NFT Concepts and Market Analysis (Non Fungible Token)
ARTI Project is based on Non-Fungible Token (NFT) Blockchain technology. In other words, NFT technology clearly hashes ownership of various items such as artworks and stores them in blockchain, enabling digital assets, transactions and distributed ownership. The value of scarcity and uniqueness for virtual assets has led NFT to rapidly increase its influence in digital art, online sports, and game item trading.
II-1. NFT Concepts.
NFT stands for Non-Fungible Token, a token representing a digital asset with sparsity. Although NFT utilizes blockchain technology, unlike conventional virtual assets, it has a unique recognition value for digital assets, making them unexchangeable.
[Naver Encyclopedia of Knowledge]
NFT (Common Sense Dictionary, pmg Knowledge Engine Research Center) Non-fungible tokens (English: Non-fungible token, NFT, ERC-721) are a type of cryptocurrency and refer to a specific non-fungible cryptographic digital asset issued by Ethereum. By saving the ownership of digital files on the blockchain, they are permanently preserved so that they cannot be forged or altered, and the ownership can be verified in a decentralized form.
01. Digital ownership certificates, such as ownership and sales history
NFT is based on blockchain, so all related information such as ownership and sales history are stored in blockchain. Therefore, counterfeiting is impossible because the first issuer can be identified at any time. And by clarifying ownership of assets, it has recently become a powerful means of digitally tokenizing existing assets such as games, artworks, and real estate.
02.Granting a unique recognition value for irreplaceable values
Unlike existing cryptocurrencies with equal conditions depending on where they are issued, NFT has a unique recognition value that cannot be exchanged. For example, Bitcoin has the same price per unit, so it can be exchanged with each other, but if NFT is applied, one coin has a separate recognition value that is irreplaceable from the other coin and can be priced differently. This technology can be applied to content areas such as pictures, music, and videos where authenticity and ownership are important.
The unique ID and ownership of the non-Fungible token can be verified through the blockchain ledger. Non-Fungible tokens have metadata that is processed through a cryptographic hash function, and this algorithm can compute a sequence of 40 characters and numbers. Non-Fungible tokens are also being used as a tool to create the possibility of asset interoperability in games, art, etc.
03. Advantages of NFT
Difficulties in replication make it possible to better guarantee sparsity and ensure counterfeit goods do not destroy value
Easy to track
Blockchain data is open and transparent and anyone can view the source, time and number of NFTs, owner history and other information.
Split ownership recognition
By acknowledging ownership of the portion, tokens can be traded in the same form as 1/n.
Increase in trading circulation
For example, if an item is made by NFT, the player gains true ownership of the item and can trade freely in the NFT auction market.