Sunday, March 24, 2024

Non-fungible tokens

by Hideo Nakamura
Non-fungible tokens

Non-fungible tokens (NFTs) are digital assets that represent a unique, one-of-a-kind item or asset. They exist on the blockchain and provide an immutable record of ownership. Unlike traditional cryptocurrencies, NFTs are not interchangeable — each token is distinct from every other token, making them “non-fungible” or unable to be exchanged for something else of equal value.

NFTs have become popular in recent years due to their ability to track ownership over digital items such as artwork, music, collectibles and game items like skins or weapons. By providing a secure way to prove ownership of these types of digital assets they offer more control and security than traditional methods such as emailing files back and forth between owners.

The most common type of NFT system is based on Ethereum’s ERC721 standard which defines the requirements for creating and managing non-fungible tokens on the Ethereum network. The ERC721 standard also specifies how data associated with NFTs can be stored securely within the blockchain while allowing users to interact directly with it through smart contracts (computer protocols which facilitate automated transactions).

In addition to using Ethereum’s ERC721 standard there are several other platforms that support Non Fungible Tokens including NEO Blockchain’s NEP5 Standard, Waves Platform’s Non Fungible Token Protocol (NFTP), Counterparty protocol and many others. Each platform has its own set of specific rules governing how NFT’s can be created, managed and interacted with so it is important that developers do their research before deciding which platform best suits their needs when building applications around this technology.

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