According to Google Trends, searches and interest for the keyword “What is NFT” have increased sharply in 2021, even surpassing Dogecoin and Ethereum. Many people have been willing to spend millions of dollars to collect NFTs. So what is NFT and what makes it so attractive that so many people “pour money” into NFT? Let’s decipher it through the following article!
I. What is NFT?
NFT stands for Non-fungible token – Non-fungible asset. In which:
- Non-fungible: irreplaceable, unique.
- Token: is a cryptocurrency, developed based on an existing coin.
NFT is a digital asset that exists and operates based on blockchain technology. Blockchain stores information in the form of a ledger that ensures the authenticity of assets and owners.
The introduction of NFT as a method of registering ownership of a particular property. For example: works of art; collections; in-game items; music products; GIF images, videos; etc… They are bought and sold online in the form of digital currency payments.
When you buy an NFT painting, you don’t take the painting home, you buy ownership of the painting.
II. Features of NFT
What are the characteristics of the NFT that make it so special?
Each NFT has a digital signature, so the NFT is a unique item (in a certain platform, ecosystem), cannot be replaced or copied, and one NFT cannot be exchanged for another.
Usually, the issuer will limit the number of NFTs to increase their scarcity. This helps drive their value and gives NFTs a high valuation.
Different from cryptocurrency when you can split money to trade. NFTs are intact and indivisible assets.
Anyone can verify the ownership and owner of the NFT through the data on the blockchain.
III. Application of NFT in the age of technology
NFT is applied in many fields today. According to Leon Truong – Chairman of DTS Alliance and Chairman of BAS Sustainable Blockchain Alliance: “The NFT model solves many very specific problems in each field, helping digital assets assert their value and grow in the future”. Let’s take a look at some of the popular fields below:
NFT Art is a form of NFT in the field of art. The wave of NFT trading became more bustling thanks to the appearance of many artists. In particular, Grimes (Canadian famous female singer and music producer) earned $ 5.8 million in less than 30 minutes by selling a collection of NFT paintings and music videos. Blockchain technology helps prevent plagiarism, artists will rest assured to protect the copyrights of their works.
In addition, many NFT paintings, photos are sold on social networking platforms and users can easily search and trade.
Fashion industry is also not out of the new trend of technology through the application of NFT to their collections.
Example: Virtual sneaker brand RTFKT Studios has teamed up with artist FEWOCiOUS (real name Victor Langlois) to produce a series of new shoes. Potential buyers can try on virtual shoes on Snapchat. As a result, the company sold 600 pairs for a total value of $3.1 million.
Sports NFT is one of the new and interesting trends for many people. These NFTs can be: publications related to athletes or special moments from matches, tickets to sporting events, etc.
In gaming, what is NFT? Those are characters, items, weapons, etc.,… Players can buy and sell those NFTs and make a profit. Therefore, NFT is used to help boost the in-game economy.
NFT combined with Gaming has created a very popular trend that is Play to Earn.
Learn more about Play to Earn at: What is Play to Earn? All information revolves around the P2E trend
Many NFT games are released to create conditions for players to experience and generate income. Popular games can be mentioned such as: Axie Infinity, The Sandbox, DeFi Warrior, Splinterlands, etc.
Hope this article can help you understand “What is NFT?”. With the above applications, NFT has proven to be of great value in the new technology era. NFT has opened up many opportunities for creators to create special works and earn a lot of money, or bring a win-win playground for publishers and players in NFT games. And there are many more areas that NFT is and will exploit in this open future.