What are ERC721’s?
You can think of these like a coin you might get at an arcade. While you can’t use an arcade token at Dave and Busters or other arcades, each arcade token is worth the same amount to the arcade that created the token. ERC721 tokens are non-fungible tokens, which means that every token is unique. ERC721 tokens typically gain value by being a unique and rare and/or representing a real-world, unique item, like a piece of art or a house.
OpenSea is the most popular marketplace for trading ERC721’s, and you can buy these non-fungible tokens with ETH through a wallet!
Let’s look into some real-world applications of non-fungible tokens:
Each kitty in this crazy, blockchain game is actually a token. And each token is different because each kitty is unique. The entire purpose of the game was to purchase, breed, and trade these cats. CryptoKitties became very popular as people tried to buy super rare, early generation CryptoKitties, or Kitties with unique attributes like blue hair or crazy eyes. During the 2017 bull run, CryptoKitties were continuously talked about as people were trading their cats for ETH value as the price was skyrocketing. Some of these digital cats would even be worth over $100,000!
In the 2018 season, the Dodgers gave away bobbleheads to the first 40,000 fans in attendance. This is a completely normal giveaway for a sporting event, but this time the Dodgers chose to hand out digital bobbleheads that were non-fungible tokens. Attendees were then able to store this collectible in their Ethereum wallet as a personal memento from the game as well as having the opportunity to trade it just like traditional collectibles as they do have value from the rarity and exclusivity of the item.
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