NFTs are clearly one of the hottest topics in crypto at the moment. CryptoPunks, Autoglyphs, Bored Apes, Pudgy Penguins – some of them selling for hundreds of thousands or even millions of dollars.
So are NFTs just a hype or a paradigm change? What are some of the most interesting NFTs out there? And what are the biggest challenges of this new space? You’ll find answers to these questions in this video.
Let’s start with a quick recap of what NFTs are in the first place.
An NFT or a Non-Fungible Token is a way of representing ownership in the digital world.
Since the dawn of our civilization, humans have been collecting rare items. From seashells and gems to coins, post stamps and Pokemon cards. NFTs are just digital versions of that.
Collectibles, pieces of art, game items, domain names and even complex bespoke financial instruments – all of these can be represented as NFTs.
In contrast to cryptocurrencies like Bitcoin or Ether where each unit is interchangeable, NFTs are unique – at least in most cases. The creator of an NFT project can decide on the exact parameters of their NFTs.
Some of the common examples are:
-only 1 NFT per unique piece of art – artists that create individual pieces like Beeple follow this approach,
-a collection where each item has a unique combination of different traits – CryptoPunks, Bored Apes
-a collection where there is a set number of the same item in the collection – usually used for card collectibles like My Curio Cards.