4 min readFeb 21, 2022


Media industry NFT topics — — code is law

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Author: security team

0x01 preview

With the popularity of the concept of the metaverse, NFT has also become one of the focuses of people talking about in 2021.The skyrocket NFT transactions that have appeared continue to stimulate people’s nerves, a veteran NFT project CryptoPunk #4156 sold for a maximum of 10.35 million US dollars, digital artwork “All-Time High” in the City sold for $6.19 million, Decentraland’s Fashion Street Estate sells for $6.19 million.According to third-party data, the proposed plot was sold for $2.42 million, and for a time NFT seemed to have become a wealth password.Based on statistics from the agency nonfungible, the NFT transaction scale will reach US$14 billion in 2021, which is 1.3 times the total global art auction volume of US$10.57 billion in 2019 before the epidemic.

0x02 Definition Analysis of NFT

  • NFT meaning: Abbreviation for Non-Fungible Token, which comes from the Ethereum ERC-721 smart contract. Its essence is the digital asset token stored on the blockchain. The token can be the asset itself, such as a piece of code, a picture, a web page, etc. The digital content can also be a URL pointing to the asset, a digital signature, etc., and this token has the attributes of being unique, non-tampering, and tradable.
  • NFT is a concept defined by a smart contract: under the NFT smart contract.The authentication is based on the difference between the smart contract address and the TOKEN ID in it. The smart contract address guarantees the uniqueness of the contract, and different IDs correspond to their Metadata. For example, if different pictures have the same ID, they are considered to be the same NFT, and the same picture, if it has the same ID.There are different IDs, and there are also two different NFTs under the NFT contract standard, that is, code is law.
  • It can also be explained that the same face value of 100 EURO banknotes is homogeneous from the perspective of use, but from the perspective of banknote numbering, it is also non-homogeneous, and it is completely defined according to the perspective of viewing.
  • Understand the essence of NFTs: in short — a non-fungible digital asset token created, maintained, and executed by smart contracts.
  • Take the famous Boring Ape Yacht Club (BAYC) NFT as an example, The smart contract address on Ethereum is
    0xBC4CA0EdA7647A8aB7C2061c2E118A18a936f13D, which can be browsed on Ethereum.It is unique when viewed in the device. When the contract was written, a total of 10,000 apes were issued with different IDs.
    The apes have different Token URLs and different Metadata, which cannot be tampered with and Added.

0x03 The underlying technology of NFT

  • The underlying technology NFT is based on — blockchain. The only public, non-tamperable, and tradable attributes of NFT are based on the current blockchain technology.
  • Blockchain technology was born in 2009 and was first proposed by Satoshi Nakamoto, the founder of Bitcoin. It was originally used for decentralized distributed accounting. In 2015, Vitalik Buterin, the founder of Ethereum, put smart contracts (Turing complete applications program) and virtual machines were introduced into the blockchain technology, and the first Ethereum blockchain was launched.
    In the first stage of Frontier, the blockchain application scenarios have been greatly expanded. Currently, the blockchain industry is undergoing layer2 expansion, consensus mechanism optimization and other upgrades, which will further expand the application scope of blockchain technology and optimize the efficiency of social resource allocation.
  • Based on the feature of blockchain, it can ensure that every transaction of NFT is traceable, and each transaction address is unique (the private key is generated by pseudo-randomly generating 256-bit random numbers, the public key is generated by elliptic curve algorithm, Then use SHA256 Keccak256 and other algorithms to generate the hash value, which can ensure the uniqueness of the address), which is open and transparent.
  • Still taking the Boring Ape Yacht Club NFT as an example, the Ethereum browser displays the hash code, transaction method, transaction time, seller address, buyer address and the Boring Ape Token ID of each transaction of the Boring Ape Yachting Club NFT.
  • Still taking the Boring Ape Yacht Club NFT as an example, the Ethereum browser displays the hash code, transaction method, transaction time, seller address, buyer address and the Boring Ape Token ID of each transaction of the Boring Ape Yachting Club NFT.
  • The data packaged into the block confirmed on the blockchain cannot be tampered with and will be permanently stored on the chain,Data information of NFT.After the information is confirmed on the chain, it cannot be modified. When miners or super nodes use the consensus algorithm to complete.After a block is generated, it will be broadcast to the entire network through the P2P protocol (P2P protocol is a distributed network protocol, which appeared earlier than blockchain technology). After receiving the confirmation of the broadcast information, each node will update the information.This mechanism realizes a decentralized distributed record, and the consensus algorithm ensures that malicious nodes cannot falsified information.

ref: qidiancaijing

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