February 24, 2021

What are NFT tokens?

NFT is a non-fungible token. If, for example, the native Ethereum token or the ERC-20 standard tokens are interchangeable, then NFT is not, each token is unique.

Blockchain technology served as the basis for creating a digital analogue of money - cryptocurrencies. Later, on the basis of cryptocurrencies, substitutes for securities appeared - tokens. The next step was to digitize all other goods from the real world. Non-fungible tokens allow the creation of such digital goods.
The NFT grants the user the right to own digital goods. A token is a label that stores a link to any product. If you have a token, you own the goods that are described in it. If you don't have a token, you don't own it. This object can be text, image, audio, any digital artwork, game item or character, land and real estate in the virtual world, domain name, financial instrument, fan paraphernalia, club card or regular ticket to an event.

Now the segment of NFT tokens is actively developing, solving the problem of ownership of digital assets and making their storage safer. Various platforms are emerging to place / buy and sell collectibles, and many big brands such as Samsung, Formula 1, Nike, NBA, Warner Music, UFC have already entered this market. While the volumes are still relatively modest, its brief history suggests that interest in NFT is growing.

The digitization of the world is getting closer, and what examples of tokenization of non-fungible objects do you know?