What exactly is a 'non-substitutable token (NFT)' that gives a unique value to a digital concept?



In February 2021, Tesla, a major electric vehicle manufacturer, announced that it will

start accepting Bitcoin as a payment method for products in the near future, and crypto assets as a payment method will become more and more popular in the future. It is expected to go. Such encryption assets important in buying and selling goods and services ' non-substitutability token (Non-Fungible Token: NFT)' for the concept, leading encryption asset transaction service ' Coinbase Linda with a career that served as a project manager at' Mr. Xie explains.

A beginner's guide to NFTs — Mirror
https://linda.mirror.xyz/df649d61efb92c910464a4e74ae213c4cab150b9cbcc4b7fb6090fc77881a95d

NFT is a term that refers to a unique digital asset whose ownership is being tracked on a blockchain such as Ethereum . For example, in 2015, the Pope's favorite iPad was put up for auction and traded at a price that was dozens of times higher than the list price. It can be said that NFT is for introducing irreplaceable properties into digital products and services, such as this 'iPad used by the Pope'.

At the time of writing the article, most NFTs are used for trading on Ethereum, but it is expected that the use of NFTs will expand on various smart contract platforms in the future. Therefore, Mr. Xie explained NFT by dividing it into two parts, 'Why is NFT attracting attention?' And 'What kind of scene is it used in?'

◆ 1: Why is NFT attracting attention?
According to Xie, the biggest reason for the high expectations for NFT is that 'anyone can create, own and trade NFT by combining it with the existing financial system.' The point here is that the advantage of cryptocurrency assets that 'trading is possible without going through a centralized platform' is the strength of NFT. For example, when an online game developer wants to implement an item that can be traded between users in the game, the NFT protocol can be used to make the created item immediately available for in-game trading. It seems that you can do it.

In fact, games that utilize NFT have also appeared. One of them is a game called ' Aavegotchi ' that was inspired by Tamagotchi . In Aavegotchi, it is possible to raise and fight the ghost-like character 'Aavegotchi' as a unique character linked to NFT, but currency through decentralized finance (DeFi), which is a transaction form of crypto assets. It is also possible to rent or sell like.



◆ 2: What kind of scene is it used in?
Although it is a digital concept, it can be lent or collateralized like a real-life item, so NFT is expected to be used in many fields. Among them, in recent years, it has been actively used especially in the fields of 'games' and 'arts'.

One of the representative works using NFT is a game called '

Axie Infinity '. This game is a game to raise and fight creatures called Axie, but since each individual of Axie is tied to NFT, it can also be used for trading. You can also earn tokens by winning battles and completing quests in the game, and trade with these tokens.

According to Mr. Xie, there are cases where rare Axie is traded for $ 159,000 (about 16.61 million yen), land in the game is sold for 165 million yen, and tokens are sold at Axie Infinit. It is said that earning is becoming a source of income that exceeds the minimum wage in many countries.



Digital art is another area where NFT is often used. In the real world, the painter who sold the painting receives the money only once, but if you grant the art work associated with the NFT the right to secondary use, it will be the original when the art work is redistributed. You can make money for your artists.

Also, by linking the work with the market price of cryptocurrency assets, the background changes only when the Ethereum market price rises to a certain price ...



It seems that a genre called 'programmable art' has also been born, in which the same work is sold at various angles and combinations of layers.



In addition to games and art, more and more people are using NFT in the form of 'social tokens.' Social tokens are called variously, such as 'personal tokens', 'community tokens', and 'creator tokens', and the definition of words is not fixed, so it is difficult to explain in a nutshell, but using social tokens It will be possible to trade things that could not be traded until now.

For example, Ruben Bramanasan, who used to be in charge of legal affairs at Coinbase, has done business such as issuing 'my hour' as a token and working for an hour for the person who bought it. In addition, there are cases where social tokens are used for some kind of 'promotion payment', in which a part of one's future income is tokenized and issued.

Regarding the future of NFT, Mr. Xie said, 'NFT will be used as a bridge between traditional assets and crypto assets like stock tokenization, and'digital real estate'to tokenize advertising space on websites. It will be used for new usage such as. What I am most looking forward to is the creation of a completely new concept that is possible only with crypto assets. '

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