In this blog post, we’ll discuss what makes Non-Fungible Tokens different from other types of digital assets, how they work in practice, and which nft collection you should start collecting today!
What makes Non-Fungible Tokens different from other types of digital assets:
Non-Fungible Tokens (NFTs) are unique pieces of digital content that cannot be copied or forged, making them valuable as both a store of value and a medium for exchange.
How do they work in practice:
NFTs use the same cryptographic primitives as Ethereum ERC20 tokens, but their application is unique.
An NFT could represent anything from a deed for a house to a portrait of your dog. To record an NFT’s existence, Ethereum uses the ERC721 standard, which defines a new “token” type as well as metadata associated with each token.
What should you start collecting today:
The CryptoKitties craze is still alive and well, with some of the more iconic kitties being sold for hundreds of thousands of dollars.
- Gods Unchained Cards
Gods Unchained is a blockchain-based trading card game. Each card itself is unique due to its ERC721 standard, and Gods Unchained is the first application to take full advantage of this. The game will allow players to both trade cards and take part in competitive tournaments, with the latter requiring a buy-in fee which is rewarded back to the top performers at the end of each month.
CryptoFighters allows you to collect and train fighters in a digital world, with each fighter being considered part of your unique and persistent identity. Each fighter has an NFT associated with it that contains its stats and other relevant details, which you can trade or sell on the EtherDelta-like contract for ETH or any ERC20 token.
How do you collect & manage your NFTs?
Track them in your MEW wallet’s interface. MEW is currently the only Ethereum wallet that supports NFTs. They are listed under Contracts > Custom Tokens and can be added by their contract address or token ID, along with other metadata like name and symbol. When you send transactions to an NFT, make sure you select the address associated with it, as well as the amount you want to send!
To collect an NFT, all that is needed is for you or someone else to send a transaction from their wallet to the contract address of the NFT. The contract may have other requirements in certain cases, such as passing a captcha or whitelisting, so always check the contract before you send any transactions.
How to store your NFTs securely:
NFT transactions are ‘bound,’ meaning that if you use an amount of ETH for a transaction with one address, all tokens associated with that public key will be affected. This means it is safest only to send the exact amount needed or to pay for any fees using another wallet (MetaMask, for example). In addition, NFT transactions will often require GAS, which can be sent from your MEW wallet as well.
In conclusion, NFTs are a new and exciting type of asset that is quite different from anything else in the Ethereum ecosystem. They are unique digital pieces that can be used for games, art, or even more practical purposes!