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NFT opensea

What is NFT! Features & Merits of NFT

NFT is an abbreviation for Non Fungible Token.

It is based on the blockchain technology that is also used in to prove that digital items (art, real estate, music, etc.) are unique .

According to a survey, the expected market size of NFT in 2022 is about 3.0 billion USD . This can be called explosive growth compared to the previous year, and it can be said that the market is expanding rapidly. It is estimated that it will reach USD 13.6 billion by 2027, which shows the booming NFT market.

Some media say that NFTs can prove authenticity, but strictly speaking, this is a little vague explanation. It doesn’t prove authenticity, it just shows who created the piece of data and when. Let’s say the masterpiece NFT made it.

A clone of that NFT can still be made into an NFT. There is no difference in practical value and artistic value. However, NFTs are distinguished by who created them and when.

Who will confirm if it is a genuine NFT? It’s the original author. It is proven when the original author tells me when and where I made this NFT.

The NFT does not prove authenticity and prevent counterfeiting, but rather creates an indistinguishable piece of data by leaving an indelible record on each picture.

Advantages of NFT

NFT is realized using a technology called “blockchain”. There are various benefits to users when NFTs use blockchain.

Benefit 1 : Guaranteed to have

Blockchain technology allows you to prove that you “own” your “unique” digital data.

Advantage 2 : You can buy and sell

The NFTs you buy are your property, just like they are in the real world, so you can keep them in a safe place or sell them freely in the marketplace.

Benefit 3 : Benefits

It is possible to give benefits to the owner because it is guaranteed that you have it.

Advantage 4 : Easy to move

Because it is digital data, it can be easily moved unlike the real one. For example, you can give an NFT to someone.

6 Features & Merits of NFT

Indivisible

NFT has the property of being indivisible, that is, indivisible. NFT-ized digital art and in-game items cannot be divided and purchased in part.

Rarity

NFTs can prove uniqueness, so no copy of the “proven” is produced. Therefore, it is becoming more rare and is one of the reasons why it creates value in itself.

Independence

For the same reason as its rarity, NFTs also have their own uniqueness, as no two of them are the same. for each NFT metadata record, which is proof of authenticity.

Ownership

NFTs are Distributed Ledger Technology stored in accounts on The creator of the NFT manages the private key of the account in which the NFT resides and is free to transfer the NFT to any account.

Transparency

Published distributed ledgers are decentralized and immutable, not centrally managed by any particular institution. Token issuance, transfer, and activity records can be publicly validated, allowing buyers to trust and verify the authenticity of a particular NFT.

Interoperability

For example, even NFTs purchased in-game can be traded in the out-of-game market. This is because many NFTs are issued using the standard “ERC721”, so you can trade freely.

Issues and disadvantages of NFT

Security risk

There is also a risk of hacking in NFTs. In 2021, Poly Network the most famous DeFi protocol was attacked by hackers, and about 60 billion yen was stolen in . Behind this theft is the lack of security in smart contracts. (The hacker who committed the crime himself warned of safety)

Valuation risk

The main challenge that arises when exchanging NFTs in the market is that the prices of NFTs are in flux. NFT prices are determined by a variety of factors, including the same artistic, creativity, uniqueness, and rarity as before. The price of NFTs fluctuates considerably because there is no fixed standard for any particular type of NFT. Difficulty in evaluation is causing market participants to stall.

Legal risk

It can be said that the legislation of NFT has just begun in the world. Therefore, the current rules are decided by businesses and organizations, and if international organizations such as the national government and the EU formulate the rules, there is a risk that the market will change significantly.

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