What is an NFT? Value of NFTs?

Today, we're going to talk about NFTs

I also drew pictures at the NFT market

I bought and sold, made money, and worked in the market

I will post about NFT what is NFT!!

NFT stands for "Non-Fungible Token". NFTs are digital assets based on blockchain technology. These assets are unique and have irreplaceable properties.

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Bitcoin, the most well-known cryptocurrency in general, is a fungible token. For example, 1BTC is the same as other 1BTCs and is interchangeable. However, each NFT has its own attributes and identifiers, making it non-exchangeable. Because of this nature, NFTs can represent a variety of digital content, such as digital artworks, game items, virtual real estate, music, videos, etc.

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NFTs use blockchain technology to prove ownership and track transactions. ERC-721 token standards based on Ethereum blockchain are the most common, but other blockchain platforms also support NFTs.

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NFTs have become very popular in recent years because they make ownership of digital assets clearer and provide new revenue models for artists, creators, creators, and creators. The unique nature of NFTs also helps establish ownership and authenticity of digital assets.

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The key benefits of NFT include:


1. Demonstrate uniqueness and ownership: NFTs are unique digital assets, each with its own attributes and identifiers. Blockchain allows you to demonstrate and record ownership of NFTs, thereby clarifying ownership of digital assets. This protects the ownership of digital content, such as artwork, music, and game items, and allows you to track transactions.

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2. New revenue model for creators: NFTs offer new revenue models to artists, writers, musicians, creators, etc. They can issue and sell their works as NFTs, and receive royalties or fees for each trade. This provides an opportunity for creators to interact directly with fans and generate revenue without intermediaries.

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3. Unique Digital Experience: NFTs provide a unique digital experience between creators and collectors or fans through digital assets. For example, you can enjoy activities such as exploring NFT art galleries in virtual reality (VR) or owning special NFT items in the game. This digital experience promotes interaction between creators and collectors and enables them to pioneer new creative areas.

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4. Transparent and Secure Transactions: NFT transactions are transparent and secure through the blockchain. Transaction history is recorded on the blockchain and cannot be tampered with, and can be traded directly without relying on intermediaries or centralized institutions. This improves the reliability and transparency of the transaction.

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5. Building new markets and ecosystems: NFTs are building new markets and ecosystems in existing art markets, gaming industries, music industries, etc. NFTs create an ecosystem where creators, collectors, investors, brands, and other stakeholders can participate together, and foster new business models and innovative ideas.

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These advantages contribute to NFTs demonstrating ownership and value of digital assets, changing the relationship between creators and collectors, and creating a new economic ecosystem.

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The main disadvantages of NFTs are:


1. Environmental Impact: Most NFT transactions take place on blockchain networks such as Ethereum, which consume a lot of computing power and electrical energy. Ethereum's method of proof, in particular, is accompanied by a lot of energy consumption, which can lead to environmental burdens.

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2. High Fee And Scalability Issues: Current NFT transactions may be accompanied by high fees, depending on the congestion of the blockchain network. In addition, some blockchain networks are experiencing scalability issues, which may limit the processing of many transactions.

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3. Value Volatility and Bubble Possibilities: The NFT market is very dynamic and volatile. The most popular NFTs also trade at high prices, but this can fluctuate depending on demand and trends. Also, there is a possibility of a bubble due to some people buying and selling NFTs for speculative purposes.

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4. Intellectual Property Issues: NFTs prove ownership of digital assets, but problems with the original or copyright of those assets may arise. For example, if an artist did not publish his or her work as an NFT, someone else might publish it as an NFT.

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5. Technical Issues and Security Risks: NFTs rely on blockchain and smart contract technology, which can lead to technical or security risks. A bug or vulnerability in a smart contract can threaten a user's assets, and there is also a risk of hacking attacks.

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These shortcomings show that the NFT market is a new area that is currently still growing and evolving. Efforts should be made to address these issues in terms of technological development, environmental considerations, regulations and intellectual property protection.

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The first NFT is CryptoKitties, published in 2017. CryptoKitties is a digital cat collection and trading game that runs on top of the Ethereum blockchain.

CryptoKitties allowed digital cats to be created and owned, each with its own attributes and genes. These digital cats were issued as NFTs using the ERC-721 token standard, and the blockchain allows them to verify their unique ownership and transaction history. CryptoKitties has the characteristics of each cat and its unique generation of genes without being replicated, allowing users to collect and trade them.

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CryptoKitties has played a major role in informing the public of the concept of NFT and laying the foundation for the NFT market. Since then, the use of NFTs has expanded to various fields such as art, games, music, and sports, and many projects and platforms have leveraged NFTs to connect creators and collectors and build new economic ecosystems.

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The initial price of CryptoKitties varies widely, and the value of individual cats depends on scarcity and interesting combinations of genes. CryptoKitties initially traded in the range of a few dollars to a few hundred dollars.

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CryptoKitties was a liquid market, so prices continued to fluctuate depending on supply and demand. Cats with popular rare genetic combinations were also traded at very high prices. The most expensive CryptoKitties sometimes cost thousands of dollars.

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Over time, however, CryptoKitties' prices underwent volatility and were shaped differently by market conditions. This is because of the nature of the NFT market, prices can fluctuate from time to time.

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Is nft a scam?

The NFT itself is not a scam. NFTs are digital assets that prove ownership and track transactions through blockchain technology. However, there is a possibility of fraud or fraud in transactions through NFTs.

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The NFT market is a relatively new area, and there are aspects that are unclear. Some people may issue fake NFTs or attempt to claim invalid ownership. In addition, if you purchase a high-priced NFT, you may be at risk of fraud due to fabricated information or false sellers.

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Therefore, you should be cautious when trading NFTs. Secure transactions should be carried out in consideration of the trust relationship with the counterparty, the source and validity of the NFT, and the verification of transaction records. In addition, it is important to select a trusted NFT platform, and to fully investigate and understand the relevant information.

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At the same time, strengthening regulations and security measures, increasing the reliability of trading platforms, and improving user training and awareness are important factors for the sound development of the NFT market.