Gate.io Blog What is NFT | Non-fungible Token?

What is NFT | Non-fungible Token?

07 July 12:32

NFT - 'Non-fungible Token'

NFTs are usually described as 'Non-fungible Tokens' and Crypto coin Versions of Native Assets'. NFTs are tokenized versions of tangible assets. Because it acts as a certificate, it acts as a proof of ownership in the blockchain network. However, this alone is not sufficient to describe NFTs. Let's take a closer look at NFT.

NFT principle

Most of the NFTs on the market right now are created on the Ethereum blockchain. Ethereum has a wider range of technical uses than Bitcoin. Bitcoin only applies to P2P electronic payment systems, but Ethereum provides a platform for developing and operating dApps with smart contracts, including P2P electronic payment systems. NFT is used for creation and authentication of virtual assets in dApps. There are various frameworks for NFT minting. The most popular is ERC-721. ERC-721 is the standard for minting and trading non-fungible tokens on the Ethereum blockchain. ERC stands for Ethereum Request for Comment. A Request for Comment is a document that proposes a new Internet technology and awaits evaluation. ERC is a new technology in Ethereum that becomes a standard after being proposed and evaluated. A de_script_ion of ERC can be found in the official Ethereum Github documentation.

NFT characteristic

For example, I bought 2 tickets to see a movie with my friends. All tickets look the same, but the inside is different. All tickets have different movie run times, seat numbers, etc. There is only one ticket in the world. These characteristics are the same as ERC-721.

NFT value

NFTs can be traded by anyone in an open market where virtual assets can be traded. Recently, NFT projects are occurring in various industries such as games, music, and art. On digital art auction platform 'Nifty Gateway', the digital art 'War Nymph' by Grimes, wife of Tesla CEO Elon Musk, sold for $ 6m in 20 minutes.

by https://niftygateway.com/collections/warnymphvolume1open

In the game, NFT guarantees rights. Usually, the game items disappear when the service ends. However, NFTs can store NFTs in their personal wallets for life. These values stimulate people's possessiveness. In the first blockchain game 'Cryptokitties', one NFT was sold for 600 ETH because of its possessiveness.

Cryptokitties #896775 Dragon

How to get an NFT

You can buy various NFTs in the open market such as Gate.io NFT BOX, OpenSea, and Nifty Gateway. You can also buy game NFTs on game dApp platforms such as Cryptokitties, The Sandbox, and Dapp Arcade.

Editor YB's Comment

I am realizing that it is very difficult to have our own assets these days. The appeal of NFTs is that we can easily own assets. Various NFTs are registered in Gate.io NFT BOX. You can find your own gems there!

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