Non-Fungible Tokens (NFTs) are unique digital assets that represent ownership or proof of authenticity of specific items or content stored on a blockchain. Unlike cryptocurrencies like Bitcoin or Ethereum, which are fungible (identical and interchangeable), NFTs are non-fungible, meaning each one is distinct and cannot be exchanged on a one-to-one basis with another NFT.
What Can NFTs Represent?
NFTs can represent both digital and physical items, including:
Artwork
Music
Videos
Virtual real estate
In-game items
Even tweets
NFTs are built on blockchain technology, which provides a verifiable record of ownership and scarcity. This allows the entire history of an NFT to be tracked from its creation to its current owner.
NFTs Standards
Most NFTs follow specific blockchain standards to ensure compatibility and security. The two most common standards are:
ERC-721: Used on Ethereum, this standard ensures that each token is unique and can be securely transferred between owners.
ERC-1155: This standard allows for the creation of both fungible and non-fungible tokens within the same smart contract, offering more flexibility.
Note: Burner currently supports the ERC-721 standard. Other standards, like ERC-1155, or experimental ones, such as ERC-404, are not currently supported. While NFTs using unsupported standards may appear in your wallet, they may not function properly.
NFTs exist on the blockchain where they were created. This could be a Layer 1 (L1) blockchain like Ethereum or a Layer 2 (L2) network like Coinbase's Base, which enhances security and records all transactions involving the NFT.
Why Are NFTs Valuable?
For creators, NFTs offer a way to monetize digital content by selling directly to collectors. For collectors, NFTs provide ownership of unique digital content and, in some cases, access to exclusive experiences or benefits. This dual value proposition has fueled the growth of the NFT ecosystem.
Managing NFTs with Burner
With Burner, you can manage and transfer your NFTs securely, ensuring that your assets remain protected on the blockchain.