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What are NFTs by Tim Enneking

NFT

If you’ve been involved in cryptocurrency in any capacity, you’d have heard the term NFT floating around. According to Tim Enneking, NFT stands for non-fungible token and is a cryptographic asset on a blockchain that has a unique identification code and metadata that makes each NFT different from one another.

NFTs Explained by Tim Enneking

NFTs are considered to be digital assets, and can be basically anything that is digital – from art to music to ideas. At a high level, Tim Enneking explains, NFTs are assets on the Ethereum blockchain, which is a cryptocurrency. The blockchain keeps track of who’s holding which NFT and what trades are being made.

Since NFTs have their own unique identification code, they are all different from each other. Fungible tokens, like cryptocurrencies, are all identical, so they can be traded around. If you trade one bitcoin for another bitcoin, for example, you’d have the same thing.

This is not true with NFTs. The identification code and metadata, Tim Enneking explains, makes each NFT separate from another. This means that anyone who buys an NFT is the sole owner of it.

What NFTs Are Used For Tim Enneking

NFTs are used mainly for collecting. For example:

Digital Content

The most significant use of NFTs nowadays is the collection of digital content. As mentioned earlier, each NFT is unique to itself, making the owner of the NFT the sole owner. This means that content creators can sell their content for money, and collectors can pay using cryptocurrency to own it.

Gaming Items

Game developers have also been looking into NFTs and making use of them. In online games, you usually make purchases for items, but with NFTs,  this can be taken a step further. When in-game items are turned into NFTs, they can be sold again further to other players so that you can make money off them in the real world as well.

Investments

According to Tim Enneking, NFTs are also used as collateral for investments. Decentralized finance, which is the basis of cryptocurrencies, allows you to borrow money using something as collateral. In a digital world, this asset also has to be digital. NFTs can be used as this digital asset to take loans or make investments.

Domain Names

NFTs are also used with domain names. By buying a domain name that is easy to remember, you can make sure you get more visitors to your side. NFTs can do this for you because they make the easier and more relevant, and you can be sure that nobody can take this away from you since the identification code of the domain belongs solely to you.

NFTs have been around for a long time, but are only just starting to become popular thanks to all the celebrities who are now getting involved in cryptocurrencies. Normalization of crypto has also contributed to the growth of NFTs.

NFTs also appreciate in value as they gain popularity, which makes the buying and selling of NFTs more attractive as time goes on.