{"id":2201,"date":"2021-09-29T18:36:29","date_gmt":"2021-09-29T15:36:29","guid":{"rendered":"https:\/\/evercodelab.com\/blog\/?p=2201"},"modified":"2022-07-27T12:52:05","modified_gmt":"2022-07-27T09:52:05","slug":"nft-as-a-blockchain-phenomenon-evercodes-perspective","status":"publish","type":"post","link":"https:\/\/evercodelab.com\/blog\/nft-as-a-blockchain-phenomenon-evercodes-perspective\/","title":{"rendered":"NFT AS A BLOCKCHAIN PHENOMENON: EVERCODE\u2019S PERSPECTIVE"},"content":{"rendered":"

Non-fungible tokens are a widely-discussed phenomenon. It seems that there is not a single unaffected industry left. More than that, NFTs look like the main growth engine for the entire web3 industry. We at Evercode Lab, for instance, added an advanced NFT functionality to our crypto wallet and see it as one of the competitive advantages.\u00a0\u00a0<\/span><\/p>\n

What are non-fungible tokens all about? Is it just a sort of temporary fashion? Are they already a legit component of the web3 landscape? Can crypto investors rely on them if they want to boost their crypto wealth? These are the questions the Evercode Lab team will attempt to address today.<\/span><\/p>\n

Definition: Non-Fungible Token<\/strong><\/h2>\n

NFT means \u201cnon-fungible token.\u201d But what does this word imply? <\/span>Investopedia<\/span><\/a>, for instance, defines NFTs as blockchain-based \u2018cryptographic assets\u2019. In other words, what makes them one-of-a-kind is their \u2018unique identification codes\u2019 and \u2018metadata\u2019 distinguishing them from each other. As such, these unique tokens, in <\/span>Forbes\u2019 words<\/span><\/a>, NFTs have entered numerous sectors, \u2018from art and music to tacos and toilet paper\u2019.<\/span><\/p>\n

Thus, an NFT <\/span>can be <\/span><\/a>viewed as a file proving the authenticity of any possible thing, whether it is a virtual or a real-world object. They are stored on a special blockchain network. As a result, that \u2018digital ownership\u2019 is secured, tracked, and can be accessed by a verifiable network. <\/span>Once again, NFTs do not contain artworks, music videos, pictures, digital images, treasure maps, documents, etc. All they are responsible for is making a simple statement, something like: \u201cthe holder of this NFT is entitled to hold the digital file he or she owns.\u201d This file, in turn, may contain links to other files.<\/p>\n

That is the main difference between an NFT and, say, BTC. Bitcoin is, by definition, a fungible asset. That is to say, any Bitcoin equals any other Bitcoin, while an NFT is unique, single, and one-of-a-kind.<\/p>\n

NFT Market Landscape<\/b><\/h2>\n

Just in case, NFTs are generally understood as unique digital blockchain-based assets that cannot be interchanged. Simultaneously, they can be traded, i.e. sold and bought, by using cryptocurrencies.<\/p>\n

Therefore, an NFT is intended to serve and serves as a kind of digital authenticity certification. As such, an NFT is used as a code linked to a particular file. Thus, it enables users to differentiate between the primary and genuine files on the one hand and countless copies made and distributed on the Internet.<\/p>\n

The origins of the NFT market can be\u00a0<\/span>traced back<\/span><\/a>\u00a0to the period between 2015-2017. In fact, 2017\u00a0<\/span>marked the year<\/span><\/a>\u00a0when over 1000 NFTs were traded on a single day. In 2020-2021 the NFT sales skyrocketed. The following figures illustrate such an astonishing upsurge:\u00a0<\/span><\/p>\n