The full name of NFT in English is Non-Fungible Token, which translated into Chinese is: non-fungible token, which has the characteristics of indivisible, irreplaceable, and unique.
On the blockchain, digital cryptocurrencies are divided into two categories: native coins and tokens. The former, such as the familiar Bitcoin, Ethereum, etc., has its own main chain and uses transactions on the chain to maintain ledger data; tokens are attached to the existing blockchain and use smart contracts to record ledgers. Such as tokens issued on Ethereum. Tokens can be divided into two types: homogeneous and non-fungible.
Homogenous tokens, namely FT (Fungible Token), are tokens that can be substituted for each other and can be split almost infinitely. For example, there is essentially no difference between a Bitcoin in your hand and a Bitcoin in my hand. This is homogenization, a homogeneous currency.
Non-fungible tokens, that is, NFTs, are unique, non-divisible tokens, such as CryptoKitties, tokenized digital tickets, etc. It is equivalent to a numbered RMB. There will not be two RMB with the same number in the world, nor will there be two identical NFTs.
Therefore, compared with FT, the key innovation of NFT is to provide a method to mark the ownership of native digital assets (that is, assets that exist in the digital world, or originate from the digital world), and this ownership can exist in centralized services or outside of a centralized repository.
The ownership of NFT does not prevent others from inspecting it or reading it. NFT does not capture information and then hide it, but only captures information and then discovers the relationship and value of the information with all other information on the chain.
At the same time, NFT can be bound to some commodities in the real world due to its non-homogeneous and indivisible characteristics. In other words, it is actually a digital asset issued on the blockchain. This asset can be game props, digital artwork, tickets, etc., and is unique and non-replicable. Because NFT has natural collection properties and is easy to trade, crypto artists can use NFT to create unique digital artworks.
