NFT’s are one the most exciting topics today.NFT’s solve lack of ownership problem using cryptography.in this part we will talk about NFT.
What is NFT?
A non-fungible token (NFT) is a unique digital identifier that cannot be copied, substituted, or subdivided, that is recorded in a blockchain, and that is used to certify authenticity and ownership.
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The ownership of an NFT is recorded in the blockchain and can be transferred by the owner, allowing NFTs to be sold and traded. NFTs can be created by anybody, and require few or no coding skills to create.NFTs typically contain references to digital files such as photos, videos, and audio. Because NFTs are uniquely identifiable assets, they differ from cryptocurrencies, which are fungible.
- NFT stands for a non-fungible token, which means it can neither be replaced nor interchanged because it has unique properties.
History
The first known “NFT”, Quantum, was created by Kevin McCoy and Anil Dash in May 2014. It consists of a video clip made by McCoy’s wife, Jennifer. McCoy registered the video on the Namecoin blockchain and sold it to Dash for $4, during a live presentation for the Seven on Seven conferences at the New Museum in New York City. McCoy and Dash referred to the technology as “monetized graphics”.This explicitly linked a non-fungible, tradable blockchain marker to a work of art, via on-chain metadata (enabled by Namecoin). This is in contrast to the multi-unit, fungible, metadata-less “Colored Coins” of other blockchains and Counterparty.[clarification needed]
In October 2015, the first NFT project, Etheria, was launched and demonstrated at DEVCON 1 in London, Ethereum’s first developer conference, three months after the launch of the Ethereum blockchain. Most of Etheria’s 457 purchasable and tradable hexagonal tiles went unsold for more than five years until March 13, 2021, when renewed interest in NFTs sparked a buying frenzy. Within 24 hours, all tiles of the current version and a prior version, each hardcoded to 1 ETH (US$0.43 at the time of launch), were sold for a total of US$1.4 million.
The term “NFT” only achieved wider usage with the ERC-721 standard, first proposed in 2017 via the Ethereum GitHub, following the launch of various NFT projects that year.The standard coincided with the launch of several NFT projects, including Curio Cards, CryptoPunks (a project to trade unique cartoon characters, released by the American studio Larva Labs on the Ethereum blockchain),[30][31] and rare Pepe trading cards.
The 2017 online game CryptoKitties was made profitable by selling tradable cat NFTs, and its success brought public attention to NFTs.
The NFT market experienced rapid growth during 2020, with its value tripling to US$250 million.In the first three months of 2021, more than US$200 million were spent on NFTs.
In 2020, the U.S Patent and Trademark Office received three trademark applications for NFTs.In 2021, the number of trademark applications jumped to more than 1200. In January 2022, the U.S. Patent and Trademark Office received 450 NFT-related trademark applications.The growing list of brands being trademarked for NFTs includes the NYSE, Star Trek, Panera, Walmart, Elvis Presley, Sports Illustrated, Ticketmaster, and Yahoo. In the early months of 2021, interest in NFTs increased after a number of high-profile sales and art auctions.
In May 2022, The Wall Street Journal reported that the NFT market was “collapsing”. Daily sales of NFT tokens had declined 92% from September 2021, and the number of active wallets in the NFT market fell 88% from November 2021. While rising interest rates had impacted risky bets across the financial markets, the Journal said “NFTs are among the most speculative.
Key Features of NFT:
- Digital Asset — NFT is a digital asset that represents Internet collectibles like art, music, and games with an authentic certificate created by blockchain technology that underlies Cryptocurrency.
- Unique — It cannot be forged or otherwise manipulated.
- Exchange — NFT exchanges take place with cryptocurrencies such as Bitcoin on specialist sites.
An NFT is a unit of data, stored on a type of digital ledger called a blockchain, which can be sold and traded.The NFT can be associated with a particular digital or physical asset such as images, art, music, and sports highlights and may confer licensing rights to use the asset for a specified purpose. An NFT (and, if applicable, the associated license to use, copy, or display the underlying asset) can be traded and sold on digital markets. The extralegal nature of NFT trading usually results in an informal exchange of ownership over the asset that has no legal basis for enforcement, and so often confers little more than use as a status symbol.
NFTs function like cryptographic tokens, but unlike cryptocurrencies such as Bitcoin , NFTs are not mutually interchangeable, and so are not fungible. NFTs are created when blockchains concatenate records containing cryptographic hashes — sets of characters that identify a set of data — onto previous records, creating a chain of identifiable data blocks. This cryptographic transaction process ensures the authentication of each digital file[clarification needed] by providing a digital signature that tracks NFT ownership. Data links that are part of NFT records, that for example may point to details about where the associated art is stored, can be affected by link rot.
CRC-721
CSC is fully compatible with Ethereum ERC721 Standard. to implement NFT in CSC we can use CRC-721 standard.
// ----------------------------------------------------------------------------
// CRC Token Standard #721 Interface
// ----------------------------------------------------------------------------
contract CRC721Interface {
function balanceOf(address _owner) external view returns (uint256);
function ownerOf(uint256 _tokenId) external view returns (address);
function safeTransferFrom(address _from, address _to, uint256 _tokenId, bytes data) external payable;
function safeTransferFrom(address _from, address _to, uint256 _tokenId) external payable;
function transferFrom(address _from, address _to, uint256 _tokenId) external payable;
function approve(address _approved, uint256 _tokenId) external payable;
function setApprovalForAll(address _operator, bool _approved) external;
function getApproved(uint256 _tokenId) external view returns (address);
function isApprovedForAll(address _owner, address _operator) external view returns (bool);
// ERC165
function supportsInterface(bytes4 interfaceID) external view returns (bool);
// Optional
function name() external view returns (string _name);
function symbol() external view returns (string _symbol);
function tokenURI(uint256 _tokenId) external view returns (string);
function totalSupply() external view returns (uint256);
function tokenByIndex(uint256 _index) external view returns (uint256);
function tokenOfOwnerByIndex(address _owner, uint256 _index) external view returns (uint256);
// Event
event Transfer(address indexed _from, address indexed _to, uint256 indexed _tokenId);
event Approval(address indexed _owner, address indexed _approved, uint256 indexed _tokenId);
event ApprovalForAll(address indexed _owner, address indexed _operator, bool _approved);
}- For standard, refer to ERC721
- For implementation, refer to OpenZeppelin-ERC721
crc721 Inquiry
javascript
const crc721_abi = "<crc721 contract abi>";
const contranctAddress = "<crc721 token address>";
const crcContract = new web3.eth.Contract(crc721_abi, contranctAddress);
// get name of crc721 token
const name = crcContract.methods.name().call();
// get balance of address
const userAddress = '0xde0B295669a9FD93d5F28D9Ec85E40f4cb697BAe'; // a user address
const balance = crcContract.methods.balanceOf(userAddress).call();
// ...python3
crc721_address = "<crc721 token address>"
crc721_address = Web3.toChecksumAddress(crc721_address)
crc721_abi = "<crc721 contract abi>"
# construct a crc721 contract object
contract = w3.eth.contract(crc721_address, abi=crc721_abi)
# get name of crc721 token
name = contract.functions.name().call()
# get balance of address
address = '0xde0B295669a9FD93d5F28D9Ec85E40f4cb697BAe' # a user address
balance = contract.functions.balanceOf(address).call()Use Case
NFTs have been used to exchange digital tokens that link to a digital file asset. Ownership of an NFT is often associated with a license to use such a linked digital asset but generally does not confer the copyright to the buyer. Some agreements only grant a license for personal, non-commercial use, while other licenses also allow commercial use of the underlying digital asset.
Digital art
Digital art is a common use case for NFTs.High-profile auctions of NFTs linked to digital art have received considerable public attention. The work entitled Merge by artist Pak was the most expensive NFT, with an auction price of US$91.8 million and Everydays: the First 5000 Days, by artist Mike Winkelmann (known professionally as Beeple) the second most expensive at US$69.3 million in 2021.
Some digital art NFTs, like these pixel art characters, are examples of generative art.
Some NFT collections, including Bored Apes, EtherRocks, and CryptoPunks are examples of generative art, where many different images are created by assembling a selection of simple picture components in different combinations.
In March 2021, the blockchain company Injective Protocol bought a $95,000 original screen print entitled Morons (White) from English graffiti artist Banksy, and filmed somebody burning it with a cigarette lighter. They uploaded (known as “minting” in the NFT scene) and sold the video as an NFT. The person who destroyed the artwork, who called themselves “Burnt Banksy”, described the act as a way to transfer a physical work of art to the NFT space.
American curator and art historian Tina Rivers Ryan, who specializes in digital works, said that art museums are widely not convinced that NFTs have “lasting cultural relevance.” Ryan compares NFTs to the net art fad before the dot-com bubble. In July 2022, after the controversial sale of Michelangelo’s Doni Tondo in Italy, the sale of NFT reproductions of famous artworks was prohibited in Italy. Given the complexity and lack of regulation of the matter, the Ministry of Culture of Italy temporarily requested that its institutions refrain from signing contracts involving NFTs.
No centralized means of authentication exists to prevent stolen and counterfeit digital works from being sold as NFTs, although auction houses like Sotheby’s, Christie’s, and various museums and galleries worldwide started collaborations and partnerships with digital artists such as Refik Anadol, Dangiuz and Sarah Zucker.
NFTs associated with digital artworks could be sold and bought via NFT platforms. OpenSea, launched in 2017, was one of the first marketplaces to host various types of NFTs. In July 2019, the National Basketball Association, the NBA Players Association and Dapper Labs, the creator of CryptoKitties, started a joint venture NBA Top Shot for basketball fans that let users buy NFTs of historic moments in basketball. In 2020, Rarible was found, allowing multiple assets. In 2021, Rarible and Adobe formed a partnership to simplify the verification and security of metadata for digital content, including NFTs. In 2021, a cryptocurrency exchange Binance, launched its NFT marketplace. In 2022, eToro Art by eToro was founded, focusing on supporting NFT collections and emerging creators.
Sotheby’s and Christie’s auction houses showcase artworks associated with the respective NFTs both in virtual galleries and physical screens, monitors, and TVs.
Mars House, an architectural NFT created in May 2020 by artist Krista Kim, sold in 2021 for 288 Ether (ETH) — at that time equivalent to US$524,558.
Games
NFTs can represent in-game assets, such as digital plots of land. Some commentators describe these as being controlled “by the user” instead of the game developer if they can be traded on third-party marketplaces without permission from the game developer. Their reception from game developers, though, has been generally mixed, with some like Ubisoft embracing the technology but Valve and Microsoft formally prohibiting them.
- CryptoKitties was an early successful blockchain online game in which players adopt and trade virtual cats. The monetization of NFTs within the game raised a $12.5 million investment, with some kitties selling for over $100,000 each. Following its success, CryptoKitties was added to the ERC-721 standard, which was created in January 2018 (and finalized in June). A similar NFT-based online game, Axie Infinity, was launched in March 2018.
- In December 2021, Ubisoft announced Ubisoft Quartz, “an NFT initiative which allows people to buy artificially scarce digital items using cryptocurrency”. The announcement was heavily criticized by audiences, with the Quartz announcement video attaining a dislike ratio of 96% on YouTube. Ubisoft would later unlist the video from YouTube. The announcement was also criticized internally by Ubisoft developers. The Game Developers Conference’s 2022 annual report stated that 70 percent of developers surveyed said their studios had no interest in integrating NFTs or cryptocurrency into their games.
- In July 2022, Mojang Studios announced that NFTs would not be permitted in Minecraft, saying that they went against the game’s “values of creative inclusion and playing together”.
- In October 2021, Valve Corporation banned applications from their Steam platform if those applications use blockchain technology or NFTs to exchange value or game artifacts.
- Some luxury brands minted NFTs for online video game cosmetics.In November 2021, investment firm Morgan Stanley published a note claiming that this could become a US$56 billion dollar market by 2030.
Music
In February 2021, NFTs reportedly generated around US$25 million in the music industry, with artists selling artwork and music as NFT tokens.On February 28, 2021, electronic dance musician 3LAU sold a collection of 33 NFTs for a total of US$11.7 million to commemorate the three-year anniversary of his Ultraviolet album.On March 3, 2021, an NFT was made to promote the Kings of Leon album When You See Yourself. Other musicians who have used NFTs include American rapper Lil Pump, Grimes, visual artist Shepard Fairey in collaboration with record producer Mike Dean, and rapper Eminem.
Film
- In April 2021, an NFT associated with the score of the movie Triumph, composed by Gregg Leonard, was the first NFT minted for a feature film score.
- In May 2018, 20th Century Fox partnered with Atom Tickets and released limited-edition Deadpool 2 digital posters to promote the film. They were available from OpenSea and the GFT exchange. In March 2021 Adam Benzine’s 2015 documentary Claude Lanzmann: Spectres of the Shoah became the first motion picture and documentary film to be auctioned as an NFT.
- In November 2021, film director Quentin Tarantino released seven NFTs based on uncut scenes of Pulp Fiction. Miramax subsequently filed a lawsuit claiming that their film rights were violated and that the original 1993 contract with Tarantino gave them the right to mint NFTs in relation to Pulp Fiction.
- Other projects in the film industry using NFTs include the announcement that an exclusive NFT artwork collection will be released for Godzilla vs. Kong and director Kevin Smith announcing in April 2021 that his 2022 horror movie KillRoy Was Here would be released as an NFT. The 2021 film Zero Contact, directed by Rick Dugdale and starring Anthony Hopkins, was also released as an NFT.
Other associated files
- A number of internet memes have been associated with NFTs, which were minted and sold by their creators or by their subjects.Examples include Doge, an image of a Shiba Inu dog, as well as Charlie Bit My Finger, Nyan Cat and Disaster Girl.
- In 2020, CryptoKitties developer Dapper Labs released the NBA TopShot project, which allowed the purchase of NFTs linked to basketball highlights. The project was built on top of the Flow blockchain.
- In March 2021 an NFT of Twitter founder Jack Dorsey’s first-ever tweet sold for $2.9 million. The same NFT was listed for sale in 2022 at $48 million, but only achieved a top bid of $280.
- In May 2021, UC Berkeley announced that it would be auctioning NFTs for the patent disclosures for two Nobel Prize-winning inventions: CRISPR-Cas9 gene editing and cancer immunotherapy.The university will continue to own the patents for these inventions; the NFTs relate only to the university patent disclosure form, an internal form used by the university for researchers to disclose inventions.
- On December 15, 2022, former President of the United States Donald Trump announced a line of NFTs featuring art of himself for $99 each.
- Some pornographic works have been sold as NFTs, though hostility from NFT marketplaces towards pornographic material has presented significant drawbacks for creators.
- Some virtual worlds, often marketed as metaverses, have incorporated NFTs as a means of trading virtual items and virtual real estate.
- The first credited political protest NFT (“Destruction of Nazi Monument Symbolizing Contemporary Lithuania”) was a video filmed by Professor Stanislovas Tomas on April 8, 2019, and minted on March 29, 2021. In the video, Tomas uses a sledgehammer to destroy a state-sponsored Lithuanian plaque located on the Lithuanian Academy of Sciences honoring Nazi war criminal Jonas Noreika
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