All kinds of chaos in Web3.0: talk about StepN and NFT

Under the shadow of the monopoly of Internet giants, influenced by the philosophical trend of blockchain distribution and decentralization, the technology circle hopes to realize a brand new Internet in a more transparent, fairer, more open, more decentralized and value-connected way . Individual users not only care about the power of data, but also how to enjoy value under the new Internet architecture system, which is the birth of the concept of Web3.0.

The popular ICO, cryptocurrency, Defi, GameFi, NFT and other concepts emerge in an endless stream, making the concept of Web3.0 aroused hot discussions in the media, investment circles, and technology circles. Many people think that Web 3.0 is the next-generation disruptive Internet architecture, and many people think that Web 3.0 is just a concept hype, it is difficult to really implement it, and it will only be a piece of shit in the end. Today, let’s talk about some hot topics related to Web3.0.

Blockchain applications that cannot form an effective closed loop

The native blockchain method, such as the architecture system of Bitcoin and Ethereum, realizes distributed, random and on-chain verifiability, and completes the closed loop in a technology and ecosystem, which is difficult to be monopolized by an Internet giant. However, native blockchains also have shortcomings, such as low transaction performance, and most of them can achieve performance of several to dozens of transactions per second, which cannot support the high concurrency requirements of Web3.0.

At present, most blockchain applications cannot form a closed loop of applications on the chain, such as blockchain-based food traceability. Although the data on the link can be guaranteed not to be tampered with, it is difficult to guarantee the data source and reliability of the entire application system. In this case, the blockchain may not be as good as a distributed database with read-only capabilities.

Even using IoT technology and video surveillance technology to record the entire process of food production, it is difficult to convince the participants. After all, if the cost and regulatory rules allow, there are companies that have already broadcast the whole process live through video surveillance. For example, the technology of RFID electronic tags was invented very early, but it was used very late in large supermarkets, because the cost of each tag is too high, and the benefits of refined management brought by digitalization are not enough to offset the additional technical costs.

However, the native blockchain architecture can only verify the authenticity of each transaction. If you want to use the characteristics of the blockchain, you can only allow all parties in the supply chain to form real transactions on the blockchain by depositing money. Credit to guarantee the reliability of food.

StepN games that cannot generate cash flow

In StepN’s game, users first spend hundreds of dollars to buy a pair of virtual running shoes on StepN, then run in the real world to get the virtual currency GST issued by StepN, and finally exchange the virtual currency GST for US dollars on the digital currency exchange . Although adding GPS positioning while running can prevent cheating, this action is no longer a closed loop on the blockchain, and the authenticity of off-chain data is difficult to guarantee.

The biggest problem with such projects is that there is no “cash flow” in the real world. If any online virtual asset cannot be traded with physical objects, it is just a string of numbers in the computer. In the end, it can only be maintained by the cash flow of new members buying new sneakers. If one day new users stop growing, the overall ecological cash flow system cannot be maintained. Whether you run yourself or hire others to run, you can’t provide a social product or service, and you can’t get value from society. There is no essential difference between StepN and other game coins, but in this game, krypton gold can also exercise your body.

Unless it cooperates with insurance companies and uses running as a kind of data, insurance companies rely on data to improve the accuracy of their actuarial models and obtain more profits, thereby sharing profits with StepN’s system. StepN is not a complete economic system. In order to obtain value, a non-complete economic system needs to exchange with the outside world to generate cash flow.

NFT: Can scarcity form a good trading system?

Although NFT is unique, it does not necessarily maintain its value for a long time. After Twitter founder Jack Dorsey’s first tweet in 2006 was made into NFT, it sold for $2.9 million last year. This year, the latest NFT offer for this tweet has dropped to $280, a ten thousandth of a percent. one. NFT is similar to a digital collectible, which is not fundamentally different from other collectibles such as stamps, coins or calligraphy and paintings.

But there are many strings attached for collectibles to maintain their value. For example, collections related to culture need to have the precipitation of historical stories. These stories have been recorded in many books, praised by many celebrities, and remain in the memory of many people. Collectibles also often need offline exhibitions, peer reviews, and suitable environments to set off. Even if it is an authentic work of a famous person, if it is placed on a street stall or in a luxurious gallery, there will be a huge difference in the appraised value of it, and maintaining an elegant environment also requires a high cost. The preservation and appreciation of collectibles, to a certain extent, includes their cultural attributes and the maintenance cost of the collection environment, forming a specific historical value.

Although stamps or collectible banknotes are not unique, their imitation costs are extremely high due to their special production process. With the passage of time, the cost of imitating the craftsmanship of the year is getting higher and higher, which maintains the collection value of stamps or banknotes to a certain extent. The pixels of NFT are limited, and 100% imitation can be achieved. In the final presentation effect, it is not unique.

If NFT is defined as copyright, its value needs to be guaranteed by real-world laws and media. For example, literary works need to be paid for their value through books, publishers, e-readers, etc.

As a digital collection, there are still many places for NFT to be discussed in terms of historical value, imitation cost and real-world guarantee.

Extended thinking

* In the era of Web3.0, how can we identify the authenticity of various concepts?

* Could Web 3.0 succeed without relying on blockchain?

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/all-kinds-of-chaos-in-web3-0-talk-about-stepn-and-nft/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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