NFT stands for 'Non-Fungible Token' and refers to a token that represents a digital asset with scarcity. NFT utilizes blockchain technology, but unlike existing virtual assets, digital assets are assigned a separate and unique recognition value, so they are not interchangeable.
Digital ownership certificate suchas ownership and sales history
NFT is based on a blockchain, so all relevant information such as ownership and sales history is stored on the blockchain. Therefore, since the original issuer can be checked at any time, counterfeiting is impossible, and by clarifying the ownership of assets, it has recently become a powerful means of digitally tokenizing existing assets such as games, artworks, and real estate.
Non-replaceable unique recognition value
Unlike existing cryptocurrencies that have equal conditions depending on the issuer, NFTs contain separate unique recognition values and cannot be exchanged with each other.
For example, each bitcoin has the same price and can be exchanged with each other, but when NFT is applied, one coin has a separate recognition value that cannot be replaced with other coins, and the price can be different. This technology can be applied to content fields such as pictures, music, and video, where authenticity and proof of ownership are important.
Beginning of NFT
The origins of NFT were 2017 startup Dapper Labs Dapper Labs is a Canadian game development company that spun off from Axiom Zen in 2018 to bring the benefits of decentralization to consumers. . We developed CryptoKitties, a game using blockchain-based cryptocurrency for the first time in the world, and released it in December 2017. CryptoKitties is an Ethereum ERC-721 token-based DApp.
In particular, at the end of 2017, the most expensive cat character, 'Dragon', was traded for 600 Ethereum (ETH), and it has gathered a lot of attention, reaching 1.3 billion won at the current 2021.4 market price.
The Top NFT of digital artist 'Beeple'
Christie,/ Beeple work Everydays:he First 5000 Days” The 10-second video clip created by digital artist 'Beeple' Winkelman can be viewed online anytime for free, but sold for $6.6 million on the NFT exchange in February 2021.
NFT of digital artist 'Beeple'
Source: NBA TOP SHOT
NFT Market outlook
According to a report published by NFT analysis site NonFungible.com and BNP Paribas Latelier Lab, the volume of NFT transactions in US dollars quadrupled from $62.86 million in 2019 to $250.85 million last year.
The number of digital wallets used for NFT sales and holding has also doubled from the previous year to 222,179 in 2020. According to Dapp Radar, a media specialized in cryptocurrency, the growth rate this year is even steeper. In February, it rose to a whopping $342 million.
NFT is expected to continue its growth by combining with new trends such as the metaverse. Strategy Analytics (SA), a market research firm, predicts that the ‘metaverse economy’ represented by VR/AR will grow to $280 billion in 2025, more than six times the current level.