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UNRAVELING THE TERM “NFT”

  • blog
  • 3 min
  • July 25, 2022

NFT stands for a non-fungible token. NFTs are distinguished by their unique properties. NFTs are cryptographic tokens stored and registered on the blockchain with the aid of a smart contract.

 

••HISTORY OF NFTs 

The concept of NFTs has been with us since December 2012, beginning with the creation of coloured coins (Bitcoin blockchain). On May 3rd, 2014, the first known NFT (Quantum) was minted by digital artists Kevin McCoy and Anil Dash on the Nameless Blockchain.

Coloured coins are denominations of a cryptocurrency, earlier used to validate possession of assets. In current times NFTs have taken other forms of digital representations such as art, music, videos, essays, and certificates.

 

••CREATION OF NFTs

NFTs are created by a process called minting. Minting is the process of registering an NFT and its metadata on a Blockchain. Metadata is stored and contains all information about the NFTs, this information includes; features, author, time of publication, etc.

 

••NFT USE CASES

NFTs are part of our present and growing society, they offer various uses such as;

–TOKENIZATION; This is the conversion (representation) of real-world assets to “tokens” existing on the blockchain ledger. It reduces fraudulent activity such as forgery, manipulation of data, etc.

–AUTHORIZATION; NFTs are used as tickets or access keys to private functions. NFTs can be used as an invitation to communities or platforms that are exclusive to the holders.

-VOUCHERS; NFTs are used as vouchers, enabling the holders the benefits of a discount on products or privileged services. –METAVERSE; Digital representations of objects, places and people in virtual reality.

–IDENTIFICATION; Means of identification, or representation of status.

 

PUFFER SQUAD™  utilizes the above use cases.

 

 

Posted on our discord: 👉 https://discord.gg/fugunation  #nft-education channel