All about NFT , Unique and Specific Token

Index
1. NFT's meaning
2. NFT's origin
3. Why NFT replication is impossible?
4. Examples of using NFTs
5. Characteristics of NFT market
6. Positive view of NFT
7. Negative view of NFT

NFT Meaning

NFT is an abbreviation of Non Fungible Token. As a type of token circulated on the blockchain, each token is given a unique recognition value, so it has irreplaceable values and characteristics, making it impossible to exchange and replication. A unique recognition value means a serial number assigned to an asset with blockchain technology.
Cryptocurrencies such as Bit Coin, which are 'fungible tokens', each have the same value, so 1:1 exchange is possible, but NFTs can be priced differently because each token is different and each has a different value.

NFT Origin

The origin of NFT was CryptoKitties, a virtual cat breeding game released in 2017. A game released by Dapper Labs, a blockchain startup, it is a game that collects and breeds cats with different characteristics online to create your own rare cat. Each cat is NFTized and given a unique serial number, and users can buy and sell cats with cryptocurrency. At the end of 2017, the game's digital cat was sold for $110,000, making it a hot topic.

Why NFT replication is impossible?

Since NFT is based on a blockchain, all relevant information such as ownership and sales history is stored in the blokchain. Therefore, the original issuer can be checked at any time, making counterfeiting impossible. In addition, while virtual assets such as existing cryptocurrencies have equal conditions depending on the issuer, NFTs contain a separate and unique recognition value and cannot be exchanged with each other.

Example of using NFT

Items that can be applied with NFT vary widely from digital content such as video, image, sound, and text to artworks, collections, game items, sound sources, various products, and virtual real estate.
Transactions issued by NFT are as follows.
- Twitter Founder Jack Dorsey's first Twitter post ("just setting up my twt") to sell for $2.9 million at auction in 2021
- A 10-second video made by digital artist 'Bipple' was sold for $6.6 on the NFT exchange in February 2021.
- Digital artist Mike Winkelmann's work sold for $69.3 million at Christie's auction in 2021.- Digital painting collection by Canadian singer Grimes
- Go player Se-dol Lee is the only one who won the artificial intelligence AlphaGo game.
- Resume written by Apple founder Steve Jobs in 1973

Characteristic of NFT market

‘Crypto-natives’, who have been interested in virtual assets and blockchain markets from an early age, are leading the way. Most of the founders of major NFT companies and NFT investors are these crypto-natives, and they have a strong tendency to create a community to share information and drive market trends. The NFT community is very active on a chat service platform called Discord.

Positive view of NFT

It becomes easier for the original artist to generate profits. This is because whenever digital works are traded as NFTs, NFTs can be set so that fees are paid to the first producer. The securities industry expects to be able to trade various assets using NFT. A researcher said, "We will be able to own artworks that had to be collected in real life in a digitized form. The market will expand to digital space without being limited to the primary market of art museums and galleries. " Dapper Labs, which pioneered the NFT market, joined hands with NBA to launch the service. Mark Cuban, owner of the Dallas Mavericks, a U.S. professional basketball club, predicted that the NFT market will become the NBA's top three revenue sources over the next decade.

Negative view of NFT

According to NonFungible.com, a professional NFT analysis site, the total transaction value of the NFT market has grown rapidly from $62 million in 2019 to $250 million in 2020. In this regard, there is a view that it is a bubble or speculation in that the content that anyone can read online is traded for a large amount and the valuation is also very subjective.
Blockchain expert David Garrard also called NFT sellers a “scammer” and said, “They are inventing assets that have no value but can be sold for money.”
Charles Allsopp, a former auctioneer at auction house Christie's, said in an interview with the BBC that "the culture of buying things that don't really exist doesn't make sense".