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NFT (non-fungible token) concept and case analysis: from entry to application - web3 series Section 7

2025-08-197 Minute

In the past few years, the term NFT (Non-Fungible Token) has become a technical term in small circles and has become a hot topic in mass media. Many people first heard of NFTs when a “pixel avatar” sold for millions of dollars, or a tweet was photographed and turned into a digital collectible. But if you want to understand NFT more deeply and think about what value it can bring to us, I believe this article will give you a clear panorama.

I am a content creator and consultant who has been focusing on Web3 for a long time. When communicating with clients and friends, I often find that everyone has many similar questions about NFT: What is NFT? Why is it valuable? Are there any real application scenarios? Are there still opportunities in the future? Today we will take it apart step by step.

The concept of NFT – why is “non-fungibility” so important?

The full name of NFT isNon-Fungible Token, translated into Chinese as "non-fungible token". Its core lies in"uniqueness".

Fungible Token: Such as Bitcoin, Ethereum, and USD. One of your Bitcoins is completely equivalent to one of my Bitcoins.
Non-Fungible Tokens (NFT): It is unique, like a painting, a land certificate, a ticket in real life.

Technically, NFT is a blockchain-based digital certificate that can be used to prove the ownership and uniqueness of a certain digital asset. This means it cannot be copied or tampered with.

One sentence summary:NFT is a "rights confirmation tool" in the digital world.

Why are NFTs valuable?

We might as well understand it from three perspectives:

scarcity

Scarcity determines value. Through smart contracts, NFT can indicate on the blockchain whether "100 pieces are issued" or "one copy". For example, "Everydays: The First 5000 Days" is artist Beeple's only NFT collage, so it can be auctioned for a sky-high price of $69 million.

Proof of ownership

In the Web2 era, the digital music and game skins you buy are actually just "rights to use" and do not really belong to you. NFT can be recorded on the chain, openly and transparently proving that you are the owner.

Liquidity

NFTs can be freely traded on marketplaces worldwide (OpenSea, Blur, Magic Eden, etc.). This allows "digital assets" to have the same liquidity as real assets.

NFT application cases

In order to give you a more intuitive understanding, I have compiled three real cases (some are real events, and some are scenes I have seen in consulting projects):

Case 1: Digital Art – Beeple’s $69M Painting

In 2021, digital artist Beeple’s NFT work “Everydays: The First 5000 Days” was sold at Christie’s auction house.$69 millionmake a deal. This not only refreshes the art world's understanding of digital works, but also brings NFTs into the public eye. 👉 Enlightenment: NFT can empower the art market and bring unprecedented business opportunities to digital artists.

Case 2: Brand Marketing – Nike’s Virtual Shoes (Nike RTFKT)

Nike acquires NFT startup RTFKT in 2021 and launches a line of virtual sneakersCryptokicks. Some NFT shoes sell for more than $100,000 and can be tied to real shoes, which enhances users' stickiness to the brand. 👉 Enlightenment: Brands can use NFT to build a closed marketing loop of "fusion of virtuality and reality".

Case 3: Membership economy—Musician’s NFT fan pass

I once came into contact with an independent musician project: they issued 1,000 NFTs. Fans who purchased the NFTs could not only unlock exclusive songs, but also participate in offline meetings. Ultimately, the project raised more than $200,000 through NFTs and built a closer community of fans.

👉 Enlightenment: NFT is not only a tool for art and speculation, but also a new carrier of the "fan economy".

Opportunities and challenges of NFT

I often remind clients: NFT is not a panacea. It has both huge opportunities and challenges.

Chance

Digital rights confirmation: Solve the ownership and copyright issues of digital content.
New business models: game assets, music royalties, virtual tickets.
Global Market: Users can trade and transfer without borders.

challenge

Market bubble: The total transaction volume of the NFT market in 2021 once exceeded$25 billion, but fell by more than 70% in 2022.
Regulatory uncertainty: The legal characterization of NFTs in different countries is unclear.
User experience threshold: wallet, gas fee, and transaction process are not friendly to novices.

future trends

NFT combined with real assets (RWA)

Real estate, bills, and luxury goods may all be "on the chain", and NFTs will become digital certificates.

Integration of NFT and AI

After the explosion of AI-generated content (AIGC), NFT can be used as a tool for content verification and traceability.

Games and Metaverse Drivers

The NFTization of game props can truly realize cross-platform circulation, which is something Web2 game companies have not yet achieved.

[Frequently Asked Questions (FAQ)]

Q1: Are NFTs necessarily expensive?

A1:uncertain. There are tons of NFTs on OpenSea for a few dollars, more for collections or community passes. What's really expensive is the scarce art or head-brand items.

Q2: Will NFT disappear or return to zero?

A2:NFTs as a technology will not disappear, but individual projects may “go to zero.” Just like startups, some succeed and some fail. When investing in NFT, you should pay attention to the long-term value of the project party and the activity of the community.

Q3: What are the risks of buying NFT?

A3:The main risks include: price fluctuations, project parties running away, and contract loopholes. It is recommended that newbies try with small amounts and use a secure wallet.

Q4: Can I issue NFT myself?

A4:Can. Platforms such as Opensea and Zora have fool-proof NFT issuance functions. However, we must pay attention to copyright issues and cannot just cast other people's works into NFT.

Summarize

The essence of NFT is "digital confirmation". It not only empowers artists, brands and content creators, but is also becoming the infrastructure of the future digital economy.

If you are a creator, NFT gives you a new business model; if you are an investor, NFT is a new field worth studying but you should enter with caution; if you are an ordinary user, NFT may also be your first stepping stone into Web3.

I want to emphasize one point:The value of NFT is not "hype" but "application".Treat NFTs as problem-solving tools rather than mere speculation, and you will find real opportunities.

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