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== Applications == |
== Applications == |
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Non-fungible tokens are used to create verifiable digital scarcity. NFTs are used in several specific applications that require unique digital items like crypto-collectibles and crypto-gaming. Popular blockchain games like [[CryptoKitties]] make use of non-fungible tokens on the [[Ethereum]] blockchain.<ref>{{Cite news|url=https://qz.com/1144169/the-ethereum-world-is-now-obsessed-with-breeding-cartoon-cats/|title=The ethereum world is now obsessed with breeding cartoon cats|last=Wong|first=Joon Ian|work=Quartz|access-date=2018-05-02|language=en-US}}</ref> NFTs are used to represent in-game assets, which are in control of the user instead of the game developer.<ref>{{Cite news|url=https://venturebeat.com/2017/12/04/cryptokitties-shows-everything-can-and-will-be-tokenized/|title=CryptoKitties shows everything can — and will — be tokenized|date=2017-12-04|work=VentureBeat|access-date=2018-05-02|language=en-US}}</ref> This lets the assets be traded on third-party marketplaces without permission from the game developer. NFTs also find potential use in digital art, by helping prove authenticity and ownership.<ref>{{Cite web|url=https://irishtechnews.ie/the-art-world-needs-blockchain/|title=The Art World Needs Blockchain – Irish Tech News|website=irishtechnews.ie|language=en-US|access-date=2018-05-02}}</ref> NFT standards could also allow users to transfer in-game items from one game to another.<ref>{{Cite news|url=https://www.forbes.com/sites/forbesfinancecouncil/2018/10/19/what-could-cryptokitties-mean-for-the-future-of-ownership/|title=What Could CryptoKitties Mean For The Future Of Ownership?|last=Kameir|first=Christian|work=Forbes|access-date=2018-10-25|language=en}}</ref> |
Non-fungible tokens are used to create verifiable digital scarcity. NFTs are used in several specific applications that require unique digital items like crypto-collectibles and crypto-gaming. Popular blockchain games like [[CryptoKitties]] make use of non-fungible tokens on the [[Ethereum]] blockchain.<ref>{{Cite news|url=https://qz.com/1144169/the-ethereum-world-is-now-obsessed-with-breeding-cartoon-cats/|title=The ethereum world is now obsessed with breeding cartoon cats|last=Wong|first=Joon Ian|work=Quartz|access-date=2018-05-02|language=en-US}}</ref> NFTs are used to represent in-game assets, which are in control of the user instead of the game developer.<ref>{{Cite news|url=https://venturebeat.com/2017/12/04/cryptokitties-shows-everything-can-and-will-be-tokenized/|title=CryptoKitties shows everything can — and will — be tokenized|date=2017-12-04|work=VentureBeat|access-date=2018-05-02|language=en-US}}</ref> This lets the assets be traded on third-party marketplaces without permission from the game developer. NFTs also find potential use in digital art, by helping prove authenticity and ownership.<ref>{{Cite web|url=https://irishtechnews.ie/the-art-world-needs-blockchain/|title=The Art World Needs Blockchain – Irish Tech News|website=irishtechnews.ie|language=en-US|access-date=2018-05-02}}</ref> NFT standards could also allow users to transfer in-game items from one game to another.<ref>{{Cite news|url=https://www.forbes.com/sites/forbesfinancecouncil/2018/10/19/what-could-cryptokitties-mean-for-the-future-of-ownership/|title=What Could CryptoKitties Mean For The Future Of Ownership?|last=Kameir|first=Christian|work=Forbes|access-date=2018-10-25|language=en}}</ref> |
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== Implementation == |
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The Ethereum community has adopted the ERC-721<ref>{{Cite web|url=https://github.com/ethereum/EIPs/blob/master/EIPS/eip-721.md|title=ethereum/EIPs|website=GitHub|language=en|access-date=2018-05-02}}</ref><ref name=":0">{{Cite news|url=https://www.coindesk.com/crypto-collectables-ethereums-next-killer-app-is-on-its-way/|title=Crypto Collectables? Ethereum's Next Killer App Is on Its Way - CoinDesk|date=2017-12-15|work=CoinDesk|access-date=2018-05-02|language=en-US}}</ref> protocol as a standard for Non-Fungible Tokens on Ethereum. Projects like CryptoKitties, CryptoPunks,<ref name=":0" /> and Decentraland<ref>{{Cite news|url=https://blog.decentraland.org/cryptocollectibles-decentraland-and-you-130676002015|title=Decentraland as a Playground for Crypto-Collectibles|date=2017-12-13|work=Decentraland|access-date=2018-05-02}}</ref> follow the ERC-721 protocol for their NFTs. More recently, ERC-1155 is also being adopted, which is compatible with ERC-721 but allows the creation of mixed fungible and non-fungible tokens within a single contract.<ref>{{Cite web|url=https://finance.yahoo.com/news/beyond-gaming-introduction-non-fungible-110028465.html|title=Beyond gaming: An introduction to non-fungible tokens (NFTs)|website=finance.yahoo.com|language=en-US|access-date=2019-04-19}}</ref> |
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== Growth and mainstream appeal == |
== Growth and mainstream appeal == |
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Non-fungible tokens made their way into mainstream news when [[CryptoKitties]] went viral <ref>{{Cite news|url=https://qz.com/1145833/cryptokitties-is-causing-ethereum-network-congestion/|title=CryptoKitties is jamming up the ethereum network|last=Wong|first=Joon Ian|work=Quartz|access-date=2018-05-10|language=en-US}}</ref><ref>{{Cite news|url=https://www.bloomberg.com/news/articles/2017-12-04/cryptokitties-quickly-becomes-most-widely-used-ethereum-app|title=CryptoKitties Mania Overwhelms Ethereum Network's Processing|date=2017-12-04|work=Bloomberg.com|access-date=2018-05-10|language=en}}</ref> and subsequently raised a $12.5 million investment.<ref>{{Cite web|url=https://techcrunch.com/2018/03/20/cryptokitties-raises-12m-from-andreessen-horowitz-and-union-square-ventures/|title=CryptoKitties raises $12M from Andreessen Horowitz and Union Square Ventures – TechCrunch|website=techcrunch.com|language=en-US|access-date=2018-05-07}}</ref> RareBits, a Non-Fungible Token marketplace and exchange, raised a $6 million investment.<ref>{{Cite web|url=https://techcrunch.com/2018/04/19/rare-bits-crypto-marketplace/|title=Crypto-collectibles and Kitties marketplace Rare Bits raises $6M – TechCrunch|website=techcrunch.com|language=en-US|access-date=2018-05-07 |
Non-fungible tokens made their way into mainstream news when [[CryptoKitties]] went viral <ref>{{Cite news|url=https://qz.com/1145833/cryptokitties-is-causing-ethereum-network-congestion/|title=CryptoKitties is jamming up the ethereum network|last=Wong|first=Joon Ian|work=Quartz|access-date=2018-05-10|language=en-US}}</ref><ref>{{Cite news|url=https://www.bloomberg.com/news/articles/2017-12-04/cryptokitties-quickly-becomes-most-widely-used-ethereum-app|title=CryptoKitties Mania Overwhelms Ethereum Network's Processing|date=2017-12-04|work=Bloomberg.com|access-date=2018-05-10|language=en}}</ref> and subsequently raised a $12.5 million investment.<ref>{{Cite web|url=https://techcrunch.com/2018/03/20/cryptokitties-raises-12m-from-andreessen-horowitz-and-union-square-ventures/|title=CryptoKitties raises $12M from Andreessen Horowitz and Union Square Ventures – TechCrunch|website=techcrunch.com|language=en-US|access-date=2018-05-07}}</ref> RareBits, a Non-Fungible Token marketplace and exchange, raised a $6 million investment.<ref>{{Cite web|url=https://techcrunch.com/2018/04/19/rare-bits-crypto-marketplace/|title=Crypto-collectibles and Kitties marketplace Rare Bits raises $6M – TechCrunch|website=techcrunch.com|language=en-US|access-date=2018-05-07}}</ref> Gamedex, a collectible cards game platform made possible by NFTs, raised a $800,000 seed round.<ref>{{Cite web|url=https://techstartups.com/2018/07/16/blockchain-startup-gamedex-raises-0-8-million-seed-round-build-platform-digital-collectible-card-games-like-pokemon//|title=Blockchain startup Gamedex raises $0.8 million seed round to build platform for digital collectible card games like Pokemon – TechStartups|website=techstartups.com|language=en-US|access-date=2018-05-07}}</ref> Decentraland, a blockchain-based [[virtual world]], raised $26 million in an [[initial coin offering]],<ref>{{Cite news |url=https://www.bloomberg.com/news/articles/2018-06-12/making-a-killing-in-virtual-real-estate |title=Making a Killing in Virtual Real Estate |last=Russo |first=Camilla |date=2018-06-12 |work=Bloomberg |access-date=2018-09-05}}</ref> and had a $20 million internal economy {{asof|2018|09|lc=y}}.<ref>{{Cite news |url=https://www.marketwatch.com/story/people-are-making-more-than-500-buying-property-that-doesnt-actually-exist-2018-09-04 |title=People are making more than 500% buying property that doesn’t actually exist |last=Hankin |first=Aaron |date=2018-09-04 |work=MarketWatch |access-date=2018-09-05 |language=en-US}}</ref> |
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== References == |
== References == |
Revision as of 15:09, 28 May 2019
A non-fungible token (NFT) is a special type of cryptographic token which represents something unique; non-fungible tokens are thus not interchangeable. This is in contrast to cryptocurrencies like bitcoin, and many network or utility tokens that are fungible in nature.[1]
Applications
Non-fungible tokens are used to create verifiable digital scarcity. NFTs are used in several specific applications that require unique digital items like crypto-collectibles and crypto-gaming. Popular blockchain games like CryptoKitties make use of non-fungible tokens on the Ethereum blockchain.[2] NFTs are used to represent in-game assets, which are in control of the user instead of the game developer.[3] This lets the assets be traded on third-party marketplaces without permission from the game developer. NFTs also find potential use in digital art, by helping prove authenticity and ownership.[4] NFT standards could also allow users to transfer in-game items from one game to another.[5]
Growth and mainstream appeal
Non-fungible tokens made their way into mainstream news when CryptoKitties went viral [6][7] and subsequently raised a $12.5 million investment.[8] RareBits, a Non-Fungible Token marketplace and exchange, raised a $6 million investment.[9] Gamedex, a collectible cards game platform made possible by NFTs, raised a $800,000 seed round.[10] Decentraland, a blockchain-based virtual world, raised $26 million in an initial coin offering,[11] and had a $20 million internal economy as of September 2018.[12]
References
- ^ Schroeder, Stan. "Crypto trading card game 'Gods Unchained' looks pretty sweet in first gameplay trailer". Mashable. Retrieved 2018-11-18.
- ^ Wong, Joon Ian. "The ethereum world is now obsessed with breeding cartoon cats". Quartz. Retrieved 2018-05-02.
- ^ "CryptoKitties shows everything can — and will — be tokenized". VentureBeat. 2017-12-04. Retrieved 2018-05-02.
- ^ "The Art World Needs Blockchain – Irish Tech News". irishtechnews.ie. Retrieved 2018-05-02.
- ^ Kameir, Christian. "What Could CryptoKitties Mean For The Future Of Ownership?". Forbes. Retrieved 2018-10-25.
- ^ Wong, Joon Ian. "CryptoKitties is jamming up the ethereum network". Quartz. Retrieved 2018-05-10.
- ^ "CryptoKitties Mania Overwhelms Ethereum Network's Processing". Bloomberg.com. 2017-12-04. Retrieved 2018-05-10.
- ^ "CryptoKitties raises $12M from Andreessen Horowitz and Union Square Ventures – TechCrunch". techcrunch.com. Retrieved 2018-05-07.
- ^ "Crypto-collectibles and Kitties marketplace Rare Bits raises $6M – TechCrunch". techcrunch.com. Retrieved 2018-05-07.
- ^ "Blockchain startup Gamedex raises $0.8 million seed round to build platform for digital collectible card games like Pokemon – TechStartups". techstartups.com. Retrieved 2018-05-07.
- ^ Russo, Camilla (2018-06-12). "Making a Killing in Virtual Real Estate". Bloomberg. Retrieved 2018-09-05.
- ^ Hankin, Aaron (2018-09-04). "People are making more than 500% buying property that doesn't actually exist". MarketWatch. Retrieved 2018-09-05.