Introduction to NFTs
It is almost 3 years since the term Non-Fungible Tokens (NFTs) become famous in and outside of crypto world. The credit is due to the launching of CryptoKitties, a game developed on Ethereum Blockchain where people can buy collectibles in the form of virtual kittens. The emergence of NFTs has opened up a new horizon for digital artists since they are now able to prove their digital ownership by minting their NFTs on the blockchain. Game and digital arts are only among a lot of other use cases, for instance, trading cards, music, real estate, sports, drawing, tickets, certificates and licensing.
Before I get ahead of myself here, let’s first define what it means by Non-Fungible Token? Well, in simple words, Non-Fungible Token means the token is not interchangeable with another token. To make it more clear, let’s compare with Fungible Token such as Bitcoin. Bitcoin has the same value everywhere in the world and we can exchange them directly without any issue. Meanwhile, NFTs are unique, one token is not the same as another. They have their own specific owner address attached to it, thus proving ownership of that particular NFT. Usually, when people are speaking about NFTs, it is most likely they are referring to digital creative arts. But here in Twistcode in this time, we will regard NFTs as certificates.
According to Mufti Faraz Adam in this article, NFTs are reviewed by scholars based on these six guidelines.
Extravagance (Israf) and wastefulness (Tabdhir)
Any potential Shariah infringements.