NFT (Non-Fungible Token) technology, which gives scarce value to content, has recently been actively used as a means of creating added value in various industries. In particular, the value of digital content, which was unclear through NFT, is being re-evaluated, and as ownership transfer becomes easier, the related transaction market is also rapidly expanding.
According to Nonfungible.com, a non-fungible token (NFT) specialized analysis site, the global NFT transaction amount in the second quarter of 2021 was $7.54 billion, which is a 35-fold increase compared to the same period of the previous year. This is an increase of about 1.5 times compared to the previous quarter, and the term 'storm growth' is appropriate.
The translation of NFT is 'non-fungible token'. Here, a token is interpreted similarly to a 'digital token', and a non-fungible token means that the information of a specific thing is recorded, and a copy cannot exist. Accordingly, NFTs are currently mainly used to record and prove ownership of objects, and even replicable products are attracting attention in that they can be easily identified as genuine by linking NFTs.
This is because NFTs are digital tokens created through blockchain, a trustbased network. In a blockchain, multiple computers that act as servers (nodes) are widely distributed to form a single network, and data recording is made only for data that has passed verification of all nodes. Due to this structure, the block chain is difficult to hack, and once stored data is impossible to forge or falsify, it is highly reliable. This is the reason why NFTs, which were created based on this, boast excellent compatibility in areas where security and trust are important, such as proof of ownership or genuine product authentication. NFT is easier to publish and manage than existing electronic documents with similar roles. This is because, as the public's interest in NFTs grew in earnest, especially overseas last year, a large number of platforms were created where non-experts could create or trade NFTs on the web. On the global stage, 'OpenSea' is known as the most popular NFT market. can be distributed It is also free to purchase or resell NFTs issued by others. In addition, all NFTs are engraved with the time of initial issuance, transaction time, transaction amount, and past owner information, so it is difficult to deceive a fake as if it were real. As such, NFTs are recognized for their diverse potential in that they can be easily issued and distributed, high reliability is guaranteed, and can even be monetized through transactions. The fields of application and applications are endless.
NFT was first known in the field of games. In 2017, a blockchain + NFT game called 'Crypto Kitty' was gaining popularity. It looks like a simple cat card game, but each card is created with NFT, giving it an irreplaceable rarity, and if you combine cards to create a more rare cat card, the transaction value increases that much. Since this concept has become popular, attempts have been made in the game industry to provide users with the added value of monetization as well as the fun of the game through the grafting of 'NFT items'. In a completely virtual metaverse world, there are games such as 'The Sandbox' in which all elements including real estate are NFTized. Following games, the field that opened the 'flower' of the NFT market is digital art. In the past, digital art works have been difficult to be recognized for their value due to the limitations of easy copying, but the story has changed with the advent of NFTs. This is because even if hundreds or thousands of copies are widespread on the Internet, those who can trade with their genuine value recognized can narrow the linked NFT to one owner (or several, NFT ownership can be divided into n pieces). Of course, not all NFT works are sold at high prices. According to Nonfungible.com, more than half of NFT works are priced at less than $1,000. However, the case of Beeple and Grimes has a lot of implications in that it heralded the beginning of an era in which digital works can be recognized as having the same value as the real thing.
We are creating a new era of asset management called decentralized finance. In addition, various digital assets are traded in the form of NFTs. And then comes the birth of decentralized finance and derivatives of NFTs.