What exactly is the concept of NFT? Blockchain is “officially” out of the circle?

NTF is not really a new concept, if you are a currency laps early bird, then you must have heard more or less CryptoKitties (mystery love cats), Etheremon ( Ethernet little monsters in the world) and Etherbots (Ethernet robots), these Ethernet Square popular game, their properties belong to NFT.

What is NFT

NFT is the abbreviation of Non-Fungible Token. It is called “non-fungible token” in Chinese. It usually refers to the token issued by developers on the Ethereum platform according to the ERC721 standard/protocol. Its characteristics are indivisible and indivisible. Alternative and unique. Simply put, tokens issued using the ERC721 standard/protocol are called NFTs.

Take the game CryptoKitties as an example. The cats in the game cannot be replaced by each other. Suppose Xiao Zhang has a yellow cat, worth two hundred dollars, and Xiao Hua has a blue cat with wings. Four hundred dollars.

The blue winged cat and the yellow cat, the two crypto cats cannot replace each other. If Xiao Zhang has one dollar, Xiao Hua also has one dollar, one dollar can be replaced by any one dollar, Xiao Zhang and Xiao Hua exchange one dollar, they still get the same one dollar. But the cat is not. After the exchange, the length is completely different, and even the value is different. This is the so-called irreplaceability and uniqueness of the NFT. The difference between NFT and Bitcoin and Ethereum is also here. Each NFT has its own independent value, and each Bitcoin or Ether has the same value.

The most important feature of NFT is that it is indivisible. An Ether Kitty cannot be divided and exchanged. It can only be exchanged or sold as a whole. If it is divided, it has no value. Of course, it cannot be divided. While BTC or WDC can be divided, the 1BTC or 1WDC obtained can be divided into two, two 0.5 BTC or WDC, two 0.5 BTC or WDC still have the value of 1 BTC or WDC.

Features of NFT (non-homogeneous tokens)

Standardization

NFT has some standardized functions, including ownership, transfer, etc. All non-homogeneous tokens have these functions. Any developer can use this feature to build their own NFT.

Versatility

NFT is universal, that is, any application that wants to use NFT can use it. Because the blockchain is publicly accessible, and everyone can read the smart contract that deploys the NFT.

Liquidity

The liquidity market related to crypto assets is huge. People can easily exchange them for cash or other cryptocurrencies according to their needs. Therefore, NFT has high liquidity.

Immutability

Blockchain is known for its immutability. NFT is implemented through smart contracts. This makes the NFT immutable, that is, users cannot change their NFT to other NFTs. The ownership of the NFT will be permanently recorded in the blockchain, unless the user decides to transfer it to other users.

Programmable

NFT is implemented through smart contracts. NFT tokens can be enhanced and contain other complex functions.

NFT (non-homogeneous token) standard

ERC721

It was originally created by CryptoKitties and is also the first standard that represents non-homogeneous digital assets. ERC721 is an inheritable Solidity smart contract standard. One can easily inherit from the OpenZeppelin library and use it to program NFT-based projects.

ERC1155

It was first proposed by Enjin. It enables people to realize semi-homogeneous tokens. ERC1155 allows unique asset types, not unique assets. These assets are connected to the ID. For example, one ID can have 20 assets named “Swords”, and another ID can have 30 assets named “Guns”.

Metadata

Metadata is used to define the unique characteristics of a single token. Take the dongle as an example. Each dongle has a different color, shape, name, etc. Metadata is usually expressed in JSON form

On the chain

In this case, each NFT is linked with its own metadata and stored in the blockchain. The biggest disadvantage is the limited storage space in Ethereum.

Off-chain

In this case, the metadata is stored in a centralized system (such as AWS) or a decentralized network (such as IPFS), and is linked to their respective NFT through the tokenURI parameter in the smart contract.

The scope of use of NFT (non-homogeneous tokens)

Collectibles

NFT made its debut in the field of collectibles through CryptoKitties. After the popularity of crypto cat games, NFT became a popular choice in many other collectible areas such as Axie Infinity.

The game

Players spend time to obtain in-game rewards, but these rewards cannot be used outside the game. However, blockchain-based NFT solves this problem because other games can integrate these rewards.

Certificate

NFT can be used to identify unique certificates issued to individuals. Generally, NFT-based certificates are not transferable. These certificates are stored in the blockchain, so they cannot be tampered with.

More and more NFT standards have emerged in the encryption field. Their functions are different. The scope of NFT implementation is limited to the imagination of developers. Finally, Wisdom Chain has upgraded its contract script programming capabilities, and everyone can also issue NFT tokens on the Wisdom Chain.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-exactly-is-the-concept-of-nft-blockchain-is-officially-out-of-the-circle/
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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