What is a Non-Fungible Token (NFT)?

Non-Fungible Tokens, also known as NFTs are digital assets that cannot be replicated or copied and are stored in a public and secured ledger called a Blockchain.

Examples of assets that are being turned into NFTs are digital art, music, collectibles, and concert tickets.

Non-fungible simply means non-replaceable; it is unique. For example, there is only one authentic Mona Lisa; making the Mona Lisa non-fungible or not replaceable.

1) Characteristics of Non-Fungible Tokens (NFTs):

  • NFTs are indivisible: Unlike traditional cryptocurrencies that can be divided into fractions of coins, NFTs live as a whole item

  • NFTs are indestructible: All NFTs are stored on the Blockchain via smart contracts which means that each token cannot be destroyed, removed, or replicated

  • NFTs ownership is immutable 

  • NFTs are verifiable: Storing historical data ownership on the blockchain is another benefit to track the original creator, which allows authentication without the need for third-party verification 

2) How do Non-Fungible Tokens work?

NFTs exist on a blockchain, which is a distributed public ledger that records transactions. You’re probably most familiar with Blockchain as the underlying process that makes cryptocurrencies possible.

Specifically, NFTs are typically held on the Ethereum Blockchain, although other Blockchains support them as well.

An NFT is created, or “minted” from digital objects that represent both tangible and intangible items, including:

•  Art

•  GIFs

•  Videos and sports highlights

•  Collectibles

•  Virtual avatars and video game skins

•  Designer sneakers

•  Music

Essentially, NFTs are like physical collector’s items, only digital. So instead of getting an actual oil painting to hang on the wall, the buyer gets a digital file instead.

They also get exclusive ownership rights. That’s right: NFTs can have only one owner at a time. NFTs unique data makes it easy to verify their ownership and transfer tokens between owners. The owner or creator can also store specific information inside them. For instance, artists can sign their artwork by including their signature in an NFTs metadata.

3) What is CrowdPoint's approach on Non-Fungible tokens? 

Most tokens on the internet today are fungible. For example, when you buy a token in an ICO, you're usually getting access to a service, and that token can be used by anyone to access that same service.
In contrast, NFTs are unique items within an online marketplace. Each token represents a unique item that can only be owned by one person at a time. NFTs are useful for any asset that needs a unique identity: collectibles like CryptoKitties, tickets to events, land titles, you name it!
With NFTs, you'll be able to prove ownership of your item on the Blockchain, which adds value and security to your item.

4) Is CrowdPoint building an NFT marketplace?

At the moment there is no NFT marketplace on the CrowdPoint platform. However, it will be in the near future...