Examples of NFT

NFT had emerged into people’s daily life. From Metaverse to OpenSea, from Bored Ape Yacht Club to CryptoKitties, NFT gradually gained popularity on the internet in 2021. As a new form of a financial asset as well as a new type of art collection, NFT has many interesting features. In this article, some fundamental features of NFT will be explained to provide basic background information on this novel asset.

What is NFT?

NFT stands for Non-Fungible Token. As its name indicates, it is differentiated from the cryptocurrencies due to its “non-fungible” characteristic. If you trade one Bitcoin for another, you will get the exact same coin as others. However, each NFT is unique, and although there can be many different NFTs under the same “collection” (which is like a brand in some way, both Bored Ape Yacht Club and CryptoKitties are NFT collections), these NFTs are all different from one another (one piece of “ape art” is different from the others). For example, in an NFT market, if you trade an NFT of an ape wearing cool sunglasses, you can get an ape with a fancy haircut. The bottom line is that no two apes are the same.

In fact, NFTs are not limited to digital artworks or pictures. They can be any form of digital things, such as drawings, music, Twitter tweets, videos, etc. The “Jack Dorsey’s First Tweet” NFT was sold in April 2022 for $48 million!

More Possibilities of NFT

Although many people started to follow daily news on NFT because of its skyrocketing prices, there are many other interesting applications of NFT besides being an art collection or financial asset. One of these is the application of NFT on Metaverse. Metaverse is a theoretical concept for a virtual world. Inside this world, people can interact with other users, experience different scenarios, and travel to different places. In other words, this virtual world resembles almost every daily activity that we do. NFT is a key to the Metaverse because NFT can be the digital objects inside the Metaverse people use and see.

Besides Metaverse, there are some other applications of NFT, such as in the gaming industry (non-VR based). NFT-related games such as Axie Infinity and the Sandbox 3D all boosted their popularity as NFT is popularized.

The key takeaway is that as a novel asset, NFT has many future potentials that are not yet seen by the public. It is important to notice these potentials and understand NFT’s functions besides being traded as an art collection or for financial needs!