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What is NFT

1970-01-01 08:00 Update

Unique non-fungible token

NFT It is the abbreviation of Non Fungible Tokens. Simply put, an NFT is a cryptographic digital asset that can be traced on the blockchain and identified by its unique code. NFTs are non-replicable and therefore unique in nature.

Unlike fungible tokens (i.e., “fungible tokens”) such as Bitcoin, each NFT is different from another and cannot be traded equally among each other. Therefore, people can own these unique cryptographic digital assets and have traceable proof of ownership.

What is a fungible token? What are the characteristics? Please refer to the entry "What is Fungible Token".

Many things can become NFTs: pictures, music, videos, papers, including Weibo posts. Basically anything that can be digitized, can become an NFT. Today, most NFTs are now considered "collectibles", or as avatars and avatars of the game/metaverse.

Currently, there are two main formats of NFT: ERC-721 and ERC-1155.

The value of NFT

You may want to ask: Why is it necessary to make digital assets "non-fungible"? Here are the two main reasons.

Protecting Intellectual Property

More and more people are working online today, and more digital works are being created - and these digital arts are also valuable. But when it comes to intellectual property infringement, digital art is terrible, because it has no way to evaluate whether it is a forgery by checking the brushstrokes like a physical painting. As a result, it becomes difficult for individual digital art creators to prove their ownership and receive royalties every time their work is resold. The NFT form with its "unique" characteristics can help solve the piracy problem to a certain extent.

Provide verifiable proof

Another main reason is to provide verifiable proof for valuable and important events, such as concert tickets, train tickets, and air tickets. Paper tickets are easily stolen, while digital tickets may be even more likely to be stolen. NFTs have a traceable public transaction history, making them very difficult to lose or steal.

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