What is NFT?
NFTs are tokens that we can use to represent ownership of unique items. They let us tokenise things with unique ID like art, collectibles, your identity card, even real estate. They can only have one official owner at a time and they're secured by the UltronGlow blockchain – no one can modify the record of ownership or copy/paste a new NFT into existence.
NFT stands for Non-Fungible Token. Non-fungible is an economic term that you could use to describe things like your `identity or licenses, certificates of your cars, properties, family heirloom, and it is a limited edition. These things are not interchangeable for other items because they have unique properties. Fungible items, on the other hand, can be exchanged because their value defines them rather than their unique properties.
For example, UTG or dollars are fungible because 1 UTG / $1 USD is exchangeable for another 1 UTG / $1 USD.
NFT is a way to represent anything unique as an UltronGlow-based asset.
NFTs are giving more power to content creators than ever before.
NFT protect the intellectual property of the content creators.
NFT is powered by smart contracts on the UltronGlow blockchain network.
NFTs and UltronGlow solve some of the problems that exist in the internet today. As everything becomes more digital, there's a need to replicate the properties of physical items like scarcity, uniqueness, and proof of ownership. Not to mention that digital items often only work in the context of their product.
For example you can't re-sell an iTunes mp3 you've purchased, or you can't exchange a Singapore Airline Krisflyer Miles points for another companies credit even if there's a market for it.
Here's how an internet of NFTs compared to the internet most of us use today looks...
This website has an alternative domain name powered by NFTs, ultronglow.utg. Our .io address is centrally managed by a domain name system (DNS) provider, whereas ultronglow.utg is registered on UltronGlow via the UltronGlow Name Service (UNS). And its owned and managed by every nodes of UltronGlow.
NFTs are different from URC-20 tokens, such as UTG or UMN, in that each individual token is completely unique and is not divisible. NFTs give the ability to assign or claim ownership of any unique piece of digital data, trackable by using UltronGlow's blockchain as a public ledger. An NFT is minted from digital objects as a representation of digital or non-digital assets. For example, an NFT could represent:
An NFT can only have one owner at a time. Ownership is managed through the uniqueID and metadata that no other token can replicate. NFTs are minted through smart contracts that assign ownership and manage the transferability of the NFT's. When someone creates or mints an NFT, they execute code stored in smart contracts that conform to different standards, such as URC-721. This information is added to the blockchain where the NFT is being managed. The minting process, from a high level, has the following steps that it goes through:
NFT's have some special properties:
In other words, if you own an NFT
For example, let's say you purchase an NFT, and the ownership of the unique token is transferred to your wallet via your public address.
And if you create a NFT:
The creator of an NFT gets to decide the scarcity of their asset.
For virtual world example, consider a MMORPG game have a lot of game items and each items have a different features or specifications. When someone beat the big boss in the game and get a super weapon consider minting a NFT. The super weapon is unique, scarcity and owned by the address that minted it. The items will not exist the same in the game. User can keep the NFT or sell it for real money when other users bought from him/she. If the user sold the NFT, that means the ownership of the super weapon is changed. The intended scarcity of the NFT matters, and is up to the creator. A creator may intend to make each NFT completely unique to create scarcity, or have reasons to produce several thousand replicas. Remember, this information is all public.
For real world example, consider a watch that produce by Audemars Piguet is limited to 20pieces in the world. Audermars Piguet can write a smart contract that content 20 NFTs for each limited edition watch. When someone bought that watch, he or she will get the watch with a paper certificate plus a NFT of that watch to prove that he owns that watch.
Some NFTs will automatically pay out royalties to their creators when they're sold. This is still a developing concept but it's one of the most powerful. Original owners of can set the % of royalties of every NFT and earn royalty every time when the NFT ownership is changed.
This is completely automatic so creators can just sit back and earn royalties as their work is sold from person to person. At the moment, figuring out royalties is very manual and lacks accuracy – a lot of creators don't get paid what they deserve. If your NFT has a royalty programmed into it, you'll never miss out.
Here's more information of some of the better developed use-cases and visions for NFTs on UltronGlow.