The "popular king" of the cryptocurrency circle NFT today takes stock of the "debut history" and security issues of this "popular demon star"

NFTs are still going wild, and fans are eager to buy their favorite celebrity NFTs. So what exactly is it? What are the benefits of buying it? How safe is it? For this "popular demon star", perhaps we can learn more.

Today, we will review the "brief debut history" of this popular king, as well as some of its value and safety. After all, if you want to "chase stars" now, you still have to find reliable ones to chase!

How did NFT become the most popular currency in the cryptocurrency world?

NFT, the full name of which is Non-Fungible Token, is also called non-fungible token, a type of digital cryptocurrency.

We are more familiar with Bitcoin, but Bitcoin is a homogeneous token. On the blockchain, one Bitcoin can be exchanged with another Bitcoin, which is called "homogeneity." For example, if you have a 10-yuan bill, I can exchange it for another 10-yuan bill, and their effects are the same.

But NFT is different. Although it is also recorded in the distributed account of the blockchain, each NFT is unique and irreplaceable.

As for its "debut history", in fact, the first NFT-like token, Bitcoin 2.X (also known as colored coins), was born in 2012. Since then, NFT has continued to develop, which can be traced back to the Rare Pepe Directory project launched by Counterparty.io in 2016 and the CryptoPunks pixel portrait project launched by John Watkinson and Matt Hall in 2017.

The real boom in the NFT field began in late 2017. The launch of CryptoKitties during the Ethereum craze in early 2018 caused a surge in people's attention to NFT activities.

When the market collapsed in 2018, people's interest in NFTs also decreased and even stagnated. NFTs only recovered at the end of 2020.

Until now, NFT has become the hottest project, so there are sayings such as "Everything can be NFT" and "Everyone can become a collector".

NFT can be anything digital: a sound, an image, a piece of text, a prop in a game, etc. Although most of them are digital art, there are many more possibilities, such as a 12-year-old boy who recently sold an NFT series inspired by an 8-bit blue whale stock photo and earned more than $160,000.

But the real value of NFT lies in those things that are endowed with "uniqueness" and thus generate "artistic quality" and "trading value".

Why are so many people so keen on NFT collection?

Traditional works of art, such as paintings, are valuable because they are unique. But digital files can be copied easily and endlessly.

Through NFT, artworks can be "tokenized", which is equivalent to creating a digital ownership certificate that can be bought and sold. Like cryptocurrencies, NFTs are also stored and recorded on the shared ledger of the blockchain.

Digital art is an early use case for NFTs because blockchain technology is able to ensure the unique signature and ownership of NFTs. For NFT art, this means that the ownership of the artwork - whether it is a painting, a song, a video or something else - is uploaded to the blockchain, where it can be tracked, transferred, bought and sold.

Therefore, all kinds of artists and celebrities have become keen on issuing their own NFTs, and fans are also the buyers of these NFTs.

Of course, how to avoid those worthless NFT artworks? Here are a few small suggestions: everyone must buy projects that already have a certain strong consensus and value, and stay away from over-hyped NFT art projects; in addition, you must buy NFT works that you like, and don’t follow the crowd and buy some NFTs that have no value but you don’t like.

Are there risks with the “Popular Demon Star” NFT?

Risks exist in every corner of the frontier.

Despite the current popularity of NFTs, security incidents still occur from time to time.

For example, in March this year, attackers hacked into multiple Nifty Gateway NFT user accounts. The attackers were able to transfer previously purchased NFTs from user accounts, and they were also able to use user archived payment cards to purchase new NFTs and then transfer them, causing losses to a large number of users.

Here, Chengdu Lian'an reminds all major project parties to pay attention to the problems and loopholes in the smart contract source code, and if necessary, they can hand it over to a professional security company for audit.

Now, we find that the NFT ecosystem seems to have encountered another common problem in the cryptocurrency industry: fraud.

This is a commonplace problem. Where there is profit, there will be scammers. We have summarized several scams related to NFT, and everyone needs to be vigilant.

1. Fake NFT store (phishing website)

Scammers copy popular NFT retail websites, which look exactly like the original websites. Such websites will obtain users' account and bank card information, thus forming fraud. Of course, there are also some so-called NFT stores that are just empty shells, where they sell users products that do not exist at all.

2. Fake artists selling NFTs

Some project parties do not obtain authorization from artists or celebrities, such as famous paintings or songs, so they impersonate artists and forge fake NFTs. Users need to be cautious when purchasing or bidding, because unauthorized NFTs actually have no collection value and are not recognized.

3. Social Media Scams:

Scammers commit fraud in crypto communities or on social media platforms such as Twitter, Telegram, WeChat groups, and QQ groups. For example, they may pretend to be customer service representatives or gain your trust by answering your questions before trying to scam you.

4. Giveaways/Airdrops

Fake NFTs are fake, fake limited edition and real additional issuance. Since the content carrier of NFT is public, counterfeiting is basically cost-free, which leads to continuous counterfeiting.

Final Thoughts

As the hottest "fan harvester" at the moment, NFT is attracting more and more attention from the public. Of course, the birth of new things often brings some controversy. For example, whether the sky-high price of NFT is hype or a bubble is still being debated. But what we know is that the current popular NFT is creating more records.