals with creativity which is far different from other cryptocurrency whereby you just go and buy on a blockchain any amount of a particular currency you want to buy, for NFT it takes a different shape to the world of crypto, NFTs has a market place were transactions are been made the market place contains different types of collectables been auction out for people to come and buy at a particular price been set or in bid depending on the duration of the item placed for sale and it's been done in Ethereum ETh, such market place are many among various are the most popular ones such as Opensea and Foundation where one can buy a particular pieace of work for an amount set, to invest in NFT one has to have an Etherium wallet i.d which can be connected to the market place for easy transactions to be made, using your Etherium wallet you can purchase items and also sell in the market place depending your choice. Other marketplace for NFTs are;
- Rarible
- NBA top shot
- super Rare
- Draft Kings
- foundation
- mintable e.t.c
Difference differences between an NFT and other currencies
| NFT | other Currencies | |
|---|---|---|
| Exchange | The NFTs can not be interchangeable and they are irreplaceable | They can be exchange in the blockchain Market |
| Divisibility | They can not be divided | They can be divided |
| Uses | They uses art, profile picture, gaming and utility | They store of value movement of wealth contracts, and smart application |
| System used | They are decentralized system | They are Centralized system |
| Transection | They are minted through smart contract and it can be modified in some certain situations | It is always recorded based on launch and transfer of ownership |
In creating a new NFT one has to be sure of the type of item to use after that the item needs to be minted on the market place, for some a gas fee is needed for the minting while like Opensea you can mint for free but when placing for sell you will need to pay certain gas's fee for it to be placed for sell. Bellow are some steps:
- Choose a marketplace that will allow you to create NFTS, then create an account
- Connect your blockchain wallet to the account and fund it
- Select the content that you want to turn into NFTs then upload them to your account
- Pay the minimum fee for creating the NFTs account
- Once you upload, select the NFT you want to sell then set a fixed price range.
note: you can promote your NFT in social media to gain prospective buyers.
Is it possible to have an NFT stolen?
NFTs can also be stolen if your wallet is been exposed to certain individuals which makes it dangerous because all your items will be lost and won't be able to recover.
How are NFTs used in art, video games and collectible card games? And how are NFTs revolutionizing property titles?
How are NFTs regulated? And what are the solutions to the limits of NFT development?
why use a distributed file system like IPFS in this area?
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Interplanetary file system is a centrally located server which is built on a decentralized system for users to store and retrieve content or files basically on a fingerprint of the file itself which is called cryptographic hash. Or it can be sent as a peer-to-peer file that connects all computing device with that same system of files. The IPFs is similar to the web, but it could be seen as a single BitTorrent swarm, exchanging objects within one Git repository. Also it provide high throughput content addressed block storage model with a content addressed hyper links and it removes all duplicate across the network, each of the network mode stores only one content.
So the reason why the NFTS uses the IPFS is because the interplanetary file system stores NFTS files perfectly using the web project to ensure that all the underlying images can not go offline and it can not be charged. The IPFs offers a lot of benefits to other approaches without any drawbacks.
With the IPFs there are no authority like AWS that is to say no one can modify, replace your content on a whim or even remove it. Also with the IPFs there are no central point of failure because, in some cases your host may fail and at that point your NFTS might fall too. But with IPFs that will not happen because o the decentralized system. The significance of each portion must fail before the IPFs would become unavailable.
With the IPFs, all content can be kept online because, it is peer-to-peer based, that is to say your NFTs is always available and you can kept online as long you want. In Conclusion the IPFs is used to secure the wallets of users from any attacks.
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NFT as a whole has a great deal especially in arts such as pictures of interest, human figure, still life abstract etc which can be used as a collection, also in terms of video games most developers have found away to use NFTs as a means to make people play in nurturing a character, playing to win a particular stage for income, making money through NFT game play, some make use of card games to be collected and stored for future reference as artifact.
NFT has Made a revolutionary upgrade to the world of crypto investment as it's beginning to change how this currencies work, it's seen as the future of digital currency where anything can be used as an NFT and been sold or bought in the digital marketing world.
Based on my research, NFTS are not subjected to any regulation, that is to say there is little or no legal protection for the people who create, trade and invest in them. But hopefully with the way people are into it, the team will do something about the regulations of the NFTS.
And what are the solutions to the limits of NFT development?
The NFTs is not regulated yet, so I think the need for regulations is very important so that people mind will be free when ever they want to create,and trade in the NFTs Market.
The issue with the NFTs is that there is no certainty in determining the price of the NFT because,the price of each NFT depends on the creation and uniqueness of the owners and buyers. Also there are considerable fluctuations in the price of the NFT because there is no any fixed standard for the NFT, as such people can not determine the factors that will drive the price of NFT. Because of this, the fluctuations in price remain constant and the evaluations of the NFT becomes more challenge. so I think if the team can make a standard on each price of the NFT it will go a long way for the people.
Another thing is that the gas fee is much as such many people are not able to create NFTS. I suggestions that the team should also look into the gas fee and make some adjustments.
In conclusion, the NFTs is a good trading tokens that's if one understand all the challenges and the risk in it, then it will be better and more easier for that person to buy and sell NFTs in the market by eliminating all the risk.
NFT is a digital art digital resource. These digital arts have to be unique and at no time can they be a duplicate of any art. It is gaining more and more popularity day by day. You have covered NFT issues in great detail in this post. I like your post a lot, gave us excellent information. Took a very good entry.
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Thank you reading through my article sir, I really appreciate your efforts 🙏
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You have perfectly defined NFTs and how its different from other currencies. You have also listed some of the marketplaces, and how to invest in NFTs. I most confess that you have done a great and wonderful job here. Keep it up, and keep steeming. Wish you success all the way
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Thank you for your kind comment I really appreciate 🙏
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Nice entry @yakspeace. The uniqueness of an NFT is truly where the value lies, it is also what proves ownership. I enjoyed reading your entry. Good luck in the contest.
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Thank you very much, I really appreciate 🙏
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wow I'm impressed with the write. like you rightly said. NTFs are tokens of the future. and i like the way you put out the differences between NTFs and other currencies. i have learned new stuffs especially creating an NTFs.
I must say you so go on the write up plus it coming from a woman , there's more power to that
your have my upvote. great job👍
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I'm glad you learned something from my article my dear friend. Thank you very much for your warm wishes and comment I really appreciate ☺️
Women are always powerful and strong 😁😁
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Nice entry dear friend
l love the way you structured the differences between an NFT and other currencies. I think NFTs has brought great innovations to blockchain technology and it's has somehow propagate the economic value of blockchain in our respective sector.
Thanks for this wonderful piece I humbly request you to engage in my post
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You are very correct, a distributed system like IPFS is essential for a project like this, as it must always be available at all time.
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Gas fee is really a big issue when it comes to making NFTs
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Actually this is the first time I’ve heard of foundation you know 🤔. Am currently using opensea and that’s the only place I have nfts. Oh I forgot, I also have nfts on houbi. But I’ve heard of other market places like rarible and nba topshot.
Are you sure about that ? Well I’ve not encounted this yet though.
I listed one of my nfts on opensea months ago after minting it for free on the polygon network but I don’t have to pay a gas fee for listing it. Infact I had nothing in my metamask wallet when I was listing it.
There have been situations where an NFT is lost forever and the user can do absolutely nothing to get it back. But there have been other situations where the platform like opensea can actually freeze the sale of the stolen nft.
Yes, this can be attributed to the fact that the nft space is fairly new thus regulators are now looking for means and ways of regulating it.
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Haha my dear friend I am sorry you were muted, please try avoiding cases of plagiarism it really harmful for our growth as steemians. I hope you get forgiven.
Thanks for sharing
wishing you success
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