Non-Fungible Tokens (NFT): Hidden Gems

by ImmuneBytes
Non Fungible tokens hidden gems

While the whole world is fussing about Bitcoin and DeFi, a new technological creation has been budding in the Crypto world: Non-Fungible Tokens(NFTs). It is a tokenized version of a digital asset and has been gaining quite a popularity across the globe. So, let’s get ready to talk about all things NFT.

What are NFTs?

Unlike a fungible asset, A non-fungible asset is something that can’t be replaced or swapped. It holds some unique information or attribute, thus making it not mutually interchangeable. 

NFTs are special cryptographic tokens that represent some unique information and are irreplaceable. They are widely used in several applications that call for unique digital items like crypto art, crypto-collectibles, and crypto-gaming.

To fully understand and appreciate the concept let’s take a look at CryptoKitties – a blockchain-based game on Ethereum developed by Axiom Zen. It uses NFTs, which are unique to each CryptoKitty. These virtual cats cannot be replicated or sold without the user’s permission. As of now the most expensive CryptoKitty ever sold is for a whopping $170K or 600ETH.

Where are NFTs used?

Coming to talk about the applications where NFTs are used, there are plenty. Be it fantasy gaming, collectibles, art, virtual, and real-world assets. Big names like Formula1, Nike, Ubisoft, Vodafone, Louis Vuitton, and many more have already started dabbling in NFTs.

Moreover, paying attention to what ‘owning a valuable asset’ means to Generation Z, is certainly very different from what the older generations used to think. By 2026, NFTs are the way to go.

A Twitter thread posted by @DCLBlogger mentioned how NFTs are catching fire in 2020 and the recent innovations made in the field.

Highlights

  • Last week, NFT sales shot up nearing $1M in volume, as the Sorare fantasy soccer card game saw over $221,000 in sales.
  • The average U.S. dollar price for a single NFT according to statistics is $105 this week.
  • The Superrare digital artworks marketplace sold $93,733 in the last seven days.
  • Governance tokens are also being issued, gaining traction in the liquidity space.
  • There are multiple ERC, such as ERC721 and ERC821 aiming at normalizing an API standard for NFTs.
 
Additional  Resource: What is a NFT security Audit
 

Counterfeiting the path taken by the DeFi industry, NFT is gaining quite an admiration in the Crypto world. According to Ilya Abugov, project manager at DappRadarThere is more hype around NFTs right now. To some extent, it’s an extension of the DeFi excitement. We have seen with DeFi that once a trend starts it creates a snowball effect.”

As yet, the road may not be fully clear for the NFT projects but the creators are surely working towards designing a whole new world of crypto-collectibles and its economic growth shows no indication of subsiding any time soon.

FAQs-

Do I need an Audit for an NFT?

Yes. Of course. The faster the technology buds, the more the attackers try to find vulnerabilities in it. Getting an audit for a non-fungible token will ensure that it is safe and no possible attacks could take place. We offer security audits for NFTs and are happy to help you with it.

What are the phases of a token audit?

We follow a strict methodology, divided into 4 phases, for the auditing process, namely-  

  • Phase 1: Requirement Gathering
  • Phase 2: Unit Test Cases
  • Phase 3: Smart Contract Review
  • Phase 4: Auditing with Automated Tools

How much will it cost me to audit a token?

Here at ImmuneBytes, the cost of auditing is determined by the complexity of smart contracts, the size of the attack surface, and how many experts you’d like to verify the code. It also depends on the level of documentation provided by the developer to understand the business logic implemented. You can check the cost for an audit on our Pricing page by simply answering some questions.

How much time will it take to get an audit?

The audit of an average smart contract will take 2-14 days which involves the initial few days to initiate the project, finalizing scoping, signing contracts, and performing a full-fledged Audit. This is completely dependent on the smart contract’s size and complexity. We’re happy to provide you with the time estimates before the project starts.

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