NFT: just expensive monkeys or something more?
What is it, what are the advertisements shouted about on every corner, what do bloggers and celebrities create? Just pictures worth millions or something more?
What is NFT.
NFT is a non-interchangeable and inimitable token.
NFT (non-fungible token) - a type of token, each instance of which is unique and cannot be replaced by other tokens like it.
Unlike interchangeable tokens (like TWT, DOGE or APE), each NFT token is unique and often has some properties that distinguish it from others like it.
An NFT is simply a smart contract in a blockchain. Each token usually comes with a media file (image, audio, video) or a link to it.
Many didn't hear about NFTs until after the 2020 hype. But their story is a bit longer.
The first NFT project appeared in 2015, 3 months after the launch of the main Ethereum blockchain. This project was called Etheria and was tiles of virtual earth with the price of each tile hard-coded to 1 ETH.
In 2017, smart contracts appeared in Ethereum, and the company introduced the concept of NFT. And from that moment the main haip on NFT went and such famous projects as CryptoKitties, CryptoPunks, Decentraland, etc. started to appear.
In terms of how media files are stored, NFTs are divided into those that store them on a blockchain (CryptoPunks, PixelMap) and those that store only a link to the resource where the image is stored.
Though the first way is more reliable, but it is not possible to upload too big media file to Ethereum blockchain and similar ones, because commissions for any action with such NFT will be very expensive. For this reason, most projects use the second method. However, if the resource where the image or video is stored disappears, you are just left with an empty (still unique) token.
There are also NFTs of different standards that have their own features: ERC721 and ERC1155.
Digital Art.
Many NFT collections are pieces of digital procedural art, which are random combinations of multiple image elements. These are the collections you most often hear about when they talk about "a picture worth millions". Such collections are CryptoPunks, Bored Apes Yaht Club, Moonbirds, etc.
Games
Using NFT as in-game items, allows you to replace the usual marketplaces like Steam. By doing so, you will truly own your weapon skin or beautiful cape in the game. Examples of such games are Sandbox, Decentraland, Mobox, and Gods Unchained.
Other uses
NFT can be used as proof of the original item. For example, Nike has patented CryptoKicks, which will use NFT to authenticate physical sneakers and provide a virtual version of the shoe to the customer.
NFTs may also be of interest to sports fans. For example, the NBATopShot project gives you the opportunity to redeem NFTs with the best moments from NBA games.
NFTs are also beginning to be used as PFPs(Profie Pictures) or VIDs(Virtual Identities), i.e. NFT avatars or proof of one's identity (and this, mind you, in an anonymous blockchain environment). A prime example of PFP is the recent introduction of NFT avatars in Twitter. And the representative of VIDs projects is AnataNFT, where you can put a 2D anime girl on camera instead of yourself, and she will repeat your movements and facial expressions.
Conclusion
So you have been introduced to such a thing as NFTs. The way we see it now is only an intermediate stage of development. There will be new blockchains, protocols, and applications for this technology. And now we have a unique opportunity to observe it all.