What are NFTs?
NFTs, or non-fungible tokens, are a type of digital asset that is unique. Think of them like a digital version of a baseball card or a collectible coin: each one is unique and has its value based on its rarity and desirability.
But unlike baseball cards or coins, NFTs are built on blockchain technology, which means they are decentralized and secure. This means that no single person or organization controls an NFT, and it can be bought, sold, or traded on a digital marketplace without the need for an intermediary.
One of the most popular standards for creating NFTs is called ERC-721. This set of rules and guidelines defines how NFTs should be made, managed, and traded on the Ethereum blockchain. The ERC-721 standard allows for creation of unique, one-of-a-kind digital assets that can be easily bought, sold, and traded on the Ethereum network.
One of the critical advantages of ERC-721 NFTs is that they are interoperable, which means they can be used on different applications and platforms that support the standard. This opens up a wide range of possibilities for NFTs, from digital art and collectibles to virtual real estate and gaming assets.
Another essential aspect of ERC-721 is that it allows for creation of NFTs with different levels of ownership and control. For example, an NFT can be owned by a single person or shared among multiple people. It can also have different rules for how it can be transferred or traded, allowing for greater flexibility and customization.
Overall, ERC-721 is a necessary standard that has helped to drive the growth and popularity of NFTs. It has enabled the creation of a wide range of unique digital assets that are secure, decentralized, and interoperable, making them an exciting new frontier in the world of digital art, collectibles, and ownership.