2.7 Non-Fungibl Token - NFT

NFT is the abbreviation of non fungible token. Let's take it apart. It's Non Fungible and Token,It should be emphasized that the core essence of NFT is the token itself, which cannot be separated from the essence of token.

So how to define non fungible? Literally, non fungible and fungible are two opposite meanings.One meaning is inseparable and non homogenization;Another meaning is separable and replaceable homogenization.Simply put, a replaceable item is an item that is replaced by another item。For example, the price of a $100 bill is the same as that of other $100 bills. Although there are some subtle differences, such as different serial numbers and issue dates, paper money is considered to be replaceable because they can be exchanged and promote all transactions in our daily life.On the other hand, vehicles, works of art and real estate are irreplaceable items. They are unique and cannot be exchanged with each other。Imagine two adjacent houses, which may be in the same community, developed by the same real estate , look exactly the same from the outside,However, they are not technically similar and cannot be exchanged with each other. Their decoration and internal layout may be different. One of them may be closer to the high traffic railway station, which makes it more valuable than the other.In short, the difference between these two piece of hundred dollar bills is that the two houses do not have the same internal value, so they can not exchange with each other, and there is no way to integrate them.So NFT is literally a new token form different from Fungible Token,It is indivisible and irreplaceable. It is the only new token that can be freely traded on the blockchain。The popular analysis is that each NFT is the essence of different NFTs. It is the notarization of digital assets based on the blockchain. This asset can be a picture, an audio, a video, a string of codes, a digital signature and other digital assets in any form.

NFT has three characteristics: the first is high transparency. Blockchain is a public ledger that records all transactions since its establishment. You can check when and at what price to buy here. It is very simple and clear。The second point is transferability. With one click, the ownership of assets can be transferred from one place to another in the world。The third point is security. Blockchain is the most secure online database at present. Its inherent nature makes it difficult to be attacked by hackers。Another thing we want to talk about is the creator economy. Creators have the content they create. As long as someone sells their creations, they can profit from royalties, and they can easily reach their followers。In contrast, current social media platforms deprive creators of most of their value through all advertising revenue while preventing creators from directly contacting their fans.The emergence of NFT has subverted this architecture and brought new changes to all walks of life.