Wednesday, February 24, 2021

A Guide to NFTs, and How They Are About to Revolutionize Pretty Much Everything

Blockchain technologies allow us to implement a lot of radically new ideas that weren’t before possible. The first and so far most popular of these implementations is the creation and distribution of tokens. Perhaps you’ve heard of one called Bitcoin.

Bitcoin is a good example of a fungible token. One bitcoin is one bitcoin is one bitcoin. 

On the other hand, a non-fungible token allows us to create a digital certificate that represents a unique asset. We can attach these tokens to pretty much anything, including digital files—say, a photo, a video, an audio recording, or even this article. 

This allows us to create proofs of authenticity for digital content that can be owned, bought, sold and traded. Because these tokens are stored on an open and distributed blockchain (such as Ethereum), their embedded metadata and transaction history are completely verifiable by anyone in the world with an Internet connection. That means we can all know what digital wallets own what tokens at any given point in time. 

The implications of this are truly infinite, and we’ve just begun to scratch the surface of possibilities. So far, non-fungible tokens are being used to create industries around digital art, collectibles, gaming skins, digital land, and many many more.



from Hacker News https://ift.tt/3qNiBR6

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