NFTs are one of the most talked-about topics in blockchain in 2020, right up there with The Halving and DeFi. So, what exactly are NFTs? Why do they matter? How do you get them? The explainer below should get any beginner up to speed. Let us know in the comments if you have any questions, and join the WAX Telegram to discuss NFTs with the most active NFT trading community around.
What is an NFT?
NFT is an acronym for “non-fungible token” and you can think of it like a digital collectible, such as a trading card.
An NFT is similar to a cryptocurrency in the sense that it trades on a blockchain and has a monetary value attached to it. The difference between a cryptocurrency and an NFT though is that an NFT has certain characteristics that make it different from other NFTs, even if the two NFTs seem similar to one another.
For example, if you trade 1 bitcoin for another bitcoin, you are trading one identical thing for another. There is no loss of value on either side of the transaction — you both end up with 1 bitcoin. But if you trade 1 NFT for another NFT, they can be drastically different even if they appear to be the same. This is because an NFT includes a deeper layer of characteristics that make it different from others. These characteristics can include metadata, visuals, serial numbers, etc. and can all affect the value of the NFT based on what characteristics are valued by the people who buy and sell them.
NFTs, therefore, create exciting monetization opportunities for brands and collectors, as they are provable as authentic, safe to trade, and can include all different types of artwork and branding opportunities.
NFTs are also sometimes called Niftys, non-fungible tokens, or Crypto Collectibles. NFTs trade on a number of different blockchains, however, the WAX Blockchain is by far one of the most active blockchains for NFT transactions.
What are some examples of NFTs?
Examples of popular NFTs include:
- Topps “Garbage Pail Kids” trading cards, an iconic cult-classic collectible since the 1980s reimagined as NFTs
- William Shatner, the legendary actor whose roles include Captain Kirk in Star Trek, who released personal memorabilia to the public as trading cards
- Blockchain Heroes, an original trading card series featuring the likenesses of personalities in the crypto and blockchain space
- Prospectors, a popular blockchain-based game where players earn NFTs based on their gameplay which help improve their in-game performance
- CryptoKitties, the “OG” popular NFT series that skyrocketed NFTs to popularity back in 2016 and even though they quickly fizzled out, they are one of the most recognizable names in the NFT world since they were the first to be successful