On the blockchain, digital cryptocurrency is divided into two categories: native currency and token. The former, such as BTC, ETH, etc., have their own main chain and use transactions on the chain to maintain ledger data; tokens are attached to the existing blockchain and use smart contracts to record the ledger, such as attached to Ethereum And the issued token. Tokens can be divided into two types: homogenization and non-homogeneity.
Then a blockchain term NFT appeared. What exactly is NFT? Let's take a look at this article with everyone.
What is NFT
NFT (Non-Fungible Token) defines an indivisible and unique interface specification for token interaction and circulation in the ecology. On the blockchain, digital cryptocurrency is divided into two categories: native currency and token. The former, such as Bitcoin and Qtum, have their own main chain and use transactions on the chain to maintain ledger data; the latter, such as BOT, INK, etc., are attached to the existing blockchain and use smart contracts to record the ledger. Tokens can be divided into two types: homogenization and non-homogeneity. Homogeneous tokens, namely FT (Fungible Token), use ERC20 and QRC20 as the basic standards. They are mutually replaceable and nearly infinitely split tokens. Non-homogeneous tokens, namely NFTs, are unique and inseparable tokens, such as encrypted cats, tokenized digital tickets, etc.
The characteristics of FT make it can be used to represent various substitutable things in the real world, such as currency, points, stocks, etc. These things need to be split and then exchanged between users. On the blockchain, FT is widely used to issue new digital currencies. These digital currencies are usually linked to the company's equity or product usage rights to attract users to buy or speculate. Now that the market has gradually returned to rationality, we have also begun to realize the limitations of FT: things that are truly valuable in real life are irreplaceable, such as a commodity, a contract, a qualification, etc. These unique assets are Cannot be anchored with FT. Compared with FT, the key innovation of NFT is to provide a way to mark the ownership of native digital assets (that is, assets that exist in the digital world or originate in the digital world), and this ownership can exist in centralized services or centralized Outside the library. The ownership of the NFT does not prevent others from inspecting it or reading it. NFT does not capture the information and hide it, but only captures the information and discovers the relationship and value of the information with all other information on the chain. At the same time, due to its non-homogeneous and inseparable characteristics, NFT can anchor the concept of commodities in the real world, such as tokenized tickets, a bottle of precious wine, uniquely designed jewelry and so on. NFT enables us to certify any valuable things and trace the ownership of the information, thus realizing the intersection of information and value. The current application scenario of NFT NTF is a differentiated digital asset based on blockchain. A blockchain compatible with NTF is like a database that can record any commodity. In theory, NFT can anchor all things that have non-homogeneous characteristics in reality, realize the tokenization of the real world, and form a digital asset world with interconnected value and information.
The current irreplaceable token forces can be divided into four groups:
Non-fungible token issuer
Non-fungible token market
Non-fungible token infrastructure
Various resources for non-fungible tokens
In specific application scenarios, NFT is divided into the following types:
We also mentioned the encrypted collections based on NFT design, that is, CryptoKitties. At the same time, there are many other expansion directions for encrypted collections, such as art collections. We can save the contract, copyright, patent and other information that need to be deposited on the blockchain in the form of NTF, which is convenient for subsequent updates, circulation, and transactions. When its owner wants to sell, he only needs to simply issue the NFT mark information to declare the authenticity of the work and his own ownership of the work. At the same time, this certification is digitally traceable, because the art assets Ownership is recorded on the blockchain, which can prevent forgery and fraud of artworks while ensuring the legality of transactions. Game props NFT is also completely changing the game world. Usually, the characters in the game will get tradable items such as weapons, clothes, real estate, etc. Creating an NFT for each item can enable them to be traded with the points tokens in the game or even real-world cash. An online digital economy system for virtual goods. These NFTs are stored on the blockchain, and their information, ownership, and all transaction records will be transparent and open, and cannot be destroyed or tampered with. Electronic tickets If I have a ticket for a superstar concert and you have a basketball electronic ticket, they are the same type of items but represent completely different values. Because of its non-tamperable and traceable characteristics, the blockchain has a natural connection point with the deposit certificate, and the deposit certificate has therefore become one of the typical scenarios of blockchain applications. Blockchain deposit certificates are suitable for all business scenarios that require deposit, verification, and evidence collection, especially those that need to solve multi-party trust issues or obtain judicial supervision licenses. At the same time, identity verification after digitization of tickets can also prevent fake tickets and scalper tickets, so electronic ticketing is an industry that NFT can transform. Identity authentication We can apply NFT to identity authentication to achieve a full record of personal behavior. For example, obtaining a non-tradable NFT as a birth certificate, passport, and personal driver’s license, etc. Although the NFT is not tradable, interactive authentication of identity can be achieved through permission control. When we are recruiting, we can verify a person’s identity NFT to inquire about their college diploma, and apply to view the doctor’s identity information to verify their qualifications when seeing a doctor. Identity authentication tokenizes people and records all attributes and behavior history. Electronic deposit certificates use NFT to store real-world contracts and documents in a decentralized chain to prevent forgery and facilitate traceability. At the same time, with the help of technologies such as electronic signatures and certificates, the authenticity and validity of the documents are proved. Electronic deposit certificates can effectively realize the electronic value of intellectual property, copyright, copyright and other values, and the transaction characteristics endowed by NFT can make these values be directly traded on the blockchain, which facilitates the circulation of value.