Merriam Webster Dictionary Just Officially Added the Definition of “NFT”. — GDF Takes You to Explore NFT.
Recently, Merriam-Webster has added an official definition of non-fungible token (NFT) to its dictionary and plans to auction its definition of “NFT” as an NFT this week, according to CoinDesk. The new definition states: “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 (as of a specific digital asset and specific rights relating to it).” This definition along with the auction very much directly explains NFT to the public,both in theory and in action.
When it comes to NFT, many people are familiar with it. If you missed the “ CryptoKitties” in 2018, you must have heard about the cyber artwork auction in March this year as well as NBA TOP Shot. GDF has also published articles related to NFT before. However, as the NFT craze continues and the recent turmoil in Dogecoins and SHIB, more and more people are worried: will NFT become a bubble? How can NFT be hyped up to such a sky-high price? In view of these questions, this article will provide some answers and analysis starting from the origin of NTF.
What is NFT?
NFT is the abbreviation of Non-Fungible Token, which is relative to the FT (Fungible Token), and both of them are cryptocurrencies. The main difference is that FT can be replaced and split infinitely, while NFT is unique and inseparable. For example, bitcoin, dogecoin and SHIB are all FTs, while the popular Beeple’s digital art “every days: the first 5000 days” is a NFT, the main feature is its property of ownership — art can be copied, but its ownership only belongs to NFT owners.
The initial NFT comes from Cryptokitties, a virtual cat nurturing game deployed on Ethereum, which launched at the end of 2017. This game supports players to domesticate and trade all kinds of “Cats”. All cats are unique. This game has aroused the interest of collectors and investors, and even caused Ethernet breakdown due to its popularity. The Cryptokitties were the first image of NFT.
What is the value of NFT?
After the inflation of dogecoin, people realized the irrationality of the cryptocurrency market. But is the NFT a new bubble? GDF has the following views:
First of all, different from dogecoin, NFT is an asset existing in the digital world, which has value in itself. For example: “everydays: the first 5000days” is an art collection, whose collection value is recognized by the whole market. There is no easy way to determine if its value is falsely high, because there is hardly any standard to measure the value of the collection itself.
Secondly, NFT also helps more people understand the application of blockchain outside of decentralized finance. Because it is closer to life, it also allows newbies to understand it. To some extent, it is easier to strengthen people’s consensus on the wide application of NFT in the future. For example, in the field of intellectual property, NFT can be used as the proof of property of music, art works, patents, and even houses for ownership and transaction. Decentralized intellectual property transactions, which is likely to be the development trend of NFT, can greatly improve profits for creators as it bypasses 3rd-party commissions.
What are the disadvantages of NFT?
Everything has flaws, so does NFT. In addition to the loss of private keys leading to asset loss, GDF believes that the storage of NFT is also an essential problem. Such as 3Lau’s $11 million dollar album loss, which we mentioned in the previous article.
NFT is mostly music, video or image assets. Due to its limited storage capacity, only NFT smart contracts can be stored on the blockchain, and the content and metadata represented by NFT are stored on the centralized server or cloud outside the chain. If the storage platform is attacked, the content and metadata of NFT may be damaged. GDF proposes that GoodData will use our advanced technology to protect the ownership of NFT through GDF’s distributed storage system.
GDF — Provides “double protection” for NFT
GoodData is a blockchain platform focused on privacy protection and data federation. On the GoodData platform, the NFT and other identities will be protected by privacy encryption, and distributed storage will be used to prevent the original NFT data from being stolen maliciously. This is undoubtedly good news for NFT owners overall.
Meanwhile, GDF is also planning to have its GoodData platform to support users to trade NFT “shards” in the near future. GDF firmly believes that NFT will produce greater value in the future, not only in the field of art collection, but also in a wide range of fields. GDF is confident to drive more communities to protect and discover the true value of NFT!