(Still life with straw hat and pipe, Van Gogh)
NFT has the opportunity to rival the DeFi field in the future
In the early days, NFT was mainly about digital collectibles and digital artworks, but NFT is much more than that. the future of NFT will be a field comparable to the DeFi field. You can refer to Blue Fox Notes’ previous article “The NFT Craze” for more information about NFT.
About the NFT craze, Blue Fox Notes also talked about it before, especially the high price auction of Beeple’s NFT, the rise of NBA Top Shot and CryptoPunks, which made the NFT trading volume soar. In addition, some NFT platforms, such as OpenSea, Rarible, Nifty Gateway, Superare, etc., have also risen rapidly. This area shows the momentum of early DeFi development.
Although the market has recently entered a relatively cool period, in the last 30 days, there are still over 95,000 transactions and over $248 million in sales at the time of writing, according to Nonfungible.
(Over 95,000 transactions in the last 30 days at the time of writing, Nonfungible data)
According to Cryptoslam, at the time of writing, NFT in crypto collectibles has 12 platforms with NFT sales over $1 million in the last 30 days, including Cryptopunks, Meebits, NBA Top Shot, etc.
(12 platforms with more than $1 million in sales in the last 30 days, Cryptoslam)
According to cryptoart, although the crypto art fever is decreasing recently due to the overall market, nevertheless the total sales volume in April still reached around $100 million and the historical sales size exceeded $600 million.
(Crypto art sales volume, Cryptoart)
Financial NFTs are not included here, data NFTs, music NFTs, etc. The potential in this area has not yet been fully explored and demonstrated. For example, the University of California, Berkeley, expressed data related to gene editing and cancer immunotherapy in NFT form and used NFT for auction.
(Auction of NFT data, Bloomberg)
There are even some musicians who have started to sell their new works in the form of NFTs, and the purchasers can get the royalty proceeds from the future sales of that music NFT. Such a model will have a very profound impact on the future cultural industries such as music and movies, and these are new attempts that are just beginning.
It can be expected that a large number of NFTs will emerge in the future, no matter in finance, games, collectibles, art, music, movies, data and many other aspects. It will be an extremely large market in volume.
The gradual reveal of cross-chain NFT demand in the multi-chain era
With the development of DeFi and NFT, according to the capacity of today’s Ether, it is not yet able to carry a large-scale NFT ecology. In this case, one is to adopt Layer2 approach for scaling, and another is to develop through multi-chain model. With the development of multi-chains such as Polka, Solana, Heco, BSC, etc., NFT assets on different public chains have started to grow.
In this context, protocols about cross-chain NFT are also starting to attract attention and developers are already laying out this area, among which DNFT is also a cross-chain NFT infrastructure based on the Polka ecosystem.
DNFT is a cross-chain NFT protocol based on the wave card ecology
DNFT is a cross-chain decentralized NFT protocol built based on Polka Substrate, which tries to become the infrastructure of NFT in the multi-chain era, providing a variety of basic services such as NFT asset generation, transaction, maintenance, recovery, data processing, and governance. Developers can build various products related to NFT assets such as creation, trading, analysis, derivatives, data, etc. based on the DNFT protocol. From its official information, it has been awarded Web3 Foundation Grant, Heco Grant and BSC Grant.
In short, DNFT tries to provide the underlying cross-chain infrastructure services for the various NFT activities currently available. This can be seen in its architecture.
DNFT’s architecture design
(Architecture Layers of DNFT Protocol, DNFT Protocol)
The diagram above shows the architecture of DNFT, and you can see that the DNFT protocol includes a protocol layer, a cross-chain layer, and an application layer. In the protocol layer, DNFT includes modules for NFT generation, decentralized trading, NFT maintenance, NFT recycling, NFT governance, token economy, etc.; the cross-chain bridge can connect multi-chain ecologies such as Poca, Ether, BSC, Heco, etc. to provide cross-chain liquidity for NFT; at the same time, its security can be shared and free cross-chain interaction can be realized within the Poca ecology; the application layer includes NFT market, The application layer includes NFT market, NFT game, NFT artwork, NFT data, and NFT DeFi, etc.
(DNFT main components, DNFT protocol)
It can be seen that DNFT has five main components: DataNFT, DataStorageWithTax, DataSwap, DAO governance, and AI-kit. that is, it provides infrastructure services such as NFT generation, storage, transaction, transfer, and protocol governance. In addition, its AI-kit also provides some unique services, through data ETL and data tagging, trying to create a common data framework for personal data and AI models, probably around NFT data-related plans, but the white paper does not describe more, and the details are yet to be disclosed later.
DNFT plans to integrate ERC721 and ERC1155 standards to enable more robust NFT descriptions. In the DNFT protocol, storing NFT data requires a tax payment, and not a one-time payment, but a long-term payment to support the cost of storage and thus the long-term sustainability of NFT. If the NFT holder does not pay the tax in time, its NFT will be reclaimed and auctioned.
The decentralized NFT trading of DNFT protocol is planned to provide various auction models, such as UK auction, Dutch auction, etc., in addition to the regular market buying and selling.
DNFT’s homogeneous and heterogeneous cross-chain interoperability
In the DNFT protocol, DNF is its protocol-native token. There will be ERC20 DNFs at the beginning, and when its main network is launched, there will be native DNF tokens as well. the DNFT protocol plans to build cross-chain bridges that can enable exchange between ERC20 DNFs and native DNFs.
(DNFT cross-chain layer, DNFT protocol)
In addition, the DNFT protocol uses Poca’s XCMP to achieve shared security between Poca Eco projects and interoperability between parallel chains. In other words, based on Poca ecology can realize internal cross-chain interoperability and heterogeneous cross-chain interoperability through cross-chain bridge.
DNFT protocol tokens for ecological services
The DNFT protocol has two types of tokens, a stable coin and a protocol native token. dUSD is a stable coin similar to the MakerDAO model, but it pledges DOT tokens and generates stable coin dUSD by over-pledging DOT tokens. dUSD can be used to make stable value payments within the DNFT protocol. For example, the denomination of NFT purchases can be made in dUSD instead of tokens such as DOT or ETH.
DNF, on the other hand, is the protocol token of DNFT and is used for DNFT’s governance, eco-launch and growth incentives, etc. When DNFT’s main network is launched, it plans to offer Grant’s incentive program for NFT and gaming projects, and DNF becomes an important tool for incentive. Through the DNF incentive, more projects will be introduced to the DNFT protocol, thus building the protocol ecology.
DNFT’s whitepaper mentions that the DNFT protocol will use 30% of DNF tokens to incentivize users who support it to win wave card slot rentals. In addition, DNFT also plans to run on Kusama and its token KNF will be airdropped to DNF holders.
So, what value can DNF tokens capture?
In addition to having governance value, DNF has a buyback and destruction mechanism. As we can see above, a portion of the costs generated by NFT’s transaction fees, storage taxes, and recovery auctions will go to the DAO. of course, these token economy mechanisms and DNF’s value capture mechanisms can also be upgraded and iterated through DAO governance.
DNFT protocol also uses DAO governance
DNFT also uses DAO governance. The parameters and things of its NFT protocol are selected by the project side at the project launch. the DNFT protocol will start the main network after the Kusama ecological trial run, after which its governance will gradually transition to DAO. Among other things, DNFT’s economic model, development planning, protocol iteration, treasury management, and NFT&Game incentives will be done through community decision making. The community’s decision making is done through the DNFT Board, which is composed of DNF token holders.
DNFT cross-chain NFT protocol development path design
From the planning of DNFT, there are four stages. One is the TNFT phase, which is mainly a testing phase for the core modules of the protocol. The second is the KNFT stage, which is the pre-running stage, and it will participate in the Kusama ecology and the Kusama parallel chain slot bidding.
The third phase is the official operation phase of DNFT main network, it will participate in the auction of Boca parallel chain slots and release DNFT main network at the same time. At the same time, this phase also plans to launch NFT and game grant incentive program to encourage NFT and game projects to enter DNFT’s ecology. The fourth phase is the Ethernet DNFT phase, which deploys its DNFT protocol module on the Ethernet network and explores direct cross-chain applications between the Ethernet and Polka ecologies.
DNFT products in testing
Based on the DNFT protocol, any developer can build a variety of NFT-related applications. The DNFT team is currently launching a test product of nftstore based on the DNFT protocol, which can be seen to include NFT-related content such as marketplace, mining, cross-chain bridge, games, art, and data.
(Test interface for nftsore based on DNFT protocol, DNFT protocol)
(nftsore’s NFT market, DNFT)
(nftsore’s data NFT marketplace, DNFT) Users can create NFTs, conduct NFT-related mining activities, sell and buy NFTs, participate in crowdfunding for NFT games, play NFT games, participate in NFT artwork, and NFT data-related tasks on it. nftstore is currently in beta.
Currently Ether is one of the strongest network effects among smart contract platforms, but due to its scalability, other chains have seized some opportunities in this window of time when DeFi and NFT exploded. Moreover, with the arrival of polka and smart chains, the multi-chain era will become a reality to some extent. In such a scenario, the demand for cross-chain NFT is gradually showing up.
People issue their NFTs on different chains, and there is also a demand for NFT asset interaction on different chains. DNFT is a cross-chain decentralized NFT network based on Substrate, which tries to provide infrastructure services for cross-chain NFTs, including NFT generation, transaction, maintenance, DAO governance, etc. Among them, from its products, besides NFT collectibles and NFT artworks, it will also extend its tentacles to NFT games, NFT big data, etc. From the trend of NFT development, cross-chain NFT is an inevitable path for its horizontal expansion, which has just begun, and look forward to more exploration of NFT landing.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/dnft-exploration-of-cross-chain-nft-protocols/
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.