What does Metaverse stand for? Is it a new virtual reality (VR) game or something else entirely? Here is the new craze of what NFT stands for.
What Does NFT Stand For?
NFT is an abbreviation of Non-Fungible Token which is an ERC-721 compliant token standard. The ERC-721 allows for non-fungible or unique tokens on the Ethereum blockchain. Also, this standard allows for every token in a set to be unique, unlike the ERC-20 which sets a limit for the total amount of tokens available.
NFTs are considered digital assets that can represent anything ranging from real estate to art. So, this standard was created in 2016 by Fabian Vogelsteller and Vitalik Buterin. While it is called Non-fungible, the tokens can be easily divided into smaller parts and remain in compliance with the standard.
Moreover, the NFT standard allows for the creation of scarce digital assets on the Ethereum blockchain. It has value and can be purchased, traded, or sold as a virtual commodity. NFTs can also be used to represent ownership or access rights, such as membership or loyalty points.
So, they also can become more valuable over time as they are used more often. Thus, making them a great investment tool for companies and individuals alike.
Ethereum Blockchain NFTs: Cryptokitties
Cryptokitties is an online game that was created to showcase the potential of blockchain technology. It allows users to buy, sell and breed online cartoon kittens. The users can create unique kittens by using the Cryptokitties website and then sell them to other users for Ethereum.
Each kitten is a unique digital asset and must be bought or sold through the website with Ethereum. Even though they can be broken down into smaller parts since they remain ERC721 compliant. Because the digital kitties are all unique and cannot be replicated by anyone else.
Ethereum Blockchain NFTs: Decentraland
Decentraland is a Virtual Reality platform where users can buy and sell land, buildings, and items in a virtual world. Users can purchase land that they can later use to build anything they want on their plot of virtual land. The land is not owned by any central entity so it is free from censorship or regulation by a government or corporation.
So, the only way to own land on Decentraland is by purchasing it from another user using MANA tokens, which are also ERC-721 compliant. The MANA tokens are used to buy, trade, and sell items in the Decentraland marketplace. These are such as building materials and decorations for your plot of land.
NFT Value
Cryptocurrencies have become more valuable through time as more people invest in them. A lot of them have become more valuable due to speculation which has been driving up prices lately. But it also makes it hard for people to predict how valuable something will be in the future.
Since so many factors come into play when pricing a cryptocurrency such as supply, demand, and market speculation. NFT’s still have the ability to become more valuable over time because they can be used in real-life applications that would increase demand. Because there is only one of its kind on the site so if someone wants it then they must buy it from you first before they can use it themselves.
