NFT: Changing the digital experience of the past

NFT is a recently popular emerging concept born out of the craze of blockchain. Elizabeth Strickler of the Blockchain Lab at Georgia State University in the United States said in her recent speech that “NFT” is the three letters that are now changing the digital experience . When we enter the Internet 3.0 era, if we do not understand the value and exchange methods of digital currency, we cannot understand the future of the Internet.

The first to put forward the concept of NFT was Hal Finney. Hal Finney can be said to be one of the pioneers of Bitcoin and the second person to accept Bitcoin after Satoshi Nakamoto. He once elaborated on Crypto Trading Cards in 1993, but due to the limitations of technological development at that time, NFT only exists in theory. October 2017, Dapper Labs team launched a game called the CryptoKitties encryption cat, and rage, was caused by Ethernet Square, network congestion, this mob cloud suck cat game to make money circle of people feel the charm of the NFT.

 Every NFT is unique, everything can be NFT

The full name of NFT is Non-Fungible Token, which is translated into Chinese as: non-homogeneous tokens, which can also be said to be “irreplaceable tokens” . It is essentially a proof of encrypted digital rights that cannot be copied, tampered with, or divided . Stored on the distributed ledger of the blockchain.

You may have heard of cryptocurrencies like Bitcoin, Ethereum, Dogecoin before . They are homogenous and interchangeable tokens, because one Bitcoin can be exchanged for another Bitcoin, just like you One yuan can be exchanged for another one.

NFTs are not interchangeable. Each NFT is unique and different from the same NFT. All NFT data is issued in the form of smart contracts and stored on the blockchain. Each token has fixed information and cannot be divided into smaller denominations. The main function is to serve as a digital property certificate for unique assets. A smart contract can issue one or more NFT assets, which can be physical assets such as tickets and collectibles, or virtual assets such as music, text, video, and game props, or even a string of codes. 

NFT: Changing the digital experience of the past

Non-homogeneous tokens have more imagination than homogenous tokens , because “everything can be NFT”.

NFT effectively solves the problem of right confirmation

At present, most of the right confirmation process uses a centralized registration method to confirm user rights. This method often involves complicated procedures and relies on centralized institutions in the transfer and enforcement of rights.

NFT capitalizes digital content and provides new ideas for the issue of right confirmation. It relies on blockchain technology to ensure the uniqueness, authenticity and permanence of digital assets, provides a digital “key” that can be easily transferred and exercised, and a series of corresponding permissions can exist in centralized services In addition to the centralized database, NFT assets will not disappear due to the cessation of operation of the centralized platform, but will exist permanently. Enhance the efficiency of data asset transaction and circulation. Effectively solve the problem of affirming the rights of on-chain assets and solve the pain points of copyright protection.

At present, the applications of NFT are mainly concentrated in the fields of collections, artworks, games, meta universe, applications, sports, decentralized finance, etc.

Since 2021, the prices of NFT works have gone up. In March, Twitter CEO Jack Dorsey announced the sale of a tweet he published 15 years ago. In just a few days, the price of this five-word tweet was as high as 2.5 million U.S. dollars. In the same month, Christie was able to auction the artist Beeple’s NFT work “Every Day: First 5000 Days” for approximately US$69.35 million (approximately RMB 450 million). The starting price of the work was only US$100. On October 9th, at the Sotheby’s Autumn Auction, Wong Kar Wai’s first film NFT “In the Mood for Love-A Moment” was sold at 4.284 million Hong Kong dollars, higher than the expected 3 million Hong Kong dollars. The most incredible NFT collection is a kind of work called “Loot”. Its primary form is even just a short line of code, or a few characters on a black background, and the asking price can be as high as one million yuan.

According to Oklink statistics from October 20 to October 26, 2021, NFT transactions in the collectible category were the most active, with transaction volume exceeding 240 million US dollars on the 7th, accounting for 92.31% of the total, of which the CryptoPunk project transaction volume ranked First.

NFT: Changing the digital experience of the past

NFT: Changing the digital experience of the past

At present, the mainstream NFT sale or trading platforms in China mainly include Alibaba Auction, AntChain Fandian, Magic Core and NFT China.

NFT: Changing the digital experience of the past

At the end of September, Hunan Provincial Museum cooperated with AntChain. The Hunan Provincial Expo series of digital collections consist of three phases. Artists Chen Chao and Wu Daijie rely on physical cultural relics to create and design, and use AntChain technology to confirm the rights and generate unique digital certificates to ensure the authenticity and uniqueness of users in the links of purchase and collection. While effectively protecting the digital copyright of cultural relics, more traditional culture lovers will have digital collections that cannot be copied, preserved forever, and appreciated and shared at any time.

The two digital collections of four cultural relics designed by the town hall’s treasures, which were jointly launched with the Zhudi painted coffins and T-shaped silk paintings of the Hunan Provincial Museum, have been very popular, and the collections quickly sold out, setting off a wave of museum digital collections.

NFT and meta universe

In the United States, the social giant Facebook has just announced its transformation into Meta Universe, and chip manufacturer Nvidia has also been vigorously advocating Meta Universe. Domestic ByteDance just spent 9 billion yuan to acquire VR equipment manufacturer Pico at the end of August. This is considered to be a landmark event in this round of “metauniverse investment fever” in China.

“Meta universe” is the most sci-fi investment concept in the market in recent years. There is no consensus on the definition, and the industry has a broad direction.

Simply put, the meta-universe can be understood as a virtual world in human consciousness. People can live as an avatar in a completely digital virtual world and obtain an immersive experience that transcends reality. “Some people may feel that they are not perfect in reality, but in the virtual world you can use avatars to fascinate sentient beings; there you can also buy land and build buildings and sell your own NFT paintings.” A game investor describes.

Nvidia co-founder Huang Renxun once described the future scenario in an interview: There will be a digital world in the future, and everyone can participate in it with an avatar; people can enter this world through VR, and artificial intelligence (AI) through AR enters the real world; this virtual world will give birth to digital products such as digital artworks, thus forming an economic system.

NFT is not only “painting works” and other art auctions, not only game props, but more importantly, NFT can verify the value of digital copyright, and solve the problem of confirmation of virtual copyright for the “meta-universe economy”.

The characters, pictures, audio and video in the network can be copied at will, but if they are encrypted through the blockchain, the creator can establish the uniqueness of the copyright of the work, so that the copy loses the original value like a fake in the real world. People can also use tokens to obtain revenue sharing during the buying and selling process, realizing a closed-loop business.

In many imaginations of the meta universe, the issue of right confirmation is solved, which means that people can own their own property in the virtual world.

On October 18th, Sotheby’s launched a selected NFT platform called “Sotheby’s Metaverse”, where users can use ETH , BTC, USDC or fiat currency to purchase NFT.

NFT: Changing the digital experience of the past

Sotheby’s Metaverse

The NFT industry continues to heat up. The NBA in the sports circle, Major League Baseball, Juventus Football Club, Fox and Warner Music in the entertainment circle, Audi in the traditional manufacturing industry, luxury brands Louis Vuitton, Gucci, Burberry, Balenciaga, etc. Already involved in NFT, even the New York Stock Exchange has tried to make the first stock transaction data of six companies into NFT. Two payment code NFT skins launched on the Alipay platform were sold out, and NetEase Cloud Music and QQ Music also began to sell NFT records.

With the development of NFT, its application scenarios will continue to be expanded, and the integration with various fields will be closer. 

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