Introduction to Non Fungible tokens and their real-life application

Introduction to Non Fungible tokens and their real-life application

29xp-meme-superJumbo-v3.jpg-2.webp Recognize the image?

You must have come across this as a Meme at least once online.

This 'image' was sold for a whopping $500,000.

You might wonder how a meme gets sold for such a high price?

The ans is: NFT.

Let's deep dive into this new phenomenon.

Introduction

Let's say you are playing online games like COD, PUBG, GTA, etc.

In them, you buy and sell items like gun skins, avatars, costumes, gold, eggs, etc.

But there is a difference...

Now every player owns a different version of a single game item.

Everyone might own a gun skin but no two players would have the same.

Similarly, if you own a weapon, every other player will own a different version of it.

Instead of the game company having control

All the items are stored in Blockchain.

Hence you are the sole owner of it.

This is NFTs.

What are NFTs?

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NFTs are Non-Fungible Tokens which means they are unique.

Unlike art in the real world:

Where there are many copies of an art piece or gaming item by the original creator (individual or company).

In the NFTs space, you won't have any two items being the exact copy of each other.

They will have some differentiating characteristics.

Eg: If there is an NFT project with 10,000 items but still all those items will be different from each other in some way.

Where are NFTs stored?

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NFTs are stored on the Blockchain.

Where blockchain is like a transaction log with non-editable history.

Hence no one can change the ownership of your NFTs.

Not the Government.

Not any centralized authority.

Not a roadside thief.

Unless you decide to sell your NFT.

Use cases of NFTs

NFTs are not just limited to art pieces.

But they have a wider role to play in the Metaverse.

Like:

🔰 Creator/Artists

A creator can issue NFTs in the form of their art, tweets, posts, music, etc.

The NFTs provide the fan/owner with certain privileges.

They get access to:

  • Personally signed clothing
  • Front seat in concerts
  • Royalty in the sale of the artist's music.

🔰 Community

NFTs can be used as an entry ticket to private communities.

These communities would consist of people, experts who share the same vision or interests in a field.

Some of its best examples are:

1️⃣ CPG Club

Owning the Club NFT gives you access to legends like Jaime schmidt and Chris Cantino

It brings you in contact with experts in the CPG field.

You make connections, start ventures and get exclusive deals.

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2️⃣ Internet Kids

Being an IK you get access to:

  • Every Clothing Drop & Discounts
  • Internet Kids Events
  • Exclusive Internet Kids Podcast Episodes
  • Private Discord Channels etc

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🔰Platforms

Exclusive NFTs can be created to access a particular web3 platform.

Which is yet to be opened to the public.

This method creates excitement and a new way of handling users.

Example: Thirdweb

Before making the platform open to the public.

ThirdWeb issued 1000s of Early access NFTs (non-tradable)

These NFTs allowed holders to access the platform's various features like SDKs, Workflow, and other widgets.

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Conclusion

Similarly, every proof of ownership IRL like property papers, marriage certificates, etc can be replaced by NFTs and get stored in the Blockchain.

This way of transaction makes it seamless and easy to transfer ownership from one person to another.

For people who think that right-click saving an NFT makes it worthless.

It's just like saying I took a picture of someone's Ferrari 365 GTB/4 Daytona hence now I own it.

But the flaw is, you can't sell or trade the item to make money.

While the real owner of the NFT can.

If you have any questions or want to contact me, dm at Twitter