What is the next “NFT” that is expected to catch on?
Scammers understand that people tend to jump on new and unfamiliar things. In a sense, scams are a barometer of trends.
Therefore, we must be a cut above them.
You can see from the scam cases I introduced in the last issue that scammers are now turning their attention to crypto assets.
You may have heard of a financial instrument called NFT, which stands for Non-Fungible Token, which means “non-substitutional token.
NFTs are products that have been derived from crypto assets and are based on the same technology.
The term “token” (virtual currency), which is often used these days, comes from the meaning of “substitute money” that tokens have. NFT tokens, however, are used in the sense of “something that shows rights (authenticity).
Blockchain, the core technology of cryptographic assets, is an electronic record protected by a strong encryption. Because it is difficult to tamper with, it is used as an electronic ledger to record the circulation of money (value).
The NFT also uses this blockchain.
This is my personal opinion, but with a high probability, we can expect to see fraudulent NFT products in the future.
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◆The value is in the things that cannot be replaced.
NFTs are non-substitutable tokens. If that were the case, what would be a substitutable (roughly speaking) token, such as money or bitcoin?
For example, let’s say you have a $100 bill here. If you exchange your $100 bill for someone else’s $100 bill, there is no change in value. They are both worth $100 (assuming, of course, that they are not counterfeit bills). This is substitutability.
Next, let’s think in terms of goods. Suppose you have a Rolex, a luxury watch, on hand. If someone were to ask you to trade your Rolex for my Rolex, would you accept the offer?
Even if the Rolexes are authentic, made in the same year, and have the same model number, they will never be exactly the same value.
Such uniqueness is called “non-substitutability.
NFTs are generated primarily on the Ethereum platform.
Originally, the currency used on the Ethereum platform is called Ether, but in Japan, both are called Ethereum for convenience.
The difference between Ether and NFT is that Ether is set at the same price for all tokens, while NFT allows information to be written in and each token is assigned an ID.
NFTs are tokens that were originally designed to manage ownership.