🧩 What is an NFT?

NFT stands for Non-Fungible Token, translated in Chinese as Non-Fungible Token. It is a unique digital asset certificate built on blockchain, used to prove the "ownership" or "authenticity" of digital content (images, music, videos, virtual items, etc.).

🧠 I. Core Concepts Explained

Name Meaning
Fungible Interchangeable and equal in value. Example: 1 Bitcoin = another Bitcoin.
Non-Fungible Non-interchangeable, each has a unique identifier. Example: a painting, a collectible.
Token A digital certificate on the blockchain representing assets or rights.

Therefore—

NFT = A token on the blockchain used to prove ownership of a unique digital asset.

 

🎨 II. Main Use Cases of NFTs

Field Example Applications
Art Digital artworks (e.g., Beeple’s 《Everydays》 sold for $69 million)
Music Musicians release NFT albums, fans gain limited copyrights or interactive rights
GameFi In-game characters, equipment, land, etc., exist as NFTs and can be freely traded
Collectibles Digital cards like NBA Top Shot, limited-edition memorabilia
Social Identity User “identity badges” on Web3 platforms (e.g., holding a specific NFT community pass)
Metaverse Virtual land, buildings, fashion, avatars represented by NFTs for ownership
Ticketing / Membership Event tickets or membership cards issued as NFTs, anti-counterfeit and verifiable

 

⚙️ III. Underlying Technology of NFTs

  • Blockchain: Typically based on Ethereum, Solana, Polygon, etc.
  • Smart Contracts: Automatically execute NFT minting, transfer, royalties, etc.

  • Metadata: Contains artwork info (name, author, image link, etc.), usually stored on decentralized systems like IPFS or Arweave.

     

    💰 IV. Sources of NFT Value

  • Scarcity: One-of-a-kind, limited supply.
  • Authenticity: Traceable origin on the blockchain.
  • Ownership: Ownership is publicly visible and transferable on-chain.
  • Community & Cultural Value: NFTs often tied to identity or community status.