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If you are following news in the cryptocurrency and blockchain sectors, there is no doubt you have heard about the non-fungible tokens or NFTs. In fact, this new type of digital asset has taken over the headlines in 2020, bringing a new wave of innovations into the cryptocurrency world.
With the myriad of possible applications and a variety of ground-breaking features, NFTs seem to gain popularity in the crypto community quite quickly. Recently, an NFT blockchain-based artwork collection was sold for a whopping $800,000, setting up a new price record in the field of NFTs and attracting a great deal of attention from the general public.
What are NFTs?
NFTs stand for non-fungible tokens and refer to cryptographic assets that signify ownership of unique things, such as digital art or a one-of-a-kind in-game asset, among many others. NFTs are not interchangeable and that is their key feature – their uniqueness creates scarcity. The data that lies within each NFT token is unique, thus making each NFT token existing completely exclusive.
Traditional digital tokens, such as BTC or ETH can be considered fungible: users can exchange two Bitcoins with each other and the value of the assets will not be any different. However, this is not the case with a non-fungible token. A non-fungible token can be compared to a plane ticket. Plane tickets can’t be exchanged, because they are unique – one ticket will take you to Malta, while the other will get you on a plane flying to Madrid.
The majority of NFTs are built on the Ethereum network. The non-fungible token standard established on the ETH network is ERC-721. Just like the ERC-20 standard was created to standardize traditional tokens, ERC-721 was designed to standardize non-fungible tokens. Thanks to this standard, the crypto developer community has created a number of amazing projects, such as CryptoKitties, Decentraland, The Sandbox, and many more.
How Are NFTs Used?
Thanks to their unique features, NFTs found great applications in blockchain-based art, rare collectible video game assets, and securitized tokens including bonds, stocks, and real estate. At the moment, there are numerous NFT marketplaces available where users can take advantage of NFT trading.
One of the pioneers in the NFT sector, the leading decentralized gaming platform dubbed The Sandbox, has been very successful in spreading the word about non-fungible tokens. The game is essentially a virtual world that offers players an opportunity to build, own, and monetize their gaming experiences on the Ethereum blockchain network.
The Sandbox is aiming to provide a deeply immersive metaverse where players will be able to create virtual worlds of their own and design games. The project strives to disrupt the current game making sector by bringing an element of true ownership to the table. With the use of non-fungible tokens (NFTs), The Sandbox allows players to enjoy their experience without any central authority involvement.
NFTs Bring a Wave of Changes: CMC Earn Runs $400K First NFT Gaming Campaign
NFTs still might be a novice concept in the cryptocurrency world, but it is far from being just a trendy buzzword everyone is talking about. As a matter of fact, a number of big players are already exploring ways to collaborate with NFT projects or create non-fungible tokens of their own.
Just like that, one of the most popular cryptocurrency price-tracking websites, CoinMarketCap, has launched its very first NFT gaming campaign in collaboration with The Sandbox. The campaign runs on the CoinMarketCap Earn platform, encouraging users to learn about the specifics of The Sandbox.
As part of this campaign, users will not only be able to learn all about The Sandbox and its native token SAND but also earn hefty rewards. The educational campaign will distribute 10,000,000 SAND (worth ~USD 400,000) tokens to up to 40,000 eligible users (250 SAND per user). The rewards will be distributed on a first-come-first-serve basis – those who watch a series of educational videos about The Sandbox and successfully complete the quiz will be pronounced winners.
Some speak of non-fungible tokens as the key to the true open metaverse. A true metaverse is a virtual network that allows its users to own their assets and that does not impose any centralized authority on its users. Now, as people spend more time online within “virtual environments”, it is only a matter of time that NFTs will have an impact on how people interact online.
Non-fungible tokens have managed to revolutionize digital uniqueness and gave new meaning to strong digital property rights. However, it is clear that there is still a lot of work to be done in the crypto industry to make NFTs accessible to a wider public.
Eventually, the industry would need to find a way to lower the barrier of entry to the NFT sector by properly educating people about the basics and main concepts of non-fungible tokens.
Gladly, some of the major players in the blockchain industry are already paving the path to wider adoption of crypto and NFTs.
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