Popular Science: NFT and ERC721

Recently, “CryptoPunk 2890” sold  800 piecesETH Sold with a value of nearly 1.55 million US dollars, a record high. 

what is NFT ?

NFT That is, Non-fungible Token (non -fungible token ) is the relative concept of Fungible Token (FT). The biggest difference between the two is “unique” and “divisible” , which makes NFT more suitable for Benchmark assets in the real world. 

NFT contains identification information recorded in its token contract . This information makes each NFT token different, so it cannot be directly replaced by another token. They cannot be exchanged for one, because no two NFT assets are the same, and assets such as ETH and NEST are FT assets, which are divisible and can be exchanged with each other.

The biggest feature of NFT non-homogeneous tokens is that they are indivisible and unique ; just as there are no two exactly the same leaves in the world, so does the performance of NFT properties. Moreover, the characteristic of NFT is guaranteed by its token contract on the chain. If the NFT asset is issued on Ethereum, as long as the Ethereum network is secure , then the attributes of your NFT asset are determined and cannot be tampered with. Erase.

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(Encrypted artwork: Old Earth)

 

What is the use of NFT?

Since NFT non-homogeneous tokens have high-quality attributes such as uniqueness, indivisibility, and immutability, they are usually used to link with special assets to prove the ownership of crypto assets.

NFT is mainly used in games , artworks, collectibles, domain names, virtual assets, identity features, crypto music, crypto certificates and other fields . At present, the most representative NFT assets in the industry are: CryptoKitties, LAND, NBA Top Shot, Hashmasks and other popular projects.

What is ERC-721?

 Currently popular non-homogeneous token standards include ERC721, ERC1155,  etc., of which the most commonly used standard is ERC721.

Tracing back to the source, NFT originated from EIP-721 (Ethereum Implementation Proposal 721) at the end of 2017 . Compared with our common ERC20 standard, the ERC-721 protocol has more functions and more advanced technology. This protocol is the first standard of the Ethereum network for NFT crypto assets of non-fungible tokens. It was first applied to CryptoKitties,Decentraland And other items.

The ERC721 standard was created and published by Dieter Shirley, CTO of CryptoKitties. Dieter Shirley is one of the founders of the NFT industry.

Although ERC-721 has fewer use cases than ERC-20 and its functions are still being explored, the development and application of the ERC-721 protocol in the NFT field has achieved significant results in the past two years. Recently, Christie’s auction house in the UK will accept the auction of NFT works by artist Beeple for the first time on Ethereum, and NFT assets are entering the mainstream investment market.

NFT future development

NFT, as an asset form that most meets the technical requirements of the Internet of Value in the Web 3.0 era, will be widely used in more fields besides blockchain in the future.

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