Understanding Non-Fungible Tokens

Blockchain technologies and NFTs are used in the Defihorse universe to empower players and developers. NFTs are a new category in the worldwide game market: virtual tokens for digital scarcity, security, and authenticity. Each NFT is different or unique, it is indivisible, and it cannot be substituted for another.

NFT stands for Non-Fungible Tokens (a Smart Contract standard) tokens that are hosted on BSC’s own blockchain. NFTs are unique digital items such as collectibles or artworks, or game items with a unique identity and ownership that are verified on a blockchain. NFTs are commonly treated by uploading files, such as digital networks.

In simple words, an NTF is a unique cryptographically generated token that uses blockchain technology to link with a unique digital asset that cannot be replicated.

Example:

Fungible: 1 USDT (Interchangeable, Uniform, Divisible)

Non-fungible: Mona Lisa painting (Not interchangeable, distinct and unique, indivisible)

Key features of NFT

TRUE DIGITAL OWNERSHIP:

Gamers are the true and perpetual owners of their digital items, even if the game was shut down or abandoned. With blockchain, every game item can be tokenized, allowing gamers to decide how they want to trade, sell, or gift their items.

SECURITY AND IMMUTABILITY:

Digital game items can be easily tokenized and traded in primary and secondary markets that are managed and facilitated by blockchain technology. Items based on scarcity and demand usually invite fraud and theft, but these risks are minimized on blockchain because it is a distributed ledger.

TRADING:

Blockchain-based gaming platforms can provide users with ultimate control over their digital assets. They can buy and sell items freely without concern that they will be ripped off or that a platform will close and cancel all the value of their in-game items.

CROSS-APPLICATION INTEROPERABILITY:

Blockchain provides the capacity for games to utilize shared assets.

Assets, avatars, lands, and any other game elements can be used in other games that allow it. A narrow digital ecosystem confines these game items

The Defihorse uses $DFH token to create a circular economy between all the profiles of users who will interact with its platform, namely the players, creators, and horse owners. This token protocol will act as the official currency in the ecosystem when purchasing goods and services within the game marketplace.