Blockchain paved the path for many future trends in technology, like Decentralized finance, Non Fugible Tokens & so much more. Here we discuss Non-Fungible Token (NFT) in brief. If you want to learn more about How NFTs are changing gaming?, please visit this page.
In today’s world, everything has shifted towards digitalization. A new technology called Blockchain is changing the way we live.
Blockchain. Let’s start with that.
Blockchain shared ledger is an open-source technology that allows participants to update data in the blocks. Blockchain is an encrypted cluster of blocks.
Blockchain has three important characteristics.
Decentralization- Shared Distributed Ledger
It is not possible to alter the data once it has been entered.
Transparency. All participants in the transaction have the right to access the information.
Let us get inside our non-fungible token,
Digital assets with unique values are called non-fungible tokens. NFT intends to digitalize art over a Blockchain secured platform.
This means they cannot fraction or proportion assets. The 1000 rupees you own can be fractioned as 10*100 or 10*10*10 or 50*20.
NFT can’t fraction the data.
NFT contains all the information regarding the ownership, value and other details of digital assets.
NFT will help artists showcase their skills on a global platform.
Benefits and uses of NFTs
Authenticity- Aids in authorizing the owner.
NFT are safely stored to maintain their authenticity
Integrity NFT consolidated to a singular entity, and is unchangeable
NFTs are all unique, so they can’t be used interchangeably.
NFTs can be built across various Blockchain platforms.
NFT Tokens Standards
The tokens that are generated on the blockchains are NFTs. Ethereum, as an example, has a variety of token standards including ERC20. ERC721, ERC1145.
NFTs created on Ethereum use token standards such as
NFT tokens can be created on Ethereum Blockchain using ERC 20. ERC-20 standards are a collection of regulations and rules which must be adhered to in order to guarantee interoperability.
ERC 721 special exhibits without interchangeability. There is no interchangeability in the tokenization. ERC-721, the token standard, has personalized smart contracts. Smart contracts store ownership information. There are no predetermined rules. They provide transparency and security.
ERC-1155 has a token standard which supports both fungibles and non-fungibles. This standard has a faster response time than either of the other two standards. As an example, the user may want to trade different tokens like weapons and suit for characters that differ in their features. ERC-721, in the case of gaming platforms, is inadequate.