What is NFT?

Non-Fungible Token (NFT) is a type of cryptographic digital proof of ownership, built on blockchain technology, which is unique, irreplaceable, and indivisible. It can be understood as a decentralized “digital certificate of ownership for virtual or physical assets.”

• As a non-fungible token minted on the blockchain, NFTs are primarily traded using virtual currencies, thus giving NFTs a certain value in virtual currency.

• As a digital certificate of an asset, an NFT represents the intrinsic value of the asset itself. Meanwhile, the technical characteristics of NFTs provide liquidity and traceability to asset ownership. On one hand, liquidity enhances the asset’s value; on the other hand, traceability addresses the pain points of verifying authenticity and establishing ownership for assets like art collectibles.

• The liquidity of NFTs adds transactional value to assets.