Question 1: What is NFT?

NFT generally refers to digital works. It is to upload digital content such as pictures, text, video, audio, etc. to the blockchain to generate a string of unique, non-interchangeable, and non-tamperable codes. It is equivalent to generating a unique number for anything on the Internet on the blockchain, and using technologies such as blockchain to confirm rights, preserve certificates, and trace origins to protect works.

Question 2: What is the difference between NFT, Bitcoin and blockchain?

Both NFT and Bitcoin are applications of blockchain technology. NFT corresponds to digital content, such as a painting, a song, a video, etc. Bitcoin does not correspond to any digital content because Bitcoin is positioned as a digital currency. NFT is not interchangeable, just like a painting is not interchangeable with a song. However, Bitcoin is interchangeable with other virtual currencies, and 1 Bitcoin can be exchanged for more than 10 Ethereum coins.

Question 3: What are the differences between decentralization and centralization?

The core of the blockchain is decentralization. Just like the founder of Bitcoin, Satoshi Nakamoto, no one knows who it is. Since its release in 2008, it has been running stably. Because of a set of reward mechanisms, countless people ***We also maintain the stability of the Bitcoin community. Centralized platforms like WeChat or Alipay we use are controlled by Tencent and Alibaba. If Tencent and Alibaba collapse, do you think anyone will still protect them? Can the works you posted on Moments still be available? Will there still be money in the account?

The data on the blockchain is very difficult to change and has records. ***People who maintain the Bitcoin community are distributed all over the world. If you want to change the data, you need the consent of the majority of people. For example, if Tencent and Alibaba want to change certain data, it is not a matter of two words. Affected by domestic policies and regulations, there is no decentralized blockchain for the time being, so it mainly depends on the credit endorsement of each platform.

Question 4: Isn’t it a decentralized blockchain or an NFT?

Strictly speaking, a blockchain that is not decentralized cannot be called a blockchain, let alone an NFT. It is not much different from traditional Internet technology. At present, domestic policies are mainly affected and have not been relaxed yet. But the general trend is that sooner or later we will let go. Blockchain technology has been generally considered to be the core of the next generation of Internet technology. NFT is another major innovation of blockchain technology in addition to digital currency. It is the only way to the metaverse and will definitely give birth to many Phenomenal application, promising future.

Question 5: What is the current situation of the domestic blockchain and NFT industry?

Domestic issuance of virtual currency is prohibited, virtual currency exchanges are prohibited, and currency speculation is not recommended. However, in recent years, China has begun to vigorously advocate the development of blockchain technology and its practical application. There are many blockchains in China, such as Alibaba’s Ant Chain, Tencent’s Zhixin Chain, Baidu Blockchain, NetEase Blockchain... It seems that every Internet giant has its own blockchain, and many unknown ones The blockchain is blooming everywhere. Domestic blockchains are either private chains or consortium chains cooperating with multiple companies. They are not decentralized and are incomparable with foreign Bitcoin and Ethereum. There is currently no unified standard in China, and various blockchains cannot achieve cross-chain interoperability.

Therefore, when purchasing NFT works in China, it mainly depends on whether you like it, whether there is room for appreciation, whether it has commercial value, etc. The most important thing is whether what you are buying is original and whether you can have ownership of the work.

Question 6: Why do NFTs have to transfer ownership to be valuable?

The core of NFT is the ownership of digital content. If you buy an NFT image, you are equivalent to owning it. You can resell it, take it to exhibitions, and even print it on clothes for various purposes. Commercial use.

If you find that someone else is using an NFT work you own to post it on Douyin and get countless tips or likes, you have the right to ask for its immediate removal or even compensation. Even the original creator cannot make profit from this NFT work. You also have the right to ask the original creator to remove all information posted online.

Many domestic NFT platforms only allow transfer and cannot be used for any commercial purposes. It is obvious that they only allow people to speculate, so the value of this NFT will be greatly reduced. The NFT works released by Tencent and Alibaba cannot even be transferred and can only be used for appreciation. Isn’t this just a lonely purchase? Therefore, it does not matter whether the NFT works purchased in China are on the chain, but whether the ownership is transferred is the core.

Question 7: Can NFT solve the problem of piracy?

NFT can help solve the problem of rampant online content piracy. When a picture of your design is stolen by many people and even used for commercial purposes, even if you say goodbye to others, it is difficult to obtain judicial evidence. How to prove that you designed this thing first? If you upload your designed work to the blockchain or NFT platform for the first time, there will be an upload time record, which can be used as evidence that you are original. Even if the work is later bought by someone else, you can still check all the transfer records based on the traceability information on the platform to prove that you are original.

Question 8: What are the reasons for buying NFT?

1. See NFT works that you really like. 2. Celebrity effect and fan economy. 3. Speculation or investment. 4. Obtain usage rights or various commercial authorizations. 5. Bribery and money laundering. The first two situations are common, but buyers generally don't spend too much money. The latter two situations are the most common and are where the value of NFT lies. The last situation rarely occurs.