There is a prospect that almost anything can be tokenized with NFT using blockchain technology.
According to the report,’The Next Megatrend in the Blockchain Market, NFT’ published by Senior Researcher Kim Hoi-min of KB Financial Group Research Institute, the current ∆game item ∆real asset ∆ because digital ownership is guaranteed by blockchain technology and irreversible transaction proof is possible. It is mainly used for tokenization of art ∆luxury ∆collections.
According to <Blockonomi>, a magazine specializing in cryptocurrency and blockchain, the NFT market is growing rapidly, mainly based on games and art, and its size is about 7 times from $30 million in 2017 to $200 million in 2019. The above is expected to expand. As of 2020, the number of NFT users was 78,881, the number of transactions was 4.43,3,679, and the amount of transactions was $23,553,717.
NFT stands for Non Fungible Token, and refers to a cryptographic token representing a specific digital asset that cannot be replaced with another token. There are various frameworks for creating and issuing NFTs, and the best known is the ERC-721 standard, which is issued and traded on the Ethereum blockchain.
In the report, “Decentraland is an Ethereum blockchain-based metaverse platform that allows users to claim ownership by purchasing land in a virtual space. Sandbox also diagnosed that in a virtual game space for exploration and exchange, players can trade in-game real estate and creations.’
He said,’There are cases where sports star game characters such as soccer (Sorare), basketball (NBA Top Shot), baseball (MLB Champions), cards, digital images, etc. can be tokenized and owned, purchased, and traded.’
Assets that can be traded at the same value, such as Bitcoin, Ethereum, and stablecoin (value-stabilized currency), can all be viewed as a type of replaceable token (FT, Fungible Token), but in NFT, each token has a different value. It has scarcity because it means a unique asset with.
“NFT can be used to digitize real assets (issuance of digital certificates) or prove the authenticity or ownership of certain digital assets,” said Hoe-min Kim, lead researcher at KB Financial Group Management Research Institute. It exists,” he diagnosed.
“As the range of digital assets such as virtual assets, game items, digital collectibles, art works, and real estate beneficiary certificates expands and the digital asset market grows, NFT can be used as a core technology for financial companies to enter the digital asset business. “He added.
Researcher Hoemin Kim said, “In the financial sector, in preparation for the growth of the NFT market and various NFT-related innovation services that will emerge in the future, continuous research on the relevant field, deriving ideas for the development of new products and services using NFT, and cooperation with NFT companies. Efforts such as joint research are needed,” he said.
Meanwhile, there are Ravencoin, Tezos, and Polymath among virtual asset projects for asset tokenization. Ravencoin is a peer-to-peer blockchain for efficient asset creation and transfer, and is an open source project that forked Bitcoin code. Tezos is a cryptocurrency that provides a platform for smart contracts and DApp development based on on-chain governance technology. Polymath manages financial assets such as traditional stocks, bonds, and real estate based on a blockchain. It is a cryptocurrency for trading.
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.