Non-Fungible Token (NFT)
Digital Creation Guarantee and Exclusive Copyright
What is NFT
Non-Fungible Token (NFT) is a digital asset that uses blockchain as the background technology. Each NFT represents a different object, which can be a picture, a short film, or a piece of music, and cannot be replaced by each other or divided into smaller units.
Because of blockchain technology, any creation record on NFT can not be replaced or copied on the blockchain node. Therefore, when we apply NFT technology to digital artwork, the original creator of the artwork and the transaction record will be recorded and publicly visible. At the same time, holders who have NFTs do not need to worry about authenticity because NFT means holders have unique copyright for their digital creation certification.
What are the differences between Fungible Token and Non-Fungible Token?
Fungible tokens can be substituted for each other or divided into smaller units, just like real-world money, which is also a homogeneous asset. For example, Bitcoin, the most familiar homogeneous digital token, has the same value as each bitcoin. For example, if we ake $100 worth of Bitcoin, each $100 worth of Bitcoin has the same value. Therefore, any $100 worth of Bitcoin can be swapped from each other or split into two $50 or ten $10 coins.
However, the heterogeneous nature of NFTs makes each NFT non-interchangeable. Therefore, each NFT is a unique digital asset with a different value. Users who own NFTs can prove the authenticity of their purchases, such as virtual basketball cards, Twitter posts, or paintings as digital assets. In summary, NFT purchases a certificate, a digital certificate of ownership of the item.
What are the differences between NFT artworks and traditional artworks?
The most significant difference between NFT artworks and traditional artworks is that NFTs are primarily digital and can add profit percentage sharing conditions through smart contracts. In the past, creators could only get profit when they sold their artworks at the first time, so both the gallery and the creator wanted to make the best profit when they sold their artworks on the first deal. However, NFT allows creators to take a percentage of the profit from each resale transaction with the profit-sharing mechanism.
This approach eliminates the need for creators to set the highest price at the first deal and encourage multiple transfers among different holders with lower prices. By following this mechanism, NFT eliminates the barrier to entry artworks, allowing people who previously could not afford to buy artworks to become collectors.
How to purchase NFTs?
- Register for an account on cryptocurrency exchanges (e.g. Trubit Pro)
- Purchase ETH or Solana that are usually used in purchasing NFTs
- Sign up for decentralized wallets
- Go to NFT trading websites such as OpenSea and Solanart and connect your own decentralized wallet
How to determine the high quality of NFTs?
- Discord community size
- Discord community content
- Twitter followers
- The interaction rate on Twitter post
- Whether there are celebrities in the audience
- Whether the team is publicly identified
- The team's past experience
- Whether there are other good results in the past
- Who are the investors behind the team
- Future development
In addition to being counterfeit-proof and unique, NFT means that you can own this artwork after purchase, and no one else can have the same thing as you had, which is the most attractive feature of NFT.