What is an irreplaceable token and what is its use?

NFT is the new buzzword. The non-fungible token, which became popular in 2021 among crypto enthusiasts, is about to enter other sectors, including video games. We tell you everything you need to know about this controversial technology.

Since the beginning of last year, we often hear about NFT. Regularly, celebrities invest huge sums in what are often presented as simple JPGs representing computer generated characters. for example, Famous rapper Eminem bought NFT From the Bored Ape Yacht Club collection for $450,000.

NFT images can make you smile when presented as simple images that sell for a high price. Despite the strong media coverage of the phenomenon, many netizens are already struggling with it Understanding the interest of NFTsand the fundamental revolution that accompanies them that envisions the future of the Internet (the famous Web 3.0). We evaluate this abstract and thorny topic below.

What is an NFT (non-fungible token)?

NFT is an acronym for “non-replaceable token” or “non-replaceable token” in French. It is said that a thing is replaceable if that is possible “They are replaced by things of the same nature, of the same quality and of the same quantity”Larousse explains. within exchangeable assets, we find the money. One Euro can be exchanged for one Euro. Similarly, Bitcoin can be exchanged for another Bitcoin.

NFT

On the other hand, the so-called non-fungible asset cannot be exchanged for another element. It is unique. In the same way that the work of Leonardo da Vinci, Monet or Picasso is unique, NFT is unique. Its uniqueness can be easily recognized. Attention, we often talk about NFT to describe visual works (popular JPGs as above), but it can also be a work of music, film, writing, or a computer element symbol. For example, the first SMS in history was digitized in the form of NFTs and sold to the highest bidder. The source code for the World Wide Web has also been auctioned as NFTs along with the front page of Wikipedia.

NFTs also promise to be essential in the future metaverse. Non-fungible tokens can also allow exchange Digital real estate in virtual spaces Like Decentraland or The Sandbox. A virtual plot of land in the form of NFT was sold last year for $2.4 million.

To certify the uniqueness of NFT, it must be Digitized and registered on the blockchain. Currently, a large part of the non-fungible tokens are registered on the Ethereum blockchain. At the origin of most cryptocurrencies in the market, the blockchain is a decentralized ledger that keeps track of everything entered into it. Unlike the more traditional database, the blockchain, or blockchain in French, is immutable, immutable and inviolable.

When an NFT is created, all business data will be digitized and entered into the blockchain. The token can be irreplaceable It contains a large amount of information. The technologies also make it possible to integrate a wide range of data, from images to lines of code, including video. Once registered on the blockchain, the work will be accompanied by a digital certificate of authenticity. This certificate ensures that the Internet user in possession of it is indeed the sole and unique owner of the NFT.

Once it is digitized on the blockchain, the business history (purchases, resale, creation date, creator name, etc.) is recorded forever. This is why auction houses specializing in art, such as Christie’s or Sotheby’s, have quickly captured the technology behind NFTs.

Where do you buy NFTs?

There are many platforms for buying and selling NFTs. Among the most popular sites are OpenSea, Foundation, Ethernity, or Rarible. Many cryptocurrency exchanges have also embarked on the use of NFT by offering their users to buy or sell it through their interface. This is especially the case with Binance Core, the service that allows you to trade cryptocurrencies.

As explained above, there are many platforms for creating NFTs. For the sake of simplicity, we will focus on How to follow OpenSea, which is by far the most widely used platform in the industry. Before you begin, make sure you have an Ethereum wallet like Metamask handy. To open a wallet, simply install the Metamask app on your smartphone from the Play Store or the App Store. You can also install it as an extension on the Chrome web browser.

We explain how to create (“minter”) a non-fungible token in a few steps:

  • Go to the OpenSea website or download the app from Play Store or App Store
  • push the button Create At the top of the interface
  • Then select Metamask from the offered digital wallets
  • Once the wallet is connected, tap my groups
  • Create a set of works by clicking Create
  • Once the group is created, you will need to choose a logo for it by following the on-screen instructions
  • Finally, press add item.
  • Choose Add a new tool
  • Authorize communication with Metamask
  • Follow the instructions on the screen and drag the image to the frame designated for this purpose
  • Click on Create

Be careful, if you then want to sell your NFT, you will have to pay a small amount of money in cryptocurrency (Ether). To offer your business for sale, you must compulsorily Pay Ethereum network fees. This amount can sometimes be huge depending on network congestion.

Should you invest in NFT?

Holders of non-fungible tokens do not hesitate to present them as excellent investments. By speculating on the price of certain major groups, some Internet users manage to get rich, or at least make impressive profits in cryptocurrencies.

Fake NFT from Banksy
Credit: Internet Archive

However, keep in mind that making money from NFTs is not as easy as one would like to believe. In fact, not all digital work rises in price automatically. By investing in NFT, you always take The risk of not redeeming your initial bet. For one reason or another, the price of a property may fall and never rise again. This is true for NFTs, cryptocurrencies, stocks or real estate.

Why do NFTs often generate mistrust, especially among players?

Many video game publishers protested their interest in NFTs. More and more studios want to offer skins or items in the form of non-fungible tokens to players. In December, Ubisoft also announced the launch of Quartz, a platform for acquiring NFTs. This platform offers non-replaceable tokens for in-game use Ghost Recon Break Point.

This initiative caused Players’ anger. In the face of criticism, Ubisoft has had to remove the show’s video from its YouTube channel. Many players are already reducing NFTs to speculating and trading in the digital business and believe that publishers are simply trying to get rich on their backs. Also, some video game fans are pointing the finger Energy consumption Huge number of cryptocurrencies and block chains that allow NFT exchange. By adopting NFTs, they believe publishers are putting the environment at risk.

Under these circumstances, they take a very dim view of the implementation of NFT in their favorite video games. The ferocity of critics of NFTs has already caused many companies in the sector to change their minds. This is especially the case discord. The popular messaging app among gamers has finally chosen not to add support for NFTs to its platform after the outcry of its user community. Despite everything, many companies, including Square Enix, continue to declare their interest in the technology.

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