NFTs are not entirely new to the world of cryptocurrencies. However, this industry may seem complicated for those who have just learned the basics and how Bitcoin’s exchange rate affects their profits. While Bitcoin is a common cryptocurrency and can be easily exchanged for other virtual money, NFTs are one of a kind. It can be a fully digital asset or a tokenized version of tangible assets. Each such token on the blockchain is non-fungible.
A work of art
NFT tokens are often used as works of art. Artists digitize their jobs in the blockchain and then monetize them. The value of art tokens lies in the ability to verify the authenticity of a product and prove ownership of a specific digital asset.
It applies not only to images. NFT has gradually moved to music and video art. So these files are also digitized and converted into a token on the blockchain.
NFT collectibles can be kept by traders for themselves or sold. Their uniqueness lies in the identity of the asset created on the blockchain.
Some token creators issue them in a small number of copies. Therefore, such a limitation often becomes the reason for their popularity among collectors.
Gaming tokens differ from the assets that are usually stored in wallets. Here, they are used for:
- creating game rules;
- organizing mechanisms;
- player interaction.
Thus, a game can create a liquid skin as a token on the blockchain. The player who unlocks it first receives ownership rights. A similar scheme is being gradually implemented in many games, so gamers are gaining progressive experience with digital items.
NFT trading cards
The probability of counterfeiting or other manipulations is almost zero. NFTs can become a virtual copy of a physical asset. Such a token is called a trading card. They are becoming popular because of the easy verification method and the ability to own liquid cards. It is helpful for investors. The fact that the cards are developed in the blockchain also protects them. You can buy them on Binance NFT.
Specific NFT avatars have also become popular. This is a digitally created image for the account picture. Features of such photos:
- they often depict a particular character;
- each concept is unique;
- algorithms with different properties generate the sketch.
Avatars are used for several reasons. It is a way to maintain the spirit and create a unique style of a particular union. With the help of avatars, a person can emphasize their status – possession of a non-fungible token is still valued. NFTs can even be used to create tickets to an exclusive event in the meta-universe.
NFTs are used to create memes – this period is often called the “meme gold rush” phenomenon. Images of jokes can be a good source of monetization for their authors. However, the value of each token depends on how well the meme goes viral. The price is additionally affected by the authenticity of each digital asset.