What is NFT？

NFT stands for Non-Fungible Token. It is a type of digital asset that represents ownership or proof of authenticity of a unique item or piece of content, such as artwork, music, videos, and more, using blockchain technology. Unlike cryptocurrencies like Bitcoin or Ethereum, which are fungible, meaning each unit is the same as every other unit, NFTs are unique. Each NFT has distinct characteristics and cannot be exchanged on a one-to-one basis with another NFT. This uniqueness and the blockchain's ability to securely verify ownership make NFTs particularly suitable for representing and trading digital collectibles and artworks.

Why is NFT important？

NFTs are important for several reasons:

• Digital Ownership and Provenance: NFTs enable a secure and verifiable way to claim ownership of a digital item. This is significant in the digital world, where copying and redistributing content is effortless. With NFTs, artists and creators can sell their work digitally with a record of ownership.

• Support for Artists and Creators: NFTs have opened new revenue streams for artists and creators by allowing them to monetize digital works directly. They can also receive royalties automatically for secondary sales through smart contracts.

• Innovation in Various Sectors: Beyond art, NFTs are being used in gaming, entertainment, real estate, and more, enabling new forms of investment, collecting, and interaction with digital assets.

• Community Building: Many NFT projects foster strong communities around digital collections, leading to a sense of belonging and participation in the project's development.

What are the currently well-known head NFT projects?

• CryptoPunks: One of the first NFT projects on the Ethereum blockchain, featuring 10,000 unique, algorithmically generated characters that have become iconic in the NFT space.

• Bored Ape Yacht Club (BAYC): A collection of 10,000 Bored Ape NFTs that offer membership to an exclusive club and have gained significant popularity among celebrities and investors.

• Art Blocks: A platform for programmable art, allowing artists to create dynamic and generative artwork as NFTs.

What are the important indicators for evaluating NFT?

• Rarity and Uniqueness: The scarcity of an NFT within a collection or its unique attributes can significantly impact its value.

• Ownership History: The provenance of an NFT, including previous owners and its sales history, can add to its desirability, especially if owned by notable individuals or collectors.

• Utility: Some NFTs offer additional benefits beyond ownership, like access to events, exclusive content, or interactions within a digital ecosystem.

• Community and Social Proof: The strength and engagement level of the community around an NFT project can indicate its long-term viability and desirability.

• Creator Reputation: NFTs created by well-known and respected artists or entities tend to have higher demand and value.

• Market Trends: The overall market conditions and trends in the NFT space can affect the value and interest in specific NFTs.