NFT Basics

An NFT token (Non-Fungible Token) is a unique digital certificate that is stored in a blockchain. It guarantees the originality of the digital item and gives exclusive rights to it. Since NFTs are now an integral part of the crypto ecosystem, we suggest you get better acquainted with this term.

NFT explained

The NFT trend started in 2017 with the famous blockchain game CryptoKitties running on Ethereum and allowing users to breed "kittens" and sell them as regular cryptocurrency tokens. Then, the CryptoKitties hype was so widespread in the community that it literally blocked the Ethereum network itself for several days. With the crypto-winter in 2018-19, the trend subsided, but the ERC-721 tokens remained and created a new NFT hype in 2021.

The difference between NFTs and crypto coins is that NFTs are not interchangeable. If one bitcoin coin is swapped for another, its value will not change. It doesn't work like that with NFT - there is no fixed rate for this crypto-asset. Each piece has its own value. They are unique, which allows you, for instance, to create rare digital collections or to possess some object that no one else has or will ever have until you decide to sell it. Even if someone screens your NFT and posts it on their feed, you can still prove that you are the author or owner of the token.

The token itself does not contain an art object but only a link to it and a smart contract that defines the owner's rights and ability to manage the asset. On the blockchain network, you can find information about all owners, including the current one.

Main areas of NFT usage

NFT-art

Non-fungible tokens have helped solve the problem of the illegal distribution of digital art. In the case of NFT, the value is not determined by the work itself but by the ability to prove ownership of a particular asset. It is possible to convert to NFT images, music, and even books.

Collecting

The NFT market is of particular interest to collectors of contemporary art. After all, in this way, it is possible to add new pieces to your collection without having to worry about their transportation and storage.

Physical assets

For example, the real estate industry uses physical documents of ownership. However, if these documents are converted into tokenized digital records, highly liquid assets (a house or land) can be moved to blockchain. Blockchain technology could also be used in logistics: the transparency and immutability of the system guarantee the validity and reliability of the information in the supply chain.

So far, regulators are not yet eager to support this issue. This application of NFT requires serious work, but it already seems promising.

Crypto games

Game NFTs not only serve an aesthetic function, but also benefit the player. NFTs in games can represent anything - character, weapon, appearance, game elements, cards, etc. The more unique they are, the more they will cost in the future. They can give you perks during the game: you become stronger and more effective.

The simplest mechanic of making money in such games, as well as in other investments, is to buy an asset, and after some time to sell at a higher price. However, in the case of NFT games, users can not only invest their money in the purchases, but also start from scratch without investing, and by performing various actions to develop their attributes. Over time, their value will increase. In addition, almost every game has mechanics that allow you to earn bonuses: drawings of tokens within the game and competitions, which can also generate income.

Refill your NFT experience with Inite!

Inite is updating the NFT market with a brand new concept: Think2Earn. Players mint tokens by meditating, creating new ideas, and sharing them with others. Each idea is individually verified by the system for clarity and meaningfulness; cheating will not pass.

The role of NFTs is played by so-called devices: digital items used for meditations, brainstorming, and recording ideas. Devices can be upgraded over time to become more functional.

The project is rapidly evolving, introducing new game mechanics. Join - it's not just an investment in cryptocurrency but in personal growth and brainpower!