NFTs: a Brief Guide

NFTs: a Brief Guide

June 28, 2024

Overview

NFTs are unique digital assets on blockchain, representing ownership of items like art, gaming assets, and virtual real estate. Examples include Bored Ape Yacht Club, CryptoPunks, and Pudgy Penguins.

3 min. read

3 min. read

3 min. read

What are NFTs?

Non-fungible tokens (NFTs) are unique digital assets representing ownership of a specific item, asset, or piece of content using blockchain technology. Unlike cryptocurrencies like Bitcoin and Ethereum, NFTs are one-of-a-kind and cannot be exchanged on a one-to-one basis. Each NFT has a unique identifier, making it distinct and verifiable from other digital assets.

Potential Use Cases

NFTs have various applications, including but not limited to:

Digital Art: Artists can sell unique digital artworks, giving collectors ownership of verifiable pieces.

Gaming: Players can own, trade, and sell in-game assets like characters and items.

Music and Entertainment: Musicians can sell exclusive content or concert tickets directly to fans.

Virtual Real Estate: Users can buy, sell, and develop land located in virtual worlds.

Fashion: Digital clothing and accessories for avatars in virtual environments.

Domain Names: Secure, verifiable ownership of domain names, similar to URLs or email addresses.

Examples of top collections and their key metrics are as follows (As of June 27):


Bored Ape Yacht Club (BAYC)

  • Floor: 8.9 ETH

  • All-time-high: 153 ETH

  • Supply: 10,000

Crypto Punks

  • Floor: 26.5 ETH

  • All-time-high: 125 ETH

  • Supply: 10,000

Pudgy Penguins

  • Floor: 9.2 ETH

  • All-time-high: 22.9 ETH

  • Supply: 8,888

Disclaimer: The information provided in this research paper is for educational and informational purposes only. It does not constitute financial advice, investment guidance, or any solicitation to buy or sell financial instruments. The views expressed herein are those of the authors and do not necessarily reflect the opinions of Kollectiv.

2024