Understanding Non-Fungible Tokens aka ERC-721

By Umar Rafaqat | Non-fungible-tokens | 6 Sep 2021


With blockchain technology, digital tokens are becoming more and more popular. They are like digital assets that live online in a decentralized, peer-to-peer network.

There is one token that has gained popularity recently - Non-Fungible Token or NFT for short. These tokens are issued by the Ethereum blockchain and can represent anything from collectibles to digital assets to games or other non-fungible goods or assets online.

Inevitably, people will want their own personal token which will bring in new opportunities for businesses. So what is an NFT? How do you transfer them? And what’s the value of these tokens? Let’s find out!

Introduction: What is a Non-Fungible Token?

Non-Fungible Tokens (NFTs) are digital assets that are unique and cannot be copied or replicated.

To understand what this means, let’s take an example. Think of a collectible card game like Pokémon. When you win a card in the game, you can’t just use that same card to play another person in the game. That’s because they are all unique and special. Similarly, NFTs make it difficult for someone to replicate your digital asset without your permission.

We all know how much digital asset theft is happening these days; therefore, NFTs protect consumers by ensuring security and safety on their digital assets that they've bought or obtained for free through trading or giveaways, etc. With blockchain technology, NFTs can be held as investments as well as used as a store of value.

How to Get Started with ERC-721 Tokens (keyword: ethereum smart contract)

Ethereum is a blockchain-based decentralized platform with smart contract functionality. This blockchain-based network enables the development of decentralized applications that run on the network.

The most recent addition to this ecosystem is its most famous token, ERC-20 tokens which are compatible with the Ethereum platform.

ERC-721 tokens are unique in that they can represent digital collectibles (like CryptoKitties). These tokens are unique because they are able to transfer ownership, trade ownership, and even breed like rare digital pets.

Why Use Non-Fungible Tokens on the Blockchain?

The blockchain is a distributed ledger that is immutable and transparent.

There are multiple uses of the blockchain, which include, but are not limited to, cryptocurrency transactions and smart contracts. Non-fungible tokens or NFTs make use of the blockchain as a decentralized, digital asset registry.

NFTs can be seen as digital collectibles because they have unique identifiers called "digital fingerprints" that allow them to be uniquely identified without the use of a third party. These fingerprints allow NFTs to be traded and exchanged on a peer-to-peer basis without relying on any centralized authority such as eBay or Amazon.

What can You Do with a Non-Fungible Token?

 

Non-fungible tokens are digital assets that can be bought, sold, or traded on the blockchain. The attribute of non-fungible tokens is that they cannot be interchanged with other tokens in a specific way. This makes them perfect for a variety of uses such as digital collectibles, a means of exchange, and a form of payment.

NFTs have also been seen as digital assets designed to represent real-world goods and services while providing fungible properties for ease of use and transactions with less friction.

What can You Do with Non-Fungible Tokens?

You can use them to purchase games on the blockchain, invest in collectibles like rare Pokemon cards or rare sports memorabilia, create your own custom cryptocurrency with unique features without having to comply with regulations imposed by financial

How to Create an ERC721 Stablecoin on Ethereum? (keyword: how to create an erc721 token on ethereum)

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In this guide, we will explain how to create an ERC721 token on Ethereum. The token is a cryptocurrency that exists in the real world and exists independently from Ethereum.

Token creation:

Step 1: Install and get your wallet address (required for exchanges)

Step 2: Create a smart contract (required for exchanges)

Step 3: Create the token (required for exchange)

Step 4: Send tokens to your wallet address

Conclusion: That’s it! Congratulations, you created your own ERC721 token on Ethereum!

Conclusion of How to Create an ERC721 Stablecoin on Ethereum.

The idea of stablecoin is to make the cryptocurrency market less volatile. A stable coin is always worth the price it is supposed to be, unlike other cryptocurrencies which are prone to volatility. An Ethereum-based ERC721 token can help achieve this goal as it has a decentralized and transparent system that runs on a smart contract.

 

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Umar Rafaqat
Umar Rafaqat

I am student of software engineering. And I am te h enthusiastic and love to play cricket.


Non-fungible-tokens
Non-fungible-tokens

Non-fungible tokens are more than just a cryptocurrency alternative to bitcoin. Non-fungible tokens, or NFTs, are the future of game items and digital collectibles.

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