What is NFT? What Does NFT Do?​ How Is NFT Used?

What is NFT? What Does NFT Do?​ How Is NFT Used?
What is NFT? What Does NFT Do?​ How Is NFT Used?

📩 05/07/2022 15:01

NFT is one of the most interesting digital data of recent years. NFTs, which have a very different application than classical cryptocurrencies, is a concept that may interest many works you produce in the digital environment. With the concept that has made a name for itself since 2015, you can evaluate your existing digital assets or acquire new collections for yourself.

What is NFT?

NFT stands for Non Fungible Token. It can be translated as "Immutable Token" or "Immutable Money" in Turkish. NFT is essentially a cryptocurrency. But in this definition, money can be any asset that has value outside of the definitions we know. That is, an NFT is a digital asset that has a value and can be collected. Assets that can be counted as NFTs; It can be any piece of art, video, tweet, a website, images, stories you create on social media, and more. All these digital assets can be NFTs when they meet the necessary conditions.

It is also possible to define the concept of NFT as the reflections of an asset that may have a collection value under normal conditions in the digital world. For example, cards and football cards, which were extremely popular and collected in the 1990s, can be good examples of these assets. The difference between NFT and digital currencies is that all NFTs are designed differently. This feature makes them unique and unchangeable.

What Does NFT Do?

NFTs exist on the blockchain just like other cryptocurrencies. In other words, NFTs are fully digital assets. So, what does NFT do in this case? You can think of NFTs as follows: Just as cryptocurrencies or Bitcoin have a monetary equivalent, NFTs also have some counterparts created in the digital environment. These can be an art form, a photograph, a literary piece, and more. The value of NFT comes from its uniqueness. So when you buy an NFT, you have a digital asset that no one else has. You can think of owning an NFT as getting yourself an original code in the digital environment.

How is NFT Used?

NFT is created with the ERC-721 standard, which is an Ethereum-compatible code generally created by CryptoKitties developers. Apart from this, another newly developed standard is ERC-1155. This new standard also offers the opportunity to work together with new opportunities. This means that blockchains of NFTs, which are unique assets, are compatible with each other and can be easily transferred between different applications.

The first NFTs appeared circa 2015, based on Ethereum. CryptoKitties, on the other hand, made its name for the first time in 2017 thanks to its non-alterable token technology. Since then the NFT industry has been growing rapidly. NFT, which can also be described as an unchangeable token; It can be traded in markets such as OpenSea, Nifty Gateway, and SuperRare.

When you want to keep your NFT and create a collection, you can use wallet applications such as Trust Wallet. Thus, your NFT and other blockchain tokens you use are located on a specific address. In addition, NFTs may not be copied or transferred without the permission of the owner.

Areas where you can use NFTs include:

  • The game,
  • CryptoKitties universe,
  • digital art,
  • Different other applications.

Domestic and Foreign NFT Examples

The work of Beeple, a digital artist, is a combination of many works that belong to him. Beeple, which has been sharing artworks on its Instagram account for a long time, is among the pioneers in the recognition of NFT technology. Mesut Özil's “Future football boots and jersey” designs are also among the works sold with NFT. The Associated Press, a US-based international news agency, also took its place in NFT history as the first news organization to sell NFT.

Besides these NFT-related trades, there are also project examples. Here are some NFT projects:

CryptoCrystal: CryptoCrystal is a crypto mining game. In the game, you can see mining in the style of Bitcoin or Ethereum. Users of the game produce crystals by buying coins from the company called pickaxe.

HyperDragons: HyperDragons is a game played with little creatures. The feature of this game is that it interacts with projects belonging to other teams. The game is divided into 3 parts. These; collection, production and consumption. The business model of collectible NFT is available in the game.

CryptoVoxels: When Ben Nolan, a game developer, realized the impact of blockchain on user experience, he attempted to create a digital world for them. In CryptoVoxels, which are played with virtual reality glasses, some special materials can be sold and land can be built.

Rarible: The purpose of the Rarible platform is to bring together artists and art lovers. The platform is secured by Blockchain technology. With this platform, you can sell your digital collections and find buyers for them.

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