What is NFT?
I have a young friend who recently bought a digital art, started with more than 900, sold it a few weeks later, and made more than 70000. He told me that this thing is called NFT.
In 2021, twitter founder Jack Dorsey sold his first tweet for $2.5 million through NFT. It looks like this
In 2021, a computer-generated picture called cryptopunk 7804 sold for $7.56 million through NFT. It looks like this
In 2021, artist Mike Winkelmann sold a jigsaw puzzle called “everydays: the first 5000 days” for $69.3 million through NFT. It looks like this
There have been many such sky high auctions and transactions since 2017. Some of them can be called works of art, while others are more like performance art. More importantly, all buyers will not receive real goods. What the buyer actually gets is a token recorded on the NFT, which is just a string of text, and this token can enable the buyer to obtain the ownership of this digital art, which sounds a little mysterious.
What is NFT? Why are so many people flocking to it? Is it a foam and hype?
NFT (non fungible token), translated into Chinese as non homogenous token, to understand NFT, you must first understand blockchain. The implementation of blockchain uses a lot of knowledge of mathematics and cryptography. But for the general public, we only need to understand that blockchain has the following two important characteristics
- Distributed ledger
- Unable to tamper proof
Distributed means that no organization or individual monopolizes the ledger, which is jointly maintained by many computing nodes around the world. Any transaction recorded in this account book cannot be tampered with by any individual or organization.
At first, blockchain was also the most famous application, which should be bitcoin, with a current market value of more than $700 billion. Bitcoin records currency transactions on the blockchain, a distributed ledger. This account book can also be used to record any other information. For example, Zhang San has a picture named JPG, which will
"Sell JPG pictures to Li Si"This sentence was sent to Li Si as the content of the transaction and recorded in the account book. Due to the unchangeable nature of the account book, Zhang San can never deny it. It is irrefutable. This is NFT. Like Taobao, it provides a platform for two people who are unfamiliar with each other to trust each other and complete any transaction. It is only that Taobao is centralized, while NFT is decentralized.
The value of what is traded on the platform does not depend on the trading platform, but on the value of the thing itself. The social equation for the existence of a work of art should be
"The story of the author's whole life + the thoughts or ideas expressed + the scarcity of his works = recognized"No matter how others imitate Picasso’s paintings, they can’t be as valuable as the originals, because Picasso’s story and the scarcity of his works are unique and world-famous. Now NFT, on the contrary, the digital works traded on it are not master works, but once they are traded through NFT, they will be invaluable. Even many works traded on NFT are not so artistic, and their authors are unknown. The works traded are not scarce. Users who have not purchased cryptopunk 7804 get exactly the same copy from the Internet as the original picture. Of course, the only difference is that NFT proves the buyer’s right. As for the story of the work, this operation itself is more story than the work. So in essence, the current NFT digital art transaction is a foam.
NFT is like the Internet foam around 2000. At that time, as long as a company’s name was prefixed with “e-” or suffixed with “.Com”, it would be praised by the market and its share price soared. However, after the foam burst, the Internet still exists, and it has brought more substantial convenience to human society and changed human communication and lifestyle. Think about our current learning, shopping, entertainment and other aspects, all of which have something to do with the Internet. In the future, NFT may subvert some existing methods in the field of proof of interest or contract, such as buying a house and a car. Now you need a series of complex procedures and contract signing between the buyer and the seller, and in the future, you may only need to register a transaction information on NFT. Another example is network copyright. Before publishing an article or a piece of music, we record it through NFT to prove its originality. There will be many possible scenarios. After the gimmicks attract enough attention, someone or company will always come up with more valuable application scenarios, hoping that the foam will pass as soon as possible and beneficial changes will come as soon as possible.
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