(Via ZEXPR) CoinDogg is on a mission to support independent creators by creating a platform that allows them to monetize content on any platform in any currency while rewarding fans for their loyalty with tradable NFTs.
If you are new to the world of cryptocurrencies or have simply just not yet been introduced to NFTs, sit back, relax and let’s take you on a journey exploring the hottest topic in crypto of 2021.
Non-Fungible Tokens Explained
Non-Fungible Tokens (NFTs) are unique digital assets on the blockchain and can be used to represent ownership of both tangible and intangible items.
Most Non-Fungible Tokens have been created on Ethereum, where they used the ERC-721 Standard. Increasingly, however, developers have been looking at other blockchains for NFTs as they look for the most suitable protocol for a growing number of use cases including digital collectibles, artworks, in-game assets, and more.
Each Non-Fungible Token contains metadata which gives each token their individuality. Depending on the type of NFT, these attributes can include size, artist name, scarcity, etc.
NFTs are non-fungible meaning that they are unique digital assets that are not directly interchangeable for one another.
Bitcoin by comparison is an example of a fungible token, meaning that one Bitcoin can be exchanged for another Bitcoin with equal utility and value. The fungibility of Bitcoin is a common characteristic across all currencies and is one of the main characteristics that give currencies their usefulness.
Having fungible items is essential for any developed economy as it provides participants certainty that by accepting payment in one form today they will be able to make payment using that same form tomorrow.
How Are NFTs Valued
As NFTs are non-fungible by nature, it can sometimes be difficult to determine their market value. This is because unlike fungible assets that are directly interchangeable with one another and priced relative to other assets through large numbers of market transactions NFTs are unique and therefore there are no equivalent asset transactions to draw comparisons with.
Despite the lack of equivalent asset transactions for NFTs the market forces of supply and demand still impact greatly on their value and scarcity of desirable NFTs is seen as one of the major reasons for increasing prices.
Understanding the provenance of an NFT is also important when determining its value as collectors want to be sure that the NFT is the authentic, original version. For example, if you consider the NBA Top Shots edition, much of the value of these NFTs is in knowing that they were officially produced and endorsed by Dapper Labs in conjunction with the NBA.
To understand this concept of provenance more clearly, think about owning an NFT the same way as owning a valuable painting. For example, we place enormous value on the original artworks like the Mona Lisa but place comparatively very little value on a digital print of the same painting that provides almost equivalent utility. In this example, it is the provenance of the original artwork that is being valued and the sense of pride of the owner in knowing that they are the true owner of the piece. In NFTs terms that sense of ownership is arguably more valuable as it is logged on the blockchain and therefore completely immutable and incorruptible.
Popular NFT Use Cases
The full extent of cases for NFTs are only just being discovered and it’s commonly agreed that we are only just scratching the surface of their full potential. That being said there have emerged some early prominent use cases including digital art, collectibles, and in-game assets.
The implementation of NFTs in gaming has proven to be particularly profitable for developers, allowing users to buy and sell virtual items and property.
CoinDogg’s Role In All Of This
CoinDogg is on a mission to build the first blockchain-based digital rewards platform for content creators and their supporters. Their platform will empower independent creators to monetize their content in any currency on any platform and reward their loyal followers with tradeable NFT rewards.
What if more creators could sustain themselves doing what they love doing? Why not let the most creative minds in the world go wild? And why not ensure that the internet remains a free, vibrant, and creative place for all of us to enjoy? CoinDogg is doing all of this while promoting one of the hottest trends in crypto.