The Rise of Non-fungible tokens, better known as NFTs, is one of the newest asset classes in the crypto space. They allow users to own and transfer something that is unique, like a digital Mona Lisa painting or an in-game baseball card. While these NFTs are currently mostly used for collectibles, there are many applications for this unique asset class.
What Is a Non-fungible Token?
A non-fungible token (NFT) is a unique digital asset where each instance is distinct from one another. Each NFT is completely different from other instances and can represent ownership over assets such as works of art, real estate, company equity, or financial instruments. They are sometimes called crypto-collectibles or dynamic scarcity tokens.
Why Should You Be Interested in Them?
As more developers have begun working with NFTs, a new class of consumer applications has emerged, including digital art collectibles. With consumer-facing applications like Cryptopunks leading the way, it’s clear that NFTs are here to stay and will play an increasing role in our online experience. While today’s projects focus on artwork and collectibles, tomorrow’s NFT use cases will be much more diverse.
Investing in Crypto Art
In recent years, crypto-collectibles have taken center stage. These digital assets have become increasingly popular, with more than $6 billion transacted in 2018 alone. Crypto art is an emerging sector that is poised to make a big impact on blockchain and beyond. Here’s what you need to know about investing in NFTs (non-fungible tokens).
The Rise of Non-Fungible Tokens, Collectibles, games, and gambling
Non-fungible tokens (NFTs) are unique assets that can represent individual digital items, such as unique pieces of digital art, or a token that represents your digital pet. An NFT isn’t divisible into smaller units and is built on smart contracts like Ethereum, which means it can hold value and be transacted peer to peer without intermediaries. As such, blockchain technology has enabled us to create new digital products that were previously impractical or economically infeasible.