Non-fungible tokens (NFTs) are a new type of blockchain token. Unlike bitcoin or ether, each non-fungible token is unique and cannot be replaced by another. They are often used for ownership records, collectibles, virtual assets, and more! What makes them so special?
What are Non-Fungible Tokens (NFTs)?
Non-fungible tokens are a new type of blockchain token that is unlike bitcoin, ether, and any other cryptocurrency. Unlike bitcoin and ether, each NFT is unique and cannot be replaced by another. Non-fungible tokens can be used in a variety of spaces such as recording ownership, virtual assets and more.
What makes them so special?
1. They are highly individualized. Each non-fungible token is different from the next because no two items share the same ID number.
2. They can be used to track property rights such as real estate or artwork.
3. They can be cryptographically protected against duplication through cryptographic hashes or contracts that ensure that only one item exists.
4. They can reduce storage costs through fragmentation, which means smaller files that are easier to store and manage.
5. They can be used to create new tokens or subtypes of tokens on the blockchain, this has many possible uses such as creating unique cryptocollectible cards.
The Equipment Needed to Mint NFTs
To begin minting your non fungible token you will need a ERC721 contract and some WETH . You’ll also need an account created on Metamask so go ahead and import your ERC721 contract into Metamask so it appears within your account. Select “Mint” from the drop down menu when in metamask and voila! Your NFT is minted.
You will also need to have some ETH to cover the cost of gas fees. This is automatically taken care of by the metamask account.
An example of how to mint new NFTs
To begin, you will need a ERC721 contract and some WETH. You’ll also need an account created on Metamask so go ahead and import your ERC721 contract into Metamask so it appears within your account. Select “Mint” from the drop down menu when in metamask and voila! Your NFT is minted.
You will also need to have some ETH to cover the cost of gas fees which you can get for free here: www.myetherwallet.com/#generate-transaction . Input how much you’d like to spend and then click “send transaction.” Congratulations! You’ve just minted your first NFT.
Why use NFTs instead of other blockchain tokens?
Non-Fungible Tokens are a type of blockchain token which are unique and have an inherent value in the real world. They are not interchangeable with other tokens, so ownership can’t be transferred. This means that when you buy an NFT, you’re buying a digital asset that actually is worth something.
The best example of this is CryptoKitties which were sold for up to $200,000 USD each! That’s because each crypto kitty isn’t just pixels on an ether wallet, they’re unique digital assets that can be traded individually. The ERC721 standard allows for the creation of a standard token contract that is non-fungible. This means you can create a digital asset where each piece has a value and isn’t an interchangeable with other tokens.
The future of Non-Fungible Tokens and how they will change the world
Non-Fungible tokens refer to a new token standard that was proposed by the creator of Crypto Kitties. Non-fungible tokens are basically a new representation for digital scarcity. The goal is to offer a replacement for the traditional security of paper documents, stocks and bonds, and other assets with digital counterparts.
Non-Fungible tokens can be created using two different methods:
1) Creation by merging multiple ERC20 tokens into one single Non-Fungible Token (ERC20 + ERC721 method).
2) Creation by creating an ABI file and deploying it as a smart contract (ABI File + ERC721 method).
The most important thing about Non-Fungible tokens is that all of them are unique. Each token has its own specific attributes, which makes every token different from the other one(s).
For example, if you have a Non-Fungible Token for an orange cat with blue eyes and it’s brother has green eyes and black fur, then there will be two separate tokens even though they’re both cats because each cat has different attributes separate from each other.
Now that we know what non-fungible means and how to create them, let’s talk about why this matters:
1) Auctions: Using Non-Fungible tokens can help make auctions more secure because auction houses will not need to use resources such as photos or certificates to prove the authenticity and state of an auction.
2) Digital Collectibles: Non-Fungible tokens could be used to create digital objects such as emoji’s or stickers that can be bought and traded by anyone without having to worry about an item being lost, stolen, etc.
3) Proof of Ownership: If you upload any non-fungible token into a decentralized exchange such as EtherDelta then it will be easy for you to prove that the token is yours because it’ll have your Ethereum address associated with it.
4) Tokens for Voting: By using Non-Fungible tokens instead of paper ballots we can keep the anonymity of voters and prevent fraud and tampering due the security benefits of blockchain technology.