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What is NFT token and how is it used?

by Financial Economy

Non-Fungible Token (NFT), in its shortest definition, is a unique digital asset. It represents many unique digital assets, from collector’s items to virtual shoes, from virtual game content to digital properties. NFTs are produced using blockchain technology, mostly with Ethereum token standards. Detailed information about what is NFT token, how to use it, what it does, which NFT coins are, etc. is in the continuation of the content. You can browse here for information about Illuvium coin (ILV).

What is NFT token and how is it used?

NFTs are produced using blockchain technology, mostly with Ethereum token standards. However, unlike cryptocurrencies, they are not traded in Ethereum’s ERC-20 standard, but in ERC-721 and ERC-1155 standards.

With the technological innovations brought by our age, having digital products has become widespread among people and more than 174 million dollars have been spent on NFTs since 2017. The supply-demand balance ensures that prices are determined in NFTs, as in all assets with value. Due to the uniqueness of NFTs, the products sold are considered collectibles and their value is very high.

What are NFT coins good for?

NFT can be called digital assets, which stands for non-fungible token and means “unchangeable token”. Unlike cryptocurrencies, NFT, which cannot be divided into smaller units, is unique in its nature. Cryptocurrencies such as Bitcoin, Ethereum and Dogecoin, which are fungible tokens, can be exchanged with each other. It is sold or bought in smaller units. NFT assets, on the other hand, cannot be changed and divided into smaller parts from the moment they are produced.

Photo, audio, video, text or a gif, as well as various works of art, can be converted to NFT through various platforms. The most famous of these NFT platforms are OpenSea, Rarible, Solanart, NBA Top Shot and CryptoPunks.

Files uploaded to these platforms are encrypted with crypto technology and uploaded on the IPFS system, which is a file sharing protocol. Records of these transactions, verified by miners, are kept in blockchains. In these records; There is information such as the person who produced the NFT, the commission rate to be earned from subsequent sales, the price of the NFT and how many units will be produced.

So which coins are the NFT ?

NFT coins are crypto assets that function on platforms that use NFTs, which are immutable digital assets. Blockchains like Ethereum, Binance Smart Chain, Flow or Tezos have their own standards for using NFT.

Some of the NFT coins are: Axie Infinity (AXS), Chiliz (CHZ), Illuvium, THETA, Enjin Coin, Fetch,ai, Decentraland, WIDT Datalink, Flow (Dapper Labs), The Sandbox, Rarible, Bakery Token, NFTX, Whale, Aavegotchi, Sportcash One, CoPuppy, GET Protocol, Audius, Super Farm, Unisocks, Super Rare, Atari, XMON, CryptoZoon, Feisty Doge NFT, Bondly, UFO Gaming, Refinable,etc.

You can browse here for information about THETA token.

What exchange are NFT coins on?

NFT marketplaces are the first place to look to buy NFT coins. NFTs can be traded on open marketplaces such as Treasureland, BakerySwap and Juggerworld on BSC, and OpenSea on Ethereum. These markets allow buyers and sellers to connect, and each token has a different value.

But there is a very IMPORTANT point that it is necessary to make sure that the exchange to be used is “RELIABLE” before making a transaction!

Caution: The information contained in this content is for informational purposes only. It is not investment advice.

For information about cryptocurrency: https://en.wikipedia.org/wiki/Cryptocurrency

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