NFT craze and the current NFT market

Although the NFT market is hot, many people see opportunities but there are also people Constantly worrying about the bubble caused by NFT, more people think that it is incredible that a jpg image can sell to hundreds of millions. Their general view is that the NFT bubble is more serious than the 1co bubble in 2017.

Current status of NFT

NFT first started to attract market attention in 17 years. For example, the well-known crypto cat was born at the end of the bull market. In the following four years, NFT was combined with chain games. Of course, some other NFT products were also launched, such as NFT stamps, ENS domain names, etc.

At present, most of the NFTs we are talking about connected to the ERC721 token standard, and before ERC721, there are actually NFTs. ERC721 is simply what we often call a non-homogeneous token. The elemental attributes of each ERC721 token are different, such as our common TOKEN ID and URL two key attributes, that is, NFT number and NFT content, TOKENID is mainly composed of numbers. The URL can be a normal HTTP website or an address starting with IPFS. The files pointed to by these addresses can be Pictures in various formats, or videos, music or even compressed packages, Applications, code source files, etc., and currently most of the hyped products in NFT are pictures.

After the ERC721 standard matured, other NFT standards appeared later, such as ERC1155 and ERC998. Of course, ERC998 is not yet perfect, but ERC1155 has become one of the important standards in the next generation of NFTs.

ERC1155 is a kind of NFT package. We simply think of it as a new NFT that combines multiple NFTs together and encapsulated by a contract. In this way, when transferring a new NFT, there is no need to transfer multiple sub-NFTs.

In addition, in order to facilitate the transaction of NFT, some NFT fragmentation solutions have also been produced, which roughly lock the NFT in the contract, and then based on this, multiple ERC20 tokens are issued. People determine their partial ownership in the NFT by trading erc20 tokens. When we need to transfer the NFT, we can collect all ERC20 token fragments, by calling the contract, you can obtain the previous NFT, this model can be applied in the game as well.

In other words, NFT currently has many unexplored scenes. In fact, its use is not as simple as hyping JPG images, and because NFT belongs to the category of non-homogeneous tokens, it is mainly used in digital art and game props. In other professional directions, each NFT has different attributes and meanings, rather than the hype of cryptocurrency. Therefore, it is difficult for the regulatory authorities to uniformly supervise the NFT.

NFT bubble and copyright

Although we know that NFTs have many uses, for now, the bubble of NFTs is still very large, which is mainly manifested in the low cost and threshold of NFT creation, the proliferation of NFTs, and some of the infringements of NFTs. NFT in the form of ERC721 is currently very simple to create. Users can use Ethereum, polygon, BSC, HECO and other chains, and then issue their own NFT products. In addition, even if users don’t understand smart contracts, they can directly upload image files on platforms like opensea , fill in the details of the NFT, and then deploy on the polygon chain, and this process can almost close to zero cost, while opensea platform only creates this NFT contract on the chain when an investor purchases the NFT and sells it to investors.

That's why a large number of artists, music creators can easily create NFT on the opensea platform, so this is the common reason people think that NFTs market have a bubble.

Another reason is the proliferation of NFTs and some infringements. Many outsiders say that NFTs can effectively protect intellectual copyrights. The premise of the protection of NFT intellectual copyrights is that the digital product only appears on the NFT, and Metadata is also encrypted to a certain extent, and others are not allowed to imitate, which is technically achievable.

But what about most of the forms of NFT now? Because some NFT platforms do not have a review mechanism, it is very common for pictures to be pirated. Furthermore, most Internet resources are copyrighted, such as an icon pack, etc., but some people use icon images created by people to make NFTs, thus infringe the copyright of the original author.

Will the NFT bubble burst?

Speaking of bubbles, many people actually think of the bursting of the bubble, so will the NFT bubble burst? So for NFT, first of all, there will be a process of good money expelling bad money, that is, meaningless NFT is bound to be no volume. This part of the poor quality NFT even if bought later, it is unlikely to be sold. For NFTs with good coins, buyers who buy NFTs at high prices must seek a higher price to sell them. This is similar to antique calligraphy and painting.