NFT Labs: What is NFT?

NFT refers to a non-fungible token, the only

cryptocurrency

token used to represent digital assets, including jpg and video clips.

In our world, there are no two commodities that have completed similar characteristics or values, so they are called non-fungible commodities, which refer to unique and irreplaceable commodities. Similarly, digital assets with individual uniqueness held on some blockchains, mainly Ethereum, and other blockchains such as Matic, Flow, Wax, etc.， are called non-fungible tokens. In the real world, tangible assets have ownership certificates. Similarly, NFT tokens can record their ownership history and proof of authenticity in the blockchain world. In other words, NFT is a digital item with a unique signature authentication, like a real estate certificate in the virtual world. And NFTs are mostly stored in suitable digital wallets such as MyEtherWallet and Ledger Hardware wallets, which are easily customized and traded in the market.

NFTs are not newcomers. In 2012, the first NFT-like token built on the Bitcoin network, Coloured Coins, aka Bitcoin 2.x, was launched. But the most common NFTs are still based on Ethereum ERC 721 protocol. In addition, there are other protocol standards, such as ERC 1155 developed by Enjin.

Each NFT differs in both value and properties. Each token has a digital hash value that distinguishes it from other tokens; therefore, NFTs can serve as proof of provenance. More and more people realize the value of NFTs, which can not only prove the ownership and authenticity of intellectual property rights such as original artwork and game tokens, but also represent real assets such as stocks and real estate. In games and collectibles, NFTs are also known as digital collectibles.

NFTs exist in the digital space; more importantly, they can represent any type of physical asset. As a kind of “Digital Twin,” NFTs can connect with anything that exists in the real world and transfer and trade the ownership of real assets in the digital market.