What is NFT? -banner-imageAcademy

What is NFT?

NFT stands for Non-Fungible token and it is used as a unique, unchangeable token. Fungible; it is used for assets that have equivalent value and are exchangeable. The most common example of these assets is fiat currencies. Let's think about it this way, you don't need to give the same $20 TL banknote again in return for a $20 loan you received from someone of course, you can pay off your debt with a different $20 banknote. This is because the two banknotes are interchangeable "fungible" assets with the same value. We can exemplify this in the case of cryptocurrencies; there is no difference between an ETH you own and another ETH equal in amount. They can replace each other too. However, this is not the case in the concept of Non-Fungible. These tokens or assets have their own unique characteristics. As an example, a painting made by a painter will in no way have the characteristics of being interchangeable with another painting. Another table will not meet the characteristics or exclusivity of that table. We can replicate this example with anything we can think of. On the other hand, NFTs are the processed versions of these works on the blockchain. There are almost unlimited types of NFTs including drawing, writing, video, sound recording, music, tweets, in-game items.

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Properties of NFTs

We learned that there are countless types of NFTs, from drawings to in-game items. So, what are the common features of all these NFTs, let's examine them.

Uniqueness- Rarity: Undoubtedly, the most important feature of NFTs is their uniqueness. The reason why NFTs are so valuable in terms of their general characteristics is that there are many or only one. To give an example from outside the blockchain, a signed album is valuable because it is not the only one in the world, but it is limited. A signed football uniform, a rare playing card, or the first tweet posted on Twitter have common characteristics in terms of uniqueness. The most important feature that adds value to NFTs is uniqueness.

Ownership and Indivisibility: Nowadays, NFTs are confused with cryptocurrencies. The most important point to note here is that NFT is not a cryptocurrency. NFTs are digital artifacts on the blockchain. Unlike cryptocurrencies, these digital artifacts are indivisible. An NFT cannot be split into pieces like an ETH or Bitcoin. NFTs can only be considered as a whole. Other than that, NFTs do not have a set price. Only the owner can decide the value of each NFT. This makes it impossible for NFTs to be uniquely owned and reproduced.

Immutable and Unmatchable: NFTs are not interchangeable as they will not have exactly the same properties as another NFT. Except for the NFTs that are produced in a certain number (for example, only 10-100 pieces), no NFT can be exactly the same in terms of its features and qualities. This makes NFTs immutable and unique.

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What are Projects with NFT Listed on Bitexen?

Enjin Coin (ENJ)

Enjin Coin is a smart cryptocurrency project for the gaming industry. The project was established in 2009 in Singapore. Enjin can be used as a payment tool in gaming platforms, gaming markets and websites running on the Ethereum network it is built on. Millions of dollars are earned per month from virtual product sales at Enjin community stores. Various items such as special weapons, armors, characters and dresses within the games in the Enjin ecosystem, or assets that vary depending on the type of game (which may include dance moves in a different game) are traded in the marketplaces. These traded products can be unique NFTs or they can be like limited number of NFTs. ENJ can be used in these trades. Players can also take their ENJs out of the game and convert them into fiat money or other cryptocurrencies on trading platforms.

Enjin Coin also ranks first among all NFT projects with a market capitalization of approximately 2.5 billion USD. Enjin's NFT dominance rate is 30.4%. The dominance ratio is the market value of Enjin Coin divided by the market value of the entire NFT market.

Decentraland (MANA)

Decentraland is a blockchain-based virtual world. This virtual reality platform is powered by the Ethereum blockchain. On the Decentraland platform, users can create unique content and applications and earn from these applications. As you can buy land in Decentraland, you also have control over this land. The ownership of the land you purchased is registered by being processed on the blockchain. On these lands, land owners can create whatever content they want. These contents can be a stage, a show, an NFT gallery or a playground.

The Decentraland platform also draws attention with its ability to collect. Rare works of art or assets have attracted attention throughout history and have been sought after. Today, we have started to see these assets digitally on the blockchain. You can exhibit your digital artworks called NFT on Decentraland and sell them to other users. If you wish, you can also become a collector by collecting rare works of art.

Decentraland ranks second among all NFT projects, after Enjin Coin, with a market capitalization of 1.3 billion USD.

NFT Projects listed on Bitexen

Terra Virtua Kolect (TVK)

ApeCoin (APE)

Enjin (ENJ)

TheSandbox (SAND)

Decentraland (MANA)

Mobox (MBOX)

Axie Infinity (AXS)

Babylons (BABI)