Non-Fungible Tokens(NFTs): tokens of digital assets on the blockchain

Abstract

Non-Fungible Token (NFT) is a carrier of unique identity as a virtual currency. Its indivisible, unique, and verifiable characteristics can truly reflect personal assets and virtual assets to a certain extent. It is widely applied by users in art, games, collectibles and other areas. NFT is stored on the blockchain. The user's digital signature is embedded into the NFT record, which is distributed through a smart contract and verified by the blockchain consensus mechanism, thus solving the problem of identity confirmation in digital asset transactions. This paper makes a review of the main processes and key technologies in NFT applications. First, it introduces the life of NFT: minting, distribution, storage and circulation. Then, the key technologies of NFT are explained, including the blockchain smart contracts and consensus mechanisms in NFT distribution and transaction, the token standards that the minting and transaction process of NFT needs to use, and the important role of NFT in the field of web3. Finally, through the evaluation system of NFT, the problems existing in the current NFT applications and the future research direction are drawn out.