What is NFT (Non-fungible tokens)?

By Ollie Leech

Non-fungible tokens (NFT) are digital assets that represent a wide range of unique tangible and intangible items, from collectible sports cards to virtual real estate and even digital sneakers.

One of the main benefits of owning a digital collectible versus a physical collectible like a Pokemon card or rare minted coin is that each NFT contains distinguishing information that makes it both distinct from any other NFT and easily verifiable. This makes the creation and circulation of fake collectibles pointless because each item can be traced back to the original issuer.

Unlike regular cryptocurrencies, NFTs cannot be directly exchanged with one another. This is because no two NFTs are identical – even those that exist on the same platform, game or in the same collection. Think of them as festival tickets. Each ticket contains specific information including the purchaser’s name, the date of the event and the venue. This data makes it impossible for festival tickets to be traded with one another.

The vast majority of NFT tokens were built using one of two Ethereum token standards (ERC-721 and ERC-1155) –  blueprints created by Ethereum that enable software developers to easily deploy NFTs and ensure they’re compatible with the broader ecosystem, including exchanges and wallet services like MetaMask and MyEtherWallet. Eos, Neo and Tron have also released their own NFT token standards to encourage developers to build and host NFTs on their blockchain networks.Read more: Do You Know Where Your Digital Art Lives?

Other key characteristics of NFTs include:

  • Non-interoperable: A CryptoPunk cannot be used as a character on the CryptoKitties game or vice versa. This goes for collectibles such as trading cards, too; a Blockchain Heroes card cannot be played in the Gods Unchained trading-card game. 
  • Indivisible: NFTs cannot be divided into smaller denominations like bitcoin satoshis. They exist exclusively as a whole item. 
  • Indestructible: Because all NFT data is stored on the blockchain via smart contracts, each token cannot be destroyed, removed or replicated. Ownership of these tokens is also immutable, which means gamers and collectors actually possess their NFTs, not the companies that create them. This contrasts with buying things like music from the iTunes store where users don’t actually own what they’re buying, they just purchase the license to listen to the music. 
  • Verifiable: Another benefit of storing historical ownership data on the blockchain is that items such as digital artwork can be traced back to the original creator, which allows pieces to be authenticated without the need for third-party verification.

Why they’re important

NFTs have become hugely popular with crypto users and companies alike because of the way they revolutionized the gaming and collectibles space. Since November 2017, there has been a total of $174 million spent on NFTs.

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Thanks to the advent of blockchain technology, gamers and collectors can become the immutable owners of in-game items and other unique assets as well as make money from them. In some cases, players have the ability to create and monetize structures like casinos and theme parks in virtual worlds, such as The Sandbox and Decentraland. They can also sell individual digitals items they accrue during gameplay such as costumes, avatars and in-game currency on a secondary market.

For artists, being able to sell artwork in digital form directly to a global audience of buyers without using an auction house or gallery allows them to keep a significantly greater portion of the profits they make from sales. Royalties can also be programmed into digital artwork so that the creator receives a percentage of sale profits each time their artwork is sold to a new owner.

William Shatner, best known as Captain Kirk from “Star Trek,” ventured into digital collectibles in 2020 and issued 90,000 digital cards on the WAX blockchain showcasing various images of himself. Each card was initially sold for approximately $1 and now provides Shatner with passive royalty income every time one is resold.Read more: NFT art sales reached all-time high of $8.2M in December

Why do they have value?

Like all assets, supply and demand are the key market drivers for price. Due to the scarce nature of NFTs and the high demand for them from gamers, collectors and investors, people are often prepared to pay a lot of money for them. 

Some NFTs also have the potential to make their owners a lot of money. For instance, one gamer on the Decentraland virtual land platform decided to purchase 64 lots and combine them into a single estate. Dubbed “The Secrets of Satoshis Tea Garden,” it sold for $80,000 purely because of its desirable location and road access. Another investor parted with $222,000 to purchase a segment of a digital Monaco racing track in the F1 Delta Time game. The NFT representing the piece of digital track allows the owner to receive 5% dividends from all races that take place on it, including entry ticket fees. 

What are the most expensive NFTs?

Dragon the CryptoKitty continues to be one of the most expensive NFTs in the space, valued at 600 ETH

The one-of-a-kind “1-1-1” race car from F1 Delta Time sold for 415.9 ETH in May 2019.

Alien #2089 sold for 605 ETH in January 2021. This NFT is part of the CryptoPunk collection, the first NFTs ever created. Overall, there are 10,000 different CryptoPunks and only nine Alien CryptoPunks.

An NBA Topshot digital collectible card of basketball star LeBron James sold for $100,000.

An Axie named Angel from the NFT-based game Axie Infinity sold for 300 ETH.

普通人怎么投资比特币

一句话,Hold住!

韭菜搞比特币切记炒短线。“老子买股票,股市收盘了就不亏钱了。老子买比特币,妈的24小时亏钱”。普通人买比特币,最佳策略就是Hold住,实在Hold不住的,把交易所软件卸载了也行。

从 2013 年的 100 美元,到今天 2020 年 1 万美元,比特币在过去 7 年时间内已经涨了 100 倍了。持有比特币的人相信在未来十年内,比特币价格将继续猛涨(猛涨的理由千奇百怪,可以是“数字黄金”的故事、可以是“互联网货币”的故事,跟信佛一样),因此选择囤币然后在很长一段时间后再卖掉就是有利可图的。而且这种方法不需要像做短线交易那样频繁关注比特币短期的价格,尤其是对于想要分散投资(不想all in房市)的人来说,是更安心、也更省精力的做法。

大白话解释什么是挖矿

挖矿就是“做题”, 矿工就是“做题家”。挖矿的过程就是比特币系统出一道数学题,看谁先做对。

比特币交易将验证交易的工作去中心化,靠用户彼此协助验证,而验证过程就是让计算机解出一连串复杂的密码学题目,解完题目、完成验证后,便能将交易双方的钱包地址、交易金额和时间等相关信息新增至新的「区块」中,这整个过程便称为「挖矿」,成功完成验证的「矿工」可获得一定数量的比特币作为奖励。

就像做题家内卷一样,解题难度会随着越来越多人投入挖矿而变难,矿工也需要用更强大的计算机才能成功解题,为了提高运算能力,矿工们会集结各自的计算机运算能力进行共同挖矿,再按照贡献程度进行拆分收益,因此个人矿工已越来越难和专业挖矿组织竞争。

组织聚集处就被称作「矿池」,其通常设在像中国等电费较低廉的国家,而目前全球主要矿池有58%来自中国,挖矿趋势伴随而来的便是能源消耗问题,也传出部分学者与科学家利用公有资源,使用运算效能极强的超级计算机进行挖矿。

By 知乎

大白话说清DeFi

DeFi是一个由众多金融服务机器人所组成的全新金融服务网络。

所有的 DeFi协议,本质上都是在提供⼀种⾦融服务,也就是说,是由⾦融服务机器人来提供⾦融服务,类⽐到传统世界⾥,就是⼀家银行给你提供借贷服务,或者⼀家理财公司帮你理财,⼜或者是
⼀家基金公司帮你做投资等等。这些⾦融机器器⼈其实就跟传统世界的⾦融服务公司是⼀样的,不同的是,这些机器器人是自动执⾏,⾃动操作,并且是完全去中⼼化运⾏,由代码组成。

所以,作为⼀个普通⽤户,我们玩DeFi,我们进入DeFi世界,就等同于来到了一个有很多机器人的房间。如果我们想使⽤某种金融服务,包括借贷、交易或者衍⽣品等等,就⾛到其中某⼀个机器⼈
的面前去使⽤它的⾦融服务,那这些机器⼈形成的市场就叫 DeFi。

具象化些,什么是金融服务机器⼈呢?

以Compound为例,Compound是提供抵押借贷的⾦融服务协议,我们称机器人小C。⼩C可以给⼩明提供抵押借贷服务。借贷⼈小明⼿上有⽐特币,假设1个比特币价值1万美元,并且小明认为比特币会涨到10万美元,但是⼩明现在缺钱,怎么办呢?⼩明可以不卖掉比特币,⽽是把⽐特币做抵押借贷,给到⼩C机器人,再获得贷款,可能是6000美元或者是5000美元。

5000美元或6000美元从哪里来呢?从⾦主小红,小红⼿手上有闲置资金。⼩C是机器器⼈,是完全透明公开,去中⼼化的。机器人⼩C跟⼩红说,你把钱放到我这,可以确保绝对安全。如果⼩明不愿意还钱,我就把他的⽐特币卖掉,让你把这笔钱拿回来。通过这样的方式,小红就放⼼且愿意把闲置资⾦给到Compound。

By 知乎

What is Bitcoin DeFi, and How Does It Work?

By Mathew Di Salvo

In brief

  • Decentralized finance (DeFi) platforms are built on Ethereum, but Bitcoin holders are getting involved by “locking up” their coins.
  • Bitcoin DeFi involves locking Bitcoin into smart contracts that give them Ethereum-based tokens that represent the biggest cryptocurrency by market cap.
  • By locking up their Bitcoin on Ethereum, Bitcoiners are using DeFi to generate passive income.

You may have heard of decentralized finance (DeFi). It’s the newest craze to enter the cryptocurrency

world, with billions of dollars having been invested in DeFi products in 2020 alone.  

Increasingly, Bitcoin holders are getting involved in DeFi by “locking up” their coins in exchange for tokens that can be used on DeFi platforms.

What is DeFi?

DeFi products are tools built predominantly on Ethereum

that aim to revolutionize and replace the current methods of borrowing, lending and banking as seen with traditional finance.

The aim of DeFi is to make the world of finance available to all (or to anyone who has an Internet connection). 

Why would Bitcoin be involved? 

The majority of DeFi platforms are built on Ethereum. But there are a lot of people who own a lot of Bitcoin

who want to get involved too. So it is becoming increasingly easy for those with Bitcoin to be able to invest in DeFi platforms with their funds. 

Bitcoin is the biggest cryptocurrency by market cap, so it makes sense for things to be moving in a direction that links the asset with DeFi products. 

How does Bitcoin DeFi work?

Bitcoin DeFi works by basically allowing Bitcoin—a currency on one blockchain—to run on Ethereum’s very different, separate blockchain. 

How? This is where things get a little complex. 

You can’t use Bitcoin directly on Ethereum platforms—as mentioned before, the blockchains are different. In order to do so, the Bitcoin needs to be converted into a currency that represents Bitcoin but is really an Ethereum-based token.

2) Wrapped Bitcoin (WBTC) is the first ERC20 token backed 1:1 to Bitcoin. It’s aiming to bring the representative and new use-cases of Bitcoin into Ethereum blockchain. pic.twitter.com/NtaKbZvsdm

— WBTC (@WrappedBTC) May 23, 2019

Then, the Bitcoin is essentially locked into a smart contract

, (a piece of code that performs instructions to replicate agreements) and can be used on the network. Think of it like a swap.

Using Bitcoin DeFi to generate passive income

Why would someone want to put their Bitcoin in Ethereum smart contracts, you might ask, when they could just buy Ethereum tokens directly and get started from there? 

One good reason is to make your Bitcoin work for you in the form of passive income. We all know that a lot of people hold onto their Bitcoin as a store of value—not for purchasing things online (as was originally intended) or remittance payments. What are DeFi loans?One of blockchain and cryptocurrency’s great promises is to take tools used by the financial industry and make them available to everyone everywhere. The catch-all term for this revolution in …LearnThe LandscapeMatt HusseySep 3, 2020

Besides, there are many other cryptocurrencies that serve that purpose now, some argue. So when Bitcoin is just sitting there as an investment in the hope that its value will one day skyrocket, why not use it to make money for you in the meantime?

One of the ways to generate passive income with Bitcoin is to utilize a DeFi platform to lend and earn interest with Bitcoin that would otherwise just be sitting around. It works like this: convert the Bitcoin into Ether or directly into Dai (a stablecoin, pegged to the US dollar) and put it in a platform where you could lend it out and receive loan back with interest. 

One way of doing this would be to use the MakerDAO platform. 

Who is leading the Bitcoin DeFi space?

A relatively new concept, there are a handful of companies currently leading this space. They include Wrapped Bitcoin (WBTC), RenVM, and RSK. 

  • 🤝 WBTC is a centralized collaboration between several DeFi protocols, including Maker, Compound, Kyber Network and Aave, among others. It works to lock Bitcoin on the Ethereum blockchain in exchange for ERC-20 tokens of the same value. 
  • 🖧 RenVM is a network that holds Bitcoin (among other cryptocurrencies) and mints a representation of that currency as an ERC-20 token.
  • 🏦 Global lending platform RSK works to help its users earn interest with their Bitcoins by converting them into a stablecoin before lending them out. 

What does the future hold for Bitcoin DeFi?

Right now, more Bitcoin than ever before is being sent over to Ethereum; nearly $1 billion worth, as of September 2020. This is undoubtedly due to the rise of DeFi. As the scene has grown in popularity, so have the methods of making Bitcoin run on such platforms. 

Companies in the space are reporting record amounts of Bitcoin being converted into ERC-20 tokens. 

As long as DeFi is popular, we will continue to see new companies work in this space to provide quick, easy and cheap ways to help Bitcoin work on DeFi platforms.