Introduction In times of constant controversy over bitcoin and other cryptocurrencies, another type of digital asset is slowly climbing up and gaining traction. We are talking about NFT tokens, which experts believe will have a big impact on revolutionizing certain industries such as art, video games and even real estate. Non-exchangeable NFT tokens are characterized by the fact that each one is unique and limited in quantity. They are a key part of the blockchain-based digital economy. They are used in the creation of games, digital identities, licenses, certificates, and even in art. They also allow for shared ownership of high-value items. Due to the fact that NFTs are getting easier to create, More and more of them are being created every day. In this article, we will focus on what NFTs are, what they can be used for, and how a game called CryptoKitties affected the Ethereum blockchain in late 2017. What is an NFT non-exchangeable token? An NFT non-exchangeable token is a type of crypto token based on blockchain technology, its advantage is its uniqueness. They can be either digital assets or tokenized versions of real assets. Since NFTs are not 1:1 fungible (unlike bitcoin, for example, where 1 BTC = 1 BTC) they can function as proof of authenticity and ownership within the digital realm. What is fungibility? Convertibility means that individual asset units are interchangeable and essentially indistinguishable from one another. An example would be fiat money, each unit is fungible with any other equivalent unit. For that matter, a ten-dollar bill is fungible with any other original ten-dollar bill. This is necessary for assets that serve as a means of payment. In the context of currency, this is positive because it allows for easy exchange. However, it is not a positive feature for collectible items. In the event that we could create digital assets similar to Bitcoin by adding a unique identifier to each of these units, we would make them distinct from each other. Essentially, that's what an NFT is. How do NFTs work? There are various frameworks for creating and issuing NFTs. The most important of these is ERC-721, the standard for issuing and trading non-fungible assets on the Ethereum blockchain. ERC-721 tokens gained fame with the CryptoKitties app, which gained popularity in late 2017. It's that they allow developers to easily create NFT tokens. The newer version of the standard is ERC-1155, and with it, both convertible and non-convertible tokens can be included in a single contract, opening up a whole new range of possibilities. Standardizing NFT issuance allows for a higher degree of interoperability, which ultimately benefits users. Essentially, this means that unique assets can be transferred between different applications with relative ease. If you want to store NFT tokens, you can do so in Trust Wallet. Similar to other blockchain-based tokens, your NFT will exist at the same address. It's also worth knowing that NFTs cannot be replicated or transferred without the owner's permission - even by the NFT manufacturer. NFTs can be traded on open markets such as OpenSea. The value of each NFT is unique, and these markets connect buyers with sellers. It is clear that NFTs are subject to price changes in response to market supply and demand. The question that probably arises in the minds of many is, how can such things have value? As with any other valuable item, the value is not in the item itself, but rather is assigned by the people who believe it to be valuable. In effect, value is a shared belief. It does not matter if it is fiat money, precious metals, or a vehicle. These things have value because people believe they do. In this way, any valuable item becomes valuable, so why not digital assets? What can NFTs be used for? NFTs can be used by decentralized applications to issue unique digital items. These tokens can either be collectible items, investment products, or something else. The thriving gaming market today is no surprise to anyone. Given this, the use of blockchain 2112222to tokenize gaming assets is just another step towards the growth of this sector. There are also claims that NFTs can alleviate or neutralize the widespread problem of inflation. While the video game market is thriving and doing well, another interesting application of NFTs is real world asset tokenization. NFTs can represent fractions of real-world assets that can be stored and sold as tokens on the blockchain. This has a positive impact on the growth of industries such as art, collectibles, and real estate. Digital identity is also a sector that can benefit from the properties of NFTs. Data storage id
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