
The primary thing to consider when studying the NFT ecosystem is its definition. A non-fungible token is a digital asset that is different from each other by original identification codes and metadata. It’s impossible to exchange it or trade at an equivalent unit. NFTs are photographs, tracks, videos, apps, games, and other pieces of art.
Each token is a unique item. Many features make it stand out from other digital currencies. The specific properties of NFT tokens:
Indivisibility. Dividing these tokens into tiny denominations is not possible.
Authenticity. Every non-fungible token belongs to someone; it’s easy to prove and verify.
Non-interoperability. NFTs are never equal to each other. Thus, it is not easy to exchange them as popular cryptocurrencies like BTC and ETH.
Tradability. Remember that you can trade tokens on various cryptocurrency exchanges. Those who own them enjoy the improved trading systems. Capabilities are almost endless.
Interaction with multiple ecosystems. A couple of standards, ERC 1155 and 721, makes generating non-fungible tokens for digital collectibles possible.
Liquidity. One can trade NFTs at a non-stop regime. That is why their liquidity is rather high. A great range of customers might have interest in buying/selling these tokens.
Programmability. In the minds of many, non-fungibles stand for complicated mechanics that involve forging, crafting, and generating. This niche has an endless amount of chances and variations. It is a great space for creativity.
Scarcity. Programmers can enforce various particular characteristics that are impossible to alter after once launched.
Besides, every non-fungible token is a 100% original digital asset with a unique set of metadata. Plenty of artists and collectors have an opportunity of joining e-commerce by tokenizing their goods. NFT marketplaces operate as either regular stores or auction platforms.
Get a better understanding by grabbing some samples. NFTs best-known examples include:
Original digital piece of art
Digital collectible
In-game item
Domain
Music track
Video
NFT art app
Essay/Creative writing
Unique pair of shoes
Pattern
Ticket/coupon