# What is NFT

**Published by:** [BTC](https://paragraph.com/@btc-62/)
**Published on:** 2022-08-24
**URL:** https://paragraph.com/@btc-62/what-is-nft

## Content

NFT is the opposite of the cryptocurrencies you and I are familiar with, such as Bitcoin. On the blockchain, digital cryptocurrencies are divided into two categories: primary coins and tokens. The former, such as the familiar Bitcoin and Ether, has its own main chain and uses transactions on the chain to maintain the ledger data; tokens are attached to the existing blockchain and use smart contracts to record the ledger, such as tokens issued on Ether. tokens can be divided into homogeneous and non-homogeneous. Homogenous tokens, or FTs, are fungible tokens that are interchangeable and can be split almost indefinitely; all bitcoins held by a person are identical and have the same value, and can be split when traded without the need to buy a full bitcoin. Non-homogenised tokens, or NFTs, are unique, non-splittable tokens, such as crypto-cats, tokenised digital tickets, etc. That is, each NFT is unique, non-interchangeable and cannot be split when traded, and is equivalent to a fiat currency with a number. There will not be two fiat currencies with the same number in this world, nor will there be two identical NFTs. (1 ) Reasons for the explosion of popularity The NFT is used by the NBA to purchase famous highlights from iconic basketball games, such as Lebron James' slam dunk. Christie's, the traditional art auction house, sold NFTs for the first time in Everydays: The First 5000 Days, showing that the trend is slowly making its way into the mainstream. (2) Newsworthy. Mike Shinoda, founder and co-lead singer of the American band Linkin Park, auctioned off a piece of music he had produced as an NFT, which eventually sold for $30,000, and Shinoda used the funds from the auction to establish a scholarship for art students in financial need. (2) Advantages Good traceability: Because the information is recorded on the blockchain, everyone can check the provenance of the NFT, the number of copies issued, the record of resale, whether it has been verified by a third party entity, etc. High liquidity: assuming that if you buy the rights to a song today, you won't be able to continue using the music because the record company goes out of business, etc. NFTs can be traded in any auction house, and the purchaser can actually own the rights to use it and get rid of it later. Digital creators don't have to let the platform take a cut of their work; they can pocket as much as they earn on the blockchain. Protection against forgery: In the age of the internet, there is no concept of original or authentic video or music creations. Because copying is so easy, these creations lack rarity value and are threatened by piracy and infringement. The NFT functions as a 'digital steel seal', ensuring that the virtual products consumers buy online are genuine, preserving the scarcity and collector's value of the products. Virtual integration of assets: NFT acts as a bridge between the real and virtual worlds. The CEO of blockchain start-up BiiLabs, Zhu Yizhen, cited the example of many people who like to collect red wine, and can record all the processes of a bottle of red wine from grape harvesting, brewing, preservation and trading through an IoT device, and make it into a combination of NFT and red wine. In this way, when buying red wine in the future, one can check the NFT format of the bottle's history through the NFC chip inside the cork; when trading red wine, collectors can also directly use the NFT format to trade. (3) Application prospects Records and proof of identity: NFT is unique and can therefore also be used to verify identity and birth certificates, driving licences, academic certificates and other aspects. These can be stored securely in digital form while preventing misuse or tampering. The field of intellectual property: NFT can represent a painting, a song, a patent, a film, a photograph, or other intellectual property. In this field, NFT plays the role of a patent office: helping to register the copyright of each unique thing and helping to identify its patent. Tickets: concert tickets, cinema tickets, theatre tickets, etc., can all be marked with NFT - tickets that appear to look the same but actually have different seat numbers, and naturally NFT can be used here. All tickets are the same, but with different seat numbers. Physical assets: Other physical assets such as real estate, such as houses, can also be tokenised using NFTs. It can be used as a financial market for the circulation of assets, etc. Financial instruments: Various types of financial instruments carry a large amount of information during circulation and transactions, which, when combined with NFT, can not only confirm rights but also facilitate tracking. In addition, the future trading of various types of NFT assets can itself form a segment of the financial market. 2. What has been introduced above is only about the basics of cryptocurrencies, which relates to whether we can make money through cryptocurrencies. Cryptocurrencies make money not only by scientific methods to increase income, but also by finding ways to save money. The handling fees are small, but they must not be ignored. I have calculated that with frequent transactions and long trading hours, the accumulation of fees can add up to more than 10,000 U a year. Next I will introduce a few common ways to reduce fees on large trading platforms. (1) Lowering Binance's fees Binance is currently the world's largest digital currency exchange, and you must sign up for Binance if you want to speculate on coins. The transaction fee is deducted from the assets received. For example, if you buy Ethereum/USDT, the fee is paid in Ethereum. If you sell Ethereum/USDT, the commission is paid in USDT. Example. You place an order for 10Ethereum at a price of USD3,452.55 per share. Transaction fee = 10Ethereum0.1% = 0.01Ethereum Or you place an order to sell 10Ethereum at 3,452.55 USDT per share. Transaction fee = (10Ethereum3,452.55USDT)*0.1% = 34.5255USDT What many people do not know is that the Binance transaction fee can also be reduced. If you want to reduce your Binance trading fees, you must use the invitation link below or use the invitation code "Q022W7SC" to register. https://accounts.binance.com/en/register?ref=Q022W7SC (2) Reducing OKX fees OKX is a professional digital currency trading platform loved by many users, and its transaction fees can be reduced. Depending on the volume of transactions, OKX divides its users into two levels: normal and professional. Ordinary users are graded according to their OKB positions, while professional users are graded according to their trading volume and asset size. The different tiers determine the trading fees for the next trading day. When calculating the fee levels, if the coin trading volume, total trading volume of delivery and perpetual contracts (USDT delivery contract, coin-based delivery contract, USDT perpetual contract, coin-based perpetual contract), option contract trading volume, and asset volume meet the conditions of different fee levels, users will enjoy the fee discount of the highest level. First method: OKX has an official maximum savings rate of 20%. Use the link below to register with OKX and save 20% on fees. https://www.ouyi.business/join/BTC1ETH Second method: Open the OKX website and enter "BTC1ETH" in the "Invitation Code" on the registration page to see the cashback percentage: 20% at the bottom. Be sure to enter this invitation code, otherwise you can not get 20% cashback percentage. (3) Reduce FTX fees FTX is currently a very fast-growing, contract players more exchange, you must register FTX if you play the contract. if you want to reduce the FTX transaction fees, you must use the following invitation link to register. https://ftx.com/referrals#a=121031692 3, trading road is long, together with forward Want to know more about how to reduce the commission? telegram: btcethcool We have set up a community dedicated to researching trading, add telegram friends to pull you into the community.

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