NFT hot out of the circle, these fintech giants have already taken the layout

NFT must be one of the hottest concepts in the blockchain field in 2021. In February alone, the total amount of NFT transactions reached 340 million U.S. dollars, exceeding the full-year transaction volume in 2020. According to data collected by The Block, NFT’s weekly trading volume has exceeded 300 million U.S. dollars for the first time, which is approximately 339 million U.S. dollars. This marked an increase of more than 70% from mid-July, when NFT weekly trading volume reached a peak of US$20927 million.

With the increase in the amount of NFT transactions and the increase in media reports, more and more people are beginning to understand NFT. Not only people in the art world have begun to participate in NFT, but many well-known financial technology companies have also begun to deploy.

What is the meaning of NFT?

The full name of NFT in English is Non-Fungible Token, which is translated into Chinese as: non-homogeneous tokens, which are indivisible, irreplaceable, and unique.

Non-homogeneous tokens means that each token is unique. For example, in the game of crypto cats, each crypto cat is a unique breed, and there is no exactly the same cat; All tokens are the same. For example, our common common stocks are homogeneous. Compared with mainstream crypto assets such as Bitcoin (BTC) and Ethereum (ETH), the biggest difference of NFT is that any NFT token is irreplaceable and indivisible.

NFT is not a virtual currency. We can think of NFT as another blockchain application that aims to solve a very specific problem, rather than a pure digital currency. It is an entry in the blockchain, non-homogeneous tokens, artworks, tickets, domain names and other things can all be NFTized.

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 outside of centralized services or centralized libraries. The ownership of the NFT does not prevent others from inspecting it or reading it. The 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.

As early as 2014, digital artists had created and distributed millions of purely digital art works, and then uploaded them to microblog sites such as Tumblr. Many works began to be widely reprinted in the community, but these works were basically unsigned or unsigned. There is no background information such as the author. Frankly speaking, these artists are very loyal to the spirit of the times, and they do not really expect to be compensated through these works. However, New York University professor Kevin McCoy and technical expert Anil Dash believe that this approach is inappropriate. They believe that artists should claim the ownership of their own works. If there is no other reason, the ownership of the works created by artists should belong to them.

Immediately afterwards, Anil Dash and Kevin McCoy devised a solution called the NFT prototype-generating a token representing the ownership of digital assets, and then attaching the token to a freely tradable blockchain , Thus creating a powerful digital ownership trajectory. But because this set of solutions is not perfect yet, coupled with the technical limitations at the time, it is impossible to attach actual digital artifacts to the blockchain. As a result, the tokens they created can only be loosely linked to the underlying assets and used only as Digital representation of actual artifacts.

NFT makes each asset have unique characteristics, and it also makes it impossible for people to have a unified evaluation of this type of asset. For example, an encrypted artwork, some people think it is worth 3,000 US dollars, some people think it is only worth 1 US dollars, this subjective evaluation will bring great investment risk.

At present, people’s lives are becoming more and more digital. In fact, in the past few years, we have already possessed unique digital products such as game tokens, game props and other collectibles. They are all uniquely marked and can be transformed into NFT in essence. In fact, any unique digital “asset” can carry the NFT label, and the scope of assets is also all-encompassing.

Many people started to pay attention to NFT. It was Twitter CEO Jack Dorsey who wanted to sell his first tweet published in 2006 as a non-homogeneous token NFT. Later, in the art circle, more and more mainstream artists have also tied their works to NFT.

It is worth noting that ARK wrote in the sharing of NFT: Today, to monetize digital content, content creators can upload it to Instagram, YouTube, TikTok, Spotify or other social media platforms. These centralized platforms then monetize the content through advertising or subscriptions, and pay a certain percentage of profits to content creators. In contrast, digital creators can directly use NFTs to profit from their followers and sell unique digital content without intermediaries.

In addition to artistic creation, NFT can also be used in many fields. For example, in the field of intellectual property. NFT can represent a painting, a song, a patent, a film, a photo, or other intellectual property rights. There are also physical assets. Real estate such as houses and other physical assets can also be tokenized by NFT. It can also be used for records and identification. NFT is unique, so it can also be used to verify identity and birth certificates, driver’s licenses, academic certificates, etc. In addition, there are financial bills. Various types of financial bills carry a large amount of information in the circulation and transaction process. If combined with NFT, it can not only confirm rights, but also facilitate tracking. Finally, ticketing. For example, concert tickets, movie tickets, drama tickets, etc., can all be marked with NFT.

Large companies become connected with NFT

We have noticed that some large institutions and companies are already actively deploying NFTs.

Earlier, Tafi, an avatar and digital wearable device design platform, announced a collaboration with Coca-Cola to design virtual wearable devices for Coca-Cola’s first NFT collection. To celebrate International Friendship Day (July 30), Coca-Cola will auction the NFT loot box at OpenSea, the NFT market, which contains digital clothing designed by Tafi that can be worn forever in a decentralized virtual world.

Japanese communications giant LINE announced that its cryptocurrency subsidiary LVC Corporation will cooperate with Yahoo! Japan to allow NFTs issued based on the LINE blockchain to be traded in the secondary market. As part of the cooperation, Yahoo! Japan will provide NFT based on the LINE blockchain on its online auction service platform Yahoo! Auctions. In order to enable NFT to be traded on the platform, the two parties plan to integrate Yahoo! Auctions with the Line Bitmax wallet. The Line Bitmax wallet is LINE’s proprietary blockchain wallet designed to manage digital assets, including NFTs. This collaboration will enable users to directly trade NFTs managed by the Line Bitmax wallet on Yahoo! Auctions. According to the announcement, the two companies are expected to start the Yahoo! Auctions NFT transaction at the end of 2021.

In addition, the April-June 2021 merger report released by Japanese financial giant SBI Holdings pointed out that based on current market interest in NFTs, an NFT market and a secondary market platform may be launched.

In addition, Tencent Music (TME) may officially launch the NFT encrypted artwork service TME Digital Collection next month, and distribute virtual collections to users.

On July 19, Alibaba’s Hong Kong South China Morning Post (SCMP) announced that it would launch an NFT platform program called ARTIFACT, aiming to digitize “historical assets”.

It is worth mentioning that the latest news on August 1st revealed that the NFT trading software “Phantom APP” was officially launched, and 300 “Sound “Thirteen Invitations” Digital Art Collectibles NFT” were sold for the first time. It is reported that Magiccore APP may widely apply NFT sales capabilities to digital art and collections, IP limited peripheral development and other businesses. According to industry sources, Huanhe APP is affiliated with Tencent PCG.

In addition, as it approaches its 200th anniversary, luxury brand Louis Vuitton has launched an NFT-based game application “Louis: TheGame” to celebrate the birthday of the founder. The game contains the history and anecdotes of the founder’s life, as well as artwork by NFT artist Beeple (Mike Winkelmann). Players can collect a total of 30 NFTs during the game, and Beeple provides 10 unique NFTs for this purpose.

 

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