Affected by the pandemic in 2020, many traditional trading markets and auction industries have suffered heavy losses , and their future is also full of uncertainties. This is especially true for those small and medium-sized enterprises and auction houses, which are teetering on the brink of collapse and their economic prospects have dimmed.
In addition, due to the fiscal easing policies of major economies in the world, the large amount of funds brought by the release of currency is causing inflation and currency devaluation. As a result, a large amount of funds will flow to scarcer assets, making core assets obtain higher and more optimistic valuations, and their prices will continue to rise.
Compared with other industries, art auctions have vertical market segments and relatively fixed audiences. In the past, most of its transactions were concentrated in real life, and toward online art transactions, a lot of people took a wait-and-see attitude . However, after suffering from the 2020 epidemic, the reality has forced real auction houses to seek transformation.
Valuable real assets such as land, houses, vehicles, etc. are relatively expensive, so the certificates required for transactions must be complete. Consumers also hope that all kinds of information are as open and transparent as possible, but the existing trading websites are stuffed a large number of intermediaries and false information, leading consumers to waste a lot of manpower, energy, and even financial resources. Contrary to those trading websites, the blockchain has the characteristics of being open, transparent and immutability and can easily conduct anti-counterfeiting traceability identification.
The field of encrypted games has a natural relationship with NFT. In the current game field, one of the important matters is that equipment items cannot be transferred, which means they cannot be truly privately owned by users. However, NFT is a private property based on the blockchain, which is completely controlled by users and can be freely transferred and traded between users.
NFT is short for Non-Fungible Tokens, relative to interchangeable tokens. Non-fungible tokens are also called non-fungible tokens. What is a fungible token? For example, BTC and ETH are all homogeneous tokens, so they are interchangeable. That is to say, your ETH and mine are essentially the same, they have the same properties and prices. Non-fungible tokens, or non-homogeneous tokens, they are all something unique, like artworks, land and houses and other real assets of the real life , equipment and pets of a game, etc. Each piece of them has different attributes and values, so it cannot be replaced with each other, that is why they called non-fungible tokens or non-homogeneous tokens.
NFT's current market size is still small, and there is not enough attention. However, as a whole, it has unique, scarce and indivisible attributes, so it is a natural entrance to the encryption and digitalization of artworks, valuables, and game assets. The obstruction of the epidemic has made transactions or auctions in the real life unable to operate normally, but this has reversely promoted the development of the NFT model. In the future, the NFT market may catch up with or even exceed the development speed of traditional real art market.