What is an NFT?

Key Takeaways

• Non-fungible tokens are unique digital assets with a limited supply that can hold and accrue value or serve an increasing variety of functions.
• The main use cases for NFTs currently are as investment products, collectible items, or to serve specific functional purposes, such as event ticketing.
• Deviants are the companion characters to the main character in the Astra Nova MetaRPG. They help players unlock special missions, provide boosts, power-ups and lots more.

Non Fungible token (NFT) technology is one of the most promising applications in the world of blockchain as it holds the ability to transform multiple industries on the planet from the financial sector to art — but many are still unfamiliar with the basics of the technology and its various applications.

Here’s a closer look at what NFTs are, what they can be used for, and their potential to transform modern society.

What is an NFT?

NFTs are a type of cryptographic token or digital object that is hosted on a blockchain and represents a unique asset, such as a tokenized stock or digitalized piece of artwork.

What really sets NFTs apart is that they do not hold the characteristic of being interchangeable, which means they can serve a variety of purposes including as proof of authenticity and ownership.

In the world of cryptocurrencies, each NFT has its own unique identifier that makes it different from all other tokens in existence, a feature that is a doorway to a wide array of use cases.

How do NFTs work?

Similar to other cryptocurrencies and digital tokens, NFTs can be stored at a specific address which is capable of doing as it wishes with the asset. Only those who control the private key to an address can initiate a transaction pertaining to an NFT held at that address, so it’s important to back up seed phrases and private keys to ensure that access is not lost.

NFTs, such as the Deviants collection, can be stored in wallets and be used to interact with gaming interfaces or other NFT-specific applications.

To trade NFTs, specialized NFT marketplaces have been created to facilitate the one-of-a-kind nature of these digital assets that can’t be traded on a typical exchange order book. OpenSea is the main marketplace where Deviants NFTs can be purchased.

Deviants NFTs

The NFTs that power gameplay in Astra Nova are the Deviants, a collection of 10,000 NFTs — minted on Ethereum and Hedera — that were created to test the habitability of Astra Nova.

These Deviants exhibit a vast array of diversity, with 530+ unique traits identified across their 15 distinct species. These traits vary greatly in nature and scope, underscoring the complex nature of life in this unique world.

As the gameplay for Astra Nova rolls out, holding a Deviants will be the key to accessing the gaming interface and exploring all that Astra Nova has to offer.

What can NFTs be used for?

The main use cases for NFTs currently are as investment products, collectible items, or to serve specific functional purposes — such as for use in gameplay, like Deviants.

Functional purposes include things like having an NFT represent a ticket to a concert or sporting event, a one-of-a-kind item that bequeaths its holder the right to a specific seat at an entertainment venue.

Gaming is another sector that offers a major use case for NFTs, allowing gamers the opportunity to acquire in-game items that can be transferred out into the real world and sold for money as a way to profit off of gameplay. The tokenization of in-game assets is one of the most widely adopted uses currently as it has given games the ability to earn a living while doing what they love most.

The tokenization of real-world assets is a promising use case that remains under development as many asset issuers are waiting for a clearer regulatory framework around digital assets before going all in on asset tokenization.

In the future, every person will ultimately have an NFT that serves as their digital identity and holds pertinent identification information — such as school records, work histories, and medical records.

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