The world is becoming more and more complex, and some people will think that they have nothing to do with the development of technology, as long as they continue to do their jobs. Yet, I hold the opposite view. The world is fickle. If you don’t even have the basic knowledge of the latest technology, you will be one of the victims in those scams of the “breakthrough of the technology”.
The data intelligence node will tell everyone a brand new technological world in simple language. Follow us as we continue to explore the basic concepts of the “Metaverse”.
01 NFT=Economic Goods
Suppose you are the king of a certain country, and you send an army to attack a vineyard, according to the agreement between you and the monarch of the neighboring country: all the land you gain from victory will also be given to them. At this time, does attacking this vineyard bring you any value? No, no ownership means the item has no value. At this time, does attacking this vineyard bring you any value? No, no ownership means the item has no value.
People in ancient times needed to fight for the ownership of resources, territories, and talents by war. Nowadays we use NFT to buy and sell ownership of virtual world assets. The more valuable something is, the more people want to have it. These are all classified as “economic goods” in economics.
Economic goods refer to some items that people are willing to pay for, willing to sacrifice limited time and resources to acquire them, and people want to have more of them. There is no doubt that NFT are already economic items. From a string of data to the NFT avatars on Opensea that cost hundreds of millions of dollars.
As people begin to look forward to the development of the virtual world and believe that online virtual assets will become valuable in the future.
Just like looking at the real estate market 20 years ago, when everyone buys NFC, it means that it has a “promising future”. Its value is that the world in the future may be completely transferred to the virtual world. This is also the reason why NFT are becoming more and more popular.
02 NFT vs illegal download
Attentive readers may wonder, I can also download avatars with hundreds of millions of dollars in NFT on the Internet, and I don’t need to spend such a huge amount of money to buy them.
Does it mean that I already have this avatar if I just download it? Why spend money on so-called ownership?
This question needs to be explained in two ways.
Of course, a picture or a song can be downloaded on the Internet, and even used offline. It’s like you have Jay Chou’s songs on your phone, but you can’t make money with his songs. If you perform this song on stage, you need to buy the copyright of this song from Jay Chou’s company.
Due to the decentralization of the blockchain, in the real world, we only need to apply for registration with the housing department to buy real estate. Even if you do not use the house, people cannot occupy it. But in the world of blockchain, there is no so-called housing sector, so we need proof that the owners can show their ownership.
NFT is a string of codes that symbolize the ownership of the asset after the transaction, and the transaction is recorded on the owner’s “account”.
At this stage, NFT can be understood as copyright. For example, you bought the copyright of his new song from Jay Chou. Even if you can download it online, as long as someone wants to use the song in public and make money from it, they still need to pay the copyright fee to you.
Why do we say that it can be understood as copyright at this stage?
Limited by the development of current technology, we still live in a physical material world. But when we move to live in a virtual world and have our residence and clothes in the virtual world, then the value of NFT will be reflected. These things can’t be “downloaded” or “copied” casually. For example, you are living in a server called the future world, your virtual house has a unique code, how can other people copy a piece of land in a virtual world without attracting the attention of others? After all, there are no secrets in the blockchain, everything is recorded.
03 Discussion
The next issue will take you to talk about the how to exchange NFT. Leave a comment to tell us the weirdest NFT you’ve ever seen!