DICTIONARY October 2023

Whats NFT or digital art NFT? At the end, a small reference to the marketplace NFT or market NFT

NFT stands for "Non-Fungible Token", which basically refers to something unique in the digital world, such as a piece of artwork, an avatar, a character or object from a video game, a ticket or video. Imagine an NFT as a special certificate that proves you own it in a virtual world.

Unlike traditional cryptocurrencies, NFTs are not interchangeable with each other, meaning that each NFT is unique and has a unique value.

The beauty of an NFT lies in its security. It works like a digital seal that cannot be copied, thanks to its storage in a decentralized network called blockchain. This network is like a huge library that stores hundreds of backup copies of the same NFT certifying your ownership distributed on computers around the world. This makes it practically impossible to counterfeit it, since you would have to hack a large number of computers at once.

If we want to make a comparison with the physical world, an NFT would be like an official signature on a document certified by a notary that authenticates that you own it.

An NFT is a smart contract recorded on the blockchain and is a modern way to prove that something is authentic and yours in the digital world.

What are NFTs for?

NFTs, or Non-Fungible Tokens, have found a wide range of applications in various fields, highlighting their ability to revolutionize ownership and authenticity in the digital world. Some of the most prominent use cases for NFTs include:

Digital Art

NFTs give digital artists the opportunity to sell their creations as unique, authentic and inimitable pieces. They also allow collectors to acquire and own exclusive digital artworks, fueling an unprecedented digital art market especially at its peak between 2021 and 2022.

Although after the crypto crisis marked by two fundamental events: the fall of Terra Luna and the collapse of the FTX exchange, digital art has ceased to be profitable except for world-renowned artists such as Beeple for example.

After these events, the market has shifted towards NFTs linked to tickets, gaming, metaverse and generative collections such as avatars for example, which have a project and profits behind them.

Collectibles

NFTs are used to create and market unique digital collectibles, from sports collectible cards to other collectibles, giving enthusiasts the opportunity to own unique and valuable digital items.

Avatars

These are collections of NFTs created with generative art combining graphic design with special software that represent a unique and unrepeatable avatar for use in social networks such as Twitter (now X) or discord representing the profile with a special badge. This brings status and other utilities to its holders.

Gaming

In the online gaming industry, NFTs are used to represent unique virtual items such as weapons and characters, giving players the ability to own and trade valuable and unique in-game items.

These NFTs have experienced significant growth playing a pivotal role in market consolidation as early as the end of 2023, with prominent cases such as Axie Infinity, Star Atlas, CryptoKitties and The Sandbox leading the forefront of innovation.

Metaverse

Virtual Property

Furthermore, it is crucial to highlight that NFTs are not just limited to the realm of art and collectibles. With the emergence of the metaverse, NFTs are playing a pivotal role in representing virtual ownership of digital assets, including land and property in these virtual environments. These developments are taking the idea of online investing and trading to a whole new level by allowing users to not only own artwork and collectibles, but also acquire virtual properties in three-dimensional spaces and interactive digital environments.

Digital Identity

Likewise, NFTs have found significant application in the digital identity sphere. These unique, authenticated tokens are increasingly being used to represent a person's unique identity in the metaverse and other online environments. By providing a secure, decentralized way to manage identity in the digital world, NFTs are paving the way for a new era of online identity authentication and verification, raising exciting possibilities for the future of digital interaction and transactions in virtual environments.

Ticket or tiket

NFT Tickets are a way to tokenize tickets for events, such as concerts, sports and airline tickets. Tokenization refers to the creation of a unique digital asset that can be bought, sold or exchanged on a secondary market.

In the case of airline tickets, NFT Tickets enable the transfer, sale and auction of airline tickets. In addition, NFT Tickets allow for the modification of the passenger's name in the event that plans are changed or travel is not possible. It is also possible to recover the price paid or even earn money if the airfare goes up.

For music and sporting events, NFT Tickets enable event organizers to control ticket resale and ensure that buyers receive authentic tickets. In addition, NFT Tickets can include exclusive benefits, such as access to VIP areas or discounts on merchandise.

Brands and NFTs

Major brands such as Dior, Louis Vuitton, Adidas, McDonald's and the NBA have also ventured into the world of NFTs, highlighting the widespread impact and future potential of this ever-evolving technology.

In general, these brands offer benefits and utilities to holders of their NFTs, such as Louis Vuitton, which has a range of exclusive products in constant renewal only for those who have acquired one of its NFTs.

Phygital

A word born from the fusion between "physical" and "digital". It encompasses the integration of physical and digital elements into a total experience. When applied to the realm of NFT's, the term phygital implies the existence of non-fungible tokens that represent assets in both their physical form and digital manifestation. You can read more in the following article: Phygital NFT's

Royalties

Using NFTs, it is possible to track and distribute royalties for the sale or use of digital assets, ensuring fair and transparent compensation for creators and owners of digital content.

Decentralized Finance (DeFi)

NFTs are gaining ground in the field of decentralized finance (DeFi), where they are used to represent unique assets such as loans or equity, increasing efficiency and transparency in the decentralized financial ecosystem.

Where to buy NFTs or view examples of NFTs

If you are just starting in the world of NFTs and want to see some examples of NFTs, the most recommended is to enter the OpenSea marketplace, one of the main NFT marketplaces, also below we provide some more direct links:

NFT Trends