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Non-Fungible Tokens (NFT's) Are the Hottest Crypto Market

If you’ve seen the news, you’ve noticed that Beeple sold an NFT for $69 million.

That’s an insane amount, and as such, it has raised these tokens to the front light. However, what exactly are these tokens, and how do they work?

Non-Fungible tokens are essentially crypto assets that are indivisible, and completely unique. They launched on the Ethereum blockchain as an ERC-721 token standard but became available on other block-chains as well. Each token contains information that is recorded in the smart contracts, and this piece of information is the unique aspect of each token, as they cannot be replicated.

They can represent anything, from music to images, and in-game items, and they have characteristics that are specific to them. They are essentially non-inter operable, indivisible, indestructible, and fully verifiable. This is due to the fact that all of the NFT data is stored on the blockchain through smart contracts, and none of the tokens can be destroyed, replicated, or removed.

Notable NFT projects include CryptoKitties, Decentraland, and CryptoPunks. According to Statista, the market capitalization of transactions globally that involve a non-fungible token (NFT) is at $338.000.000 USD.

Pros are: Fully verifiable, Indivisible, Indestructible

Cons are: ERC-721 standard is fairly new, Non-Fungible tokens cannot be divided and have to be bought or sold whole

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