NFT
NFT stands for Non-Fungible Token. Let's understand what it means to be Fungible, and hence non-Fungible.
Meaning of Fungible
Fungible asset is one asset that can be exchanged for another asset. Example: Bitcoin. If you hold two Bitcoin, they're essentially the same value. You can trade one Bitcoin for another Bitcoin.
Non-fungible assets, on the other hand, are unique assets that cannot be traded. These are stuffs that are limited edition. If you draw a unique painting and you only sell 1 copy of it, then that's it. Of course, you can have multiple copies of an NFT on the market. Provided you don't sell it indefinitely (unlimited copies), it's considered an non-fungible.
Every NFT have their unique identifier for identifying them. This is a smart contract being attached to the asset that makes it special. While fungible assets can be exchanged and even divisible into smaller value, NFT aren't divisible. You cannot tear up a painting and sell each pieces individually.
NFTs are digital certificates of ownership for digital assets. Currently we think of "limited edition" in terms of object. And what kinds of things can be limited edition? The first we think is some kind of objects that are sold online can be limited. Yes that is one. But perhaps one of the easiest to think of is tickets. If you want to sell entry ticket for a concert, you could mint them as NFT and sell them. This can replaces the physical ticket that you usually have.
To know more about the top NFT projects, visit the webpage. Note that the website might expire. When I learned, it's "top 3 NEAR NFT Projects", and now it's "top 7". So you might want to search it up in all guides for the equivalent article.
References
- https://learnnear.club/top-7-near-nft-projects/