NFT Non-Fungible Token: Unique and Indivisible Digital Asset

Recently, a CryptoPunk piece numbered 2890 was successfully sold for 800 ETH, equivalent to about 1.55 million USD, setting a new historical transaction record for the series. This transaction has once again sparked people's interest in NFTs.

NFT is a form of digital asset that is distinct from Fungible Tokens (FT). Its most notable characteristics are uniqueness and indivisibility, which make NFTs particularly suitable for representing unique assets in the real world. Each NFT contains unique identification information embedded in its token contract, ensuring that each NFT is unique and cannot be directly replaced or exchanged for other tokens.

Unlike fungible tokens (such as ETH) which are divisible and interchangeable, the irreducibility of NFTs makes them an ideal medium for representing digital ownership. As long as the blockchain network where the NFT resides remains secure, the asset attributes represented by the NFT cannot be tampered with or deleted, providing reliable assurance for the confirmation of digital assets.

The application fields of NFTs are very broad, covering multiple aspects such as games, artworks, collectibles, domain names, virtual assets, identity verification, digital music, and electronic certificates. Currently, some highly regarded NFT projects include CryptoKitties, LAND, NBA Top Shot, and Hashmasks.

In terms of technical standards, ERC-721 is currently one of the most widely used NFT standards. This standard originated from the EIP-721 proposal put forward at the end of 2017, created by Dieter Shirley, the Chief Technology Officer of the famous NFT project CryptoKitties. Compared to the traditional ERC-20 standard, ERC-721 offers more functionalities and more advanced technical support, laying the foundation for the development of NFTs.

With the rapid development of the NFT market, the traditional art world has also begun to pay attention to this emerging field. For example, the renowned auction house Christie's recently announced that it will accept Ethereum as a payment method for the auction of digital artist Beeple's NFT works, marking that NFTs are gradually entering the mainstream investment market.

As the asset form that best meets the requirements of value internet technology in the Web 3.0 era, NFTs are expected to be widely applied in more fields beyond blockchain in the future. With continuous technological advancements and the gradual maturation of the market, NFTs will bring revolutionary changes to the confirmation of digital assets, their trading, and circulation, providing new opportunities and value realization methods for creators and collectors alike.