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A Beginner’s Guide to Non-fungible Tokens (NFT)

With the rise in popularity of Non-fungible Tokens (NFT) recently, I decided to create this guide in order to introduce this new growing market to those who doesn’t familiar with it, with that said let’s start.

# What are Non-fungible Token (NFTs) ?

NFTs are a unique digital assets that cannot be exchanged with one another for equal value or broken down into smaller values like most currencies, each NFT is different and contain identifying information recorded in its smart contract, they are characterized by their unique qualities, as well as authenticity.

Most of the NFTs were built using one of two Ethereum token standards ([ERC-721](https://www.coindesk.com/crypto-collectables-ethereums-next-killer-app-is-on-its-way) and ERC-1155), Eos, Neo and Tron have also released their own NFT token standards to encourage developers to build and host NFTs on their blockchain networks, also, BSC and ADA will introduce the options for NFTs in the near future.

# What can NFTs be used for?

NFTs represent a whole range of elements, anything from digital art, digital fashion items, collectible sports cards, virtual real estate, games skins and characters, music albums, ownership license and even physical assets and many more, basically any assets that need to be differentiated from each other in order to prove their value, or scarcity.

# A little bit of history

NFTs are a thing since 2012, developers experimented with the technology over the years but the first projects that got exposure and find their way to the mainstream were CryptoKitties (you could adopt, raise, and trade virtual cats) and CryptoPunks (you could bought unique digital characters), since then there was a big progress in the NFTs space and lately you hear about it on every crypto related place and even on art and music magazines.

[Dragon, the must expensive CryptoKittie today priced 600 ETH](https://preview.redd.it/yw9ua0a81hk61.png?width=225&format=png&auto=webp&s=0ac202afd8c67b5dbef964910de2a61e0c23a8ec)

​

[The most expensive CryptoPunk, recently sold for 800 ETH](https://preview.redd.it/snobpuy32hk61.png?width=275&format=png&auto=webp&s=cadb9b8f432d9f27cf340207d11994b4fda480f4)

# NFT in the headlines

[NBA Top Shot – Officially Licensed Digital Collectibles](https://www.nbatopshot.com/) ( $230 million spent on Lebron James highlights video)

[In December 2019, Nike filed a patent for Cryptokick Tokens as NFTs](https://thenextweb.com/hardfork/2019/12/10/nike-blockchain-sneakers-cryptokick-patent/)

[3LAU sells $3.6M NFT in first-ever tokenized music album sale](https://edm.com/gear-tech/3lau-record-breaking-nft-sale)

[Beeple NFT Artwork Sells for $6.6M](https://www.artnews.com/art-news/news/beeple-nft-artwork-nifty-gateway-sale-1234584701/)

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[Beeple’s Artwork sold for $6.6M](https://preview.redd.it/51y834h95hk61.png?width=231&format=png&auto=webp&s=ba09f6502381803b475e6f8a3c3ec25d7d97595e)

# What’s special about NFTs and why they can change industries like music or art?

For the buyers, NFTs provide a secure certificate of ownership over the asset it represent, protecting its value.

For a sellers, NFTs make it not only possible to sell something today, but also to keep earning in the future. Artists in particular have struggled to earn rewards if their work appreciates in value. NFTs can be coded to allow the original creator to collect money each time the token move hands.

NFTs can return the power and control back into the hands of the artists!

# Why NFTs are so expensive?

Like any asset or coin, supply and demand are driving the price. Due to the scarce nature of NFTs and the high demand for them people are often prepared to pay a lot of money for them.

Also, a lot of people see those NFTs as an investment opportunity, they can resell the NFT they bought for higher price.

# NFTs markets

Those are the most knowns marketplaces for NFTs where you can buy and sell NFTs that represent all the things I mentioned above.

[Nifty Gateway](https://niftygateway.com/)

[OpenSea](https://opensea.io/)

[Rarible](https://rarible.com/)

[Decentraland](https://decentraland.org/)

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**P.S.**

I believe that the NTF market is something that the crypto world would see grow rapidly in the next months, more and more projects starting to pop up and artists starting to sell their art/music using the technology.

This technology can really affect for good a lot of industries and can change things for the better.

Should be flair as educational.

If you have anything to add feel free to write in the comments and I’ll add it to the post.

I’m not a native English speaker so sorry for any grammar/spelling mistakes.

Sources:

[https://www.forbes.com/sites/abrambrown/2021/02/26/what-is-an-nft-and-should-you-buy-one/](https://www.forbes.com/sites/abrambrown/2021/02/26/what-is-an-nft-and-should-you-buy-one/)

[https://www.coindesk.com/what-are-nfts](https://www.coindesk.com/what-are-nfts)

[https://markets.businessinsider.com/currencies/news/what-does-nft-mean-crytpo-non-fungible-tokens-art-explained-2021-2-1030120067](https://markets.businessinsider.com/currencies/news/what-does-nft-mean-crytpo-non-fungible-tokens-art-explained-2021-2-1030120067)



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12 Comments

  1. NFTs are the future of digital art and digital collectibles. People will come around. I just wish I knew how to really invest in them wisely because I feel like they will become massive once the general public understands their value.

  2. Bruh, you essentially plagiarized/copied from two sources and changed a few words here and there. Don’t say you created the guide.

    [https://www.forbes.com/sites/abrambrown/2021/02/26/what-is-an-nft-and-should-you-buy-one/](https://www.forbes.com/sites/abrambrown/2021/02/26/what-is-an-nft-and-should-you-buy-one/)

    [https://www.coindesk.com/what-are-nfts](https://www.coindesk.com/what-are-nfts)

    [https://markets.businessinsider.com/currencies/news/what-does-nft-mean-crytpo-non-fungible-tokens-art-explained-2021-2-1030120067](https://markets.businessinsider.com/currencies/news/what-does-nft-mean-crytpo-non-fungible-tokens-art-explained-2021-2-1030120067)

  3. All content will be on a blockchain eventually, and media will likely be tokenized. (NFT) I don’t think NFTs are stupid; they’re misunderstood. The technology is ready to roll out and change the way we interact with the internet.

  4. Small businesses need a quick way to create an NFT as a timecard for clocking in and out of work. Clock in by Staking the NFT into a profit distribution contract for the location… Each job, each machine at a factory, each desk and doorway can have it’s own time based profit sharing contract. Employees are collecting tokens that represent time spent laboring that are replaced with the actual paycheck at the end of the week, or just keep holding the “hours” tokens until there’s liquidity in the profit swap contract… Workers can swap hour tokens with each other as if they are the paycheck, because they only have value to employees with approved NFTs that can be approved by the swap contract anyway. We can imagine a real time readout with all the current employees and the drip incentives they are earning: they can re organize labor by choosing from incentive options available. Imagine when someone goes to the restroom and it slows down production from being gone too long: they’re automatically not being paid because they walked out of the production floor area. This incentivizes efficiency: a smaller group with high productivity will AUTOMATICALLY earn more than talking heads that inflate the labor cost for personal social gain. No more wasting time to get paid for more hours: the hours you work are directly connected to the amount of profit that is available in the paycheck swap pool each week. I need to HODL my LABR.

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