NFT is a special type of tokens that allows you to digitize any goods. With the help of them, you can earn money with your creativity, create a decentralized website or just play around. I will try to reflect and tell you my thoughts. Let’s go!
Tokens, like all goods, are divided into two types: fungible and non-fungible. NFTs differ from each other, as do non-fungible goods in the real world. If one bitcoin is no different from another bitcoin, then each NFT is unique. This property allows you to represent information about any object in the real world in the blockchain.
Every Internet user has a huge amount of digital things: photos, videos, game items, documents in the cloud. But no one really owns them. Instagram Facebook Inc. manages the photos, which can delete them at any time. The Counter-Strike game sells weapons, but Valve Software reserves the right to change or withdraw them. NFT assigns the user the right to own digital goods. A non-fungible token is a label that stores a link to any product. If you have a token, you own the product described in it. If you don’t have a token, you don’t own it. So, the NFT weapon in the game will be sent to the crypto wallet to the player and the developer will no longer have any control over it.
The second important difference between NFT and other digital products is the ability to manage. If you sell weapons from Counter-Strike by ad, then it is almost impossible to guarantee the honesty of such a transaction without intermediaries. Exchanging NFT is as simple as cryptocurrency, so it is easier to sell and buy a tokenized thing. In the form of a token, you can imagine any thing - a barrel of oil, a bottle of wine, a T-shirt, a piece of music, a game item, and even a cryptocurrency. Tokenized items acquire new unique properties that change the relationship between buyers and sellers.
I approve of zkswap’s active work on implementing NFT on its platform. It is impossible to ignore the trend in the crypt. This relatively new tool for the market can expand the capabilities of various services. It can be used in such areas as: blockchain games, digital art, blockchain domains, virtual worlds. One of the most relevant scenarios for the use of NFT today is digital art. This world has even formed its own superheroes, such as Beeple. One of my favorite Beeple works is Bull Run.
There are known problems in the ETH network. The load on the network is huge, the gas payment is high. This is eliminated by the parallel L2 chain. Users get inexpensive, fast operations over the ETH network, but at the same time they get a new problem. The simplicity of transactions is sure to attract intruders. They can use L2 capabilities and malicious smart contracts. Those will help them steal coins from users’ wallets faster. L2 solutions may carry risks. But zkswap uses a very reliable and simple zk snark technology. It allows you to use zero-disclosure evidence, quickly verify data and provide a high level of security. L2 for NFT should lower the price of gas and give more opportunities to zkswap users.