I wrote an article introducing NFT and artwork yesterday. This is only the first article in the series of NFT articles. In fact, NFT contains a very wide range of subdivisions. I believe that ordinary users will have the opportunity to touch in the virtual world in the near future. To NFT, so I will write a series of articles to introduce other subdivisions of NFT.

The works of art introduced in yesterday’s article have little to do with ordinary public investors, and ordinary investors don’t have much contact with them, so after the article was published, many readers raised some questions. Although some of these questions are directly asked about artworks, the issues involved are actually related to all NFT fields, so let me answer a few questions today. If we understand these issues clearly, it will help us understand other subdivisions to be shared later.

1. ETH must be used for transactions. ETH is the hard currency. Can it be understood in this way?

The NFT field is also related to the blockchain. Ethereum has the NFT ecology of Ethereum, and BSC is now starting to build its own NFT ecology. I believe that other public chains will take advantage of the trend to support their own NFT ecology in the future.

But at present, the most powerful and complete NFT ecosystem is undoubtedly Ethereum, which is the same as DeFi. All the NFT fields that I will share yesterday and in the future are all fields of the Ethereum ecosystem. Due to limited time and energy, and I am optimistic about Ethereum, my focus is on Ethereum.

At present, in all the NFT fields of Ethereum, almost 95% of NFT transactions are traded in ETH, which is different from DeFi. In DeFi, stablecoins are used in a very wide range, but in the NFT field, stablecoins are used in very few occasions. So in the NFT ecology of Ethereum, ETH is the hard currency.

2. Suppose I am going to sell you a real painting of Leonardo da Vinci, but what I actually gave you was a fake, and you transferred the ETH to me, and what you received was a fake, how to solve this situation?

There are actually quite a few aspects involved in this question. Let's explain a little bit.

First of all, at present, if the works of art to be auctioned are physical objects, such as paper paintings, oil paintings, etc., they almost still have to go through traditional auction houses. That is to say, the seller will hand over the real object to the auction house, and then the auction house will verify the authenticity and then auction it. This is not much different from traditional art auctions.

But in fact, this type of auction is not the artwork we often talk about in the NFT field.

The artwork we often talk about in the NFT field refers to digital artwork, that is, it exists not in physical form but in digital form, such as picture files, 3D files, and multimedia animation files.

Let's take digital artwork in the simplest form of a picture as an example.

Suppose an artist uses a computer to create a cool picture, and then he wants to make it into a copyrighted NFT artwork for easy resale. Next, he himself or he will ask someone to help him write an Ethereum smart contract. What this smart contract does is to issue an NFT token. This NFT token is unique, and this NFT token corresponds to this picture.

Well, at this time he can contact some well-known NFT art auction sites, such as the cryptoart I mentioned yesterday. Then tell the website that my picture corresponds to an NFT token on Ethereum. Since all information on Ethereum is public. Then the website went to the Ethereum browser and found the NFT token, so the website performed a process in the background to map the NFT token deployed on the Ethereum to the image file.

Now, this auction website can auction this NFT artwork, display the picture of this NFT on the website, and mark the price (we assume 10 ETH), and start selling.

If a buyer takes a fancy to this artwork, he can place an order directly online. After the buyer pays 10 ETH, the NFT token corresponding to the artwork will be transferred to the buyer's wallet. And what about the picture of this artwork? Usually buyers don't care about it, of course buyers can also download the high-definition original file of this picture through the website, but most of the time buyers don't care about it. So what the buyer actually buys is not the picture, but the NFT token.

So the question is, how to prove that the buyer owns the work? The first one that can be proven is this auction site. Since the relationship between NFT tokens and pictures is stored on the website, this picture is also stored at the same time. So when the buyer comes to the website again and logs in with his Ethereum wallet, the background program of the website will automatically search in his Ethereum wallet. Once the NFT token is found, it will be automatically displayed on the browser. The picture corresponding to the NFT token.

So only those who own this NFT token can display this NFT artwork on this website.

Usually this kind of NFT artist will cooperate with many such websites, tell all these websites the association between his NFT token and the picture, and give these websites the picture of this work.

So this buyer can display the NFT artwork he bought on many such websites.

This will bring another problem: So, there will be pictures of this NFT artwork in many places, so can't many people claim that he owns this NFT artwork, and even display this artwork unscrupulously? At this time, NFT works, because whoever has NFT in his hand shows who is the real owner of this work. So in this case, once the buyer finds that anyone else has used the picture of this NFT artwork without authorization, he can sue others through legal means.

The largest and most direct evidence in the hands of the buyer is publicly available on Ethereum, which can be found by everyone. Only the buyer has this NFT in his wallet, so only the buyer is the real owner. This is difficult to achieve in traditional artwork copyright or even requires a lot of cost and resources.

After understanding this process, the other subdivisions we will share later will be easy to understand.