The popularity of NFT has been on full swing since last year. Although it has decreased a little in the middle, it does not prevent it from continuing to shine. According to 2021 Google Trends data, users search for NFTs more than any specific cryptocurrency, and sales are staggeringly high, exceeding $25 billion in 2021 compared to $340 million in 2020 up to 73 times.
Events that make NFT crazy again abound. Popular NFTs have been included in the list of celebrities’ collection of artworks. This series of events has made NFT and other encrypted assets stand in the mainstream circle again with a shining attitude. However, many users have only roughly understood what NFT means, but they do not understand its value. Some users are eager to participate in it, but they are stumped by the first whitelist. An answer, let you understand the true meaning of NFT.
What is NFT?
The full name of NFT is Non-Fungible Token. To put it simply, NFT is conceptually opposite to the familiar cryptocurrency like BTC.
The BTC held by everyone is exactly the same, with the same value, and can be split at the same time during transactions, without the need to purchase a complete BTC. NFTs are just the opposite. Each NFT is unique, irreplaceable and cannot be split during transactions.
The advantages of NFTs
Whether it is virtual or physical, there are many ways to prove ownership. This may be a question in many people’s minds. Therefore, it may be understood from several advantages behind NFT:
- Good tracking – because the data is recorded on the blockchain, everyone can inquire about the source of NFT, the number of issuances, the record of change of hands, whether it has been verified by a third party, etc.;
- Prevention of forgery – In the Internet age, there is no concept of original or authentic video and music creations. Due to the convenience of copying, these creations lack rare value and are also threatened by piracy and infringement. The function of NFT is like a digital stamp, ensuring that the virtual products purchased by consumers online are genuine, and maintaining the scarcity and collection value of products;
- High liquidity – Assuming that the copyright of a song is purchased today, it will not be unable to continue to use the music due to factors such as the failure of the record company. NFT can be traded in any auction. In addition to the real right of use, the buyer will sell it in the future. Also easy.
The value of NFT and its application scenarios
Because NFT has the characteristics of unique identification, loading the text, pictures and videos of NFT is equivalent to having a unique identification in the digital world. No matter how many copies the information itself is copied, the one with the NFT logo is the only original, and the NFT is based on the underlying technology of the blockchain, which allows the information with the NFT to be freely traded without the need for intermediary giants.
In fact, there are many application scenarios of NFT, such as the NFT digital artwork auctioned by Christie’s. The artwork itself is based on blockchain technology. NFT represents the work itself. The NFT token is transferred from the seller’s wallet to the buyer’s wallet, and the buyer completes the payment at the same time. , which means the end of the transaction. Similar NFTs include encrypted game assets, as well as NFTs issued in kind, such as physical art, real estate and other physical assets. These NFTs are actually just a certificate for online identity transfer, which requires a relatively high degree of credibility in the real world. The third party acts as a guarantee witness to ensure that the NFT can correspond to the corresponding physical assets.
NFT – an integral part of the Metaverse
What makes NFT completely crazy is that it is an indispensable part of the metaverse. In the minds of the industry, the economic system has always been regarded as an important part of the “metaverse infrastructure”, while blockchain and NFT technology are regarded as It is the backbone of the metaverse economic system. In supporting the metaverse economy, NFT has been given high hopes by many people. However, with the fire of the metaverse concept, will NFT encounter its new opportunities?
From the current point of view, the development of the Metaverse requires an economic system that can operate independently. This system needs to have the following characteristics:
- Good liquidity – promote user activity
In the metaverse, the liquidity of tokens in the metaverse needs to be able to support the frequent interaction of users. Business-platform” and “user-user” should also be able to remain effective.
- Stable security – to stimulate UGC (User Generated Content, that is, user-generated content, that is, user-generated content) to actively create
On the one hand, security should be reflected in the fact that the virtual property stored by users in the Metaverse should be less threatened by illegal means such as number theft and fraud; on the other hand, security should also be reflected in the protection of the rights and interests of UGC developers. , reduce the risk of plagiarism and misappropriation.
- Must be legally compliant – reduce the risk of Metaverse operations
While imagining the Metaverse, it is also necessary to look at the red line of the country’s supervision of the in-game economic system to prevent criminals from using the Metaverse to conduct illegal activities (such as gambling, money laundering, etc.). At the same time, it is also necessary to avoid the hype of Metaverse Token.
And NFT can just show such a possibility for the metaverse. NFT can confirm the status of virtual wealth, allow wealth to be circulated equally and efficiently, and also allow creation in the virtual world to be protected.
These days, more and more NFT projects rely on IDOs to allow community members to mint before others, often at a lower price. Due to the gradual recovery of the NFT market, there are definitely not a few users who aim at NFT, so IDO has become the top priority when participating in new projects, and knowing in advance how to enter the future IDO will not miss any. Chance.
How to join NFT’s IDO
Getting yourself into an IDO requires some research and community engagement, finding upcoming projects and new NFT projects. The first step to getting yourself on the NFT whitelist is to discover some new NFT projects that look promising. Doing this is not easy and requires staying active in the NFT community through twitter, blogs, news outlets, and the Discord community.
No one really knows which projects will prove to be successful, but a good NFT must have the following conditions, including:
- Team members with experience in past successful projects
- Excellent work by a respected artist
- Active community
- The team has a professional approach
You can also learn about some important new projects through the NFT market blog, such as a series of query tools Rarity Tools, Opensea, etc. mentioned in the previous article. News and information about release dates, revisions, IDO membership benefits, and other important information can also be found in the project’s Discord.
If you are bullish on a project and need to look up information on how to get its whitelist, sometimes it can be a simple form letting the project creator know your wallet address and email. It could also be more involved, requiring users to invite a certain number of people to Discord, share posts on twitter, etc. These requirements will vary based on how the project requires, and upon completion of these goals, will be approved for whitelisting.