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Aspects of NFTs

Every NFT is really a piece of programming code.

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There are standards that dictate what should and can be included in an NFT’s code. Non‐fungible tokens have certain characteristics that set them apart from regular fungible tokens.

Fungible tokens on the Ethereum network are also known as ERC20 tokens. NFTs on the Ethereum network are ERC721 or ERC1155 tokens. These are different sets of standards that allow NFTs to have various functionalities and traits, as well as to allow marketplaces and wallets to work with any NFTs on the Ethereum network.

Note that the Ethereum blockchain is currently by far the most popular blockchain for NFTs.

There are several other NFT blockchains as well, including WAX, which stands for the World Asset eXchange. One of the major companies using WAX for NFTs is Topps, which has licenses for the collectible rights (both physical and digital) for a number of sports leagues, including Major League Baseball.

Other NFT blockchains include FLOW, which features the NBA Top Shots NFTs, and the Binance Smart Chain. In addition to allowing non‐fungible tokens to be owned and transferable, the standards allow NFTs to contain the following aspects:

  • Name

  • Main content

  • Preview content

  • Description

  • Traits

  • Unlockable content

  • Ongoing royalty

  • Supply

A name, piece of main content, and supply (which is usually one) are required. The description, unlockable content, and ongoing royalty are optional. Traits can be a key aspect of the main content of an NFT or actually be the main content of an NFT.

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Fortnow, M. and Terry, Q. (2021) The NFT Handbook. 1st edn. Wiley. Available at: https://www.perlego.com/book/2906432/the-nft-handbook-pdf (Accessed: 6 May 2022).