The Crypto Times
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Application Editorial Ethereum

What are NFTs and Why they are Important

Non-Fungible Tokens, or NFTs, have been standardized by the Ethereum developer community as ERC 721 tokens to support a robust ecosystem of decentralized applications. NFTs are unique cryptographic tokens that are not interchangeable with any other tokens. This construct enables users to check the authenticity of a digital asset without the necessity of trusting a centralized organization. These tokens are digitally scarce.

After the establishment of the ERC 721 standard, a massive wave of digital contents and online gaming assets has exploded. In online gaming, the users may accumulate weapons, skins, and property that they may trade with other users for other tokens or digital currency, making an all-around digitized transaction of assets.

Rare digital arts or collectibles with guaranteed scarcity is another use cause for NTFs. The value of a rare art purchased is indeed legitimized by the open source nature of the Ethereum blockchain so users may track ownership all the way back to the asset’s minting.

Crypto Kitties; no two kitties are the same due to unique NFT IDs.

With this NFT standard, artists can monetize their art pieces and have legitimate custody of their creations. Because NFTs are unique, their characteristics are digitally accepted and their accessibility through the blockchain is open to everyone. Hence, as long as the underlying blockchain is active, the existence of NFTs will last.

Looking toward the future, the developer community is still working to improve the functionalities of NFTs as it is a nascent technology.

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