Topic: NFT, A Bridge between the Crypto World and Traditional Finance (Read 71 times)

What is NFT?
NFTs are non-fungible tokens, which means that they are tokens that cannot be replicated. A single address on the chain only corresponds to a single token, usually in the Ethereum ERC721 standard.

Typically, BTC, ETH, and so on are fungible tokens, namely FT. ETH within the same address can be divided into multiple fractions of ETHs and transferred while the remaining ETHs are still included in the balance of the address.

In contrast, one address corresponds to only one NFT token. During transfers, only this NFT can be completely transferred out. It cannot be split and has no concept of balance.

In a broad sense, NFT represents a kind of ownership, that is, owning the NFT of the address. This corresponds to owning a work, bill, or right. For example, when a photographic work is stored on the chain, a corresponding NFT address is generated and ownership of the NFT means ownership of the work.

When a user purchases the work, the NFT ownership corresponding to the address will be directly transferred to the buyer, along with the ownership of the corresponding photographic work.

Since the end of last year, there has been a surge of interest in NFTs, represented by DEGO, FLOW, RARI, OpenSea, and other projects or platforms.
However, at that time, the concept of the NFTs were mainly focused on picture art. Compared to the rich traditional art categories, there is still a very large room for development.

Since this year, with the emergence of MIST and UniswapV3, the Liquidity Pool Tokens (LP Token) has also appeared as NFTs.
NFT gradually expands its essence of “ownership” so it’s not only the ownership of crypto artworks but also as a broader verification of rights.

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