How to buy and sell NFTS coins (what currency is used to trade nft)

Simply put, non-fungible tokens, also known as NFTs, are proprietary digital assets. Therefore, no irreplaceable token is identical. Let us explain it this way, when we send 1 BTC to a user and receive 1 BTC, nothing changes for us. That’s because every coin is identical, making it a fungible digital asset. NFT is like Leonardo da Vinci’s Mona Lisa. It's unique and that's what makes it valuable. There is no other painting in the world.

Similarly, each NFT stores some form of metadata, making it a unique entry on the blockchain. In other words, even NFTs on similar blockchains are not fungible.

How does a unique cryptocurrency empower its owner?

NFTs come with a mechanism to store rich metadata that goes beyond token symbol, supply, name and balance. It also stores asset and ownership details. Therefore, owners and future buyers are guaranteed provenance.

NFTs became the talk of the town in 2017 with the release of CryptoKitties.

What is the value of NFT?

To answer this question, let’s take a look at the development of NFT.

Attempts to create NFTs on the blockchain began back in 2013 when Color Coin was built on Bitcoin. However, the first technical standards for NFTs emerged in 2017. Its name is ERC721. That is, it is different from ERC20. This is because ERC721 tracks the ownership and movement of individual tokens. This is what makes non-fungible tokens unique and valuable.

The cat breeding game CryptoKittes is the first successful implementation of ERC721. Therefore, each ERC721 represents a unique digital kitty. The most expensive CryptoKitty traded in 2017 for $172,625 (600 ETH at the time).

This is when big giants like Google Ventures realize the power of NFTs.

Recently, Enjin, a blockchain startup, partnered with Microsoft to create crypto collectibles called Microsoft Azure Heroes. We will use it as an example to illustrate how NFTs work in the real world.

In the real world, NFTs have some great potential use cases in art, antiques, vintage, property ownership, and more. There are many main reasons why gaming is the first industry to push for practical implementation of NFTs. This is because the stakes are low and gamers are already familiar with the concept of digital collectibles.

Future iterations of NFTs will likely link physical assets to these cryptocurrencies to enable trustless transfers in the real world. As an example, identification certificates and software licenses can be traded as NFTs.

Many projects are already proposing better NFT standards, such as ERC115, ERC875 and ERC998.

Highlight the characteristics of non-fungible tokens:

They are unique to their owners.

They are not interchangeable with another identical NFT;

Each NFT has its unique characteristics;

Each NFT represents ownership, rights and privileges;

NFTs are indivisible.

How NFT works

NFT can work in a variety of ways. Here we’ll use an example of the latest digital collectibles launched by Microsoft. Many developers are using the Microsoft Azure platform. Now, they can win blockchain digital collectibles.

Enjin has developed a total of five badges and they are powered by blockchain. Each badge will be available in limited supply and will be awarded to individuals who have made valuable contributions to the Azure platform.

Each badge is basically an ERC-721 token that can be stored in the Enjin wallet and traded like any digital asset. Each badge is unique as it holds ownership and defines its future value.

To receive the Badge (ERC721) token, one needs to submit their candidacy and make valuable contributions to the Azure platform. After Microsoft Teams reviews "a job well done," members will receive a digital badge. The declaration can then be made by scanning the QR code.

This is just one way to get NFTs. Other NFT platforms such as CryptoKitties, WAX, and Qtum use different methods.

Conclusion

Fungible cryptocurrencies have proven their importance in the digital asset ecosystem. Non-fungible tokens, on the other hand, are potential opportunities to tokenize tangible assets with unique pedigrees. All in all, NFTs will expand the scope of blockchain in the real world.

The above is the detailed content of How to buy and sell NFTS coins (what currency is used to trade nft). For more information, please follow other related articles on the PHP Chinese website!