NFT (Non-fungible tokens)

The digital currency industry can be divided into two main types of tokens. The first type is commonly referred to as homogenized tokens, or FT (fungible tokens), which can be substituted for one another or be infinitely divided into.

For example, there is no difference between the Bitcoin in one’s hand, and the Bitcoin another’s hand. This is homogenization, which refers to a homogenized currency, and a non-homogenized token, or NFT (non-fungible token) is a non-separable token equivalent to a banknote with a serial number. As there are no two banknotes sharing the same serial number in the world, there also cannot be two NFTs with the same serial number.

Due to its non-homogeneous and inseparable characteristics, NFTs may be bound to certain commodities in the real world.

In other words, NFTs are digital assets issued on the blockchain and such assets may come in the form of in-game items, digital artwork, tickets, etc., that are singularly unique and non-replicable.

Due to NFTs possessing collectible attributes and are also easy to trade, crypto-artists may utilize NFTs to create unique digital artworks. Current NFT applications include games, collectibles, virtual worlds, encrypted artworks, tickets, asset-mapping, coupons, etc., and current NFT applications are mainly focused in games, virtual worlds, and encrypted art collectibles.

How popular is NFT? As of 12 March 2021, NFT artwork “Everydays: The First 5000 Days”, was sold at a sky-high price of US$70 million, establishing itself as the highest-priced NFT within the crypto-art space.

Other well-known NFT projects such as CryptoPunks generated trade volumes exceeding US$120 million which is a 1,270% surge in growth. The total value of all CryptoPunks sales was 263,180 ETH, which is approximately valued at US$670.29 million.

OpenSea, a NFT trading market, has generated trade volumes upwards of US$800 million, and the entire NFT sector has generated a market value of US$30 billion, with trade volumes exceeding US$5 billion within the cryptocurrency industry. Undoubtedly, NFTs have solidified its position within cryptocurrency and QUATRO shall also enter into the NFT sector by working closely with global NFT related organizations. In doing so, QUATRO hopes to develop the NFT sector to integrate additional applications into the QUATRO ecosystem via NFTs, thus establishing NFTs as part of the economic operations of the QUATRO ecosystem.