Finnews24.com – Currently, NFT (Non-Fungible Token) has become one of the most prominent Crypto trends in 2021. Recently, the phrase NFT is making the topic of investors in the coin market. very interested. So investors in the crypto market wonder what NFT coin is? Why is the NFT getting so much attention? Origin, prospect and application of NFT coin.
What is NFT that receives so much attention from so many people?
What is NFT?
As can be seen, recently NFT is creating a fever on social networks. Therefore, many questions have been raised around this phrase. For those who are working in the field of Crypto, it must be no stranger to NFT coin, right? However, there are still a lot of people who are just starting to get into the Crypto market today who still don't know what NFT is?
NFT is a relatively commonly used term in the field of “Cryptocurrency”. It is abbreviated by the English phrase “Non-Fungible Token”.
When we separate each word and translate it into Vietnamese, it will be divided into two cases:
- Fungible: The Vietnamese meaning of this word is replaceable.
- Non-Fungible: The exact opposite of “Fungible”, “Non-Fungible” means irreplaceable.
Through this analysis, we can simply understand, NFT coin is built and stored using Blockchain technology system for the purpose of creating a technical certificate that cannot be replaced or copied. Coin NFT is a cryptographic version of a real-world asset.
What is the concept of NFT?
In order for you to better understand what NFT is, we will take a specific example as follows:
- If A borrows B 1 Bitcoin. When returning, A can pay 2 times 0.5 Bitcoin or split to pay. As long as in the end, A pays B in full 1 Bitcoin as originally borrowed. Here, Bitcoin is a replaceable asset so it will be called a Fungible Token.
- On the other hand, A has 1 ball with Ronaldo's signature (soccer star). In this case, the ball is an irreplaceable asset. In other words, this is a Tokenized NFT on Blockchain technology.
Origin of NFT Coin
After understanding what the concept of NFT is, now let's learn about its origin. NFT coin is not a very new initiative or invention. Because it was released a few years earlier. However, it will not be until 2021 that it is really "hot".
In 2012, Yoni Assia released Colored Coin via Bitcoin Blockchain at a relatively low price. At this time, Colored Coin is not outstanding but it has many similarities with NFT. However, not long after that, this project also failed.
However, in 2014, on the Bitcoin Blockchain, a new financial platform called Counterparty was born. This time, Counterparty has many new improvements. It was one of the first platforms to help users create their own trading assets.
By 2017, a big change had taken place. The arrival of the ERC-721 has allowed users to build and trade on the Ethereum Blockchain. Therefore, Counterparty will be removed from NFT transactions. Ethereum is growing stronger and stronger, leading to NFT becoming the market leader today.
- What is Bull Market and Bear Market in financial markets?
What is the difference between Black, White and Gray Hat Hackers?
What are the advantages of using NFT Coin?
It is not simple that NFT stands out in such a cryptocurrency market . The reason that it receives a lot of attention and attention from users is also because it possesses many outstanding advantages:
- Distinctiveness: Each NFT will have its own unique characteristics and properties. There are no other NFTs like NFTs.
- Rarity : NFT is an irreplaceable asset. Therefore, it is very rare.
- Indivisible: If it is already an NFT, it is not possible to split them into many different parts.
- No permission required: NFT belongs to the open Blockchain so users can freely access it without having to get consent from others.
- Perpetual Storage: All NFT data is stored forever.
- Programming: NFTs are simple pieces of code that users can check ownership anytime, anywhere.
What is the advantage of NFT that is noticed by so many users?
Limitations of NFT
Besides the outstanding advantages that NFT brings, there are still limitations that make NFT not perfect. Those limitations are:
- Poor liquidity: The total number of NFT transactions since launch to date has only fluctuated around 300 million USD. This figure is only approximately 0.1% of the total trading volume of the digital currency market on Binance in 1 day.
- Value is assessed by feeling: Depending on the feelings or preferences of each person, assets encrypted with NFT will have different value levels. That means that to one collector the NFT property is worth millions of dollars but to another it is not worth a dollar.
How does NFT work?
NFT is understood as an encrypted Item of property for the collection of people who want to own it. Unlike other types of Tokens that are encouraged to invest in order to increase the market's buying demand.
Valuing an NFT is like valuing a real-life abstract painting. There are people who find it not worth a penny, but there are people who are willing to spend tens of millions of dollars to own them.
- What is short selling? - Risks investors have to face
- What is Stop Loss? 5 basic steps to place a simple and effective Stop Loss order
In what ways is NFT coin similar and different from other coins?
Same
NFT and other coins like BTC, ETH, etc. are all built on the Blockchain platform and are decentralized and anonymous. It is because it is built on the Blockchain platform that the security of NFT is very high. When you own both Coin and NFT, you own the assets on the chain
NFT coins can all be stored on the Blockchain wallet and can be traded normally like ADA, BTC, ETH, etc.
One bright spot for NFT's potential is that it has now grown with many specialized Marketplaces for exchanging, searching and buying and selling virtual products.
Different
Investing in Coins like BTC, ETH or ADA, BNB, etc. is similar in nature to the way you play Forex, stocks, etc., trading activities are done through exchanges. Buying and selling NFT coins will be like collecting antiques in the 4.0 technology era.
This means that you will own a rare item almost the same way that the unique "Golden Realm" in the game Vo Lam Truyen Ky was spent hundreds of millions by the giant Black Bird to own it. over 10 years ago.
For us non-enthusiasts will find it not worth the money but for a true collector it is of great value.
Applications of NFT in life
Surely many of you do not know what the application of NFT is, right? So let's take a look at some of NFT's applications with Finnews24.com below:
- Art: Artworks are one of the more popular NFT use cases today. Using NFT will help the author to protect his copyright.
- Licenses and certificates: NFT is widely used in the field of licenses and certificates. In fact, there are many universities that use NFT in making documents and courses.
- Game: This is the area where NFT shines the most. NFT has made it easy for users to own characters or in-game items.
- In addition, NFT is also widely applied in: Sports, virtual assets, real assets, etc.
NFT is widely used.
Through this, we have helped you better understand the concept of NFT and what you need to know about NFT. We hope that the information we provide will be of help to you.
Current NFT projects
Decentraland
This is a decentralized project where players will exchange and buy virtual lands around the world. Decentraland is similar to Cryptovoxels which is also a similar game where players can build, develop and exchange virtual assets.
Gods Unchained
As a card game that is similar to the game GENERATION OF HUNG VUONG, LINH TRIEU BINH CA, etc., some points from 2008 in Vietnam or the game YU GI OH, the fact that the cards are developed is a kind of NFT asset that counts. Unique and extremely rare. Players can completely exchange and trade cards with each other with in-game currency or cash.
Binance Collectibles
This is the NFT token jointly issued by Binance and Enjin on special occasions to give users on twitter.
Crypto Stamps
Crypto Stamps are issued by the Austrian Post and connect the digital world with the real world.
These stamps are used to ship mail like any other stamps. But, they are also saved as digital images on the Ethereum blockchain, which turns them into a tradable digital collection.
Potential prospect of NFT coin
As of now, there is no coin that can surpass NFT coin assets like the picture “Trump” from Hashmasks. Owning this property is similar to buying antiques in the 4.0 era, maybe the time you own this item is worthless, but maybe after 3 to 10 years it can become a rare antique.
The fact that you own a Thai Dream car 20 years ago is a fortune, but if that Dream is carefully preserved up to this point, it will cost up to a billion dong because it is a precious antique. rare.
The tokenization of assets on the basis of Blockchain technology has high identity security and safety. Therefore, instead of buying gold and rare antiques, people will use NFT as a tool to encrypt products for collection. It can be said that NFT is a new hobby for collectors of virtual antiques.
Why NFT is so special
Uniqueness is what sets NFT apart, NFT coins represent a digital asset that collectors hold.
How to buy NFT coin?
On June 24, 2021, Binance will launch Binance NFT, which is the world's leading NFT trading marketplace platform. It is expected that in the near future, this project will attract many artists and celebrities to participate, thereby increasing the prospect of NFT.
Is it possible to generate NFTs?
The creation of NFT does not take as much effort and capital to buy miners as Bitcoin mining. Full NFT casting can be done in 15 minutes. The number of NFTs is unlimited, because any digital artwork such as an electronic painting, an electronic song, etc. can become an NFT token.
