Crypto Academy Week 10: Homework Post for @levycore.

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I am @jahid1971. I am submitting my homework given by @levycore. Thanks to him for his wonderful lecture. So, Let's get started:

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Introduction to Non-Fungible Tokens (NFTs)

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A digital artwork was recently sold by an auction house called Christie for 69 million. But the surprise is that the buyer will not get any sculpture, not even any printed copy of the artwork. He will only receive a token known as NFT. Again, you may have heard or seen a few days ago, the 1st tweet of Twitter is being sold. Maybe the question is, ‘Why would someone buy a token at such a high price?’ Or, ‘ how can one person’s tweet be bought by another as a token again? Let’s find out what this token is, why it’s so expensive! NFT is basically a cryptocurrency of the genus Ethereum. It is a digital currency just like Bitcoin. These are called ETH coins. A unique form of ETH coin is NFT, a non-fungible token, abbreviated as NFT. Non-fungible refers to something singular or unique. That means they can't be compared or exchanged for anything else.

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To understand this concept, an example of Bitcoin can be given, Bitcoin is a fungible token, one can be exchanged with another Bitcoin or some part can be exchanged. But in the case of NFT, there is no opportunity to divide it into parts. It basically gives ownership of an object to its buyer. For example, many replicas of the Mona Lisa may be made or sold by someone else. But the ownership will remain with the NFT token holder. It’s basically like a personal collection. Many of us have a hobby of collecting stamps as well as collecting digital ownership of something. Now the question is, will it stop the common man from using that work of art? No, the 69 million artwork is also being shared online. Maybe many will create and sell more such industries. However, the original industry is owned by NFT. Does that mean people are spending millions of dollars just for a token? Yes, that's what he's doing. Technically anything digital is marketable i.e. NFT can be made. NFT is sold in many marketplaces and there is also an opportunity to buy.

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"CryptoKitties" - An NFT Project

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CryptoKitties is a game built on top of the Ethereum blockchain and smart contract. CryptoKitties is a decentralized application or "Dapps" built on top of the Ethereum computing platform. This means that the application has been run and the kits are stored on the distribution network of computers powered by Ethereum nodes. As it is based on Ethereum, cryptocurrencies use Ether cryptocurrency tokens. Wrapped Basic CryptoKitties(WCK) is the token of CryptoKitties. Technically, each cryptocurrency is a unique ERC-721 token stored in the Ethereum blockchain. Similarly, WCK is a token based on ERC-721.

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You can "reproduce" two separate cryptoKitties together to get new cryptoKitties. CryptoKitties do not natural genders, so any two CryptoKitties can act as regenerative pairs if their proprietors agree. One CryptoKitties of the transaction is "Dame" and the other is "Sir". The owners decide which cat is which. The owner of the "Dame" cryptocurrency gets a new baby kitten. This reproduction process and all cryptocurrency tasks including trading with cryptoKitties is performed through the Ethereum Smart Contract. Since these contracts are operated on the Ethereum blockchain, you must pay for Ether to perform them. Those ether payments encourage people who manage Ethereum nodes to do computing work and record their activities in the Ethereum blockchain.

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Owning a cryptocurrency involves a wallet that holds your personal key for your cryptocurrency. In other words, your cryptocurrencies are stored in a digital wallet such as Ether and Bitcoin. You may be wondering why people are spending so much money on cryptocurrencies? But people spend money on all kinds of work. Someone spent $54,970 on a rare Pokemon card in 2016, and people spend billions of dollars on art.

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Anyone willing to pay for it is worth everything and some people are willing to pay a lot more for cryptocurrencies. Since these collectible cats are stored in a blockchain, each user directly controls their CryptoKitties. Even if Animoca, the company behind the CryptoKitties, was shut down, the company could not snatch the CryptoKitties or end the game. This probably makes some people feel more comfortable buying such cats.