NFT: A Breakthrough Work of Blockchain Technology

In the blockchain field, there is always a hot word each year that summarizes the trends of that year. In 2017, it was ICO, which led to a bull market; in 2019, it was IEO, marking the spring of trading platforms; in 2020, it was DeFi, which sparked a wave of wealth through liquidity mining. And in 2021, the undeniable annual keyword is NFT.

The popularity of NFTs can be seen from the following examples:

A limited edition pair of socks released in 2019 (UNISOCKS), initially priced at $12, had skyrocketed to $160,000 by 2021.

The rainbow cat Gif meme from 10 years ago was turned into an NFT, and the auction price reached $580,000.

The first tweet from the CEO of a social media platform has been minted as an NFT and publicly auctioned, with the highest bid reaching $2.5 million.

NBA Top Shot is developed by Dapper Labs, allowing users to purchase NFT packs of NBA players' highlight moments. Among them, the animated clip of LeBron James dunking over a defender against the Kings set a historical high of $208,000.

According to data platforms, the trading volume of the NFT market exceeded $340 million in February 2021, setting a new monthly record. NBA TopShot contributed $225 million of that.

The popularity of NFTs has expanded from the cryptocurrency sphere to multiple fields including sports, art, and gaming. Google search data shows that the popularity of NFTs has surpassed that of DeFi and ETH. NFTs unexpectedly brought blockchain technology out of its niche, gaining attention and recognition from outsiders.

NFT stands for Non-Fungible Token(, which is a type of non-fungible token). Its characteristics include that each NFT has a unique and distinct identification, making it non-interchangeable and indivisible. This allows it to represent one-of-a-kind items such as rare content on social media platforms, memorable moments of athletes, or even ownership of real estate.

NFTs are stored on the Blockchain, possessing authenticity and ownership rights. It solves the problem of digital files being infinitely replicable and proves the unique "original file" of digital assets. Purchasing an NFT not only grants ownership record of the asset but also provides access to the actual asset.

The reasons why NFTs can attract outsiders are mainly as follows:

1. Compared to the complex knowledge of Blockchain, NFTs are more relatable to the interests of ordinary people, such as sports, art, games, and so on.

2. NFTs broaden the channels for wealth acquisition and have a wealth accumulation effect.

3. NFT has ignited the creative enthusiasm of various industries, making it easier for artists to digitize and sell their works.

4. The cryptocurrency bull market has allowed investors to profit, with funds invested in the NFT field.

5. During the pandemic, people stayed at home and became interested in NFTs.

6. The celebrity effect has driven the development of NFTs.

7. Social life is increasingly digitalized, and people are more inclined to appreciate collectibles on screens.

Ordinary investors can participate in NFTs in two ways:

1. Invest in cryptocurrencies related to the NFT concept, such as ENJ, FLOW, CHZ, etc.

2. Directly invest in specific NFT products, such as CryptoPunks, NBA Top Shot cards, and crypto artworks.

When investing in NFT products, it is recommended to choose high-profile works with high attention, high liquidity, and high popularity, such as works by famous athletes, musicians, and artists.

The emergence of NFTs has provided artists with new monetization opportunities and allowed ordinary people to participate in partial ownership of high-end artworks. It realizes the divisible, atomized, and certifiable trading of real-world items, bringing a new experience to humanity.

Technological revolutions always bring unexpected changes to humanity. Just as Bitcoin was highly questioned at its inception, the true value of NFTs also needs time to be tested. In any case, NFTs have quietly arrived around us and are changing the perception and trading methods of digital assets.