NFT (Non-fungible token) is a unit of data stored on blockchain to represent a physical or immaterial product that cannot be replaced. The NFT trend is attracting a lot of attention around the world. This Tech Town article will help you answer questions related to NFT.
What is NFT ? What is NFT token ?
An NFT is a string of numbers that can represent any type of digital asset such as: Digital paintings, music tracks, domains, tokenized versions of real assets (real estate, collections, paintings) painting,…)
To understand more deeply about the concept of NFT, let’s break down each of them:
Non-Fungible: Unique, irreplaceable. For example, 2 bills with a face value of 50,000 VND can be exchanged for 1 bill of 100,000 VND, then it is not called Non-Fungible.
Token: Can be understood as a cryptocurrency developed based on an existing coin, currently Tokens are mainly created and used on the Ethereum blockchain.
What are the properties of NFTs?
The characteristics of NFT are expressed through the following three properties:
- Uniqueness: Each NFT has its own unique properties and is never the same as the other NFTs.
- Scarcity: Each NFT is unique and cannot be replaced by any other form, which creates value for NFTs.
- Inseparability: A special property of the NFT is that the NFT cannot be divided in any way.
For example, 10 ETH can be split into 10 parts, but not with NFT. You cannot divide a picture into different parts.
Like standard tokens, NFT also guarantees ownership of assets (blockchain allows traceability), easy transferability, and anti-fraud.
What is NFT technology ?
It’s a form of digital signature stored on the blockchain, NFT technology works similar to the way cryptocurrencies (cryptocurrency) work. Cryptographic proofs (tokens) represent digital assets, act as unique asset validation and are the original version. It can be a still image, animation, music or any other type of digital file.
The concept of NFT was born as a method of registering ownership of digital assets, including artwork, game items, etc. These assets become NFT when it is marked on the blockchain by assigning more a special encrypted hash. It is then considered tokenized. Thereby, anyone can verify the reliability of the asset as well as the ownership of that asset, it is impossible to fake that asset.
Applications of NFT
Thanks to the unique properties of NFT, it is widely applied in many fields, including:
With NFT, the owner of a painting can convert it into a digital file, upload it and attach it to a token on the Blockchain platform to prove his ownership. This benefits artists a lot, because they often face problems related to copyright, from paintings, music, movies, etc.
NFT makes it possible for players to actually own in-game items, characters, and trade with less risk.
For traditional games, publishers provide and sell in-game items. To own items, you need to recharge the game to buy them. But the actual ownership is with the publisher, your item may be lost if the server has a problem or the account is hacked.
But for blockchain games with NFT applications, your item is tied to a data token. Players can easily exchange it for anyone who owns the platform blockchain currency (like ETH). And the entire activity of that item is recorded and stored on the blockchain, no one can affect or change that item.
Digitization of real assets
In the future, NFT can be widely applied to all areas of life, encrypting all physical assets and intellectual property. We can completely put real estate on blockchain, encrypt ownership in the form of NFT to solve the problem of fake red book. Other items that can be converted into NFTs such as domain names, e-tickets,…
What is Trend NFT – Trend NFT
We all know that the rarer an asset, the more valuable it is. Take the example of the painting “Mona Lisa”, we can make thousands of copies, but those thousands of versions have only aesthetic value, and the original painting is still unique and has economic value because its rarity. NFT allows owners to verify ownership of an original against a digital asset, even when there are millions of copies all over the Internet.
When you buy an NFT, you are buying back the probate of ownership of an asset. Owning them brings great emotional value to collectors, the key point being the feeling of “the only person” in the world who owns the property.
What is NFT floor ?
In June 2020, Binance launched Binance NFT with the world’s leading trading platform and marketplace. This marketplace attracts most of the global crypto artists, creators and enthusiasts. Users and creators have high expectations for a series of top NFT exhibitions and collaborations, and Binance’s industry-best liquidity with extremely low fees.
Most of the NFT Tokens are listed on Binance exchange. However, users can refer to buy NFT Token at large and reputable exchanges such as Huobi, Bithumb or Gate.io. You can trade them with USDT, BTC or ETH pairs.
The NFT platform is widely available to artists and creators. Users can deposit NFT into the exchange market and choose to list NFT for sale or auction with minimal cost.
What is Mint NFT ?
Mint is the process of putting data into the Blockchain system.
Any item becomes NFT through casting. To convert a data into NFT, it must become part of the blockchain ledger.
Mint an NFT means minting NFT, the digital asset that will become part of the blockchain. If you are using the Ethereum blockchain to mint an NFT, it becomes part of the public ledger and cannot be modified later.
To create an NFT, the creator must pay a network fee. This amount fluctuates depending on the needs and usage of the network. Since NFT is popular and Ethereum is in sizable demand, that fee could be around $100 – $140.
What is NFT Airdrop ?
Airdrop NFT or Airdrop coin is a fairly new concept in the cryptocurrency market. It is interpreted as money falling from the sky. Users need to perform sharing and posting on social networks to attract other users to register for a coin project to receive free tokens or coins. Therefore, Airdrop coin is understood as the release of free coins into the user’s wallet. It is widely used in marketing activities. Also applied in ICO (Initial Coin Offering) projects.
What is Metaverse NFT ? What impact does NFT have on the metaverse
Metaverses is a digital environment that operates on the blockchain. Here, technologies such as VR and AR provide the visual component, while decentralized media provide unlimited social interaction and business opportunities. These environments are scalable, interactive, versatile, and incorporate innovative technologies and models of interaction between participants at both the individual and corporate levels.
Metaverse is considered a 3D digital universe that combines many processes and elements such as media, finance, game world, personal profile, NFT and many more. The potential of the metaverse lies in its resemblance to the real world, anyone in the metaverse can create, buy, sell and exchange NFTs to collect virtual real estate, join social communities, create virtual identities, games and more. This field opens up many opportunities for monetization of digital assets and real-world assets, so that both businesses and users can incorporate into the metaverse framework.
Some potential NFT projects today
Axie Infinity is a digital pet universe inspired by the Pokémon game, anyone in the game can earn money through gaming skills and ecosystem contributions. Players can battle, collect, breed, and build a kingdom for their pets (called Axies).
Game content and Axies-related data are both accessible by 3rd parties, allowing the community to freely build their own tools and experiences in the game.
Axie Infinity aims to be a platform that has both social networking features and a workplace, creating a thriving community with potential earning opportunities.
Emerging into the crypto market in 2021, Bytenext created AvatarArt as an NFT marketplace for artists, helping them to create NFTs and sell their NFT works. Although just launched in 2021, this platform has attracted a large number of interested users by focusing on coding painting works and conducting auctions, and building 3D virtual painting exhibitions. to display valuable works.
When using AvatarArt, artists will register for an account and submit the work’s information to the AvatarArt system. The system will verify and initialize the NFT for the work and move the work to the depository center, then simulate the work in virtual reality and launch the auctions. The winner will receive NFT ownership of the work and a real work.
Video streaming (streaming) on platforms like Facebook, Youtube… has now become extremely popular with users. However, the user’s video content copyright is still held by intermediary platforms, not to mention the video content is controlled centrally and difficult to access. To solve that problem, Theta Network emerged and aims to become a global decentralized video distribution network.
Features Theta Network is a leading video distribution network, operating on the Blockchain platform, allowing users to both watch videos and earn token rewards for forwarding videos to others who are watching the same content.
Similar to other sharing economy models, users opt to volunteer their spare bandwidth and computing resources to relay videos to others and earn tokens for their contributions.
Hope the information about NFT Tech Town brings will be useful to you.
Contact us if you have any technical questions.