How does NFT play? Why does cross attract much attention? (upper)

Time:2021-12-25

How does NFT play? Why does cross attract much attention? (upper)

How does NFT play? Why does cross attract much attention? (upper)

In 2020, in addition to defi, which has been popular for more than half a year, NFT is the brightest in the market. 2021 is the first year of NFT. In this issue, we will explain NFT in detail in the form of two articles. This paper introduces some necessary knowledge of NFT to help you better understand and participate in this emerging market.

Last year, some investors laid out NFT as an investment hidden line in advance. Cybervein also launched a decentralized NFT distribution and auction platform cross on defi + NFT. As long as you want to create unique digital assets on the blockchain, you can touch the essence of NFT on cross.

A simple understanding of the nature of NFT
-Ft (fungible token): homogeneous tokens. Tokens such as BTC and eth are homogeneous tokens that can be substituted for each other and can be nearly infinitely split. In other words, your CVT and my CVT have the same attributes and price, and there is no difference.

  • NFT (non fungible token): non homogenous token, which is the only, non separable and non interchangeable token relative to interchangeable tokens. In other words, your NFT and my NFT do not have the same attributes and prices, and there are differences.
    How does NFT play? Why does cross attract much attention? (upper)

Explain with examples

  • Basic attributes of NFT: each NFT is different and has unique, scarce, inseparable and irreplaceable attributes, which is why NFT has unique investment value.
  • About irreplaceable: for example, at the same time, I want to buy a painting. This painting needs to pay an NFT, which is 388 yuan; Another person who wants to buy another painting needs to pay an NFT, a total of 480 yuan. It’s like a work of art. Everything is different.
  • About inseparability: it cannot be split into 0.01btc for transactions like BTC. It exists as a whole, and the minimum unit is 1. For example, I want to buy clothes, but I can’t buy half a piece of clothes, but I can buy two pieces of clothes; In other words, I want to trade NFT, but I can’t trade half an NFT, but I can trade two NFTs.
  • About ownership: NFT can anchor the concept of goods in the real world, such as certified tickets, a bottle of precious red wine, uniquely designed jewelry and so on. This is something that digital currency cannot achieve and measure at present. NFT enables us to verify any valuable thing and trace the ownership of the information, so as to realize the intersection of information and value.

NFT: entrance from asset to value
NFT is a private property based on blockchain, which can be freely transferred and traded, and can be used to clarify the ownership of digital assets! This is an important step forward for the growing digital industry.

Because NFT token and its smart contract allow the addition of detailed attributes, such as owner identity, massive metadata, and secure file links, it can be applied to almost any asset ownership or transaction. In other words: my NFT has my information marked in it, indicating that I have ownership, just like I have an invoice for shopping. For example, I bought game equipment. Although I can use it, it doesn’t belong to me. Many people have the same game equipment. But if you trade with NFT, it belongs to your private property and has a unique identity. Therefore, NFT also has scarcity and value.

How does NFT play? Why does cross attract much attention? (upper)

Three underlying protocol standards of NFT
At present, there are three common protocol standards in the market, and the NFT underlying protocol standards currently used by cross on heco chain are hrc721 and hrc1155, which are applicable to heco chain. Similarly, if cross operates on the ETH chain, erc721 and erc1155 are used.

  • Erc721: it is the most common non homogenous token standard and the most commonly used token form in the field of NFT. It means that each token has uniqueness and unique value, opening up a huge market for real-world assets, unique works of art, collections in the virtual world, loan transaction records in financial transactions, etc.
  • Erc1155: items will be stored in a smart contract and take up very little space to distinguish each other. Any NFT can be combined and packaged into an “NFT package” with an independent ID (reducing a large number of redundant bytecodes on the blockchain). This mechanism simplifies complex transactions. If you want to trade 18 items at a time, you don’t need to do 18 transactions, but package 18 NFTs. You only need to unpack after one transaction, and the efficiency and experience can be greatly improved.
  • Erc998: composable NFTs (abbreviated as CNFT) can be combined to allow any NFT to own other NFTs or FTS. When transferring CNFT, it is to transfer the entire hierarchical structure and ownership of CNFT. In short, erc998 can contain multiple tokens in the form of erc721 and erc20.

Main application fields of NFT
NFT takes over the popularity of defi, but the market is still small, and the application scenario still needs to be developed. At present, cross integrates the most abundant types of NFT in the market. In addition to the common markets such as art, digital collections and digital pass, it also opens up the AI training model and financial derivatives market, making the application field of NFT more extensive and practical.

  • Art Market: the uniqueness of art works will no longer be copied and eliminated in communication, so as to improve the collection value;
  • Digital collection: truly own a digital art and enjoy its aesthetic value and economic premium;
  • Games: for equipment, characters, pets, etc. in online games, players can hold them as assets in the form of NFT, and can trade freely. Entertainment can also be profitable at the same time;
  • Domain name: ensure the ownership and use right of the domain name. It is meaningful for each domain name to be bound with a unique NFT;
  • Insurance: it belongs to the field of defi, which binds different insurance policies to different NFTs to facilitate user transaction flow;
  • Tickets: tickets, admission tickets and other purposes. This can be offline or online. Users can be provided with different access rights through NFT;
  • Physical assets: for example, the NFT of real estate assets is not only reflected in that the owner can master his own rights and interests, but also can pass the real world;
    -Personal information ownership confirmation: it provides a method to mark the ownership of native digital assets, and the ownership can exist outside the centralized service or centralized service.

How does NFT play? Why does cross attract much attention? (upper)

How to get NFT
There are three main reasons for the rise of NFT: it is simple and interesting, has scarcity and investment attraction, and the encryption digital culture promotes the popularization and adoption of NFT in the market. For retail investors, the way to obtain NFT is simple and simple, and there is a certain threshold. Because of the characteristics of NFT, it can make different scarcity degrees and provide more diverse playing methods than traditional mining.

At present, the mainstream way to obtain NFT is:

  • Direct purchase of NFT: for example, direct purchase of NFT can go to cross for transaction;
  • Invest in NFT projects or tokens: for example, directly invest in cybervein because it is a project with NFT;
  • Collections invested in NFT: collections invested in NFT can be traded at cross;
  • Pledge + Mining: obtain rewards like defi mining by mortgaging NFT tokens;
  • NFT generation token: it is generated by mortgaging NFT with certain value, which is usually used in the internal ecology of the community.
    How does NFT play? Why does cross attract much attention? (upper)

How to choose and invest in NFT
The NFT market is still small, and the attention is not enough. However, as the value of NFT is gradually excavated, it may show explosive growth in the next few years. In terms of NFT investment, we need to have an in-depth understanding of specific NFT market segments in order to make a good investment.

  • Early admission and early layout: now NFT not only benefits a lot from the innovation of encryption technology, but also becomes an ideal portal for new investors in the encryption industry, but it is still in the early stage of development. You should know that “entry time” is very important for investment success. If you can’t beat the ups and downs of the market, at least you can beat the time. You can first participate in the defi + NFT experience through cross. You can start with wallet deployment, NFT distribution, auction and other operations.
  • Participate in the market with NFT demand: in fact, the whole encryption ecosystem has created a good environment for the development of NFT market. The value evaluation of NFT involves many factors, but it is not difficult to distinguish what is just needed. Big data, encrypted works of art, digital pass, data financial derivatives, AI training pass, etc. will be the development trend of the future data age, It is also the development trend of defi + NFT.
  • Investing in NFT itself or projects bearing NFT: investing in a project with NFT is also an important part of NFT investment. Compared with NFT itself, projects bearing NFT have more opportunities to capture the value of the whole ecological development and release its non homogeneous potential value.
    How does NFT play? Why does cross attract much attention? (upper)

NFT has indeed become an industry wind direction. The differences between NFTs determine that the attributes of NFT are cool and fun. At the same time, it also provides a channel for users to express their emotions such as freedom, innovation, boldness and ridicule. There is no doubt that NFT, as a digital asset and even physical asset, has become the entrance of value resources. This change will far exceed our imagination of the digital asset world.

The NFT market is about to usher in great development, and traditional companies looking for new business are increasingly interested in it. In addition, with the continuous development of technology, more funds enter this field. We may even see explosive growth in the industry, but we will also encounter some obstacles and doubts. I hope this article can help you.

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