What can NFTs be used for?

We know that the Internet is a world where information can travel freely. Whether it is text, a picture, or a video, all information can be instantly transferred all around the world through the Internet. The Internet has greatly revolutionized people's way of life.

However, when these texts, pictures, and videos are transferred, only copies are actually transferred, and the original ones are still stored locally. When a picture has been spread repeatedly on the Internet, no one can tell which is the original and which is the copy.

NFT is equipped with a unique identification. Therefore, texts, pictures, and videos combined with NFTs are given a unique identity in the digital world.

No matter how many copies there are, the one with the NFT identity is the original one. The underlying technology of NFT is blockchain, which allows the information with NFTs to be freely traded without the need for intermediaries.

The reason why the blockchain is called the "Internet of Value" is that it completes the last piece of the Internet puzzle, and solves the "double-cost problem" of transactions by removing the need for a third party. NFT is like a shining pearl of the "Internet of Value".

So, where exactly are NFTs used? In fact, there are many application scenarios of NFTs, such as the NFT artworks auctioned by Christie's. Such artworks are based on blockchain technology, NFT represents the artwork itself. Once the NFT is transferred from the seller's wallet to the buyer's wallet, and the buyer completes the payment at the same time, the transaction is completed.

NFTs can also be used as blockchain game assets (such as the hot CryptoKitties in 2017), crypto collectibles (NFTs of high-light moments of NBA stars sold by NBA Top Shot), etc. In the future, it may be applied in fields such as financial derivatives, personal data, etc.

Of course, in addition to these native encrypted assets, that is, NFTs created based on blockchain technology, there are also some real assets NFTs, such as physical artworks, real estate, etc. Such NFT is actually just an online identity. It requires a credible third party in the real world as an intermediary to provide arbitration witnesses and ensure that the NFT can be used to exchange for real assets.

Another type of NFTs are existing Internet assets such as domain names, which also require a credible third party to provide relevant certification materials, to ensure that the NFT can be used to exchange for true assets.