Understand the concept of NFT coins and their meaning in 2021

What does NFT mean?

In recent years, with the rise of cryptocurrency, NFT (non-fungible token) has become a hot topic in the field of digital assets. As a unique encrypted digital asset, NFT is irreplaceable and unique and is attracting more and more attention and discussion. So, what exactly does NFT mean? What are its characteristics and application scenarios? In 2021, which NFT concept coins have attracted much attention and are worthy of attention? Next, PHP editor Yuzai will answer everyone one by one.

So what does homogeneity mean? The concept of homogeneity is "Can it be replaced? Or can it be replaced by other items of the same item?" For example, a BTC in my wallet and a BTC in your wallet are equivalent, belong to the same category, and can be freely exchanged. For example, in legal tender, most items do not need to be strictly distinguished. For example, if you want an apple, then I will just pick one for you.

However, sometimes we long for unique items and want them to be different from others. For example, cakes, tickets, game assets, etc. that you make by yourself can become irreplaceable NFTs. Leaves are unique and no two are exactly the same, so they can also become NFTs.

#The NFT market emerged from the Crypt Kitties game in the second half of 2017, which marked the initial development of NFT. However, it was not until 2020 that the NFT market began to flourish rapidly. Although the NFT market is small compared to distributed storage and DeFi, its unique charm is that it has attracted the participation of many stars, artists and other groups, creating many legendary stories. Therefore, the NFT market cannot be ignored.

Take the most typical CryptoKitties in the NFT circle as an example. Each NFT pass can add many attributes. For example, you can record the cat's age, coat color, rarity, interests, age and other characteristics. Why do some CryptoKitties sell for hundreds of thousands? The proof of general versatility is based on ERC20, so the attributes of the asset cannot be recorded. NFT is based on ERC721 or ERC-998 or others. This is because the underlying architecture is different, and NFT certificates have features that allow attributes to be added.

For example, airplane tickets. A general certificate can only record one ticket. However, NFT can record information such as whether the plane ticket is by the window.

In hotels, NFT can record the name of the place and hotel, and provide information such as the floor, orientation, area, style, price and breakfast of the room.

So, is information such as "whether the plane ticket is by the window or the corridor, the rarity of the cat, the available area of ​​​​the house, the value of the art" etc. is key information, is it useful data?

What are the NFT concept coins in 2021

1. ENJ/Enjin Coin

Enjin is an online game community creation platform. It was launched in 2009 and is headquartered in Singapore. Over the years, it has owned multiple game community guilds, e-sports teams, minecraft servers, game communities, game tribes, role-playing groups, fan websites, etc. It is currently trying to use blockchain to transform existing businesses, and the launched "Enjin Coin" can Players, content creators, and game publishers add virtual goods and provide value to games and communities.

2. MANA/Decentraland

Decentraland is a virtual world platform based on blockchain, aiming to solve the problem of platform developers earning intermediate platform profits for decentralized open source projects, thereby Achieve a low-price payment model between content creators and game players; the project uses blockchain technology to acquire and transfer virtual property rights, and allows users to permanently hold these virtual property rights and even operate them to create content for themselves Get profit.

3. FFF/Force For Fast Token

Force For Fast Token (FFF) is a car interest community with blockchain as the underlying technology. It serves car enthusiasts and racing enthusiasts. It is a platform for competitive entertainment, interest social networking and life services for users. All vehicles and industries (gas stations, comprehensive dealers, etc.) in FFF are users’ digital assets (NFT).

4. SAND/The Sandbox

The Sandbox is a virtual game world. Through the functional token SAND based on Ethereum, players can create and own different game experiences and gain from them. income. Gamers can use The Sandbox Game Maker to create digital assets (non-fungible tokens, also known as NFTs), upload them to the store, and create gaming experiences with a simple drag and drop method.

5. NASH/Nashi Coin

NeoWorld is a multi-person networked virtual world based on blockchain technology, and it is also a 3D space created by the collaboration of global users. Users can manage and build the territory through high-degree of freedom exploration and resource collection, and can even create and experience third-party content or applications on the territory, thereby creating value and gaining wealth.

6. SLP/Small Love Potion

SLP (SmallLovePotion) is an ERC-20 token that can be used on the Ethereum blockchain. AxieInfinity is a game (dapp) running on the Ethereum blockchain where users can collect, raise, breed and battle virtual creatures called axies. Axies are very similar to real-life pets, each with their own unique characteristics and appearance.

7、ZXC/0xcert

0xcert is the first open protocol to support the future of digital assets, powered by non-fungible tokens. 0xcert enables the creation, ownership and verification of unique assets on the blockchain. The 0xcert protocol provides tools to build powerful dapps designed to easily verify and manage digital or real tangible assets (such as IDs, educational certificates, in-game items or houses) on the blockchain.

8, RARI/Rarible

The NFT-based digital collection and trading platform Rarible launches the governance token RARI. Users can mint, buy and sell digital collectibles through Rarible without any programming. Skill. The governance token will govern the development and decision-making of the platform, and RARI allows the most active creators and collectors on Rarible to vote for any platform upgrade and participate in management and review.

In which crypto fields do NFTs mainly exist?

NFT has applications in games, artworks, domain names, collectibles, virtual assets, real assets, identities, etc. Among them, games, artworks and domain names are currently developing the fastest. Here’s a brief introduction to NFTs in the gaming and art world.

NFT in crypto games The field of crypto games has a natural relationship with NFT. One of the biggest problems in the current gaming field is that equipment and props cannot be transferred and cannot be truly privately owned by users. NFT is private property based on the blockchain. It is completely controlled by the user and can be freely transferred and traded.

At present, in terms of crypto games, many games such as Axie Infinity, Decentraland, Gods Unchained, Cryptovoxel, etc. are continuing to expand the market.

1) The NFT trading market is beginning to take shape

*Currently, the NFT trading market Open Sea has more than 20,000 users.

(Opensea has more than 20,000 users, Source: DUNEANALYTICS)

Opensea is an NFT market exchange. It has more than 20,000 users, and is closely related to the popular DeFi field. Compared with other projects, it is second only to Uniswap, Kyber and Compound, and higher than Maker, 0x, etc. The scale of this user base is already quite large.

*The trading volume on Opensea is also considerable.

On Opensea, there are 706 NFT projects, 285 projects with a transaction volume of more than 1 ETH, 59 projects with a transaction volume of more than 100 ETH, and 24 projects with a transaction volume of more than 1,000 ETH. CryptoKitties and Decentraland, which are at the top of the list, have transaction volumes of tens of thousands of ETH.

(Ranking of total NFT transaction volume on Opensea, Source: OPENSEA)

In addition to the data on Opensea, we can also see from nonfungible that NFT The total transaction volume exceeds 100 million US dollars, the number of transactions exceeds 4.7 million times, and there are more than 16 projects with cumulative transactions exceeding 1 million US dollars.

(Total NFT transaction volume exceeds 100 million US dollars, Source: NONFUNGIBLE)

2) The value of NFT in crypto games

Why are NFTs in games developing the fastest? NFTs in games are inherently unique and usable. For example, the Axie in Axie Infinity each have different attributes. Axie is a fantasy creature that players can use to fight, collect, and grow. Different attributes determine Axie's different roles in combat. Axie has 6 body parts: eyes, ears, horns, mouth, back, and tail. The horns, mouth, back and tail determine which cards Axie can use in battle. It has the status of health, morale, skills, speed. Each Axie also has a different type. Each type is stronger or weaker than the other types.

(Axie has different attributes and body parts, Source: Axie Infinity)

In addition to fighting, Axie, as a fantasy creature, can also be developed, Can produce offspring. Raising offspring can also be used to fight, or to continue producing offspring (maximum number is 7). In order to produce offspring, Axie needs to spend some ETH or SLP tokens, which are fungible and fungible tokens. In addition to purchasing it on the open market, it can also be earned by participating in games within the gaming environment. This creates a new model for blockchain games: making money by playing games, because the SLP earned can be sold through the open market. This model also increases the demand for NFTs (Axie). SLP's meme went through 4chan the other day, causing it to rise quickly and attract attention.

If Axie Infintiy can be favored by a larger scale of users, then the value of the scarce Axie will be greater. In the future, it should not be surprising if some Axies are sold for more than 100,000 US dollars each. Of course, this will also drive demand for SLPs.

(Recently sold Axie, source: Axie Ininfinity)

In addition to Axie Infinity, there are more crypto games on the way to be discovered.

*NFT in the field of digital art

On the Superrare digital art market alone, artists have earned more than $1 million and released a total of more than 7,000 NFT artworks in 178 countries around the world nation.

(Artists on Superrare make over $1 million, source: Superrare)

Why are NFTs valuable in the digital art space?

NFT in the gaming field, due to its use value and scarcity, it is relatively easy for everyone to feel the value of its NFT. However, NFT in the digital art market is relatively difficult to understand. Even so, more than $1 million in digital art has been sold on the Superrare platform alone.

So, how to understand NFT in the field of digital art? Why might it be very valuable in the future, even hopefully alongside NFTs in the gaming field?

From a macro perspective, the digital art NFT market may catch up with or even surpass the traditional physical art market in the future. The most important decisive factor here is, what is the key to determining artistic value? Authentic. In the art market, authenticity is the core of value. If it is not an authentic Van Gogh, even if the imitation degree is as high as 99.999999%, the fake will not have much value. Of course, there is a more core issue here, regarding the valuation of the value of the artwork itself. This is a more ambitious topic and will not be expanded upon for the time being.

We see a lot of pictures from Superrare. Some digital art pictures are priced as high as hundreds, thousands, or even tens of thousands of dollars. What is the value of these digital artworks? People buy physical art, such as paintings, to appreciate and display. And digital artwork is just an image file, what is its value? The question is not whether it can be admired or displayed, because a fake can have the same effect, and the average person may not be able to tell the difference between a fake and the real thing. But genuine products have value, and fake products have no value. People can imitate Van Gogh's "Sunflowers" and create works that are almost indistinguishable to the naked eye. The fake "Sunflowers" can still be used for appreciation and display, but this "Sunflowers" has no great value.

Artists in the traditional physical world signify authenticity through signatures. In order to identify authenticity, experts are required to participate, which requires huge costs. On digital art carriers like NFT, there is no such problem.

Because NFT cannot be forged. In the physical world of art, it is possible to forge, but in the NFT field, it cannot be tampered with. In this way, as long as any artist's digital work exists in the form of NFT, it is unique and cannot be tampered with or copied even by the creator himself. It has unique scarcity.

Of course, in the end, NFT is just a carrier, and the core is the discovery of the artistic value behind it. This is the final factor that determines digital art NFT. But there is no need to worry about this, because every era has its own carrier of artistic creation. In the long run, as the digital native generation becomes closer to digital artworks, and as artists create more digital artworks (NFT), A new generation will create "Sunflowers" belonging to this generation, and future art collections may shift their focus to NFTs.

(Digital artwork for sale on Superrare, Source: SUPERRARE)

Investment in NFT

Investment in NFT itself, more An investment similar to a collectible. Therefore, in terms of NFT investment, you need to have an in-depth understanding of the specific NFT market segment to make a good investment, especially for enthusiasts. One is to enter early, and the other is to participate in markets such as games, digital art collections, domain names, etc., and penetrate deeply into the market demand.

In addition to NFT itself, projects carrying NFT are also an important part of NFT investment. Projects carrying NFT have a better chance of capturing the value of the entire ecological development than NFT itself. Of course, this also depends on its project token. economic mechanism design.

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