07.02.2022 Crypto Basics By George Gus

What are NFTs and why do they have value?

what are nfts
what are nfts or non fungible tokens and why do they have value

NFTs stand for non-fungible tokes. The word non-fungible is not one you encounter every day. It essentially means non-interchangeable, but the best way to explain it is by giving an example.

Let’s say that I have a $10 note, and I decide to interchange it or exchange it with the $10 note that you have. Essentially both notes are the same paper notes, and they carry the same value, so by swapping them, nothing changes on your end or mine, neither one of us losses or wins, we still carry the same value. So in this case my 10 dollars is fungible meaning it is interchangeable with another 10 dollars without making any difference to the parties involved in the transaction. 

Another example would be when you go to a restaurant with a friend and order the same meal. Then you both decide to swap your meals. This interchange or fungible transaction will not make a difference to you or your friend. Both meals have the same value and the same taste.

Now let’s go back to the dollar note example but this time image you have a 10-dollar note signed by the president of Russia, Vladimir Putin. And now I ask you to swap it with my 10-dollar bill. In this case, you would say: “no, this is a ten-dollar note, unlike yours, is signed by Vladimir Putin. It is the only one that was signed by him. It is unique and priceless, I could probably sell it for thousands of dollars so this note is non-fungible and it will make a difference if I were to swap with you.”

Let me explain this further to drive the point home, you see the hoody I am wearing (probably not, but imagine you do). My hoody is not unique by any stretch of the imagination. There is probably a million-copy of it out there.

But now imagine that I am the Britney Spears of the Middle East. I am super famous and I want to sell this hoody. Now all of sudden this is Omar’s hoody, it is the one he wore. So this hoody becomes non-fungible it has unique attributes despite the millions of similar hoodies in the market. 

What you also need to understand now is that NFTs have applications in crypto projects. They are minted by project developers as unique collectibles to provide multiple benefits to their holders within a specific ecosystem.

Zamio, for example, is a crypto project that has developed an ecosystem on-chain, offering many products and services from remittance, and DeFi to bridging investors in the equity market to the blockchain. Zamio has recently entered the NFT space by creating a unique set of well-drawn NFT collections, called TrillioHeirs

The trillion NFT collection are divided into 4 tiers or levels:

  1. The aliens (7000 peices)
  2. The brutal (1500 peices)
  3. The enlighted ones (370 peices)
  4. The chosen heroes (18 peices)

The chosen heroes are the rarest most exclusive with only 18 characters or tokens. They are hand-drawn and available for sale at the OpenSea Auction platform. the rest of NFT levels are algorithm-generated.

Some of the benefits that holders of this collection include:

  • Garuntted allocation to Zam launch pad for all levels
  • Increased allocation from 1.5X to 2x
  • The opportunity to participate in private pools and seed pools
  • Gaining membership in the ZAM DAO
  • Using NFTs as an avatar in the sandbox metaverse and Play2Earn games

The TrillioHeirs are one of the coolest NFTS on the market today, not to mention the rights and privileges they carry make them a good investment over the short and long term if you believe in the ZAM ecosystem. To learn more visit: https://trillioheirs.zam.io/

The leading team at Zam is compromised of honest, hard-working, and community-driven individuals and they have a sense of responsibility towards global issues and are mindful of the crises that affect humans, hence a portion of the sale proceeds will go to developing technologies for water extraction in the desert. 

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