When exposed to the concept of NFT, many investors may ask a question: I can understand the artwork in the digital, but why works in the digital world so expensive? Of course, NFT is more suitable for mapping works of art in the digital world. In order to ensure the uniqueness of paintings in the real world, the original works have been burned by POB (Proof of burn). This may be relatively extreme, but it represents the sacrifice made to ensure the uniqueness.
In essence, NFT based on blockchain aims to give digital assets a unique identity. At the same time, it also provides a cross-border clearing and trading platform which can map digital assets to the chain to achieve value exchanges. In order to ensure the cast and trade circulation of NFT, Ethereum defines a set of protocol standards. ERC-721 and ERC-1155 are the most common NFT smart contract standards. For example, the biggest difference between ERC-721 and ERC-20 is that the contract only corresponds to a single token, and cancels parameters of the transfer quantity. Therefore, only the whole transfer can be done. Compared with ERC-721, ERC-1155 can correspond to many NFTs in a single contract, which facilitates batch transfer and processing.
NFT’s smart contracts can record project-related data on a chain. These data include data that needs to be kept decentralized (such as attribute values representing game equipment) or external links to specific resources. Due to the limited on-chain capacity of the blockchain, NFT cannot fully link the data content, but can only record part of the key data or establish a connection with the off-chain data content through links. This feature enables us to map any data contents on the chain through the link, which can make NFT become the asset “entity” of data contents and realize the value transfer of data contents. If data contents belong to some kind of art collection, NFT can map these contents, which will form an electronic collection with asset properties.
On February 17, 2021, MetaTrads and Singapore Blockchain Technology Research Institute Kynetix reached a strategic cooperation to jointly promote the development and construction of MetaTrads platform and conduct the research, experiment, design and construction of MetaTrads platform. This can meet the demands of MetaTrads platform in terms of identity, privacy, security, scalability, interoperability and the integration of the legacy system.
Kynetix, Singapore Blockchain Technology Institute, is dedicated to studying and discovering the applications of blockchain technology in the financial industry and researching and introducing distributed general ledger technology to global banks. At present, members of the alliance include Morgan Stanley, Wells Fargo, Goldman Sachs, HSBC, ING, Citibank and more than 60 international large financial institutions.
In 2017, when the first generation of NFT works, CryptoKitty, was born, the most popular CryptoKitty was sold for more than $200,000. As it becomes less and less popular in the market, the transaction volume of CryptoKitty suffered a disastrous decline and many practitioners also gave NFT a death sentence. However, the evolution of the industry has never stopped. With the completion of blockchain infrastructure and the growing prosperity of the digital market, the speed of NFT iteration will exceed market expectations. We believe that NFT technology will bring out reforms of digital art and other related fields. We also believe that technological and institutional advances will enable MetaTrads to better support the liquidity of linked game assets and make it a bridge linking the real world and the virtual one.