BKEX Research Discovery Channel · Unique NFT
1. A Brief Introduction
The full name of NFT is Non-fungible Token. The common tokens (such as BTC, ETH, etc.) are homogeneous. For example, there is no difference between each BTC. It can be exchanged and divided like two pieces of RMB 100. NFT is a unique token in vernacular words. Even in the same system, they all exist separately. Unlike BTC and ETH, NFT can’t be divided into 0.1 decimals, and its unit is always 1.
Comparison table:
2. Characteristic Advantages
2.1 Indivisible.
Most cryptocurrencies can be divided into many decimal places, that is, they are infinitely divisible. NFT assets are indivisible. You can say that there is one NFT key, but you can’t say that there are 0.5 NFT key.
2.2 More personalized.
Most cryptocurrencies are the same. For example, there is no difference between your BTC and Satoshi Nakamoto’s BTC. However, when the value flow extends from cryptocurrency to crypto asset, this homogenization is difficult to meet the personalized needs of users. For example, there are 10 keys in the game, each of which has different attributes. If they are listed on chain, it is difficult to express them in one cryptocurrency, and it is impossible to issue 10 tokens correspondingly. The existence of NFT is just to meet the needs of such personalized, so NFT is more personalized.
2.3 High liquidity.
Compared with traditional assets, NFT assets have higher liquidity. For example, the real estate change usually needs about 20 days after registration to get the new property certificate, and if the property ownership is identified by NFT assets, it only takes a few seconds to realize the transfer of assets.
2.4 First identification.
In the field of traditional collection, the collection needs to be identified every time it is circulated. Digital collections only need to be identified by professionals for the first time, and then the on-chain data that can be checked ensures the authenticity of the collection. This can lower the threshold and allow more people who are interested in the collection but are worried about being cheated to participate.
3. Standard Protocol
At present, the most widely used NFT token standard protocols are ERC721 protocol and ERC 1155 protocol, which are also the most widely used and most well-known NFT protocol standards in the market.
3.1 ERC721 protocol, born from cryptokitties, is the earliest NFT protocol recognized by Ethereum community, and is also the most widely used standard. It defines four key metadata of NFT: ID, NAME, SYMBOL, URI, which have become the metadata basis of various NFT protocols. The ERC721 protocol interface is similar to ERC20, which can realize issuing, trading and authorization to meet the basic needs of blockchain business.
3.2 ERC1155 is NFT asset protocol applied to game scenarios proposed by Enjin. It is different from ERC721 in three aspects:
a. Any kind of NFT assets can be issued in the same contract, and multiple assets of different types can be traded in package. This greatly saves the service charge of users in asset transaction and optimizes users’ experience;
b. Can simultaneously characterize FT (Fungible Token, such as BTC, ETH) and NFT by ID split scheme. This is more practical in game scenarios, such as characterizing some stackable consumables (blood medicine, blue medicine, etc.), because they are homogeneous;
c. Remove NAME and SYMBOL fields from the metadata, leaving only ID and URI. This reduces the description ability of ERC1155 itself, and transfers the power of describing assets to the upper layer. Dapp can customize the parsing logic of URI fields on demand.
