Fire Essay: The NFT sector continues to rise, so what is NFT? what is it used for?
Recently, many users have repeatedly mentioned NFT to Xinhuo. It is true that the recent rise of this sector is very gratifying. Today, Xinhuo will give you a brief talk about NFT. NFT refers to non-fungible tokens, which represent tokenized versions of digital or other forms of non-fungible assets. Non-fungible assets have unique properties and attributes that make them rare, indivisible and valuable. These assets can range from virtual collectibles, game items, and digital artwork, to concert tickets, real estate, identity documents, and more. The current crypto market revolves around alternative assets such as Bitcoin and other cryptocurrencies.
NFTs are gaining traction, and their popularity opens up a wide range of possibilities for both real-world and virtual assets. Current NFT use cases are concentrated in the main categories of collectibles, art, games, and virtual worlds. However, other categories such as sports, fashion, and real-world assets are also seeing steady growth.
We all know that many currencies in the currency circle are being developed for specific purposes, so what are the uses of NFT?
1. Art collections
Art collectibles are currently one of the most popular NFT applications in terms of sales. One of the biggest challenges digital artists face is protecting their creations from copyright infringement, but NFTs are a solution as they provide proof of ownership, authenticity and eliminate issues of counterfeiting and fraud. Museums and galleries have been forced to close, and many artists have turned to NFTs and online showrooms. Just as Bitcoin paved the way for trustless peer-to-peer transactions by creating a shared ledger of events, encrypted art has its origins.
2. Games
As mentioned earlier, gamers are the ideal target market for NFTs, as they are already familiar with the concept of virtual worlds and currencies. NFTs are booming in the gaming industry as they allow in-game items to be tokenized and easily transferred or exchanged with peer-to-peer exchanges and marketplaces.
This is very different from traditional games where the sale or transfer of in-game items such as rare weapons and skins is prohibited. NFTs also make the gaming experience more tangible and meaningful as players have true ownership of their digital assets. They are also creating a new economy, as players now have the potential to earn money by building and developing their own game assets. “The key to blockchain’s potential lies in the theory that players become more loyal when they have more skin in a game: when their digital assets can be transferred between games or platforms, or They put more of their hard-earned money into it when they trade on the open market."
3. Actual Assets and Documentation
Real-world assets such as property and stocks can be tokenized, or documents such as qualifications, licenses, medical histories, birth and death certificates can be tokenized. However, the development of this category is still in its early stages and its use cases are relatively few.
But as the crypto world and NFTs continue to grow and grow, who's to say you can't one day own a vineyard thousands of miles away in another country. As far as I know, your digital wallet - perhaps ideally a hardware wallet like NGRAVE ZERO - may soon contain proof of all the certificates, licenses and assets you own.
The above are some of the most representative uses of NFT in Xinhuo’s opinion.
Author/firework teacher-yym, xinhuo9418
The above WeChat can contact Xinhuo, and investors in the currency circle are welcome to learn together
