NFT novice science: seventeen NFT most common problems summary

NFT introductory science chapter.

Contents at a glance

Question 1: What are non-homogenized tokens (NFT)?

Question 2: What are the characteristics of NFT?

Question 3: Why should I own NFT?

Question 4: How do I buy NFT?

Question 5: How to participate in NFT liquidity mining?

Question 6: How to be sure that the purchase of NFT is genuine?

Question 7: Is NFT the latest to emerge?

Question 8: What are the application scenarios of NFT?

Question 9: Are there any specific use cases for NFT in the gaming space?

Question 10: How can I buy NFT encrypted artwork?

Question 11: What are the mainstream NFT trading platforms?

Question 12: What are the NFT standards?

Question 13: What are the NFT tokens?

Question 14: What is the upward trend of NFT tokens?

Question 15: How to create your own NFT?

Question 16: How to evaluate NFT projects? Is there any reference standard?

Question 17: What is the future of NFT development?

Question 1: What is a non-homogenized token (NFT)?

The full name of NFT is Non Fungible Token, which is a non-homogenized token in Chinese. Unlike the homogenized form of Bitcoin, NFT is unique in its characteristics and is a unique and easily verifiable digital asset that can represent assets such as GIFs, pictures, videos, music albums, etc. In fact, you may have known about NFT for a long time, such as the game that was a big hit in 2017, crypto cats, which was so hot that it brought down the ethereum network, and an NFT cat was sold for as much as 600 ETH. as well as the NBA Top Shot, which is very hot recently, are good examples.

Question 2: What are the characteristics of NFT?

The properties of NFT make every NFT unique and authentic, which solves a big problem in the art and luxury industry. For example, LV is ready to launch NFT to prove the authenticity of its luxury goods or to track the lifecycle journey of a single handbag.

Another feature is that ownership belongs to the user. In traditional games, for example, players don’t really own anything in the virtual world. But in blockchain games, the assets in the game are owned by the player, and even if the game is down or the servers are shut down, the player still holds NFT assets, which additionally can be converted into tokens to be used in other games.

Ryan Duffy, author of Emerging Tech Brew, explains that the main difference between NFTs and cryptocurrencies is that NFTs are non-homogeneous, they are not interchangeable and cannot be split. They are not interchangeable, nor can they be split. Think of Pokémon cards, while each card can be traded, they are essentially different, in comparison, one bitcoin is essentially the same as another bitcoin and can be interchanged.

Question 3: Why should I own NFT?

One of the big reasons to buy NFT is its sentimental value, and in this respect NFT is not much different from a physical object, unless the buyer is a complete utilitarian and only cares about the material value of the commodity. In reality, no one buys lip gloss out of sheer necessity, people buy it largely because of the happy feeling it gives them. the same is true for GIFs, pictures, videos or other digital assets. Another important reason to buy NFT is that there is room for it to add value and make more money by buying and reselling NFT.

Question 4: How do I buy NFTs?

This process varies depending on the platform used, and there are many NFT trading marketplaces on the market today, such as OpenSea, KnownOrigin, Rarible, etc. On Top Shot, for example, you need to sign up to join a waiting list, which may already have thousands of NBA fans. When a digital asset goes on sale, you will be randomly selected to buy it. While Top Shot accepts both USD and cryptocurrency payments, some platforms only accept cryptocurrency, such as OpenSea.

Overall, there are four common methods in total, which are

  1. purchasing potential NFT tokens on major trading platforms.
  2. buying and selling NFT assets.
  3. becoming crypto artists and issuing their own NFTs.
  4. pledge NFT liquidity for mining.

Buying tokens for NFT concepts and buying NFT are actually two different things. If you want to simply invest in the NFT circuit, you can buy head NFT tokens such as ENJIN, MANA, SAND, etc. on the major exchanges.

If you want to participate in the NFT collectibles market, or buy and sell NFTs for a spread, generic NFT marketplaces like OpenSea provide access to buy a variety of NFT assets. There are also crypto-art-specific NFT platforms such as SuperRare and Nifty Gateway, and to learn more about how to use them, you can add researcher Sophia (ID: lovebit98) and ask.

Question 5: How can I participate in NFT liquidity mining?
There are many NFT projects combined with liquidity mining, such as Aavegotchi, where users can pledge Aave’s tokens to get a ghost image of NFT tokens, the collateral behind this NFT token is an interest-bearing token.

On Aavegotchi, users can pledge atokens (equity tokens on Aave) to obtain ghost images, each of which is an NFT token. grows over time.

Question 6: How can I be sure that the NFTs I buy are genuine?

The ownership of the NFT is recorded on a blockchain, which is decentralized and exists in encrypted form on many people’s computers. In order to avoid buying counterfeit products, when buying NFT, you should check its provenance. Take OpenSea as an example, check whether the NFT you intend to buy comes from the official store opened by the project on the platform, usually popular projects are officially certified by OpenSea. Secondly, you can also first find out which project or which artist the NFT you want to buy comes from through social media. Project owners and artists usually choose to promote on social media, and you can buy from the links they share.

Question 7: Is NFT the latest to emerge?

NFT has exploded recently, but it is not new. According to Andrew Steinwold, the origins of NFT can be traced all the way back to the blockchain-backed Colored Coins in 2012, and it really became mainstream in 2017 when the CryptoKitties craze emerged, leading to a scramble to buy crypto cats.

Question 8: What are the application scenarios of NFT?

“Everything can be NFT.”

NFT has a very wide range of applications as well. We know that most of the assets in the real world are non-homogeneous assets, and if these assets are to be chained, or find the corresponding digital form, then NFT will be the most suitable standard, so we strongly believe that this is the second major application scenario of blockchain outside of finance.

NFT can be applied to digital artworks, collectibles, in-game items, virtual worlds, sports, fashion and entertainment, identity verification, insurance, infrastructure such as domain names, digitization of physical assets, electronic tickets or coupons, and other application scenarios. Gaming and digital art can be said to be the two main application scenarios of NFT.

NFT based on blockchain technology can record the status and achievements of players in games, and in-game items such as weapons, equipment, characters, etc. can become NFT, which can ensure the ownership verification and authenticity of game items. NFT is another mainstay of NFT.

Digital art is another mainstream application of NFT. SuperRare, OpenSea and MakersPlace are examples of crypto art uses of NFT.

Question 9: Are there any specific use cases for NFT in the gaming space?

Take NBA TOP Shot, a recent NFT card game with hundreds of times the revenue.

The reason for the explosion of the NBA TOP Shot game can be divided into three parts.

(1) One is the aggregation of sports fan effect + digital collectibles, the cards are mainly the iconic moves of NBA star players, which has a sticky and high audience, so it is natural that such digital versions of the star cards are hugely popular. Since these star cards are on sale in limited quantities, the price is generally higher for teams with a larger number of fans and more heat, like the Lakers, and for cards with exciting moments of popular stars like James and Curry.

(2) The second is the trust backing of the same team Dapper labs of crypto cats.
(3) The third is the fomo sentiment drive, which is actually common to digital collectibles – the earlier you get in the more profitable you can be. For example, the cost price of only $230 ball player card transaction price some will go to about $100,000.

Flow, also developed by Dapper labs, has been very hot lately, and is a public chain created specifically for the entertainment and culture industry. This kind of collectibles project is a current NFT investment direction, and generally the project will use the scarcity of NFT + fan effect to attract an audience.

Question 10: How to buy NFT encrypted artwork?

NFT artwork trading goods platform are SuperRare, MakersPlace, Known origin. each piece of artwork can be presented in the form of NFT, the artist can ensure their copyright on the work, buyers can verify the authenticity of the purchase of artwork, in addition to no longer need the intervention of intermediaries, crypto artists can get more income.

For those who want to buy NFT artwork, but do not know which platform to buy on, you can click on this article, this link has a detailed analysis of the six popular NFT trading platforms, such as the categories of collectibles traded on the platform, the characteristics of each platform, and the comparison of commissions.

Question 11: What are the NFT mainstream trading platforms?

OpenSea is currently the world’s largest NFT trading platform, established in January 2018. It covers a wide range of NFT categories, integrates NFTs from various platforms, and sells them at better prices, making it the most used trading platform by mainstream NFT players today. In terms of trading volume, OpenSea is ranked #1.

NFT novice science: seventeen NFT most common problems summary

Founded in 2020, Rarible released its governance token, RARI, on July 15, allowing the most active creators and collectors on Rarible to vote for any platform upgrades and participate in management and review. There are currently 6,932 collectors on the platform, which is considered a mainstream trading platform. Rarible maintains a leadership position in terms of the number of traders.

SuperRare specializes in trading artwork that is super rare. It is an NFT marketplace for trading unique digital artworks. The platform features advanced management, an easy experience, flexible payment options, a social profile and a mobile APP that allows for real-time auctions.

Question 12: What are the NFT standards?

Different blockchains have their own NFT standards. On Ether, the common NFT standards are ERC 721, ERC 1155 and ERC 998 protocols, and on the WAX blockchain, the common ones are SimpleAssets and AtomicAssets protocols. Among them, the most common standard for non-homogenized tokens is ERC 721, CryptoKitties, founded in 2017, used to be the first star project of NFT, and what many people do not know is that the ERC 721 standard was created and released by Dieter Shirley, the CTO of the project. Shirley is one of the founding fathers of NFT.

Question 13: What are the NFT tokens?

Many NFT projects have launched their own native tokens, such as MANA, the token of Decentraland, and Flow, the token of the NFT public chain platform launched by Dapper Labs.

In addition to holding tokens for upside, some NFT tokens can also be used to buy land, goods and services in the virtual world and pay for platform fees. The RARI token from Rarible, a digital collection trading platform, can be used to govern, manage and feature artwork votes.

Question 14: What is the upside of NFT tokens?

In the previous round of the crash, bitcoin fell from $58,000 to below $45,000 and most tokens were affected, such as sushi, uni, and link. several of the fastest rebounders from the smallest drop in this round were NFT concept coins. For example, Sophia bought MANA for 50 cents last year, and now it has multiplied more than 10 times.

Question 15: How do I create my own NFT?

Some NFT creation platforms are dedicated to making it easy for anyone to build an NFT, whether they have the development skills to deploy smart contracts or not. NFT trading marketplaces often also provide tools or tutorials to guide users in creating their own NFTs, and trading platforms such as OpenSea and MintBase also offer their own creation tools.

For example, the Mintabse and Mintable platforms produce tools that make it easy for ordinary people to create their own NFTs. mintbase is based on ERC721 for creating NFTs. The gas fees required to cast NFTs on different platforms range from $2 to $32.

The OpenSea platform also supports NFT creation and is completely free, with no fees for users to deploy smart contracts. Just click “Create” in the top right corner of the website to start creating.

Now, OpenSea has released a no-gas-fee NFT maker to create and sell NFTs without paying any gas fees.

NFT novice science: seventeen NFT most common problems summary

Question 16: How do you evaluate NFT projects? Are there any reference criteria?

(1) First is the quality of the project and the reliability of the project party. Because the threshold for NFT distribution is extremely low and can be easily copied, the influence of the distribution team will affect the judgment of the potential for subsequent transactions.

(2) community activity, NFT than DeFi more dependent on market activity, so dive into the community to observe the community discussion, is an indirect measure of NFT distribution and trading is likely to be profitable evaluation. And simply comparing the number of people in the community is not enough, the number of people in the community is easy to fake, to pay attention to the community on how hot the discussion of this situation.

(3) Market transaction records. These historical transaction data can be found on the Nonfungible website, after all, these data are publicly available. It is important to note that NFT projects are not evaluated on the basis of assets for sale on the platform, as the scarcity and uniqueness of NFT dictates that the marketplace is constantly changing the criteria for evaluating each asset.

(4) Unlike homogenized tokens, NFT also has aesthetic judging requirements, and there are many crude NFT artworks online that you need to screen yourself.

(5) The scarcity of NFT itself. For example, the total number of CryptoPunk is fixed, for 10,000. Unlike CryptoKitties can be generated in unlimited quantities. As the NFT industry grows in size, the scarcity of CryptoPunk itself will make them more valuable. Sales around CryptoPunk have reached tens of millions of dollars in the last quarter of 2020 and the first two months of 2021.

Question 17: What is the future of NFT development?

Non-homogenized tokens are quietly becoming prevalent in 2020, and there is a lot of room for growth in the NFT market in 2021 as people begin to see the potential value and utility of NFT. Nearly 30,000 respondents believe NFT is the next hot topic after DeFi, and that the combination with DeFi will lead to a new wave of NFT. Overall, the future looks bright for NFT. As Google search trends show, interest in NFT has exploded.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/nft-novice-science-seventeen-nft-most-common-problems-summary/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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