NFTS, Explained: What They Are and Their Comparison To Real-Life Currency
Cryptocurrency has been dominating the online market in the most recent years, providing them with great value. Thousands of businessmen are investing millions of dollars in mining cryptocurrencies like bitcoin and Ethereum due to their massive value. The most recent entry in cryptocurrency is NFT, which is definitely the most absurd out of all. NFTs and NFT-based games have become really popular in the past few days.
With that in mind, what exactly is NFT? What’s the deal with currency in NFT-based games? And how can we compare the currency with real-life currency? All of your questions will be answered in this article, so keep on reading then.
What is NFT?
NFT is a type of cryptocurrency – a sort of a collectible essence in the form of art that holds great value. The term “NFT” literally stands for “Non-Fungible Token”, which like the name suggests is not fungible as compared to other cryptos.
A bit too hard to understand? Let me explain.
Basically, NFT can be any kind of art in the digital form – by any kind of art, I mean ANY kind; A gif, drawing, and even an exclusive in-game object can be NFT. However, the form of digital art used cannot be copied, replicated, and replaced, meaning that an original and genuine digital product is considered NFT.
In simpler words, you can buy several copies of the Mona Lisa, but only one person will have the original artwork, having the original brush strokes, paint, and idea. Similarly, NFT is an art that is designed in such a way to offer buyers something unique that cannot be replicated. Furthermore, the fact that it is exclusive to digital art, and allows extra information to be stored in it, the overall value of the crypto compared to a pure currency like bitcoin is increased.
What are NFT-based games?
As the name suggests, NFT-based games were developed to mine and earn the cryptocurrency called NFT. Several popular NFT games allow you to work on NFT art, which can be traded in the game market or Opensea. Cryptokitties is one of the most famous NFT games and the most profitable as well. One of the Cryptokitty is being sold for $999k! How crazy is that? Other NFT games like Axie Infinity and evolution land, where the special characters are bred, grown and then sold in the in-game market or on Opensea. The characters like Axies and Apostles respectively have unique characteristics that no other characters possess, making them the best candidate for NFT,
How does the currency of NFT games compare with real-life currency?
The comparison with real-world currency is crucial in understanding the NFT concept to its fullest. So, as I mentioned before about how NFT games work, where you have to breed unique characters and sell them, similar happens in real life.
Eldorado is a fantastic example of this comparison, as it sells accounts with unique characteristics for a wide variety of games. If we look at the Genshin Impact accounts, some may offer all the female characters, along with a certain amount of gold, while others may offer a mix of the characters. However, that does not make the accounts NFT, as the accounts aren’t possessing unique characteristics. Fortunately, Eldorado is much more cost-effective as compared to other NFT selling websites. Technically, NFT is collecting fine art, and who really is interested in that when you’re getting Genshin Impact account with your favorite characters!
So, what do you think? Is NFT worth all the hype?
