Why is there a sub-concept of NFT under the blockchain

Why is there a sub-concept of NFT under the blockchain?



Simply put, an NFT is a block (like a grid or a drawer) on a blockchain (like a filing cabinet). This decentralized digital ledger technology underlies cryptocurrencies such as Bitcoin.

NFTs are irreplaceable, which means they are unique and can represent a one-of-a-kind credential.

Background and origin of NFT


Why was NFT born?


Let's take an example first. Someone has written a novel, and if you want to publish it and make money, you have to submit it to a publishing house or a novel website.

If the editor thinks it can't work, it won't be published or updated on the website, and it won't make money; but if the editor says it can't work, does it mean that the novel is terrible?

Certainly not, because traditional publishing houses and websites monopolize the publishing and distribution of novels, and they decide the life and death of books based on their personal preferences.


Therefore, an NFT certificate is minted for one's novel on the blockchain. The NFT certificate can freely stipulate that the person who obtains the NFT certificate can enjoy those rights. It can also specify that when the person who gets the NFT certificate trades again, the author can accept a certain percentage's earnings.

In this way, authors can freely trade the rights related to their novels without having to look at the face of the publishing house and website. The decision of whether the book is good or not is in the hands of fans, not editors who do not have to pay to vote.


What content and rights of works can be used to mint NFT?


Around 2017. Two of the earliest popular early NFTs were CryptoPunks and CryptoKitty. CryptoPunks contains 10,000 cute-style animations of human and animal characters, and CryptoKitty is a collection of fanciful cat images that were initially given away for free. However, the most valuable CryptoKitty is now worth over $100,000, and CryptoPunks are worth over $1 million.

The digital rights of photos, videos, novels, music, and games currently easily digitized can be used to mint NFTs, but they are not very convenient and lack some infrastructure.


What are the tentative NFT standards?


ERC-721

The idea of a token is to design a token whose owner can distinguish his token from others. The most famous application is CryptoKitties. In the CryptoKitties game, players can buy, sell and breed digital cats. Each cat has unique characteristics, making some rare crypto cats extremely collectible.


ERC-1155

Simply put, ERC-1155 is a "smart contract token standard" that provides developers with a token development logic different from ERC-721 and ERC-20. Using this standard, developers can make Various amounts of fungible (ERC-20) and non-fungible (ERC-721) tokens represented on-chain.


NFT mining mode


Since NFT is an independent block rather than a network, it is currently challenging to mine. If you are a minor, you can mine the web of the NFT industry.


NFT upstream and downstream links


Upstream supply side: writers, artists, organizations that provide digital rights; NFT casting technology, protocols, tools, etc.

Midstream link side: exchanges, auction houses.

Downstream demand side: community.


Mining mode


Investment mining: buy mining machines for mining;

0 Mining: Get rewards for promoting the network;

Pledge Mining: Pledge tokens for mining to get more tokens.


Risk aversion


Digital tokens have not been legally recognized at present, and there is a risk of returning to zero; please do not invest;

b. The digital token circle does not have a 100% regulated and honest network. It is difficult to recover the loss if you are deceived. Be careful.



Use your idle resources to provide supplies for the NFT industry, such as works, protocols, and tools, and do not pursue short-term interests (pits), so you can not miss the NFT era in a loss-free state.

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