The current NFT is undoubtedly a hot word in the circle. Unless you are a newcomer who has just entered the circle, I believe you are already familiar with the definition and interpretation of the concept of NFT.
After experiencing the peak of the bubble at the beginning of the year to the later silence, the NFT game represented by AXIE has become popular again recently, and it seems to have brought people’s attention back here.
What new narratives does NFT bring this time?
Evolution of the block chain
Before talking about the past and present of NFT, we can first think about the evolution history of the blockchain:
1. Electronic cash: The earliest originator of the Bitcoin white paper was to make electronic cash.
2. Various electronic cash: A few years after the birth of Bitcoin, a large number of imitations of Bitcoin appeared, led by Litecoin. Of course, most of them have disappeared.
3. Electronic gold: slowly, no one is mentioning the term Bitcoin electronic cash. The blockchain is evolving. Everyone will give the Bitcoin “electronic gold” a real hammer. There is only electronic cash. LTC and BCH are waiting for the “negative corner resistance”, but we all know that this job has long been robbed by USDT.
4. Decentralize everything: In 2017, the outbreak of ETH made countless people regard blockchain, or blockchain with smart contracts, as a hammer, looking for nails everywhere.
For a time, decentralized Weibo, decentralized taxi-hailing, decentralized social networking, decentralized XX, anti-counterfeiting, traceability, and property rights protection… Therefore, a large number of Aixiou was born. There is no doubt that these projects and The so-called application scenarios are basically zero.
5. DeFi: Although it began to sprout in 18 years, it was not until 2020 that people really realized that the blockchain was originally used to revolutionize the financial market, and Defi is the kingly way.
6. Game NFT: In 2021, the blockchain will be actively exploring in these two directions, and will be more and more deeply integrated with DeFi.
So you see at the beginning of the birth of Bitcoin or blockchain, our vision for him was only electronic cash. After various brainstorming scene adaptations and countless failures, only two major applications have been identified. : BTC’s electronic gold and Ethereum’s DeFi.
NFT, games, meta universe, various centralized DAPPs brought by ICP, etc. are still trying to explore and try and error, so in fact, there is a high probability that the NFT applications and development directions you see today will be compared with the real use cases of NFT in the future. There is a big gap.
However, this does not prevent us from sorting out the context of NFT, examining the value of NFT and exploring the future of NFT.
Development of NFT
When it comes to NFT, many people’s first impression is that of CryptoKitties. However, I don’t know that Encrypted Cat is only the first work of the ERC721 NFT standard, and it is also the signboard to bring NFT to fire, but it is not the first NFT.
CripytoPunk is earlier than CryptoKitties. However, Punk is not the first NFT. Strictly speaking, the first NFT on the blockchain should be the colored coins made on Bitcoin in 2012.
This can also be roughly seen in a simple context: colored coins-NFT conceptual form → Crpytopunk-NFT first-generation collectibles, BTC in the NFT world → Crypto cat-game NFT → current NFT form in full bloom.
1. Encryption Art + NFT Representative: Beeple Christie’s US$70 million painting
The combination of encryption art and NFT, there are a few interesting points worth paying attention to:
• Native encrypted creation or NFTization of traditional paintings, which is the right path?
• After traditional paintings are NFTized, should the original paintings be “burned”?
• The fragmented token of the Beeple painting, B20, is a direction for exploration.
• Does the encryption art need DID to cooperate to prove that the author is the author?
2. IP+NFT representative: NBA Topshot
The combination of traditional IP and NFT can be said to be the most out-of-the-box way at present. If you have played with Little Raccoon and simply face the Water Margin card, you must know how many people in this world have an almost crazy love for this kind of collection.
This is also the secret of why NBA Topshot can occupy the top of the NFT sales list for a long time, because with the blessing of this top IP, the people who buy the card are not just investors in the circle, but a group of NBA fans outside the circle. .
As the major European clubs “issue coins” one after another, the combination of traditional IP and NFT has become an unstoppable trend. The owners of the familiar Marvel, Disney and other big IPs will inevitably not let go of using this new Technology opportunities.
For collectors, NFT is undoubtedly safer, with less friction, a bigger market, and more choices.
Perhaps the only thing missing is a “real” NBA star card, or the texture of the Little Raccoon Water Margin card when held in hand, just as e-books can never provide a reading experience with the same texture as a paper book.
However, just as paper books are gradually eliminated by e-books, the world is finally moving forward in the direction of “virtualization” and “meta universe”.
3. DeFi+NFT representatives: Whale, Meme, yinsure.finance, NFTX and Uniswap V3
The combination of NFT and DeFi has explored a large number of usage scenarios in the past year:
Whale-Mortgage NFT collectibles to issue social Token
Meme-Defi liquidity mining reward NFT card
yinsure.finance-Insurance policy NFT + mining
Uniswap V3 that creates NFT liquidity -Customizable LP NFT realization is more Responsible LP strategy
The combination of NFT and DeFi is a powerful combination of the two major outlets of the blockchain in 2020 and 2021. In the next 1-2 years, we will definitely see countless NFT+DeFi combined use cases.
Perhaps DeFi+NFT will be the most imaginative direction for blockchain in the future. A series of bright futures such as the meta-universe and global settlement layer will certainly be inseparable from the various combinations of Defi+NFT.
4. Deeper game + NFT representatives: AXIE , Dark Forest (Dark Forest)
If the previous generation of “chain games” were represented by CryptoKitties and Decentraland, then the most popular “chain games” now are undoubtedly AXIE and Dark Forest.
Axie can be regarded as the “World of Warcraft” in the current blockchain game. Many people even make a living from it, with a monthly income of over 10,000. More and more professional studios have also started to join it, making me stupefied to see WOW back then. The grand occasion of the professional gold team.
What’s more terrifying is the revenue data. AXIE’s revenue in the past 7 days has reached 12.52 million U.S. dollars . Do you know how terrifying this data is? The income of several DeFi subprojects in the past 7 days is as follows: PancakeSwap $1.9 million, Synthetix $1.3 million, MakerDAO $1.2 million, Curve $800,000…
At present, in the entire DeFi world, only Uniswap can hold down AXIE…
Dark Forest is currently the favorite game of a bunch of ETH hardcore fans. There is no one. In the words of a friend, why do people have to be humans in the meta-universe? I can’t become a kind of stars, or just a force to control these stars, why build a house, isn’t it cooler to create a small universe?
Of course, from the current point of view, the most representative NFT game and the closest to the concept of “meta universe” is still the old Dencentraland. After all, the NFT of the land with different coordinates is really sensitive to the price of us. It’s too familiar, you can’t afford land in reality, can’t you buy and buy in the game? !
The future of NFT
As mentioned before, the NFT we currently imagine may not exist in the future, but this does not prevent us from “looking forward”.
1. NFT liquidity
I believe that every NFT player will have a bunch of NFTs “bad in his hands” that cannot be sold. For example, I have two first-generation encrypted cats hanging on Opensea and no one cares about them.
That’s right, whether it’s encrypted artwork or collectibles, or game props, the liquidity of NFT is not in the same order of magnitude as mainstream Token types. Buying, selling, and often several times the price difference, there is no market or there is no market. The prices are commonplace.
In terms of promoting NFT liquidity, many projects have made a series of attempts. The B20 and NFTX mentioned above use NFT fragmentation to provide fluidity.
Some time ago, Unicly used NFT fragmented liquidity mining. AMM Dex and DAO are thoroughly combined to provide liquidity support for the current mainstream NFT assets. There will even be borrowing and Layer 2 exploration in the next quarter.
The other project, Topbidder, uses the “automatic bidding mechanism. Any bidder can obtain ownership of the asset as long as the bid is not less than 10% of the upper bidder” model. By using the radical market theory and the Harberger tax, Turning NFT into a “non-permanent asset form” (also known as Victory), and the result is: better price discovery mechanism and better liquidity.
The expansion and use of NFT liquidity must be one of the important directions of NFT’s future development.
2. Mortgage of real assets under the chain
This can be said to be the cornerstone of DeFi’s ultimate dream. To be a global settlement layer, you must first put non-blockchain native assets on the chain.
Fortunately, we have set a precedent. A few months ago, MakerDAO issued the world’s first DeFi-based real asset loan. It uses Tinlake, a borrowing platform based on the Centrifuge protocol. As the asset originator, New Silver used MakerDAO as a credit tool to obtain the first loan.
Essentially, Tinlake is a set of smart contracts that can convert real assets (such as car loans, commercial invoices, or music streaming royalties) into NFTs with necessary legal documents.
As the saying goes, it’s hard to finish things at the beginning, we have already made a good start. It is believed that after the NFT and DeFi technologies mature, this kind of off-chain assets can be borrowed by NFT-based on-chain mortgages to open up liquidity. Only DeFi and NFT, or blockchain, will truly transform the world.
Only when this step is achieved can the blockchain truly confidently say that it is the cornerstone of the Internet of Value.
3. Anything unique can theoretically be represented by NFT
Of course, don’t get me wrong, not all unique things are suitable for NFT, and a thing will not change its intrinsic value because of NFTization.
However, you may be able to find many things that are appropriate and fit the NFT usage scenarios. Take domain names, for example, there will definitely not be two identical domain names in this world. Ethereum’s ENS domain name is a very good NFT scenario.
Of course, like Cryptopunk, ENS was born before the ERC721 protocol, so after the migration of ENS in May 2019, each domain name became an ENS NFT that complies with the ERC721 protocol standard.
In the future, there will be a DID system. Everyone’s on-chain ID card and the identity token containing your personal information will definitely be NFT?
Follow the thoughts in turn, after the meta-universe of the level similar to “Player One” is realized, the tens of thousands of things in this world will be NFTized, and sometimes you just need to use your imagination.
For example, the founder of Twitter previously turned the first Twitter into an NFT and sold it for $2.5 million. Recently, the father of the Internet turned the source code of the World Wide Web into an NFT and sold it for $5.4 million.
A picture, a song, a photo, a video, a text, a piece of equipment, an act, your identity, your copyright, and your data… In the future, it may all be NFT.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/blockchain-enters-the-era-of-crazy-out-of-the-circle-nft-new-narrative-full-interpretation/
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.