What are Non-Fungible Tokens (NFTs) (Update 2023)

What are Non-Fungible Tokens (NFTs)?

You must have heard and read a lot about NFTs.

Many artists, designers, and musicians have sold their paintings and albums as NFTs, and one of the works of well-known street artist Banksy, “The Fools (The Whites)” has even become a virtual crypto asset.

It is a true paradise for digital geeks and those who simply want to own a unique property

It is not surprising that NFTs are becoming increasingly popular.

But apart from NFT itself, there are NFT funds. In this article, we look at what these funds are and which are the best funds to invest in.

How do NFTs work?

A token is any entry in the blockchain network. In an open blockchain network, all tokens are equal, identical, and interchangeable. This means that you can replace one symbol with another without changing the symbol.

Immutable code technologies behave differently. Each token is unique, immutable, and cannot be forged, shared, or changed without your knowledge.

This technology is perfect for the special effects of any room, whether it’s art, video game pieces, or real estate.

When you buy a non-fungible NFT, you receive what is called proof of transaction. The task itself is not straightforward.

It is stored in a permanent storage called IPF or Interplanetary File System.

This certificate is a line of code indicating that the owner of this token owns the original copy of the object.

NFTs can be compared to photos of a specific person, however, they can be displayed in museums and galleries to the public.

Anyone can create an immutable NFT non-fungible token. This process is called printing immutable codes.

To do this, you need to get a digital object (photos, music, photos, etc.), register it on a marketplace (such as Rarible or OpenSea), upload the object with a description, and indicate the price.

Most of the platforms offering these services charge a fee to generate a unique code.

What are NFT coins?

Cryptocurrencies and NFTs are virtual assets created on top of an existing platform (not to be confused with a trading platform).

They are used to purchase NFTs in the system itself.

To illustrate the table, let’s take the example of a gift card in a store. For example, you cannot use this card in the theater.

Because it is only intended to be purchased from a specific store. The same applies to the cryptocurrencies used to buy and sell NFTs.

For example, to buy an NFT on the Ethereum-based OpenSea marketplace, you need the NFT Ether (or Ethereum) cryptocurrency ETH.

To shop in the virtual world of Decentraland, you need to use MANA coins.

Are NFTs different from non-fungible tokens (NFTs)?

Yes, NFTs are not the same as NFTs. The most important thing here is not to confuse them

The difference between NFT cryptocurrencies is their interchangeability. As mentioned earlier, NFTs reflect ownership of unique assets. On the other hand, NFT cryptocurrencies can be exchanged and traded with other NFT currencies and the economy of some NFT projects depends on it.

NFT and Cryptocurrency: What’s the Difference?

It is also important not to confuse NFTs with cryptocurrencies.

Non-fungible tokens (NFTs) have more characteristics than cryptocurrencies, the main one being inconsistency.

Like NFTs, open blockchain networks contain tokens that represent values or objects on the blockchain.

All tokens are interchangeable on the open blockchain network, for example, every bitcoin (which is also a cryptographic token(s)) on the bitcoin blockchain looks exactly like any other bitcoin.

The non-fungible tokens of the NFT network and the blockchain are not the same, they are unique, and these tokens cannot be changed.

In the latter case, this mark cannot be replaced, copied, distributed or modified

If you are interested in cryptocurrency trading or cryptocurrency trading in general, you can open a crypto trading account with FBS.

Best NFT Coins in 2023

If you are interested in trading or investing in NFT cryptocurrencies, here is a preliminary list of the best NFT tokens that you can check out.

MANA coin – Decentraland

Decentraland is a virtual world and community based on blockchain technology.

It is a decentralized autonomous organization (DAO) that allows users to create, hold, sell and buy land, buildings, and NFT avatars on the platform.

MANA is the private cryptocurrency of the Dcentraland virtual world, and all assets run on the Ethereum blockchain.

Decentraland Statistics:

Market value: 1,222,253,164 dollars
Hybrid market value: $1,445,249,778
Volume / Market Cap: 0.09016
Mint: 1.86 billion mana coins

*All data updated to October 2022.

Discentraland features and characteristics:

The basis of the virtual world of Decentraland is the understanding of cryptocurrency, which can be used to buy large tracts of land.
You have the right to buy and sell land for profit and income.
You can earn passive income by renting out your land.
You can build anything you can imagine and put it up for sale in your virtual showroom through promotions.
For example, Dycentraland has a direct relationship with NFTers and allows them to work with digital artists to open galleries that display NFT paintings.
Participants in this world can acquire land, build houses, manage conferences, hold conferences, set up chat rooms, and so on.

ORI coin – Orica

Eureka is designed for beginners in the cryptocurrency space. Created for those who value creativity and strive for great art.

Eureka aims to revolutionize the NFT ecosystem by ensuring that even small ideas can spread and reach the maximum number of participants, and everyone who participates in this NFT is rewarded.

Eureka is the first digital marketplace to set such a goal.

Orica stats:

Market value: $16,004
Diluted market value: $16,004
Circulating Supply: 83,999,900.00 ORI

*All data as of October 2022.

Orica features:

Orica is a marketplace for buying and selling NFT tokens, allowing all artists to collect and pay NFT tokens after the sale.
This marketplace uses a tool called Proof of Art (PoA) to authenticate issued tokens and protect participants from buying stolen artwork.
NFT seed offerings allow designers to raise the necessary funding prior to designing.

SAND coin – Sandbox

Sandbox is a massively multiplayer online game built on blockchain technologies such as decentralized finance (DeFi) and decentralized tokens (NFT).

Sandbox currency is an inclusive game where players can buy and sell land, create and sell assets for NFT tokens, participate in project management, and vote on game development decisions.

Sandbox Statistics:

Market cap: $1,186,583,423
Diluted market value: $2,374,005,490
Volume / Market Cap: 0.1267
Circulating supply: 1.50 billion sand

*All data as of October 2022.

Sandbox Features:

The Sandbox project ecosystem is based on three products: VoxEdit, Marketplace, and Game Maker.
VoxEdit is a program for creating and animating objects from 3D cubes.
Marketplace is a platform where game assets are bought and sold.
Game Maker is a program for creating scenarios for games hosted on project websites.

Tezos coin XTZ

Tezos is a project based on blockchain technology, the main feature of which is the built-in management mechanisms for network modernization.

Changes to the Tezos blockchain are made through suggestions from holders of a block of TEZ (XTZ) tokens, followed by a community vote.

Tezos’ protocol is self-scaling, which makes network upgrades easy.

Tezos stats:

Market value: $1,243,204,795
Diluted Market Value: $1,272,503,518
Volume / Market Cap: 0.0158
Circulating supply: 911,943,778.48 TEZ XTZ

*All data as of October 2022.

Features of Tezos:

Smart contracts on the Tezos network use Michelson’s proprietary programming language. This is usually written in a more complex language than Michelson’s.
The Tezos network uses a unique consensus mechanism called Liquid Proof of Stake (LPoS).
Network members with more than 6,000 Tezos can authorize, create, sign and place new blocks on the Tezos blockchain.

THETA Coin – Theta Network

THETA is a video hosting, distribution and promotion platform. It is built on the blockchain and consists of smart contracts.

The main idea of the platform is to provide computing power to network participants to watch videos, and not through a central server (as is the case with YouTube, for example).

Video platforms that provide videos, authors and users have access to Theta Network.

Theta Network Statistics:

Market value: $1,026,992,896
Diluted market value: $1,026,992,896
Volume / Market Cap: 0.02311
Circulating supply: 1.00 billion theta

*All data as of October 2022.

Features of Theta Network:

The video platform can reduce the cost of expensive video hosting equipment, attract new users and generate additional income.
Network participants can also receive tokens (theta flags) in exchange for computing power to transmit videos to others on the network.
Content creators and publishers can increase their revenue because they don’t have to partner with a centralized platform.
Theta Network partners with global leaders such as Google, Sony, Samsung and Binance.

Read also: Areas of investment in Egypt

AXS Coin – Axie Infinity

Axie Infinity is a Pokémon-like crypto game where participants breed, fight, and sell adorable NFT pets called Axies.

There are two virtual currencies in the game. Axi Infinity Coin (AXS), which can be traded on cryptocurrency exchanges, and Smooth Love Potion (SLP) which players earn throughout the game.

AXS holders can be rewarded for betting and playing tokens the games and vote on important network management decisions.

Axie Infinity stats:

Market value: $969,698,753
Diluted market value: $3,152,307,777
Volume / Market Cap: 0.05048
Circulating supply: 83,056,186.67 AXS

*All data updated to October 2022.

Axie Infinity features:

Players alter the appearance and inheritance of the Axies, allowing developers from the gaming community to share their personal thoughts with the game world.
You can participate in PvP battles and get rewards for being on the leaderboard.
You can collect and sell rare Axies.

Conclusion

Understanding the NFT market is not easy. However, knowing the key differences between the different types of crypto assets can help you mitigate risks and make the right decisions in this volatile environment.

Therefore, one should always be very careful and not invest crypto assets unless careful and thorough research is done.