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Popular science: Briefly understand the value of NFT and its application scenarios

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Why is NFT so popular now? What is its value and investment significance?

The original title: "the popular science | what NFT is, what is the value?"

原文来源：白话区块链

Blockchain games are a subset of NFT, to be precise.What exactly is NFT?

01 What is NFT?

The full name of NFT is non-fungible token, i.e. non-homogeneous token, which corresponds to FT (Homogeneous token).. Non-homogeneous tokens are tokens that have unique identifiers, are not interchangeable, and are not separable.

It sounds abstract, but let's talk about the homogenization of tokens: Ethereum, Bitcoin, etc. I have one Bitcoin, and I exchange one of your Bitcoins, and it doesn't affect its value at all. I still have one Bitcoin. Just like the $100 I have is interchangeable with the $100 you have (apart from the inconsistencies in the codes above).

But if you have any tickets for the concert in my hands, not willing to change a concert tickets of your hand, because of my tickets and your ticket position position is certainly not the same as above, could I in front of you in the last row, this seat number tickets are clearly written on the above, there are very significant difference between the two tickets.

The NFT is like a concert ticket; each one is unique. And unlike Bitcoin or Ethereum, which can be split into 0.1 or 0.01 pieces. NFT is indivisible. Like a concert ticket, if you get half of it, you can't get in. So,What exactly is NFT useful for?

02 Value and application scenarios of NFT

We know that the Internet is a world where information can be freely circulated. No matter text, picture or video, information can be instantly transferred to any corner of the world through the Internet. It can be said that the Internet has greatly overturned people's way of life.

However, when these texts, pictures and videos are transferred, they are actually copies, with the original kept locally. When an image has been circulated countless times on the Internet, who can tell which is the original and which is the copy?

Because NFT has the characteristics of unique identification, the text, pictures and videos loaded with NFT are equivalent to having a unique identity in the digital world.

No matter how many copies of this information are made, the NFT identifier is the original. And NFT is based on the underlying technology of blockchain, allowing information with NFT to be freely traded without the need for intermediary giants.

Blockchain is called the "value Internet" because it complements the last piece of the puzzle of the Internet and solves the "double flower problem" of transactions without the need for third-party intermediaries. NFT is currently a shining pearl on this "value Internet".

So, where exactly is NFT used?

In fact, there are many application scenarios of NFT, such as the NFT digital artwork auctioned by Christie's. The artwork itself is based on block chain technology, and NFT represents the work itself. The Token of NFT is transferred from the seller's wallet to the buyer's wallet, and the buyer completes the payment, which means the transaction ends.

Similarly, NFT also includes cryptographic game assets (such as the popular crypto cat in 2017 and the current game AXIE), cryptographic collections (NFT of NBA stars' highlight moment video sold by NBA Top Shot), etc., which can be derived to financial derivatives, personal identity data and other fields in the future.

Of course, in addition to these primary encryption assets (NFT) based on block chain technology development, there are also some physical assets issued NFT, such as solid and real assets, such as art, real estate, the NFT is actually an online identity credential, need to trust in the real world is high third party intermediary institutions to provide arbitration witness, Ensure that the NFT corresponds to the corresponding physical asset.

Another type of existing Internet assets, such as domain names, also need third-party giants to provide relevant certification materials, so that NFT corresponds to the corresponding assets.

03 summary

In short, as a hot new thing, NFT has quickly become the focus of more and more people. Critics say the NFT auction is too artistic and the NFT is a bubble, but the emergence of something new is bound to be controversial.

We do not deny the existence of bubbles, but believe that the true value of NFT will gradually become apparent as bubble after bubble after bubble is deflated.