NFTs are also making waves as in-game purchases (to the delight of parents everywhere, we're sure). Different types of digital goods can be tokenised, such as artwork, in-game items and photos or videos from a live stream. NBA Top Shots is one of the largest NFT marketplaces. Specifically, NFTs are typically on the Ethereum blockchain, although other blockchains also support them.
Nike has patented a method for verifying the authenticity of trainers using an NFT system, which it calls CryptoKicks. Well, like cryptocurrencies, NFTs are stored in digital wallets (although it is worth noting that the wallet has to specifically support NFTs). NFT stands for non-fungible token, meaning that, hidden in these fancy works of art, there is a completely unique and non-exchangeable unit of data stored in a digital ledger that uses blockchain technology to establish proof of ownership. This gives investors and hobbyists the opportunity to own part of an NFT without having to buy the whole thing.
In these cases, each NFT would still have a unique identifier (like the barcode on a traditional ticket), with a single owner. Mike Shinoda of Linkin Park (who also sold some NFTs that included a song) has talked about this. There could be opportunities for players to buy a unique in-game weapon or helmet or whatever as an NFT, which would be a flex that most people would appreciate. This would create a more mutually beneficial business model, with both players and developers gaining from the secondary market for NFTs.
NFTs are becoming increasingly popular, which means that they are also coming under greater scrutiny, especially in terms of their carbon footprint. NFTs are securely recorded on a blockchain, the same technology behind cryptocurrencies, ensuring that the asset is unique. Whether or not NFTs are here to stay, for the moment they are making some people money and creating new possibilities for digital art. NFTs offer the ability to assign or claim ownership of any unique piece of digital data, traceable through the use of the Ethereum blockchain as a public ledger.