At its core, a Non-Fungible Token (NFT) represents a unique digital item or asset that is verifiably scarce and indivisible. Unlike cryptocurrencies such as Bitcoin or Ethereum, which are fungible and can be exchanged on a one-to-one basis, NFTs are distinct and cannot be exchanged on an equal basis due to their uniqueness.
NFTs operate on blockchain technology, primarily leveraging smart contracts to establish ownership, provenance, and authenticity. Most NFTs are built on the Ethereum blockchain, utilizing the ERC-721 or ERC-1155 standards. These standards enable creators to tokenize their digital creations, such as artwork, music, videos, virtual real estate, or even virtual in-game items.
The NFT ERC-721 standard is indivisible, representing a unique asset on the blockchain. It is widely used for singular ownership and authentication of digital items, but lacks efficiency for multiple assets. Conversely, ERC-1155 is versatile, allowing issuance of both unique and fungible tokens within a single contract. This standard optimizes gas costs by enabling batch transactions and reduces blockchain bloat. While ERC-721 suits single, distinct items, ERC-1155 efficiently accommodates various assets, enhancing scalability and cost-effectiveness for multi-token applications.
The emergence of NFT marketplaces has provided a platform for creators to showcase and sell their digital assets. These marketplaces enable direct peer-to-peer transactions, eliminating the need for intermediaries, while also facilitating secondary sales. Notably, artists can program royalties into the smart contracts of their NFTs, earning a percentage of the resale value each time the asset changes hands. This groundbreaking feature ensures that artists can continue to benefit from the success of their work even after the initial sale.
Our vision is to create a digital ecosystem of synergies.
Our vision is to create a digital ecosystem of synergies.
