NFT is the abbreviation of English Non-Fungible Token, which is a non-fungible token, that is, an irreplaceable token. This kind of token can represent a certain kind of uniqueness, and two different tokens are not interchangeable. How to understand this replaceability? Substitutability is a relative concept, which is expressed in a certain scenario or from a certain dimension. For example, in the cryptocurrency BTC, the BTC I hold is equivalent to the BTC in your hand and can be replaced. Exchanging one btc doesn't change anything for me or you. But something is different. For another example, I have a card signed by a celebrity, and you also have a card. The two cards may have the same face value, but the signature's place in my heart is such that I wouldn't trade it with you. Furthermore, some things cannot be replaced between different categories. For example, I like to watch the scenery outside the window when traveling. My window seat high-speed rail ticket and your middle seat ticket are irreplaceable.
NFT can lock ownership through the blockchain. Let’s take some non-decentralized digital assets as an example. For example, your WeChat account, QQ account, etc., they can be deprived. If we use blockchain to manage ownership, it can be more reliable and corresponding management permissions can be given. After tokenization, the ability to transfer and exchange can be obtained. On the basis of independent control rights, tokenized assets are more convenient to transfer. After tokenization, assets will be more convenient to authenticate and verify. The authenticity of artworks and collectibles has always been a problem, and tokenization can greatly improve this problem. ?
Some NFT standards have been formed in the blockchain ecosystem. With standards, interoperability can be achieved. The same token can be managed by different wallets, can be displayed in different markets, and can be displayed in the virtual world; standards also enable the token to be tracked, no matter which market it is traded on. All are recorded in the form of standards; standards can also bring liquidity; of course, standards are programmable. In short, standards can make NFT more powerful. ?
At the same time, due to its non-homogeneous and indivisible characteristics, NFT can anchor the concept of commodities in the real world, such as tokenized tickets, a bottle of precious red wine, unique Designed jewelry and more. NFT allows us to tokenize any valuable thing and trace the ownership of the information, thus realizing the intersection of information and value.