NFT coin: the path to digital ownership on-chain

Community Materials — Author: John Ma

Practical application of non-fungible assets

Today, the NFT token opens up numerous opportunities for innovative use in various sectors of the economy. From video games and digital identification to licensing, certification, and art — non-fungible assets are becoming a tool that changes our perception of digital ownership. Particularly interesting are scenarios where the right to own a single item is distributed among multiple users simultaneously, creating new economic models.

What distinguishes NFTs from other crypto assets

A non-fungible token is a special type of cryptographic asset characterized by absolute uniqueness and rarity. Unlike regular fungible assets, each NFT token has its own distinctive characteristics. Fungibility means that units of the asset are practically identical and can substitute for one another without any consequences — as is the case with fiat currencies, where any $1 bill is equivalent to another $1 bill.

Blockchain acts as a guarantor of authenticity and ownership rights. Each NFT is a tokenized version of a digital or physical asset, encoded in a distributed network in such a way that it cannot be forged or duplicated.

Technological Standards Ensuring Compatibility

The mass release and circulation of NFT tokens require a reliable technical foundation. The ERC-721 standard has become a pioneer in this field, providing the core functions for the issuance and trading of non-fungible assets on the Ethereum network. However, technology does not stand still.

The more modern standard ERC-1155 represents an evolution of the previous solution. Its main advantage is that a single smart contract can simultaneously work with both fungible and non-fungible tokens. Standardization ensures high functional compatibility, allowing unique assets to seamlessly transition between various decentralized applications (DApp).

Revolution in Asset and Data Management

The use of blockchain for storing ownership and identification information brings significant benefits. Firstly, data integrity is enhanced — they are protected from unauthorized alteration. Secondly, privacy is improved due to encryption and the decentralized nature of networks.

On trading platforms where buyers and sellers meet, each NFT token is evaluated individually—there is no universal exchange rate. The system of transferring and managing assets that does not require trust in third parties significantly reduces friction in trading. This could lead to a transformation of the global economy, where digital property will be as legitimate and protected as physical property.

The NFT token is gradually becoming one of the key components of the new digital economy based on blockchain, expanding the boundaries of what is possible in the field of asset management and digital identification.