Non-fungible token (NFT)

A non-fungible token (NFT) is a specialized type of cryptographic token representing something unique, like a domain name, a limited-time skin for a video game, or other digital properties owned by a user. Therefore the NFTs are not mutually interchangeable, meaning an individual might trade ownership of a domain name for ownership of a rare character skin for a video game or a cryptocurrency. NFTs differ from cryptocurrency, NFTs are entirely non-fungible, and they cannot be traded for something identical. Cryptocurrency is fungible and is exchanged for something that is of equal or identical value.

A non-fungible token (NFT) is a specialized type of cryptographic token representing something unique, like a domain name, a limited-time skin for a video game, or other digital properties owned by a user. Therefore the NFTs are not mutually interchangeable, meaning an individual might trade ownership of a domain name for ownership of a rare character skin for a videogamevideo game or a cryptocurrency. NFTs differ from cryptocurrency, NFTs are entirely non-fungible, and they cannot be traded for something identical. Cryptocurrency is fungible and is exchanged for something that is of equal or identical value.

Blockchain had early use in the art industry, allowing individuals to own digital intellectual property with records stored in the digital blockchain roster. NFTs are used to prove ownership and authenticity of digital art. In June of 2017, a company called Larva Labs released an art collectors line called CryptoPunks. The “Punks” were available free of cost for anyone with an EthereumEthereum wallet. Only 10,000 Punks were developed, no two alike, and all were quickly claimed. Ethereum wallet holders may now sell or trade punks for Ethereum coins. The average punk sold for approximately 4.12E, which equated to $2,998 on December 29, 2020. CryptoPunks is just one example of rare digital art.

Blockchain had early use in the art industry, allowing individuals to own digital intellectual property with records stored in the digital blockchain roster. NFTs are used to prove ownership and authenticity of digital artdigital art. In June of 2017, a company called Larva Labs released an art collectors line called CryptoPunks. The “Punks” were available free of cost for anyone with an Ethereum wallet. Only 10,000 Punks were developed, no two alike, and all were quickly claimed. Ethereum wallet holders may now sell or trade punks for Ethereum coins. The average punk sold for approximately 4.12E, which equated to $2,998 on December 29, 2020. CryptoPunks is just one example of rare digital art.

Blockchain had early use in the art industry, allowing individuals to own digital intellectual property with records stored in the digital blockchain roster. NFTs are used to prove ownership and authenticity of digital art. In June of 2017, a company called Larva Labs released an art collectors line called CryptoPunks. The “Punks” were available free of cost for anyone with an EtherumEthereum wallet. Only 10,000 Punks were developed, no two alike, and all were quickly claimed. EtherumEthereum wallet holders may now sell or trade punks for EtherumEthereum coins. The average punk sold for approximately 4.12E, which equated to $2,998 on December 29, 2020. CryptoPunks is just one example of rare digital art.

Blockchain games also use NFTs, for example, CryptoKitties, a game developed by a Canadian company called Axiom Zen. The game allows users to use the EtherumEthereum blockchain to represent in-game assets controlled by the user instead of the developer. In-game assets for CryptoKitties can be traded in third-party marketplaces requiring no added permissions from the developer.

Blockchain had early use in the art industry, allowing individuals to own digital intellectual property with records stored in the digital blockchain roster. NFTs are used to prove ownership and authenticity of digital art. In June of 2017, a company called Larva Labs released an art collectors line called CyberPunksCryptoPunks. The “Punks” were available free of cost for anyone with an Etherum wallet. Only 10,000 Punks were developed, no two alike, and all were quickly claimed. Etherum wallet holders may now sell or trade punks for Etherum coins. The average punk sold for approximately 4.12E, which equated to $2,998 on December 29, 2020. CyperPunksCryptoPunks is just one example of rare digital art.