In 2021, NFT will be completely out of the circle. In addition to celebrities and stars, major companies such as Tencent, NetEase, and Alibaba will also enter the market one after another. Artwork, collectibles, copyrights, music, games, and everything else can be NFT. With the recent development of various popular NFT games, Metaverse and other topics, NFT once again ushered in a larger wave of explosion.
According to NonFungible data, as of August 18, 2021, the NFT market sales in the past 30 days reached 823 million US dollars.
So what exactly are NFTs? Today, Ouyi OKEx Intelligence Bureau will introduce to you what is NFT and how ordinary users will participate in it
1. What is NFT?
NFT, the English full name is Non-Fungible Token, which means non-homogeneous tokens, which are indivisible, irreplaceable, and unique.
NFT is a concept that exists relative to homogeneous tokens. Homogeneous tokens, that is, FT (Fungible Token), are tokens that can be substituted for each other and can be split at will. For example, a bitcoin in your hand is essentially the same as a bitcoin in my hand. This is homogeneous Tokenized tokens, while NFT is unique and indivisible, such as encrypted cats, tokenized digital tickets, etc.
Due to its unique characteristics, NFT provides a way to mark the ownership of native digital assets (that is, assets that exist in or originate in the digital world), and the ownership exists outside of centralized services or centralized databases. For example, we cast game props, digital artwork, tickets, etc. into NFTs through the blockchain, so these assets are unique and non-replicable.
The development history of NFT in the blockchain can be traced back to a project called CryptoPunks on Ethereum in 2017. CryptoPunk is a collection of artistic images composed of 24x24, 8bit irregular pixels. There are about 10,000 of them, each with its own randomly generated unique appearance and characteristics. On November 28, 2017, the blockchain game Cryptokitties (encrypted cat) was launched publicly and quickly became popular. The soaring price of "virtual cats" is the first time that the concept of NFT has been "out of the circle".
Since then, the main application scenarios of NFT have gradually expanded from encrypted games to collectibles, artworks, domain names, identities, etc. Among them, artworks, DeFi, and games have respectively dominated several waves of NFT development.
2. How to participate in NFT?
So, what are the ways for ordinary users to participate in NFT?
At present, there are mainly three ways to participate in investment. First, directly purchase NFT assets; second, invest in tokens related to NFT concepts; third, issue and cast your own NFT.
1) Subscribe/purchase NFT items directly in the primary market or secondary market, such as encrypted artwork, collectibles, game props, virtual land, etc.
The top ten NFT projects are mainly concentrated in the fields of encrypted collectibles, games, and virtual land. You can participate in the primary market auctions of some large art collections, or choose your favorite items and collect some items on secondary trading platforms such as Opensea. The premise is that you need to prepare your wallet, corresponding public chain tokens, and platform accounts. before it can be formally traded.
It is worth noting that investing in NFT items has certain requirements for investors' appreciation ability and artistic value judgment. In addition, it is also necessary to evaluate and measure its blockchain foundation, scarcity, time age, release speed and other dimensions. Therefore, this method reflects more of an identity and social attributes, and is more suitable for users who have their own collection interests and abilities to participate.
2) Invest in tokens related to the NFT concept. These tokens themselves are not NFTs, but the native governance tokens or functional tokens of various NFT projects (applications), or public chain tokens that provide infrastructure for NFTs.
At present, there are at least 100 kinds of NFT concept coins, and the total market value of the top 100 NFT tokens on Coingecko is 24.8 billion US dollars. Investors can choose the corresponding tokens to trade in the popular NFT currency section of OKEx.
3) Issue your own NFT. If you want to issue and mint an NFT by yourself, then you can choose to upload files on NFT minting platforms such as OpenSea, Rarible, and mint for distribution.
At present, NFT supports a variety of file formats and formats, including visual files JPG, PNG, GIF, music files MP3, etc., 3D files GLB, etc. Prepare the files in advance, connect the wallet on the platform and upload the files according to the prompts, and set up the NFT Quantity, work description, royalty rate and other information are sufficient.
