The innovation of blockchain technology is not limited to only fungible currencies rather it paves way for other possibilities such as trustless, secure and unbending transactions. If we go extensively, you will agree with me that the scope of blockchain lies between exchanging and maintenance of digital assets. If we dig further, there is sense in a sentence that says that "the future of blockchain lies in the technology of Non-Fungible Tokens (NFTs)". In recent, NFT projects have been making waves around the crypto industry, some of us already know about it but the majority still don't. This article will expose everything you need to know about NFT
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NON-FUNGIBLE TOKEN (NFT)
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Non-fungible tokens is another type of cryptocurrency that characterizes unique assets. NFT are known as crypto collectibles, their tokens are created uniquely and it usually has a limited quantity. Moreover, other types of cryptocurrency have not proven to be a real world asset, but NFT was designed to be the real description of real-life assets.
NFT represents something unique and they are not requitedly interchangeable by the individual specification such as it used to be in other types of crypto assets.
NFT can be used to create verifiable digital scarcity and their function can serve as verifiable proofs of authenticity and ownership within a blockchain network. Non-Fungible tokens are essential useful in real-life especially for an application that necessitates unique digital items for instance in-game items, licensing, digital-collectibles, certificates and digital art etc. NFT is the only technology that will allow fractional ownership of high-value items.
Some of you think NFT is just a new idea making waves in the crypto industry, but the answer is no. Non-Fungible tokens had been in existence for some time now. The first NFT token known as Coloured Coin was launched in 2012, and it was built on the Bitcoin network. Though since then, a lot of changes have occurred and more development has changed the view of NFT.
After I did my research about NFT, I have come into a conclusion that NFT is a key player in blockchain technology that will power a real-life digital economy.
Core Problem NFTs Aiming to Solve
We are all aware that to become an ownership or to get the rights of digitalizing our intellectual property has been a problem. The solution to this problem is what NFTs have come to solve.
HOW DO NFTs WORKS
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NFTs mostly are Erc-721 tokens that run on the Ethereum network. NFT are also available on Enjin network standard i.e Erc-1155. Though the only prominent way of creating and issuance of NFTs is by using the Erc-721 standard, and it is also commendable to trade NFT on ethereum blockchain. Though that of Erc-1155 can be termed as the advanced standard that allows a single contract to run both fungible and non-fungible tokens. This advanced standard way of issuance of NFTs emulates features that will benefit the users; such as interoperability and capability of sending unique assets between different applications in an easy way.
Nevertheless, NFTs are never equal to each other, rather each token is designated in a digital hash that distinguishes it from every other NFT of its kind either in value or in properties and this is one of the reasons while NFT can be used as proof of provenance am authenticity of intellectual property i.e original artworks. Furthermore, NFT could represent real-life assets and is also useful in the gaming industry.
USES OF NFTs
NFTs can be used in so different ways, but am just going to touch the cogent part
- Decentralized Applications (DApps)
NFTs can be used by decentralized applications such as using it to provide unique digital items and digital collectibles.
- Gaming Industry
With the aim of tokenizing the gaming industry with the help of blockchain, NFTs are useful in the gaming economics. NFTs have the potential to mitigate the inflation challenges facing the gaming industry.
- Real-life Assets
NFTs are innovations that will make us actualize the virtual world we are clamouring to see. How? NFT can be used to tokenized a real-life assets i.e NFT can
be a typical sample of fractions of real-life assets that can be stored and exchanges as tokens on a blockchain. This will further bring more liquidity to real-life markets for real estate, artworks, collectibles items and other related markets.
- Identity
NFTs are also useful in the digital identity sector. Users will be able to store their identity and ownership data on the blockchain. This will further improve privacy and enhance more data integrity, trustless transfer of assets and many more across the world economy.
LIST OF SOME PROJECTS USING NFTs
- Cryptokitties:
CryptoKitties is one of the most popular projects using NFTs, it is a game built on Ethereum that enables players to collect, breed, and trade virtual cats. CryptoKitty is made up of different properties, e.g color, age, breed indivisible etc and each of them is unique in the sense that they can't be interchanged with each other. Meanwhile people can trade the virtual cats to make some dollars.
- Decentraland
Decentraland is another project using the NFTs. It is a decentralized virtual reality platform where players can own and trade pieces of virtual land and other in-game NFT items.
- Gods Unchained
Gods Unchained is a digital collectible card game that enables cards to be issued as NFTs on the blockchain with unique features. Players can own this virtual card and trade them to make some dollars.
- OpenSea:
This is an open marketplace for Crypto assets. OpenSea connects the buyers with the sellers. At OpenSea market, the value of each token is unique.
Others are:
Rare Bits : Buy, Sell and Discover Crypto Assets
World of Ether : Dueling Collectibles
0xcert : Validate Ownership of Digital Assets
Crypto Zombies : Interactive Code School for Games
Etheremon : Capture, Transform Ether Monsters
WAX : Platform for Virtual Marketplace
*Codex Protocol" : Registry for Unique Assets
NFTs in DeFi
Defi ideology has started taking effect on NFTs too. One of the NFT projects called Rarible (RARI), a dApp that allows users to build their own original artwork and exchange it through their marketplace has incorporated yield-farming strategy into their system. The platform further incentivizes the users that trade their NFTs with RARI governance token. This opportunity gives people the chance to create their own NFTs, sell and earn rewards for providing liquidity.
ENJIN (ENJ) Gaming
Enjin is a gaming platform launched on Enjin Network in 2009 currently with more than 20 million users. The Enjin platform further extended their services in 2017 by bringing blockchain into their system. The incorporation of blockchain into their gaming platform turned a new leaf in their ecosystem. Enjin has built a lot of blockchain products and its ecosystem compromises "the gaming platform itself", "a wallet for storing digital assets", "a marketplace" and a "native token (ENJ)". The ENJ token was built on Erc-1155 ethereum network which has powered billions of digital assets.
Currently, the ENJ token is the most valuable in-game currency because it can be used in different ways in the gaming ecosystem. The ENJ could also be used in incentivizing players in the gaming industry.
ENJ on CoinEx
Enjin is available on CoinEx Exchange. ENJ could be trade and exchange with other cryptocurrencies on CoinEx Exchange
CoinEx is an exchange with more than 400 millions trading volume a day. The exchange can be accessible in over 150 countries and regions. Apart from trading ENJ on CoinEx, there are more than 500 crypto markets on the exchange.
Confirmation Duration of ENJ on CoinEx
On 12 confirmation, your deposit on CoinEx will be verified, while on 30 confirmation, your ENJ will be available for withdrawal.
ENJ is available on the following pairs
ENJ/USDT here
ENJ/ETH here
ENJ/BTC here
Closing Thoughts
I see NFTs as the future because it opens the opportunity and a way to digitalized our intellectual property rights and at same time tokenize our assets. NFTs still make us to understand that, digital asset can both be unique and valuable. With the help of decentralized applications (DApps), we can use NFTs to create and become ownership of unique digital items and collectibles. NFTs is the keys that will pave way for a blockchain-powered digital economy. NFTs could be in digital identity, video games, artwork, licensing, and certificates. Lastly, we can trade NFTs in an open marketplace that connects both the buyers with the sellers.