The Rise of NFTs: Exploring Unique Tokens and Possibilities

👽 What is NFT?

· NFT (non-fungible token) – a type of token, each instance of which is unique and cannot be replaced by other tokens similar to it.

· Unlike fungible tokens (like $BTC, $ETH or $TON), each NFT token is unique and often has some properties that distinguish it from others like it.

· NFT is simply a smart contract on the blockchain. Each token usually comes with a media file (image, audio, video) or a link to it.
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✨ NFTs can be used as:

· Profile Picture (PFP)

For the first time, NFTs began to be actively used as profile pictures in 2017, when the CryptoPunks project from Larva Labs was launched. After that, a trend emerged in the crypto community to use NFTs as profile pictures on social networks.

Currently, one of the most interesting collections for PFP is Pudgy Penguins.

· Digital Art

The digital art sphere has become one of the catalysts for the success of NFTs. This includes digital artworks that can be sold in the form of non-fungible tokens. NFTs provide new earning opportunities for artists working in digital formats.

Now they can tokenize their digital creations, thereby establishing ownership over them.

· In-Game Items

One of the most popular NFT types are in-game items, including various virtual assets: skins, weapons, equipment, etc.

They are actively used in most blockchain games.

· Identification

NFTs intended for identification serve to represent and verify unique digital data.

They allow you to verify your identity without the participation of centralized governing entities, while providing an increased level of privacy and user control over their personal data.
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✨ NFT Use Cases:

· Collecting – NBA Top Shot offers collectible cards in the form of NFTs with moments from games.

· Games and entertainment – In the game CryptoKitties, players can buy, sell and breed virtual cats that are unique NFTs.

· Music and audio – In 2021, The Weekend sold an unreleased song in the form of an NFT.

· Sports and fitness – The football club Paris Saint-Germain released an NFT collection in the form of digital goods, including virtual tickets to matches.

· Virtual real estate and Metaverse – Virtual lands in Decentraland were sold as NFTs.

· Education and certification – Many universities have started issuing diplomas in the form of NFTs.

· Financial services and investments – Unique financial products, such as Uniswap v3 LP position, can be wrapped in NFTs.

· Fashion and style – Gucci released its first fashion NFTs in the form of virtual sneakers.
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