NFTs and Cryptocurrencies: How are they different?
Are you looking to know what the differences are between NFTs and Cryptocurrencies ? In this article we are going to tell you everything you need to know. Keep reading and find out!
The constant development of digital technologies in the last twenty years marked a before and after, not only in the relationships between people and communication, but also in the business, financial, advertising and entertainment fields . In the very near future, we could be doing all of our usual transactions using a single digital currency throughout the world.
If we continue in this line, we can talk about today famous cryptocurrencies . The first to come out, and the best known, are Bitcoin , which were created in 2009 by Satoshi Nakamoto. The historical experience and the progress of this type of currency showed that cryptocurrencies are the great protagonists of this decade and that they do not seem to have the intention of disappearing. The digital currency, contrary to what the aforementioned experts indicate, made it clear that it is viable, reliable, valuable and safe to use. Today we are going to talk about a topic that surely interests us a lot: NFTs, a world of entertainment with many monetary advantages.
What is an NFT and how does it work?
Many of us have surely seen in recent times, either on the news or in social media advertisements, something called NFT. But what are NFTs (Non Fungible Token or Non-Fungible Tokens)? They are, precisely, tokens that cannot be exchanged for others , so each one is unique and irreplaceable. Although they may sound similar to digital currencies, they are not at all, and we are going to see why in the following.
Fungible objects are those that have an equal elsewhere, such as a ten-peso bill. If two people take the same ten-peso bill out of their wallet, they could be exchanged, since they are identical and have the same value. In the case of NFTs, which have an irreplaceable digital format , this is not possible. In this sense, many of these tokens are considered works of art and it is in this aspect that their true value lies.
Like many cryptocurrencies, NFTs are traded and traded through a network without intermediaries , from one owner to another owner, and this is thanks to Blockchain technology, which is classic for both types of currencies. This technology allows owners of NFTs to have an exclusive ownership right over it, as well as the right to sell it.
A great advantage of these non-fungible tokens is that they function as a kind of ownership certificate that only the true owner can assert, making them impossible to steal or corrupt.
In turn, there are NFTs that can be collectible and some that are part of an entire series or particular collection, as well as others that are cell phone or computer video games. The business, as we imagine, is to get an NFT, wait for it to rise in price and sell it at a price much higher than the value for which we acquired it. For that, we can approach the online markets of NFTs, which are several and each one prefers the one they like the most.
What are the differences between token and cryptocurrencies?
In a nutshell , the biggest difference between cryptos and tokens is what they are used for . The first are currencies, whose purpose is to be used as a means of payment, reserve and savings. On the other hand, NFTs have a broader use and are generally only useful within their own projects.
Another differentiation that can be found is that cryptocurrencies have their own blockchain . For example, ether has its own blockchain, Ethereum . This makes them fungible, that is, to have an unlimited supply and to be divisible. While the tokens are unique and are created within the existing blockchain .
What are NFT cryptocurrencies?
If we look for the meaning of NFT crypto , it will appear which are the NFT cryptocurrencies that have been stepping stronger, they are MANA (Decentraland) , AXS (Axie Infinity) , ENJ (Enjin) and SAND (Sandbox).
To trade them there are several NFTs markets: OpenSea, TreasureLand, Rarible, Mintable, Super Rare and many more. Here we can publish our acquired NFTs or buy new ones as an investment. It’s like a big digital art market where you can buy game cards that you like, drawings, paintings or even audio files on a specific theme.
What are NFT games?
For those of us wondering what NFT games are, we will have the answer below. They are video games that use blockchain as support. In other words, they are the spaces where Tokens can be used, sold and rented . They are also called play to earn, since those who play them can end up earning money, usually in cryptocurrency development company. All objects, avatars or anything used in these games correspond to a token, and it is unique and unrepeatable (tokens).
What are the NFT games to earn cryptocurrencies?
As is evident, the entertainment industry not only wants to entertain those who enjoy it . It goes a step further and aims to provide monetary benefits and profits for its users. For this reason, here we leave a list of which are the NFT games that give the best rewards:
Guild of Guardians
Mines of Dalarnia
Technology is taking giant steps over the world and, year after year, it brings many changes, as is the case with the appearance of non-fungible tokens . We recommend you study and research about these tokens and cryptocurrencies before making investments.