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Crypto Com NFT Brief Introduction and History

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Crypto Com NFT Brief Introduction and History ( crypto-com-nft-brief-introduction-and-history )

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What are Non-Fungible Tokens? This brings us to non-fungible tokens (NFTs). What are they, and how are they different from non-fungible digital assets like domain names or Twitter handles? Non-fungible tokens are an extremely powerful kind of token that allows for a flexible way to represent non-fungible assets on a blockchain. Their main properties are: Unique: Non-fungible tokens contain within their code information that describes the properties of each token that make them different to others. A piece of digital art might have coded information about individual pixels, while tokenized in-game items might contain details that allow the game client to understand which item the player owns and its attributes. Traceable: Each NFT has a record of transactions on-chain, from when it was created, including every time it changed hands. This means each token can be verifiably authentic, and not a counterfeit – obviously a very important thing for owners and prospective buyers! Rare: In order for non-fungible tokens to be attractive for buyers, they should be provably scarce. This will ensure that assets remain desirable in the long run, and that supply does not outstrip demand. Indivisible: NFTs mostly cannot be transacted as fractions of a whole. Just like how one cannot purchase half of a concert ticket or trading card, non-fungible tokens cannot be split into smaller denominations. Programmability: Like all traditional digital assets and tokens built on smart contract blockchains, NFTs are fully programmable. CryptoKitties and Axie Infinity have breeding mechanics coded directly into their tokens. Even more functionality is possible. In other words, NFTs combine the best traits of decentralized blockchain technology with non-fungible assets. Unlike regular digital assets that are issued and regulated by centralized entities, which can be taken from you at any time, it is possible to truly own and control your own NFTs. Crypto.com 6 6

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