Understanding Non-Fungible Tokens

NFTs, like cryptocurrencies, are transactions stored on the blockchain. However, what sets it apart from cryptocurrencies is its non-fungible feature. One bitcoin will always be equal to another bitcoin, we can exchange them for each other, and they all have the same value. It's the same with dollars: it's called the fungible property of money. The creators of NFT wanted to do exactly the opposite: a transaction stored on the blockchain that is non-fungible, therefore completely unique. The idea is to be able to use it as a certificate of authenticity associated with a digital or physical object.

The first ideas for certificates of authenticity linked to the blockchain appeared in 2014. But it was not until 2017 that the first artistic projects based on NFTs were born. CryptoPunk for example, a collection of pixelated character designs was sold through this.

The digital creatures on Elemon all have been attached to unique tokens that make them different from all other creatures no matter how similar they look. This is one of the characteristics that aid the valuation of creatures.

Each token indeed carries unique metadata. In the case of the Elemon game, the tokens represent different creatures and identify particular digital Elemons. There are therefore no two identical tokens (and therefore assets). This itself boosts the idea of scarcity.This combined with other features of the gameplay makes some creatures more valuable than others. To make it even more interesting, players are able to sell their Elemon creatures for ELMON tokens. Therefore, Elemon will have a higher value than others.

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