recently,CryptoPunk 2890 with 800 ETHsold for nearly1.55 millionWhat are NFTs?
What are NFTs?
NFT Right nowNon-fungible Token(non-homogeneous token), is the relative concept of Fungible Token (FT), the biggest difference between the two isUnique and Divisible, which makes NFT more suitable for benchmarking assets in the real world.
NFT contains identifying information recorded in its token contract。This information makes each NFT token unique and therefore cannot be directly replaced by another token.They cannot be exchanged for one, because no two NFT assets are the same, and assets like ETH, NEST, etc. are FT assets, which are divisible and can be exchanged for each other.
The biggest feature of NFT non-homogeneous tokens is that they are indivisible and uniqueimage description
(Crypto Artwork: Old Earth)
What are NFTs good for?
Since NFT non-homogeneous tokens have high-quality attributes such as uniqueness, indivisibility, and non-tampering, they are usually used to link with special assets to prove the ownership of digital assets.
NFT is mainly used in games, artworks, collectibles, domain names, virtual assets, identity features, digital music, digital certificates, etc.. At present, the most representative NFT assets in the industry include: CryptoKitties, LAND, NBA Top Shot, Hashmasks and other popular projects.
What is ERC-721?
Currently popular non-homogeneous token standards include: ERC721、ERC1155etc., the most commonly used standard is ERC721.
Tracing back to the source, NFT originated from EIP-721 (Ethereum Implementation Proposal 721) at the end of 2017. Compared with our common ERC20 standard, the ERC-721 protocol has more functions and more advanced technology. This protocol is the first standard of the Ethereum network for non-fungible token NFT digital assets, and was first applied to projects such as CryptoKitties and Decentraland.
The ERC721 standard was created and published by CryptoKitties CTO Dieter Shirley, one of the founders of the NFT industry.
Although ERC-721 has fewer use cases than ERC-20, and its functions are still being explored, in the past two years, the development and application of the ERC-721 protocol in the NFT field has achieved remarkable results.Recently, the UKs Christies auction house will accept Ethereum for the first time to pay for the auction of artist Beeples NFT works, and NFT assets are entering the mainstream investment market.
NFT future development
As the asset form that best meets the technical requirements of the value Internet in the Web 3.0 era, NFT will be widely used in more fields besides blockchain in the future.
