What is NFT? A new paradigm emerging with METAVERSE

Minjun Son

2021. 11.16

Image Source: Cobak

You hear NFT a lot these days, right?

If you are not interested, you may not know what NFT is. So today, I am going to explain what NFT is so that you can easily understand it.

             It means ‘Non-Fungible Token’ and refers to a token that represents a digital asset with scarcity. NFT utilizes blockchain technology, but unlike existing virtual assets, NFTs give digital assets a separate and unique recognition value, so they are not interchangeable.

              Therefore, due to the nature of blockchain technology, once created, NFTs cannot be deleted or forged, and ownership and transaction history are specified, so they can be used as a kind of ‘digital certificate and proof of ownership’.

Digital items can be easily reproduced without restrictions, so until now it was not possible to clarify which was the original and who owned it. However, when an NFT is created, authentication and proof of ownership of the digital item are performed, so it becomes a ‘digital asset’ and can be freely bought and sold between people who want to trade.

Since NFTs can give the value of scarcity and uniqueness to virtual assets, their influence is rapidly increasing in the fields of digital arts, online sports, and game item trading.

They are typically sold in various forms, such as sports star games, celebrity copyrights, and artworks.

Of course, the most talked about platform was ‘OpenC’.

Image Source: OpenC

             OPEN SEA is a unicorn-level large P2P market with a size of $1.5 billion. It sells NFTs in various fields such as art, music, domain, virtual world, trading cards, collectibles, and sports.

In this way, the seller and the buyer make a transaction to meet each other’s demand. It’s a good platform, but the fact that anyone can trade was seen as a downside. It began to come into prominence as certain users made great profits by selling copyrighted artworks without permission from the copyright holder.

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