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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.
What is NFT – Image: cafef.vn
II. Features of NFT
What are the characteristics of the NFT that make it so special?
1. Unique
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.
2. Scarcity
Usually, the issuer will limit the number of NFTs to increase their scarcity. This helps drive their value and gives NFTs a high valuation.
3. Indivisible
Different from cryptocurrency when you can split money to trade. NFTs are intact and indivisible assets.
Features of NFT – Image: phongvu.vn
4. Verifiable
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:
1. Art
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.
NFT Pixel art on Behance – Hình ảnh: Behance
2. Fashion
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.
3. Sport
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.
NFT Sport – Image: vneconomy.vn
4. Gaming
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.
Tìm hiểu thêm về Chơi để kiếm tiền tại: Chơi để kiếm tiền là gì? Mọi thông tin đều xoay quanh xu hướng P2E
Nhiều game NFT được phát hành tạo điều kiện cho người chơi trải nghiệm và tạo thu nhập. Các game nổi tiếng có thể kể đến như: Axie Infinity, The Sandbox, DeFi Warrior, Splinterlands, v.v.
Hy vọng bài viết này có thể giúp bạn hiểu “NFT là gì?”. Với những ứng dụng trên, NFT đã chứng tỏ được giá trị của nó trong thời đại công nghệ mới. NFT đã mở ra nhiều cơ hội cho những người sáng tạo tạo ra những tác phẩm đặc biệt và kiếm được nhiều tiền, hoặc mang đến một sân chơi đôi bên cùng có lợi cho các nhà xuất bản và người chơi trong các trò chơi NFT. Và còn rất nhiều lĩnh vực nữa mà NFT đang và sẽ khai thác trong tương lai rộng mở này.
