KIP17 establishes the implementation of a standard API for Non-Fungible Tokens(NFTs) for smart contracts. NFTs can represent unique digital assets, such as virtual real estate, rare items, or unique pieces of art, and can be traded, bought, and sold on marketplaces that support KIP17 NFTs.
KIP17 as a token standard is heavily derived from ERC721, the Ethereum standard interface for non-fungible tokens. To issue non-fungible tokens in Klaytn, the KIP17 standard specification must be implemented.
The metaverse is a virtual world that mirrors the physical world, and NFTs can represent real-world assets such as houses, cars, and furniture in the metaverse. Integrating NFTs into metaverse applications provides the following benefits:
Virtual land ownership: NFTs can be used to buy and sell land in the metaverse. For example, Orbcity is a decentralized virtual world where users can explore and upgrade their cities and districts, and districts are represented as NFTs.
Trade of virtual products: NFTs facilitate the verifiable sale of digital goods such as clothing, art, and other products in the metaverse.
Ownership: NFTs provide ownership in the metaverse, allowing users to own products and have a sense of belonging. For example, gaming applications can represent in-game assets such as skins and tanks with NFTs.
Digital community and social experience: Users can purchase NFTs to gain access to premium communities in the metaverse and this enhances social interaction and the forming of digital communities in the metaverse.
To enable these use cases, the KIP17 token standard can be used to implement non-fungible tokens in metaverse applications.