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Non-fungile Token (NFTs)

What is a NFT?

Ethereum was the first blockchain to support NFTs with its ERC-721 standard. The difference to normal tokens is that the NFT is unique and clearly verifiable, and can be used to prove ownership of any digital good.

There are many use cases for NFTs, the most common use case is to link an image to it which becomes unique digital art which can be sold on open NFT marketplaces.

Other use cases would be to use NFTs as assets in games, for event tickets, for Decentralized Finance (DeFi), for voting in decentralized autonomous organizations (DAOs) or for any objects in the Metaverse.

Different NFT Types on IOTA

Digital Native Assets

Layer 1 Assets also known as "Digital Native Assets". With the IOTA tokenization framework, you can create NFTs on L1 using the NFT output type. Layer 1 NFTs can be transferred on the whole layer without any fees and enable you to transfer NFTs between different smart contract chains.

Layer 2 Assets

Layer 2 Assets are created within Smart Contracts and can be minted out of thin air. That means, you don't need any coins to mint new NFTs.

  • For the Wasm VM, there are ERC721 Standards implemented in Rust, Go and Typescript.
  • EVM Assets (Ethereum standards like ERC721 or ERC1155) can be used in the IOTA Smart Contract EVM Chain. You can use the Open Source library from OpenZeppelin Smart Contracts.

NFT Marketplaces

The first IOTA NFT marketplace, was developed by the IOTA community and launched in July 2021 on the IOTA 2.0 DevNet. The marketplace is a feeless alternative to the expensive and energy-wasting approaches taken by other networks.

Their tests phase has ended. For the next steps, they implement Smart Contracts and integrate Browser Wallets to make the NFT trading secure and accessible.

NFT Projects

The community also creates really amazing artworks and already dropping them on the Smart Contract testnet. Please note - all these NFTs are on the testnet, and be careful that some NFT projects might do new drops when the mainnet launches.

Here is a list of community projects. Please feel free to add yours!