A token is nothing more than a unit of account transacted through a blockchain network. This technology can be used to register and transfer digital currencies such as Bitcoin and others. Still, it also has applications in the financial industry to register shares in a company, national currencies such as the dollar, and precious metals such as gold. It can even represent and count votes in an election or a decentralized digital governance system, like that of certain startups that only exist on the internet.
Just as you cannot spend the same Bitcoin transaction twice, it’s also impossible to spend other people’s Bitcoins. What makes any practical fraud attempt in this and other applications unfeasible is blockchain technology. In other words, when a digital asset, a purely virtual representation of value, is built and managed using blockchain technology, it becomes impossible to defraud the sending and receiving of its units, no matter what they represent.
NFTs are nothing more than a special type of token. The name represents an acronym: non-fungible tokens. Being equally secure and tradable via a blockchain network, the only particularity of an NFT is its unique and exclusive character.
Bitcoins, for example, are fungible tokens. There are millions of them globally, and they are all worth the same when exchanged for euros or dollars at an exchange, no matter if they belong to an ordinary person, a renowned artist, or a large company. NFTs, in turn, as they are not fungible, do not have this same equivalence, as they always exist in limited quantities, whether to 1000 or 100 units or even to a single unit.
From a technological point of view, it is the transparency and inviolability of a blockchain network responsible for ensuring that an NFT is truly unique or that, if there is a small number of copies integrating a limited series of NFTs, it will never be able to be destroyed.
These are the main characteristics that base the use of NFTs as a vehicle of a new digital economy around scarcity and exclusivity, allowing the properties of audiovisual works of art, game items, virtual characters, innovative collectibles, and many others to flourish in digital media, no longer being restricted to the physical possession of objects in the real world.
Tokens can be an amazing tool within the context of a game, allowing competitors or contributors to receive tokenized assets or even points that can automatically be taken out of the virtual realm and be used for trading, collecting, exchanging for physical products etc. Moreover, you could create interoperability with multiple e-commerce platforms, cryptocurrency exchanges, gaming platforms, and e-wallets, as you would not be tied to a specific provider.
Your tokens can live in a network like Hathor, where they only belong to you, and only you can transfer them for the chosen purpose. 24/7, with no transaction fees at all. Creators and game studios can create entire economies inside their games. Gold coins become valuable collectibles when they become a token, exclusive items can have real utility value being used in the game or change hands when their ownership is secured by a non-fungible token (NFT), and tokenized rewards can bring the attention economy inside any title, as well as the augmented-reality surrounding them, to new levels.
From digital trading card games to complex metaverses full of digital characters that their token holders can only access, there are several examples of how the games industry is not merely “innovating” on top of what was already here but trying something totally new in some cases.
DappRadar did a great job in partnership with the Blockchain Game Alliance (BGA) by putting together impressive statistics from this skyrocketing industry in their latest report.
Finally, one could argue that it is not possible to point out where exactly this revolution will lead, as there are so many things being created simultaneously. But I would say there is a high chance that the Hathor Network is an important piece of it all.
On Hathor, a token can be created in seconds, with no hidden or dynamic costs for its creation, no fees for transactions after that. It is way easier and quicker to integrate to legacy and novel systems (an app, a browser extension, etc.). You do not need to learn any new blockchain-specific programming language to create more complex integrations. We have a full set of APIs that can easily be used within the most widely used languages.