Everything can be NFT? The new darling of the currency circle is "out of the circle"

There is a view that the encrypted digital asset trading market is booming, and Bitcoin continues to hit new highs, making the development of the currency circle need a new breakthrough, and the market needs a new story. NFT has continued to develop for four years, and it is just at the top of the trend. With the help of the trend of DeFi (decentralized finance), it is quite natural for the heat to spill over. However, at present, speculation and hype in the NFT market is prevalent. After this round of bubbles burst, NFT can usher in new development. Investing in ethereum-based digital art is taking off, with cryptocurrency investors starting to pour tens of millions of dollars into it. A GIF picture named "Nyan Cat" (Nyan Cat) once sold for 590,000 US dollars; in March, Christie's auction house auctioned pure digital artworks in the form of non-homogeneous tokens (NFT) for the first time in history, and sold 6,900 US dollars. Ten thousand U.S. dollars. And all of this is a product of NFT flashes. And this craze has long been limited to digital art collections. In sports, music, games and other industries driven by the "fan economy", the emergence of NFT technology has brought more possibilities for investment. Unique NFT NFT is the abbreviation of Non-Fungible Token. Bitcoin, Dogecoin, Ethereum, etc. are homogeneous cryptocurrencies, and there is no difference between each unit of cryptocurrencies. Suppose you hold 10 bitcoins, there is no difference between these 10 bitcoins, the attributes and values are exactly the same, and these bitcoins are the same as the bitcoins owned by other people. Therefore, no matter where it comes from, any bitcoin can be used in payment, transfer and other scenarios, and can also be exchanged or divided into smaller units, such as 0.01 bitcoin. MXC launched the first phase of the MX developer "All Things Growth Plan" and set up a 5 million USDT ecological fund: According to the official announcement, MXC Matcha started the "All Things Growth Plan" and set up a special fund of 5 million USDT to promote Ethereum, Wave Cards and other networks, as well as its ecological project developers, will create more usage scenarios of MX and explore the possibility of integrating various asset ecology and MX. Beginning at 16:00 on February 11, developers can sign up through the form in the announcement, and the shortlist will be announced before March 17. The shortlisted projects can receive a total of 5 million USDT ecological fund support, receive all-round project support from MXC, and obtain MXC investment opportunities and online opportunities. Please pay attention to the announcement for more rewards. [2021/2/11 19:31:43] Compared with homogeneous tokens, the non-homogeneous attributes of NFT are reflected in its scarcity, indivisibility and uniqueness. In other words, every NFT is different. If you use a life-like scene as an analogy, NFT is equivalent to giving someone a unique number for a mobile phone photo, and this photo becomes unique because of this number. Since the content, value and valuation of different photos are not the same, two different photos cannot be exchanged for equivalent value, nor can they be divided into smaller units. In addition to its outstanding non-homogeneous characteristics, NFT also has the nature of application tokens or asset-backed tokens. At present, there are two types of tokens based on the blockchain: one is the original token, if the blockchain is regarded as a digital ledger, the native token is the accounting currency unit that the ledger can operate; the other is It is the asset-backed token represented by NFT. By "uplinking" external assets or rights and interests, the digitization of assets is realized, and the newly generated tokens can be transferred and traded in the blockchain system. Voice| Dean of Zhongguancun Mutual Finance Research Institute: Blockchain technology may become a bottom-level technology of \"Internet of Everything\": Liu Yong, president of Zhongguancun Internet Finance Research Institute, issued an article "Blockchain: Independent Innovation of Core Technology An important breakthrough". Liu Yong said that at present, there are three levels of blockchain applications, namely 1.0, which is based on the application of digital currency, and 2.0, which combines digital currency with smart contracts and optimizes the application of a wider range of scenarios and processes in the financial field. , especially 3.0 for new applications in government, cultural health and other fields. The application of blockchain 2.0 has added the concept of smart contracts, which allows blockchain technology to be extended to the registration and transfer of equity, creditor's rights and property rights, the transaction and execution of securities and financial contracts, and even financial fields such as gambling and anti-counterfeiting. The application of blockchain 3.0 goes beyond the financial field, covering all aspects of human social life, and entering various fields such as justice, medical care, logistics, social notarization, social governance, cultural health, etc. Blockchain technology may become an "Internet of Everything" A bottom-level technology. [2019/12/2] Each NFT has a unique ID, covering fields including artwork, collectibles, DeFi, games, virtual space, sports pages, and public facilities. It can be compared with real estate, cultural works and art collections, and can reflect the value of abstract objects. In fact, NFT is not a new thing that has been produced in the past two years. It began to enter the public's attention because of a blockchain game-CryptoKitties. Sound|Academician of the Chinese Academy of Sciences: High-efficiency Internet of Everything must be inseparable from blockchain storage technology: According to a report from the World Wide Web, on October 17-19, the People's Government of Jiangsu Province, the Ministry of Industry and Information Technology, the Chinese Academy of Engineering, and the Chinese Academy of Sciences The "2019 World Intelligent Manufacturing Conference" co-sponsored by the Technology Association was held in Nanjing. Academician Wang Xiaoyun of the Chinese Academy of Sciences said in the keynote report that the future will be the Internet of Everything, and the high-efficiency Internet of Everything will be inseparable from 5G transmission, AI analysis, and blockchain storage technology. 5G, blockchain, and artificial intelligence (AI) are the three major information technologies that have far-reaching influence on the world today and will lead the future. [2019/10/20] In 2017, the encrypted cat game created on Ethereum was launched, and users can buy, collect, sell and breed virtual cats. Different cats have a unique combination of attributes, for example, each cat has a different combination of eyes, hair, tail, mouth, and even expressions. It is the uniqueness of each virtual cat, coupled with the rarity of some cat traits, that makes the cat image in the game an NFT for trading and collection. In the initial stage of the game's launch, CryptoKitties contributed 3/10 of the transaction volume on Ethereum. According to the Money Morning website, the most expensive virtual cat in the history of trading is an encrypted cat named Dragon, which was once sold for 600 ETH (about 170,000 U.S. dollars). After that, NFT has become more and more popular with celebrities from all walks of life. Under the aura of "celebrity effect", NFT was able to "break the circle". Voice | YeeCo CIO: 5G will become an important condition for the realization of "Internet of Everything": On August 25, YeeCo CIO David Li said in a speech entitled "Towards Smart Civilization" that YeeCo hopes to truly realize "Internet of Everything", And 5G is an important condition to achieve this goal. Algorithms in the Internet era are text-based algorithms. With the advent of 5G, there will be algorithms based on content-zce such as audio and video. Even only in the case of 5G, it is possible to realize the vision of "Internet of Everything". At the same time, when introducing YeeCo, he pointed out that YeeCo has several core features, one is high performance; In addition, David Li also said: Bitcoin may also have the possibility of zero value, especially under the impact of technologies such as quantum computing, once false Bitcoins appear, real Bitcoins will no longer have value. [2019/8/25] Twitter founder Jack Dorsey (Jack Dorsey) sold his first personal tweet in 2006 in the form of NFT at the Valuables online auction, which read "just setting up my twttr" (just set up my twitter). Unexpectedly, the final transaction price of this tweet exceeded 2.9 million US dollars. It is understood that the Valuables project of Dorsey’s auctioned tweets supports all Twitter users to buy other people’s tweets and sell their own tweets. Each traded tweet will be minted into an NFT, and these tweets are also called “NFTweet” ". ITC Bounty System released ITC Bounty System: Recently, the ITC Bounty System official team released the bounty system \"ITC Bounty System\" beta version. In the ITC bounty system, users can earn points by completing bounty tasks and exchange them for ITC. The ITC team stated that the system aims to give back to community partners, expand the global community, and promote the healthy and sustainable development of the ITC ecosystem. [2018/5/3] Tesla CEO Elon Musk is an enthusiastic fan of cryptocurrency. He announced on Twitter on March 16 that he would sell a self-created dance song with the theme of NFT as NFT . In the background of the dance music video, an NFT trophy spins in space surrounded by many cryptocurrencies. For a time, creators, investors, and enthusiasts from different fields all participated, and what really made NFT recognized in the field of art collection was that traditional art auction houses began to cooperate with NFT art. In October 2020, an anonymous buyer bought a bitcoin-themed artwork at Christie's, a world-renowned art auction company, for $130,000. Not only is the collection transcribed from the code behind the Bitcoin blockchain, but it is also associated with an NFT and hosted on Ethereum. Just last month, in a special auction at Christie's, the purely digital work "Everydays: The First 5000 Days" from the American artist "Beeple" was sold for nearly 70 million US dollars, setting a new auction record for digital art. Everything can be NFT? The growing popularity of NFT can be seen from the growth of its trading market. According to data from the NonFungible website, the total transaction volume of the entire NFT market so far is more than 5.4 million, and the total transaction volume exceeds 550 million US dollars. According to a March report on the Fortune magazine website, OpenSea, as the largest NFT trading market, has received $23 million in venture financing and is expected to become the "Amazon" of the NFT industry. Why is NFT popular? Different people gave different answers. ARK Investment Management Company of the United States believes that NFT will help the control of art works transactions return to the hands of creators. Traditionally, the path for creators to make money from digital content-zce is as follows: content-zce creators upload digital works to digital media platforms—the platform monetizes the content-zce through business models such as subscriptions and advertisements—the platform pays a certain percentage of profits to content-zce creators. In this process, digital media platforms play a key role in creating commercial value, but this greatly weakens the dominance of digital content-zce creators. NFT supports peer-to-peer decentralized transactions, and digital creators can complete the sale of works without relying on intermediaries. Another point of view is that the encrypted digital asset trading market is booming, and Bitcoin continues to hit new highs, making the development of the "currency circle" a new breakthrough, and the market needs a new story. NFT has continued to develop for four years, and it is just at the top of the trend. With the help of the trend of DeFi (decentralized finance), it is quite natural for the heat to spill over. However, according to Li Lianxuan, the chief researcher of Okey Cloud Chain, the bull market in the cryptocurrency market has little to do with NFT, and there is a significant "pricing problem" in the DeFi+NFT model. Because non-standardization is the asset characteristic of NFT, it is difficult for people to form a unified evaluation of unique assets, so it is also difficult to form a unified price standard. In order to illustrate the collateral value guarantee and liquidation risks that NFT lending and mortgage businesses may face, Li Lianxuan gave a vivid example: Suppose A has an NFT in his hand, and its evaluation is 100 US dollars. Then A and B conspired, claiming that B was willing to buy NFT with $1,000. Borrower C refers to market standards and gives an NFT price assessment of US$800. Then A pledges this NFT to C, lends US$800, and does not plan to repay. Later, B withdraws his offer and is only willing to buy NFT for $50, then the NFT collateral in C's hand will depreciate and have actual losses. As for the statement that "everything can be NFT", Li Lianxuan said bluntly that the current NFT market is not standardized, good and evil are mixed, and investment hype is serious. This statement tends to ignore the strict conditions for conversion to NFT, and the emergence of a large number of fake NFT is very likely to be used for hype and fraud. It is reported that two conditions need to be met for conversion into NFT: one is digitization, and the other is uniqueness or scarcity. For the first condition, Li Lianxuan said that in addition to items that are themselves digital, non-digital objects that can be chained can also be turned into NFTs, but this number is very small. The "on-chain" of physical assets is a hot topic in the discussion of the prospect of NFT. The anti-counterfeiting cost of physical assets represented by automobiles and real estate is high and their liquidity is poor, and the system cost and credit cost of transactions are relatively high. Therefore, in the transaction of real estate, the government's supervision department plays an important role. Assuming that the blockchain can be applied to the trading market and supervision of physical assets, thanks to the uniqueness and confirmation of NFT, it will be possible to make the "on-chain" physical assets more liquid, efficient transactions, and impossible Counterfeit assets. But at present, many physical assets cannot be truly chained and purely digitized. Li Lianxuan explained that the real NFT can complete the transfer of property rights in the online world, instead of exercising rights in the real world. NFTs that need to be exercised in the real world are all fake NFTs that rub off on the concept. Therefore, today's physical asset NFT is not absolutely real and safe. The second condition for NFT objects is scarcity. If there is no scarcity, then the digital video, audio, pictures, and tweets in the online world can be copied and imitated at will. And the lack of scarcity cannot support the high prices of some works of art or collectibles. Even if "scale industrial products" are given a higher price, the formation of this bubble price does not rule out the hype. "At present, speculation in the NFT market is prevalent. After this round of bubbles burst, NFT can usher in new development." Li Lianxuan said. The risks and limitations of NFT In fact, NFT ushered in a short-term popularity in 2018, but this popularity quickly disappeared. It was not until today, 3 years later, that there was a new round of skyrocketing growth in NFT. It is worth noting that the application and development of NFT still face other risks, such as bottlenecks in ecological development, insufficient social awareness, security loopholes, policy supervision, etc. Li Lianxuan told the "International Finance News" reporter that the current NFT investment risks mainly include the following points: First, the NFT market is facing copyright risks. For example, the works of artists or works very similar to them are "cast" in NFT and sold outside without authorization.

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