Non-Fungible Tokens & Althash
Since the last 2.5 update fork, Htmlcoin is able and prepared to work with NFT technology. “Non-fungible tokens” in Blockchain terms is mostly about tokens that are individualized and unique, or part of a unique group inside one main token contract to manage all under the hierarchy.
The potential of non-fungibles tokens for the tokenization industry is huge! From official documents, passing through titles of ownership, games, land division, collectibles in general or whatever you can divide into exclusive parts, it represents a major part on how we will virtualize things in the new world with exclusive crypto assets on blockchain.
Before we explain more about NFTs, let´s look at these 2 concepts:
* Smart Contracts:
A smart contract is a self-executing contract with the terms of the agreement between buyer and seller being directly written into lines of code. The code and the agreements contained therein exist across a distributed, decentralized blockchain network.
“If a security, sometimes called a “tokenized security” or a “crypto-security” or even a utility token, it is more than a currency — it often represents ownership in an underlying real-world asset with its own rules. Security tokens use a blockchain system — a decentralized database — to do the tracking of who owns which assets. Tokens are usually divided into fungible and non-fungible tokens. “
So what does fungibility even mean ?
“A fungible good is a good defined by its belonging to a type: different units of fungible goods are interchangeable. “Fungibility” as a concept, is used in several different academic disciplines, however we’re only addressing the economic definition.
Let’s jump to the examples which make the concept much easier to understand. Our modern fiat currencies, such as the dollar, are fungible: one $5 bill is not unique, or exclusive, it can be exchanged with another. Gold is also fungible: 1 ounce of (pure) gold will worth 1 ounce of another. Bitcoin or Ethereum are also fungibles, if i have 1 bitcoin and you also have 1 bitcoin, both bitcoins are equal and work in the same way. You can not have 1 bitcoin with special features or characteristics that another bitcoin doesn’t have. A fungible good or asset is standardized: each unit of this good has no uniqueness, which is why we can exchange them with one another.
Some goods are non-fungibles. They are goods which share common attributes but have their uniqueness: each good has a unique set of values for each trait which is shared with the whole type.” For example, an RPG (Role Playing Game) card where you have specific attributes for each one that makes it exclusive. Or a land divided into areas, where each coordinate area is unique and exclusive, or even one digital ID where each token represents one singular person or entity.
We could create a set of tokens for all humanity using fungible tokens. Everyone would receive one token, each token would have the same characteristics and attributes. Now we are able to create a set of tokens for all humanity using non-fungible tokens. So at the main top we have one contract (humanity.sol) and below it every single person could receive one single unique token with their own DNA attributes, birth date, blood type, location, etc…
With the fungible tokens structure we would have one token for each person but the tokens would be the same for everyone(units of the same token).
With the non fungible tokens structure, all people are different from another but inside the same rules (humanity.sol).
Example: Look at this three cards
All of them have their own characteristics, power, strength, health, magic, loyalty, numbers and unique images. Imagine that we wanted to create an RPG game using the Non-Fungible Tokens concept in Htmlcoin. The contract should be able to allow someone to create one unique and singular token for each card with its particular attributes set on its contract. It’s like having infinite singular contracts inside one main structure with the same rules (the game rule) for all cards (or NFT) but each card has a different behavior in the contract (its powers, features and other attributes). So instead of playing with paper cards or exchange, purchase or sell them physically, you now will exchange and play with Non-fungible tokens. So we will need a place where you can purchase your exclusive cards (Htmlbunker is already ready for non-fungible tokens) and the game’s back/front end where the magic happens. Cards are useful because they make the concept of non-fungibility easy to grasp. NFTs are a category of tokens that share common attributes. But each token has a set of unique values for these attributes which make the token itself unique.
Our Development Team, Leandro Machado, Márcio Gandra, Ilo Rivero and Paulo Felipe are working on the study of this technology to release the full documentation about it with more games and “dapps” at our Althash platform to create an environment that anyone can build their own cards and play with NFT in Althash/Htmlcoin Blockchain.
Another good example is CryptoKities on Ethereum, a big hype among crypto users and families where you can not only have your own virtual pet, but using genetic algorithms you can even reproduce them generating another single unique non-fungible token. It’s really amazing how the engine works and it’s very close to you now.
The scope of NFTs to bring value to the real world far transcend the gaming industry. NFTs will have great applications to tokenize assets within real estate and pieces of art for example.
Many owners may have exclusive parts of a land or a painting divided among others owners. We will be able to tokenize official documents, each one will be recognized as a single token and will be exclusive, just as a person’s ID or passport is. It will help to prevent fraud since it would also provide traceability, unlike anything we’ve ever known so far. Which in turn would make a 99.9% fraud-proof and prevention system a realistic one.
We are preparing now all documents, examples files and instructions about how to create your own non-fungible tokens at Althash/Htmlcoin.
It will be available at our new althash.org website (inside token farm dapp page) and at htmlcoin.com . Use your imagination, learn about it and join us ! The possibilities are infinite !
You can access one example of smart contract code for NFT here, it was used for an art gallery to make each art tokenized as unique :