The cryptocurrency industry was shaken by the emergence of the Non-Fungible Token (NFT) standard back in 2021, when everyone was talking about skyrocketing innovation. As with most new technologies, the hype wave was followed by a consolidation phase and a gradual shift toward practical adoption. Today, the dust has settled enough to take a clearer look at what NFTs and their variations represent on the Nexa network.
Non-Fungible Tokens and Semi-Fungible Tokens
A non-fungible token is defined by its uniqueness. Each NFT is one of a kind, cannot be copied or replicated, and contains a single exclusive piece of art or data stored and verified on the blockchain.
Semi-fungible tokens (SFTs) sit between NFTs and regular fungible tokens. They can represent multiple identical pieces of a digital item, and unlike NFTs—SFTs are fungible within their series because multiple identical units can exist while still carrying embedded metadata. This essential difference in quantity is what separates SFTs from their non-fungible counterparts.
The NiftyArt Gateway
NiftyArt is the first NFT marketplace built on Nexa and is endorsed by the Bitcoin Unlimited team. It enables users to create NFTs in just a few steps and supports a range of data types, including images, videos, and music formats. The interface is intuitive and beginner-friendly, requiring only the installation of the Wally Wallet and a simple wallet setup. After that, clicking connect wallet in the upper-right corner allows you to create, manage, and trade your NFTs.
One of Nexa’s biggest advantages is that its tokens are native to the blockchain, which means no smart contracts are required. Also, all assets can be exchanged directly in a peer-to-peer manner, and this model opens a new spectrum of possibilities for NFTs by allowing users to trade securely on any social platform or communication channel.
The Most Speculative Asset
During the 2021 hype cycle, speculation around NFTs exploded, and many people were caught in the frenzy. However, the fundamental value of NFTs does not lie in JPEGs or profile pictures. Those were simply the earliest and most visible use cases driven by speculation rather than utility. In reality, almost anything can be represented as an NFT: a song, a movie, a diploma, property rights, or any other form of verifiable digital record.
The true value lies in the underlying asset and the functional purpose it serves. NFTs can encapsulate any form of data, making them powerful tools for representing real-world assets, digital property, certifications, and unique items in a trustless digital environment.
Real Use Cases
Bitcoin introduced the world to peer-to-peer digital value transfer without intermediaries. But speculation and sound money, while foundational, represent only a fraction of blockchain’s transformative potential. The deeper innovation lies in digitalization and the ability to represent ownership and identity, use smart contracts, and remove middlemen.
NFTs allow virtually any asset to be represented online, including artworks, songs, films, documents, collectibles, and even tokenized land or real estate. Once something is tokenized, it can be traded globally and instantly, protected by cryptography and verifiable by anyone.
To Wrap Up
Despite their visibility, NFTs and SFTs are still far from fully explored. Many of their most impactful use cases have not yet been implemented or widely adopted. This uncharted territory holds far greater potential than most people expect, and Nexa’s native, contract-free token system offers an efficient foundation for unlocking that future.