What is an NFT?
An NFT or Non-Fungible Token is a type of cryptographic token that represents a unique asset that can’t be replaced with something else. In the cryptocurrency space, they represent tokenized versions of real-world objects like art, music, in-game items and videos. NFTs are not interchangeable with each other and introduce scarcity to the digital world.
Here is an NFT video created by Beeple that was sold at an auction for $6.6 million.
Beeple was also responsible for creating this historic NFT, EVERYDAYS: THE FIRST 5000 DAYS, which was a result of his 13-and-a-half years of posting digital art online. It was sold at Christie’s auction house for $69,346,250.
How do NFTs work?
NFTs exist on a blockchain where they are minted through smart contracts that assign ownership and manage the transferability of the NFTs. When someone creates or mints an NFT, they execute code stored in smart contracts that conform to different standards. The most prominent of these is ERC-721, which is a standard for the issuance and trading of non-fungible assets on the Ethereum blockchain.
Many NFTs are created and stored on the Ethereum Network, although other blockchains like the Binance Smart Chain, Solana, Polygon and Flow also support NFTs. They are securely recorded on a blockchain, which ensures the asset is one-of-a-kind and makes it difficult to alter or counterfeit them.
What are NFTs used for?
This article from Ethereum.org clearly explains the most common uses cases of NFTs.
Trust Wallet supports NFTs
Trust Wallet offers you an easy way to keep all your unique ERC721 and ERC1155 crypto NFTs and game assets in one place. Currently, Ethereum and Binance Smart Chain NFTs are fully supported. With Trust Wallet, you can interact with decentralized applications (DApps) that allow for the creation and ownership of unique digital items and collectibles.
Trust Wallet can be used to:
- Trade NFTs in open marketplaces with other buyers and sellers.
- Access Play to Earn games where you will have full ownership of the in-game items.
- Register and use your Ethereum Name Service (ENS) domain name or Unstoppable Domain name.
NFTs in DeFi Explained
Additional resources