Universal NFT knowledge map makes you proficient in NFT
Chapter 2 Application Scenarios of NFT
On the basis of homogenized tokens, non-fungible tokens continue to develop. Due to their indivisible, unique and verifiable characteristics, NFTs are increasingly entering people’s field of vision. Since 2017, many projects have sprung up in NFTs. According to The Block Research, there are at least 73 NFT platforms today that use NFTs in various fields. Next, this article will take you through the fourteen biggest use cases of NFTs.
Blockchain, digital art, and NFTs are gradually permeating all aspects of our lives, and the entertainment industry is one of them. NFT games based on blockchain technology are rapidly revolutionizing the traditional gaming experience, attracting more and more gamers.
The earliest landing attempt of NFT was in games. NFTs based on blockchain technology can record the status and achievements of players in the game, and save the list of items obtained in the game. NFTs ensure immutable and seamless transfer of records, guaranteeing ownership verification and authenticity of game items. At the same time, game items can also be designed to be used across games, or to have a certain exchange value!. The problem with traditional games is that these items are not allowed to be transferred, and few games allow the trade or sale of collected items, let alone use across games. NFTs provide a solution to this problem. Allows in-game assets to be transferred to other games.
用例: Cryptopunks, CryptoKitties, Gods Unchained, Axie Infinity, My Crypto Heroes, Ethermon, Blockchain Cuties, Cryptopick
Another increasingly popular use case for NFTs is art (digital art). In this form, artists can own the copyright of their own works of art, and buyers can ensure the authenticity and authority of the works of art they buy, preventing piracy and counterfeiting. Blockchain can solve the proof of ownership problem. Artists no longer have to rely on third parties for protection of their works, eliminating the medium of middlemen and ensuring more income for artists. The tokenization of digital art makes it easier to create, trade, and earn royalties from NFTs.
用例: MakersPlace, SuperRare, KnownOrigin, Mintbase, Nifty Gateway, Rarible
The following will conduct in-depth analysis and comparison of these six platforms for readers to choose their own projects and applications.
2.1 Overview of Six Platforms
Founded in 2018, OpenSea is a blockchain-based global marketplace for buying and selling digital items. OpenSea is positioned as an industry-leading decentralized exchange (Decentralized Exchange, DEX), providing peer-to-peer Ethereum non-fungible token (NFT) transactions. The comprehensive platform sells a wide variety of digital goods, including digital artwork, encrypted collectibles, game items, and more. On the OpenSea platform, users can buy, sell and exchange tokens with anyone in the world.
Nifty Gateway is a regulated, non-fungible token (NFT) marketplace built using Gemini’s backend infrastructure. On the platform, users can buy NFTs with a credit card and cash out directly into a bank account when they sell.
Nifty Gateway is an extremely active and innovative platform with all its services now available to international users. Users only need to sign up with an email address to start trading NFTs. Recently, Nifty Gateway also updated the secret function – Prepaid ETH, hoping that Ethereum users and credit card users are in the same interaction speed environment, and it only takes one second to see whether they have received artwork. This feature connects the new Ethereum custodial wallet Gemini to the Nifty Gateway account. The prepaid feature will be simple to operate, making platform transactions as easy and fast as checking out with a credit card, if not better. With the Ethereum advance feature, there is no need to wait for block confirmations as before. The block is confirmed during the deposit, which allows transactions to be confirmed in milliseconds by the backend. Using the Ethereum prepay feature is also a good way to avoid the drawbacks of credit card authorization in bidding; every transaction made with a credit card will be charged an additional fee equal to 10% of the bid amount. With the Ethereum prepaid feature, the balance is already in your account, so no authorization or hold is required.
Launched in 2016, MakersPlace is a blockchain-based, full-service platform for artists and creators to mint NFTs that represent their work. Using blockchain technology, every digital creation a collector acquires through MakersPlace is a unique digital creation signed and issued by the creator. Even if someone else copies the digital work, it will not be an authentic or original signed version. The platform connects artists with art lovers and collectors through a marketplace and a network of partners. With MakersPlace, artists are better able to capture the full potential value of digital work.
Last year, MakersPlace officially launched after a year-long beta test. The platform’s founders, Dannie Chu and Yash Nelapati, who have worked at Pinterest, discovered Pinterest’s shortcomings in providing a way for creators to monetize, so they founded MakersPlace, a trading platform for digital works.
Rarible is an NFT issuance and exchange platform that creates and sells digital collections secured by the blockchain. The platform is an open-source, non-custodial platform for users to mint, sell, and create collectibles. Any user can enter Rarible to create and display their own artwork, and they can also use Ethereum tokens to buy artwork for collection. The user owns the ownership and intellectual property rights of the tokens. Buyers and sellers can trade collectibles on the Rarible NFT marketplace for almost negligible cost.
Rarible also released its own native governance token, ERC-20, in 2020, improving the sales process and sales conditions in this marketplace, reducing the cost to users to almost zero.
Founded in 2017, SuperRare is known as an Internet digital art market with a global network of digital artists, with nearly 700 artists. SuperRare is based on blockchain technology and follows the ERC721 standard. The complete history and origin of artworks can be traced on the distributed ledger, and no one can cheat or cheat.
Rare digital artworks can be easily created, sold, and collected on this platform, while enabling artists to obtain new sources of income, and providing collectors with a place to store or trade artwork assets, ensuring the scarcity and originality of works. And solve problems such as copyright traceability. Artists can auction their creations or sell them for a fixed price. Once NFTs are sold, they can be resold at any price on various NFT trading platforms. The platform has come a long way since its inception.
VIV3, which was just released this year, is the first comprehensive market on the Flow public chain. VIV3 was founded as the beginning of a shift from physical ownership to digital ownership, with the aim of enabling a billion people to create, trade and own the world’s most valuable works. Flow is a highly scalable, composable smart contract platform that delivers the performance required by mainstream applications without compromising decentralization.
Artists, game studios and brands use VIV3 to mint unique tokens on the Flow public chain; each token is an NFT representing their digital creation. These NFTs are purchased by fans, collectors, gamers and digital asset traders.
VIV3 has been in beta for the past month. During this period, 115 works of art were minted and put on the market, of which 29 were purchased in just one month. The project is still in its infancy and there is less information about it.
2.2 Project Features
Currently, OpenSea is the largest decentralized digital goods marketplace with more than 700 items, including trading card games like Gods Unchained and CryptoSpells, as well as collectible games like Axie Infinity and CryptoKitties. Goods come in multiple categories, fully tokenized and digitized. Since the proof of ownership and transaction records are permanently stored on the blockchain, users can become the legal owners as soon as they pay. Unlike physical items, digital items cannot be stolen and sold elsewhere because the record of ownership and all subsequent records of ownership are permanently recorded on the blockchain.
Nifty Gateway excels at spotting hot spots in celebrity collaborations, creating and releasing exclusive tokenized collectibles. The company rolls out new NFTs roughly every three weeks. Notable works include the platform’s collection of collaborations with former UFC women’s lightweight champion Cris Cyborg and photographer Lyle Owerko. This year, Nifty Gateway tweeted that the creators of Rick & Morty would also be selling their NFT artwork on Ethereum.
MakersPlace provides a platform for artists to sell their art works online. Artists do not need to have an in-depth understanding of blockchain technology. They only need to provide a photo ID to obtain the generated ERC-20 tokens in MakersPlace to carry out works. trade. Artists can keep the currency in their own digitally encrypted “wallet”, or they can choose to use a wallet provided by MakersPlace.
At the same time, MakersPlace will also generate blockchain fingerprints for each work of artists and creators, proving the identity and origin of the work, and making fingerprint verification a symbol of the uniqueness of the artwork.
The decentralization feature of Rarible is very obvious. Decentralized exchanges will delegate governance to all who hold governance tokens, and the only way to earn those governance tokens is to buy them on a crypto exchange. While these tokens are nominally used for governance, many holders actually use them for profit. The decentralized model plus governance tokens allow users to manage the development and decision-making of the platform, allowing the most active players to vote for any platform upgrade and participate in management and auditing.
Counting the features of Rarible, it is not difficult to find that the platform lowers the threshold, which greatly facilitates the process of users creating and minting their own digital tokens, providing a convenient user experience for non-coders, and the transaction cost in the peer-to-peer model. Low.
What makes SuperRare unique is that while anyone can buy and hold Ethereum tokens, only invited artists can create artwork on the platform. To apply to join the network as an artist, you must complete an application form. SuperRare requires that all artwork created on the platform be original and not tokenized elsewhere on the internet. The high threshold requirements for artists to settle in have largely guaranteed the quality of artworks.
One of the most striking features of VIV3 is its composability. On VIV3, all of each creator’s work is minted by their own blockchain smart contracts. That is, any application in the Flow ecosystem can directly integrate with individual artist contracts without affecting the entire market pool. This enables countless new use cases to build on top of a single asset or collection, unlocking unprecedented experiences.
2.3 Commodity types
Covering the widest range of categories, the largest number of transferable digital collections, and the lowest prices, OpenSea is an excellent and secure platform for specific blockchain assets. The platform has built an extremely active developer community by attracting passionate users. OpenSea mainly sells digital artwork, crypto collectibles, game items and other digital assets built on the Ethereum ERC-721 and ERC-1155 standards, including trading card games such as Gods Unchained and CryptoSpells and Axie Infinity and CryptoKitties (CryptoKitties). ) and other favorite games. OpenSea is also the main marketplace for big games like My Crypto Heroes, Etheremon Adventure, CryptoVoxels, ChainBreakers, CryptoBeasties, Ether Kingdoms and more.
The Nifty Gateway platform can be used to purchase and manage NFTs. Currently supported cryptocurrency games and applications include CryptoKitties, OpenSea, Gods Unchained and other projects. Nifty Gateway has certainly made waves in cryptocurrency over the past year.
The Nifty Gateway platform witnessed the successful auction of crypto artist Beeple’s artwork THE COMPLETE MF COLLECTION, which sold for $777,777, the most expensive crypto artwork to date; artist Trevor Jones’ work “Picasso’s Bull” Sold to Pablo Rodriguez-Fraile of the Museum of Crypto Art (MOCA) for $55,555.55, breaking all previous records for the sale of digital artwork in the form of NFTs. Such successful auctions signal a bright future for NFTs and make Nifty even stronger.
Blockchain technology powered by MakersPlace provides digital artists such as proof of authenticity, ownership and scarcity.
Through MakersPlace, creators can better capture the full underlying value of digital works. MakersPlace has partnered with thousands of amazing digital artists, helping them trade their unique artwork. The platform is easy to use and the transaction process is very smooth, providing a one-stop comprehensive experience for both shoppers and sellers.
Art creation activities on Rarible are very active. For example, billionaire and Dallas Mavericks owner Mark Cuban once released his encrypted art NFT “The RollUp 2021”. Cointelegraph has also conducted single-edition NFT auctions of well-known artworks on its platform, including “The Last ICO” inspired by Italian painter Leonardo da Vinci’s “The Last Supper”, according to French painter Henri Marti “Silent Disco” adapted from “La Danse” by St.
SuperRare’s platform artworks are positioned as high-end and have high requirements for artists to enter, which ensures the high quality of artworks to a certain extent. At the same time, SuperRare’s good community building and regular high-quality digital art exhibitions have effectively expanded the coverage of digital art, gradually becoming the cornerstone and standard of the digital art industry. The SuperRare on-chain art gallery has functions such as exhibitions and auctions of offline art galleries, and uses NFT to ensure the originality of works and protect the intellectual property rights of artists.SuperRare has held its China debut with ArtGee, ChainNews and Digital Renaissance in Shanghai, inviting ten mainstream crypto artists with diverse styles and creative techniques to exhibit, including Pak, Esteban Diacono, etc. The event is dedicated to promoting and raising public awareness of NFT artwork, bridging the gap between artists and those in the blockchain field.
VIV3 had 29 pieces for sale last month. Some of the early adopters of VIV3 are well-known artists such as Anne Spalter.Anne Spalter is a mixed-media digital artwork creator known for her large-scale public works in New York and Hong Kong.
2.4 Token Release
Currently, among the six platforms, the top five tokens on the NFT rankings are RARI, the native token of the digital collection and trading platform Rarible.
RARI is an ERC-20 governance token released by Rarible in July 2020. RARI integrates several hotspots of DeFi + NFT in 2020, combining digital collections with farming income and liquid mining. Users will be rewarded with RARI governance tokens as long as they use the platform. RARI mainly focuses on user-generated art works, using NFT to provide proof of provenance and guarantee the intellectual property rights of users’ new artworks. In addition, RARI improves the sales process and sales conditions in this marketplace, reducing the cost to users to almost zero and incentivizing user participation.
RARI’s use cases include governance, management, and featured artwork voting. Traders can also keep an eye on other platforms’ platform tokens, or add author Sophia (ID:lovebit98) to get the latest news.
2.5 Commission Collection
At present, compared with other traditional platforms, OpenSea charges relatively high commissions. The buyer’s transaction fee is about 2.5%. Other commission charges, such as game items, need to be charged 7.5% of the game project party’s fee. Sotheby’s and Christie’s auction art collections charge a buyer’s commission of about 12-25%, and a seller’s commission of about 2%-9%. Therefore, compared to traditional art auction houses, this commission price is also relatively low.
Makersplace encourages artists to sell their work on the platform, earning a 15% commission on digital art transactions.Rarible Marketplace recommends that creators set royalty amounts at around 10%, 20%, and 30%.
For the first sale on the SuperRare test platform, creators get 85% commission and the platform gets 15%. On any subsequent sale, the creator gets a 3% commission. To date, the artist has created more than 5,000 artworks on the SuperRare platform, charging over $500,000 in fees.
2.6 Development Team
In January 2018, Alex Atallah and Devin Finzer laid the foundation for the OpenSea platform. With backgrounds in Palantir, UC Berkeley, Google, Stanford, Facebook, and Pinterest, the duo is a strong team with deep expertise.
Nifty Gateway was acquired by Gemini cryptocurrency exchange “Bitcoin billionaire” twins Tyler and Cameron Winklevoss in 2019, the exchange’s first acquisition. Coincidentally, the founders of Nifty Gateway are also twin brothers – Duncan and Griffin Cock Foster.
MakersPlace’s main founders, Dannie Chu and Yash Nelapati, were both previously engineers at Pinterest. Another co-founder, Ryoma Ito, has held key product/marketing positions at various start-ups.
Rarible’s co-founders are Alexei Falin and Alexander Salnikov. Alexander Salinkov has a technical background of over 7 years and has also worked on some well-known crypto projects, including Humaniq.
SuperRare was founded in 2017 by John Crain (CEO), Charles Crain (CTO) and Johnathan Perkins (CPO). They are also the founders of Pixura, a platform for creating, tracking and exchanging encrypted digital collections.
The CEO of VIV3 is Daniel Podaru, developed from the original team of CryptoKitties, bringing together a unique culture and technology. Through unremitting efforts, the VIV3 team has gradually grown its user base to over 3 million.
2.7 Participation methods
Opensea’s platform transactions are conducted through smart contracts, which means that users’ NFTs will never be taken care of by any central authority. It also means that the parties to the transaction can trust that the transaction will proceed as agreed, without the need for an intermediary. NFTs can be stored in software wallets such as Enjin Wallet, Coinbase Wallet, Opera Touch, and even chrome plugins for browsers such as MetaMask. Likewise, trading on Rarible still requires pre-registration of MetaMask.
MakersPlace In order to purchase digital works on the blockchain, users need a digital wallet and cryptocurrency for storing and purchasing works respectively. However, most people in the world do not have digital wallets and ether, making it difficult for creators to sell their work to fans and collectors. To address this, MakersPlace has partnered with Stripe to support global credit card payments for digital works.
Similarly, platforms such as Nifty Gateway, SuperRare, etc., currently allow users to purchase items with a credit or debit card.
Key OpenSea partners are Quantstamp, BlockStack, Blockchain Capital, Trust Wallet, Combinator, Coinbase, Founders Fund and 1C. OpenSea has worked with game developers to create customizable online stores for users to automatically buy and sell their crypto collections.
MakersPlace has many partners, and the cooperation is very popular. One of the hot partners is Decentraland.MakersPlace has added all of its works to the market section of Decentraland, with the theme of authentic and unique digital works, digitally signed and verified through the blockchain, and deserves to be the gathering place of the world’s highest quality and rarest digital art works. Interested readers can visit the MakersPlace VR Gallery.
Rarible has been favored by many investors and has also carried out many cooperation projects. Rarible has partnered with DeFi project Yearn Finance to issue insurance in the form of tokens, and Yearn Finance’s yInsure will allow users to purchase tokenized insurance for various DeFi activities through the Rarible marketplace.
In 2019, SuperRare teamed up with DADA.art for an event at London’s Tate Modern, creating artwork for the first time in a world-class museum and then making it immediately available to collectors around the world. Like MakersPlace, SuperRare has also worked with Decentraland and attracted a lot of attention.
VIV3 is still in its infancy, but it’s not hard to see that the platform’s ingenuity and huge potential will attract more and more quality partners in the near future.
The NFT marketplace promises to open up a world of virtual collectibles to music fans. In the K-pop realm, many fans have embraced the NFT collectible format—independently released albums are highly sought after. Musicians can create digital goods to sell, and they can decide how many versions are made available in perpetuity before the work is released to the market. NFT platforms can not only bring sales to musicians, but also bring better revenue than music platforms such as Spotify and iTunes.
Use Cases: Rocki, Rarible, Mintbase
The combination of NFT and music is a major trend at present. This article will detail how NFT empowers music artists, what advantages the combination of NFT and music has, and what changes it will bring to the music industry.
1. What is encrypted music
In the world of NFTs (Non-Fungible Tokens), there is a growing community of visual artists who embody digital provenance in their art by minting NFTs using blockchain technology (such as the Ethereum network’s ERC-721 standard). middle. At the same time, there is a much smaller community of music artists experimenting with this, minting NFT collectibles often described as “audio NFTs” or “crypto music.”
NFTs were originally static, but we have seen their gradual evolution from still images to looping gifs and mp4s (audio NFTs). Except for the file format, audio NFT is technically no different from other NFTs. It mainly realizes multi-dimensional presentation by fusing audio clips with underlying images or videos.
Take the first NFT music album “Audiovisual” released by Studio Nouveau in the summer of 2020 as an example, this album consists of 10 multimedia music videos. Each video is an NFT minted on SuperRare. The first 9 videos are a combination of visual effects (abstract digital sculptures placed in an artificial intelligence landscape), music and video effects, and the 10th video represents the album cover.
The work also contains the Ethereum transaction information of each work in the album, and records the minting process of each NFT track. In the NFT art world, a common slogan is: “Anyone can see it, only one can have it”. This means that anyone can watch and listen, but only one person can have ownership of these audio NFTs. This uniqueness of NFTs holds great magic for the music industry.
2. Background of the development of encrypted music
In the past, in addition to going to live shows, people needed to buy vinyl records, tapes, CDs, etc. to listen to their favorite music. This creates a controlled supply and demand dynamic that generates revenue for record labels and sound engineers. But as digital music downloads exploded in 2000, it evolved into the streaming platform many people use today.But once music recordings are released on the Internet, it’s nearly impossible for artists to earn income as they did in the early days of the music industry. Artists are struggling for a living, more than ever.
Streaming, while the main source of income for artists during the pandemic, is barely profitable, and on digital service providers (DSPs) such as Spotify, royalties are only a few thousand dollars per million plays. In fact, 80% of music revenue comes from touring, but that revenue stream was quickly put on hold due to the impact of the pandemic. Under the influence of various factors, musicians lack a reliable source of income, and the number of broadcasts will only create the illusion of a new influx of fans.
It’s time to empower musicians, it’s time to give them control over their work and let them make money off of their music.Pay-to-play models have become commonplace, and NFTs are the latest way to empower musicians. NFT works have digital provenance, scarcity and collectability. Audio-visual collectibles sold in rare quantities in NFT markets such as SuperRare are very sought after, bringing huge profits to musicians. Earlier this year, RAC broke SuperRare’s sales record with the sale of Elephant Dreams to famed NFT collector Max Stealth for 70 ETH.
It can be seen that the combination of music and NFT has become a new trend.
3. Crypto music is growing rapidly
Recently, DJ 3LAU, which has entered the world’s top 100 DJ list, also launched its first music NFT on the Nifty Gateway platform. 3LAU’s song is called “Everything”, the open version is priced at $999 for a single NFT, and 175 pieces were sold in 9 minutes, with a total amount of $174,800. Buyers will get an art NFT, a music NFT, and a physical music display, and collectors can scan the code to listen to the music.
Last year well-known electronic musician deadmau5 has released his limited edition series of NFT collectible cards on the WAX blockchain. The combination of NFT and the music industry seems to be the general trend. The release of musician deadmau5 will be a starting point and a demonstration of NFTization in the music industry. These cases show that more musicians will participate in the NFT field in the future, and music and NFT will have a broader and deeper integration.
As NFTs entered the music industry and became the focus of attention, a blockchain-based music NFT platform ROCKI came into being. ROCKI, a music streaming service and digital payments ecosystem, launched in the fall of 2020 to solve the music industry’s thorny issues of platform playability and revenue distribution among participants. Powered by the ROCKS token, ROCKI will be the first platform anchored by NFTs to inspire musicians and listeners.
Artist GuyJ released his first NFT music, CottonEyes, on the ROCKI platform last year. The song has an ERC721-NFT on the blockchain, marking its digital rights. This CottonEyes NFT auction was held at bounce.finance. After more than 10 hours of multiple bidding by participants, a collector finally bought this NFT at a price of 40 ETH.
ROCKI CEO and co-founder Bjorn Niclas is excited about the auction. “This is the first successful transaction of ROCKI Music NFT, which will open up new revenue channels for many artists, while enhancing the interaction and participation of fans and creating other values. Next, ROCKI will issue two NFTs, namely ERC- 1155 Music NFT and ERC-721 Music NFT, owning ERC-1155 NFT can get the right to listen to the song, and owning ERC-721 NFT can get the copyright income of the song.”
Niclas said: “By the end of the platform’s closed beta, ROCKI has attracted thousands of independent musicians and more than 30,000 tracks. This development process is obvious to all users of the ROCKI ecosystem. The ROCKI platform has launched a public beta access version, allowing All indie musicians and their fans who pursue the NFT function of music can experience the charm of NFT + music for themselves.”
The model of NFT + music has not only attracted many well-known musicians, but also many novel projects have been produced one after another, injecting new impetus into the NFT industry. In the future, it can be predicted that in addition to the two major development directions of games and artworks, music is also an important development trend of NFT.
4. A brief introduction to the development of NFT music industry
As digital trends continue to dominate traditional industries, platforms such as Spotify, Soundcloud and others have created new channels for musicians to monetize their music and increase exposure. Next, NFTs provide a similar solution through blockchain technology, allowing musicians to attract fans in a whole new way and earn more money.
Musicoin was one of the first projects to cater to new developments in the music industry, providing a free platform where artists could gain direct support from fans. New platforms such as Rarible, Nifty Gateway, OpenSea have cornered the market and created the NFT craze, and these platforms also offer a wide range of NFT products.
Since the end of 2020, NFTs have taken the music industry by storm. With the pandemic putting many shows on hold, musicians are increasingly eager to earn more royalties from streaming services. This is where NFTs come into play, offering new opportunities to monetize music.
The NFT music market is constantly expanding as demand increases and new projects are developed. The blockchain can authorize musicians to hold their music or videos through private keys, and with NFT distribution, buyers will be entitled to their unique copies.
In December 2020, Deadmau5 became the first major player in the industry to go the NFT route, auctioning off a set of collectibles called “Rarez”. The collection does not include musical compositions, but has fun objects like artwork, stickers, and more. Later that month, he again sold a single copy of In Titan’s Light for a whopping $80,000.
Electronic record label Monstercat soon joined in, selling a Varien-produced soundtrack for over $500,000. Linkin Park frontman Mike Shinoda sold a 37-second audio clip of “One Hundredth Stream” for $30,000. Shawn Mendes has not released NFT music, but has already made over $600,000 from selling other collections.
Dance duo Disclosure performed their new song NFT-NRG on Twitch, and the NFT version quickly sold for about $69,000.Famous electronic producer 3LAU received $11.6 million after selling 33 NFT works.
Finally, there is Kings of Leon mentioned at the beginning of the article, the first big hit band to sell an entire album in the form of NFT, sales have exceeded 2 million US dollars, and will continue to soar for the foreseeable future.
NFT cannot solve the livelihood problems that all artists are facing or have faced during the epidemic, but it still provides them with new opportunities and possibilities.
5. Why the music industry loves blockchain and NFTs
Grammy Award-winning British singer Imogen Heap said, “Blockchain allows artists to control their music and what they want to express on a larger scale.” Its many advantages include: 1. Artists are independent of their income. 2. Brand-new revenue streams; 3. Solving royalty challenges; 4. Digital ownership.
The music industry is a “superstar economy”, and a work goes from zero to complete, which involves record companies, musicians, performance managers, entertainment companies, etc., and very few musicians can personally obtain considerable benefits from the work. According to the “Investigation and Research Report on the Status of Musicians’ Survival and Copyright Cognition” by Communication University of China, nearly 30% of musicians have not received a penny of income from music, and 70% of musicians must work part-time. According to Digital Music News, more than 90% of musicians are unknown, and those who succeed tend to take only 12% of the money the music industry makes.
Take Fenix, an Ethereum-based one-stop platform, for example, Fenix can meet the needs of all artists and fans. It has both mobile and PC applications, integrates all the musicians’ social media platforms, video, audio players, users can listen to their music and interviews, and can buy the musician’s products and tour tickets. Musicians and bands can view in-depth analysis of user engagement, while also gaining access to a range of services including marketing, social media, graphic design, tour itinerary services that can be paid in native FENIX tokens. On top of that, the artist is paid fairly and gets about 87% of the profits.
It is worth noting that all services are centralized on one platform, which is novel and efficient, eliminating many intermediaries and reducing the time and economic costs caused by intermediary agencies such as many social media and integrated systems. The phenomenon of reducing the share of middlemen will make the contributors of music creation mainly beneficiaries, thus ensuring the maximum income of the musicians.
Musicians account for only 12% of $40 billion in US music industry revenue
new revenue stream
The production threshold of NFT digital assets is low, and it is also convenient for resale transactions with buyers all over the world on the Internet. With the high following of fans, the NFT issued by musicians has great potential for appreciation, and NFT has become the latest trend for musicians. Also the fastest source of income.
Little white fans who don’t understand blockchain don’t have to worry about how to buy. Take the deadmau5 digital collection card issued on WAX as an example. Deadmau5 fans can pay for purchases directly with a credit card without converting cryptocurrencies. After a successful purchase, fans can easily and freely trade with other collectors and showcase their rare cards on multiple WAX marketplaces and social media platforms, as well as resell them on the secondary market.
The royalties are in the “credits list” issue. Almost all song recordings are done in collaboration with lyricists, singers, musicians, producers, sound engineers and others. All contributors associated with the song shall be paid royalties when the song is played, performed live. But many producers or songwriters don’t get royalties at all. When faced with violations, there is nothing they can do. While not getting royalties, artists are completely unable to control their own income. Artist royalties go through multiple intermediaries, each with its own accounting process, fee structure and reporting standards.
In the music industry, blockchain has the ability to transform the distribution of music and facilitate its monetization. The transparent system created by the blockchain can track song ownership, digital assets, etc. Copyright will be automatically assigned to everyone who contributes to the album.
Additionally, musicians typically wait six months to a year to receive royalties from streaming and distribution companies.With the use of blockchain and smart contracts, payments for each streamer will be instantly credited, and musicians will have the capital to further invest in their careers.
Another interesting new option with the use of blockchain in the music industry is shared ownership of music.
“Bringing Liquidity to the Music Industry” is the manifesto of ANote Music. ANote Music, a European marketplace for investing in music royalties, launched at the end of July 2020. ANote Music allows users to invest in the music ownership of their favorite independent musicians and profit from royalties. As a great way to earn passive income, ANote Music provides musicians, publishers or record labels with a transparent record of music ownership rights on the blockchain, where the value of ownership is entirely determined by supply and demand.
One of the biggest obstacles to music artists in this day and age is the difficulty of getting paid when songs are played.Over the past few years, illegal downloads have been at their peak, streaming has become incredibly easy, and the entire music industry has lost millions every year. The main source of income for artists is ticket sales for live performances, but the pandemic has made the music industry more difficult than ever.
With the introduction of blockchain in the music industry, using or listening to music released by artists on the blockchain will be paid through encrypted, secure, and immutable smart contracts. The blockchain can be seen as a transparent ledger showing every transaction and movement of a song. On a public blockchain, both artists and fans can see where and when a song was played.
6. Platforms for buying digital music collections
OpenSea, the largest NFT marketplace by transaction volume, launched in 2018. OpenSea has a large collection of NFTs ranging from artworks, collectibles to domain names and more, and 2017’s popular CryptoKitties are also sold on this platform.
Nifty Gateway is a popular platform where users can buy and trade NFTs. Rarible is an emerging marketplace for the creation and sale of NFT artwork while having its own governance token, RARI.
In recent months, Blockparty has also launched its own NFT marketplace aimed at bridging the gap between fine art and digital collectibles. The Blockparty marketplace also offers fans the opportunity to acquire rare collectibles, memorabilia, and merchandise from their favorite icons in the music, arts, and sports industries.
Launched last July, the Cargo blockchain allows developers and digital creators to define, mint, sell and trade digital assets, or NFTs, on the blockchain. The Cargo SDK (Software Development Kit) allows creators to replicate projects at scale at low cost, with the ability to update metadata for millions of NFTs at a cost that suits them.
7. Reshaping the future of the digital music industry
Unique artworks and collectibles are more concrete expositions of blockchain concepts than empty and tedious explanations of monetary history, global economics, and monetary policy. Although the NFT art market is still relatively small, its booming development has reduced the value of the global art market by 5% in 2019.
More than half (57%) of 18- to 24-year-olds prefer to buy collectibles online, and as more people begin to understand and use blockchain, the growing, online art and collectibles market (currently has exceeded $4.8 billion) will continue to boom.
Therefore, whether blockchain can be a way to revitalize the entire music industry, only time will tell. However, it is clear that blockchain technology can bring unprecedented surprises and challenges to the music industry.
8. NFT + Music Industry Development Potential
As we all know, non-fungible tokens have made huge waves in the art world. In the music industry, the hurricane effect of NFT is also on schedule. Data collected by Water & Music shows that in February 2021 alone, the NFT music industry has made nearly $22 million in profits.
One of the best ways to learn about the NFT music industry is to follow some of the key early players emerging in the space, who are also leading the way as music NFTs expand rapidly. Statistics from Water & Music show that the sales of music NFTs have increased by 150 times in the past six months. It seems that every musician and music company is trying to get in on the action.
Music NFTs can take many forms, including but not limited to concert (virtual and physical) ticket sales, sample packs, previews of unreleased songs, artwork, and more. As music NFTs continue to grow, the potential uses of the technology will rapidly expand beyond how NFTs are used today.
9. Why buy NFT version music?
The album When You See Yourself has been released on streaming media platforms such as Spotify and Apple Music. It has also been released on QQ Music. YellowHeart (a blockchain-based streaming media platform) provides the NFT version of the album.
Many people will ask, since traditional platforms can find audio sources, why buy the NFT version?
For some, there is no doubt that NFTs are new and cool, with a $50 package that, in addition to electronic album download rights, includes a limited-edition physical version of Golden Eye vinyl, as well as a one-of-a-kind NFT album collection. In addition, in the NFT Yourself series, Kings of Leon also released an auction of six “golden tickets”, and fans who auctioned tickets can enjoy the first four rows of their concerts for life. The underlying blockchain technology of NFT enables the direct transfer of golden tickets to fans’ digital wallets.
NFT albums are still a relatively new concept in the music industry, and to those unfamiliar with the NFT industry, it’s a lot like explaining the internet to someone who had never seen the internet in the 90s. The highly conceptual and unprecedented innovation of NFTs is still novel to many people. By purchasing NFTs released by their favorite musicians, to some extent, this emerging concept can be understood in the most direct way.
NFTs, “non-fungible tokens”, are often limited in number or unique, which is precisely the key to the fan economy – from idols, limited and precious. Most musicians release songs or albums in a limited format, creating unique, marketable digital merchandise, artwork, and unique musical experiences for fans.
Although NFT is a digital commodity, the underlying logic of buying NFT is actually similar to buying physical commodities.For example, even if an album is available online for free or for a small fee, many fans will still want to buy a limited-edition vinyl record.
The popularity of NFTs has something in common with those brands that rely on marketing-driven. There’s nothing special about the Supreme T-shirt, but it’s still special because it’s only available to a select few. Supreme’s limited releases, collectors’ limited vinyl records, and the rarity of NFTs make them a status symbol and memento.
Paying sky-high prices for rare and exclusive music is not unheard of. Former pharma CEO Martin Shkreli paid $2 million for the Wudang sect’s only album, Once Upon A Time In Shaolin. A humble single by British DJ Scaramanga Silk recently became the most expensive vinyl record on Discogs, selling for over $40,000.
Some musicians are using NFTs to offer their supporters unprecedented experiences, including front-row tickets, personal memorabilia, and more—all in all, a rich and unique endeavor. So the next time you buy an NFT from a musician, remember to buy something unique.
10. Investment Purpose
Some people may buy NFT assets for investment purposes, hoping that the NFT they hold will maintain or appreciate in value in the future and can profit from resale. The volatility and uncertainty of NFTs make NFT holdings somewhat riskier than some traditional investments, but for many investors, they are willing to take that risk.
As mentioned above, NFTs can be simply viewed as a hybrid of “digital assets + authentication certificates”, which holds great promise for any use case that can connect the real world with NFTs. Because NFTs are verifiable and extremely secure, musicians can better retain fans and create new ways of interacting, not only to gain more copyright revenue, but also to reduce the traditional inherent costs. Simply put, NFT+music is actually connecting music—songs, albums, etc.—with NFTs.
11. How does NFT empower musicians?
For musicians, NFTs offer exciting possibilities to tokenize their work in entirely new ways by removing some of the middlemen and third parties in the industry. For example, Linkin Park co-founder Mike Shinoda once auctioned off a 37-second trailer for an unreleased song, complete with an audiovisual NFT animation, for up to ¥30,000.
The point is, if the full version of the song is sold to the leading DSP entertainment company, most musicians are far from earning $10,000 after DSP and the label’s cut plus marketing expenses. For most musicians, company managers, record labels, publishers, etc. make far more money from their music than the musicians, leaving them with only a fraction.
After electronic artists first joined the NFT music industry (such as the top earners 3LAU, Deadmau5, etc.), musicians of various genres are also joining the nascent industry, including Kings of Leon.
It also opens up new possibilities for musicians. Grammy nominated musician Illmind recently released the world’s first beat sampling pack as an NFT. Anyone can listen, but ownership and usage rights go to the highest bidder. This sales model could have a major impact on how music is licensed and sold.
Currently, music licensing and transfer of ownership is a rather cumbersome process for labels, publishers and their lawyers, and manual removal of sample usage or transfer of ownership can even delay the release date of the music. But using NFT can make music authorization and transfer as convenient and fast as online shopping, and document transfer is efficient and secure.
“YellowHeart’s mission is to create a symbiotic relationship between artists and fans, empowering them to sell music and tickets directly to fans,” said Josh Katz, CEO and founder of YellowHeart.
“With NFTs and smart contract technology, we’re changing the way fans interact with artists. We’re excited to partner with Kings of Leon to create a transparent, fan-friendly experience that ultimately puts control back to artists and fans.”
As the COVID-19 pandemic hits the music industry hard, NFTs are increasingly seen as a new way to reduce digital piracy and help generate revenue for musicians.
12. How does NFT empower music companies?
Shawn Mendes manager Andrew Gertler has partnered with creative direction agency STRODY to launch a new NFT music marketplace called STRODY.Exchange, becoming one of the industry leaders. Before that, Gertler and Mendes had also ventured into the NFT market, selling exclusive accessories such as digital signature guitars with Fender.
Creative studio, record label, management company IAMSOUND, in collaboration with record label 88Rising and Zora, will host the first NFT art exhibition with Toro y Moi, Yaeji and Mura Masa in February 2021. One of the best-selling artworks, Yaeji’s digital pet fish sold for the equivalent of $27,000.
Warner Music Group has also been a supporter of NFTs for many years. In September 2019, long before the NFT music hype started, Warner’s Innovation and Emerging Technologies division invested in Vancouver-based Dapper Labs – founder of CryptoKitties. Cryptokitties, a game that allows users to trade and sell virtual cats, the first non-fungible token game project. A year later, the two also teamed up with Warner-signed rock band Muse to launch two limited-edition NFTs inspired by the band.
13. NFT music platform
If the above introduction has given you a basic understanding of the NFT music industry, then Sophia (ID: lovebit98) will take stock of two relatively well-known NFT music platforms – ROCKI and Audius, to help you learn more about NFT music platforms How to empower fans and musicians.
ROCKI is a digital music streaming service and payment network, the largest music platform on Binance Smart Chain, that aims to reward musicians directly through its in-app native token $ROCKS. The platform uses a hybrid user-centric operating model, where musicians can be rewarded with tokens. Notably, ROCKI is the first platform to reward both musicians and listeners for engagement.
ROCKI has launched two unique music NFTs on the ROCKI platform – ERC721 “Royalty Income Right” NFT and ERC1155 “Exclusive Listening Right” NFT. Its unique hybrid subscription model allows musicians to earn streaming revenue in monetary terms. The user-centric payment model, often referred to as the fairest payment model for online streaming, has garnered widespread media attention, driven by French streaming giant Deezer.
ROCKI opens up new revenue streams for artists while bringing new levels of fan engagement and value. The exclusive listening privilege of releasing music NFTs on ROCKI and the right to receive royalties from music NFTs are the next development goals of ROCKI.
On ROCKI, regardless of the size of the initial audience of musicians, they can use their existing fan base to introduce music NFTs and unique payment models, allowing musicians to earn income even in uncertain times when the epidemic is still raging.
Additionally, ROCKI expands the definition of “fan-centric” by rewarding listeners with ROCKS tokens on the ROCKI platform for listening to sponsored and curated music. Listeners can earn ROCKS tokens when they create playlists, provide feedback, and host social events, a precedent set by the streaming platform.
ROCKI attempts to solve the following problems:
- Eliminate middlemen and third parties, allowing fans and artists to build relationships directly
- Working with musicians who own their music entirely, known as indie, is by far the fastest growing category of musicians.
- Use the power of blockchain to handle operations: transparency, security, trustworthy contracts, finance.
- Pay streaming royalties with a hybrid model and share the majority of subscription revenue with musicians.
- Reward listeners and engage more users.
Meanwhile, through Bounce.finance, the company successfully auctioned off royalties for Israeli progressive house DJ Guy J’s song COTTON EYES, which sold for a record 40 ETH. This new exclusive track sold for a record 40 ETH (approximately $24,880 at the time of writing) for 50% of the work’s future ERC721 royalty income rights, auctioned through the decentralized auction protocol Bounce.finance.
The platform’s native token, ROCKI, provides rewards for early participation of musicians and listeners, and the characteristics of the token can also encourage token holders to use the token not as a speculative asset, but to explore utility functions on the platform. For those individuals and collectives who can help the operation of the platform, ROCKI will also issue tokens as rewards. In addition, ROCKI tokens are designed to build active and active communities and are an important part of the platform’s development.
The platform’s coronavirus-hit artists and musicians have provided a much-needed revenue stream. Although the platform is still only in beta, as of December 2020, the platform has thousands of independent artists and more than 30,000 tracks.
Audius is a decentralized streaming platform that runs on multiple nodes to ensure music is fully owned by the musicians themselves. With over 3 million monthly users, the platform aims to replace Spotify and SoundCloud. The platform opens up new possibilities: bringing your own NFT library into the network.
The platform bills itself as “the cornerstone of the creator economy,” a hub for musician/fan interaction. The platform also enables Audius Passport, allowing users to connect to the Web 3.0 ecosystem. This network does not require permissions.As a result, creators can take advantage of the entire library and use existing music to present new compositions with a new look and feel. Additionally, network participants can run nodes, contribute and receive rewards.
Unlike ROCKI, Audius does not sell NFTs, but instead introduces a “collectibles” feature that allows participating musicians and users of a certain level (both musicians and users must hold at least 100 Audio tokens – as of About $240 at the time of this writing – to have a Silver Tier account and be eligible for the Collectibles feature.) Show off the NFTs they already own. This is a great opportunity for musicians to market and sell NFT collections, and a great opportunity for users to discover and buy their favorite digital items.
The collectibles feature sounds a lot like Lazy.com’s NFT galleries, but Audius features an embedded music site. It’s just that Audius can also be used to showcase various NFTs on a music-centric basis. Audius is currently compatible with NFTs from SuperRare, OpenSea, Zora, Rarible, Foundation, Catalog and KnownOrigin, and cooperation is expected in the near future.
Audius allows musicians to distribute to fans and earn money directly, featuring:
1. An efficient token economy powered by the Audius platform token ($AUDIO), third-party stablecoins, and artist tokens.
2. Decentralized storage solutions and ledger accounts for sharing audio and metadata.
3. Programmable mechanism.
4. A discovery protocol for users to efficiently query metadata.
5. Decentralized management protocol, artists, node operators and fans can have individual or collective rights in decision-making of platform changes and upgrades.
The Audius platform can also recommend popular songs based on users’ likes, followings and reposts, and players can refresh and get new pushes. The platform has also launched an APP version. At the time of writing this article, the platform’s No. 1 song, Boss Up Remix, has already played 4k+, and the catchy melody has received many likes and retweets.
Audius’ native token $AUDIO improves network security, brings access to exclusive functions, and promotes self-governance by the community. The Audius protocol gives every user the freedom to share, monetize and listen to audio.Users who hold $AUDIO can gain a voice and participate in the decision-making of the future development direction of the platform by making positive contributions to the network.
14. NFT’s empowerment scheme for the music industry
We all know that digital media can be copied, shared, and stolen: torrenting and leaks have undoubtedly cut profits across the music industry, threatening traditional distribution and monetization models. By investing in NFTs, creators, curators, and other stakeholders in the music industry are trying to create and capture the value of “digital scarcity.” The value of an NFT song is not necessarily just its sound, but allows consumers to have unique ownership of the song file, transferring ownership directly from the artist himself to the buyer through the Ethereum blockchain.
For superfans, this glory, bragging rights and power may be enough to make them fall; for the hundreds of speculators who have flooded the NFT market, pushing up the prices of NFT assets such as GIFs and JPEGs, they hope , the novelty of NFT music media will continue to accumulate value in the secondary market over time, allowing them to make more profits through resale.
As can be seen from the successful sale of Illmind sample packs, NFTs can transfer intellectual property rights such as songs, recordings and samples more easily, faster and more securely than currently. The transfer of ownership is done via the blockchain, recorded by a “smart contract” and processed within seconds.
Additional income stream for musicians
The coronavirus has hit the music industry hard. The most profitable live music has all but stalled over the past year, leaving many musicians and companies struggling to stay afloat. NFTs offer a potential new form of revenue that can make up for this loss, as well as giving fans the opportunity to support artists directly.
With streaming platforms like Spotify typically distributing 90% of royalties to barely 2% of musicians, most indie musicians get very little money. According to a comprehensive report by Citigroup on the music industry, only 12% of all music industry revenue ends up in the hands of original musicians. So, over time, NFT music will become the go-to mode for indie musicians of all genres.
In the best-case scenario, musicians can easily profit from the secondary market and earn a predetermined share of profits from future resale of digital musical compositions. In theory, it also encourages investors to seek out talents who have not entered the music field, invest in potential music creators like investing in stocks, and realize the realization of cash when they are popular.
Convenient and flexible
One of the most important features of NFTs is their convenience. Fans only need to create a digital wallet to access and receive content, participate in auctions, and have a chance to win competitions. This makes buying exclusive music works as easy as shopping online. Musicians can also simply register to upload their work, set items such as willing prices, and wait for buyers.
In addition, musicians have a lot of flexibility in what items they want to auction, which can be digital but also physical.Albums, digital works, sound clips, merchandise, and concert tickets are all forms of non-fungible tokens that musicians can issue. Fans are happy to pay for this novel experience, and musicians can naturally “sit back and enjoy.”
Safe and Decentralized
Digital transactions are secure and instant, with no middlemen, and NFTs directly link musicians and fans. But instead of digital currencies, NFTs are traded, including concert tickets, limited-edition experiences, digital content, merchandise, and music. Fans participate in an auction for these tokens, with the highest bidder deposited directly in a digital wallet through a secure transaction.
On these exchanges that don’t involve third-party labels, musicians can raise money for what they’re auctioning off and keep it all. Fans spend money to acquire unique content, the proceeds are held securely in their own digital wallets, and auction funds can go almost to the musicians.
Additionally, the encoding within the blockchain makes the NFT music industry persistent, existing outside of any media platform. Once a file is encoded as an NFT, it is very difficult to steal or perform other breaches. NFT music will pretty much last as long as the blockchain is functioning properly.
Creators do not need to be subject to the ever-changing interference of platforms such as Spotify and YouTube. Creators can let original creations give full play to their full value, and sell them to fans who cherish originality and value originality under the condition of guaranteed dissemination.
Ticketing for live and virtual events has long faced many difficulties: inefficiencies, bots, scalpers, hidden fees, counterfeit tickets, and more. According to CNBC, 12% of people who buy concert tickets have experienced scams. However, the NFT supported by blockchain technology minimizes the possibility of fraud, the ownership transfer records are clear at a glance, and ticket verification is easily completed. NFT ticketing (or “smart ticketing”) could also revolutionize the secondary sales market. Smart ticketing could prevent ticket transfers by encoding non-transferable information in its computer code if the ticketing company prohibits resale and scalpers.
15. Future challenges
The demand for NFT music tokens in the market often comes from the demand for the works of specific musicians.Popular or established musicians have no trouble attracting fans and bidding at auctions. But for emerging musicians, this demand still takes a lot of time and energy to create. New musicians don’t have as many opportunities to benefit from this new form of music.
So far, the number of emerging artists entering the NFT market is still small. Sales of NFTs are often driven by status and hype rather than level, so it’s understandable that emerging musicians haven’t exploded. In addition, many markets deliberately shut out lesser-known musicians. OpenSea.io, the most mainstream NFT exchange marketplace, and other marketplace platforms open to emerging NFT music often charge high upfront fees for minting or publishing works, raising barriers to entry.
NFTs can incentivize new art forms, but if the value of art is purely its scarcity, then limited distribution and access to musicians is a priority.
Digital scarcity and physical scarcity are very different. Limited seating is an example of the scarcity of live performances, which is also limited by physical conditions, but the number of tickets sold for NFT live shows also needs to create scarcity, and the number of tickets sold can be determined by the musicians. NFT relies on artificial concepts: make things that are not scarce become scarce, and value will naturally appear. But the high price may also make many fans feel excluded and shut out many fans. The determination of scarcity still needs to be scale-dependent.
Will this be a new round of bubbles? Are we overestimating something because of the current popularity of NFTs? If the price at which NFTs are sold is based on hype and scarcity, the risk to those buying NFTs as an investment product will be immeasurable once interest declines.
Owning a song or album with an NFT tag can cost hundreds of dollars. NFT music items are no longer simple music or MP3, but have entered the ranks of collectibles in a more sense, and the price is often much higher. In addition, there are musicians who are creating copies of works with NFT tags. In theory, it does make each piece unique, but its value is greatly diminished in the real world. If as a collector, you want to buy assets that can maintain and increase in value in the future, you can try to buy those truly unique pieces, not just copies with NFT tags attached.
While Illmind’s sampling package NFTs could demonstrate the potential benefits of using blockchain to transfer intellectual property ownership, there is still a lot of uncertainty. Given that the technology has just been launched and global copyright laws are extremely complex, smart contracts in decentralized systems are likely to encounter problems, which need to be constantly discovered and solved along the way.
NFTs can be sold on the market. The vast majority of music NFTs use an auction model, but some are sold at a fixed price.Which method is preferred depends on the seller’s wishes. Most markets don’t accept payment by credit card or traditional cash, which has somewhat hindered the entry of many fans.
But if you really want to buy NFTs, your best bet is to keep an eye on your favorite musician’s tweets. Most music auction news will be posted on Twitter to warm up.
Currently, writing new transactions for the Ethereum blockchain is extremely inefficient. To ensure the security and fidelity of blockchains, large computer networks scramble to be the first to come up with solutions to complex algorithms, new “blocks” that add new transactions to the blockchain. These current “proof of work” processes value unilateral efforts, resulting in a lack of interoperability between servers.
In 2018 alone, Ethereum verified that its blockchain used as much energy as the entire country of Iceland. While engineers are working on a new consensus algorithm designed to reward ethereum investors rather than increase computing power, such an upgrade could be at least a year away. Buying a concert video, for example, might consume the energy needed to power an entire neighborhood.
16. The future has come
As more and more companies recognize the value of the NFT music industry, this emerging market is gradually starting to gain recognition. More recently, Catalog is building a Bandcamp-like business model where musicians can upload, collect and trade unique digital items. As highlighted by the company, NFTs on the market will be certified and endorsed by the musicians themselves. Musicians can choose between 0-100% what percentage of all sales they receive. The value of the Catalog is that it creates a 1-to-1 marketplace of items based on uniformity and scarcity.
Additionally, established electronic music publishing company XLR8R mentioned developing its NFT marketplace. At the same time, TUNE.FM will also launch its own marketplace. Currently, more marketplaces, such as STURDY.exchange mentioned above, are under construction. Each market has its own value proposition to help artists connect with fans and easily monetize intellectual property.
If you are a musician trying to enter the NFT industry, you can design limited and meaningful NFTs so that backers can buy authentic and unique items. This not only brings more value to them, but also builds a relationship of intimacy and trust between both parties.
All in all, NFTs are disruptive to musicians and the music industry. It gives musicians more control and decision-making power, and it also provides them with a new revenue stream, which is especially important today before the pandemic is over. At the same time, it allows fans the opportunity to enjoy the thrill of owning Idol global items, and also allows more fans to get closer to the musicians, and at the same time, obtain verifiable NFT assets more safely and securely.
It is undeniable that the nascent NFT music industry is facing many problems. Whether this is a collective unconscious carnival, we still do not know. Whether this will reshape the way musicians and fans interact remains to be seen. But we can think, besides NFT, what else can music be linked with? Such as music + DAO, such as… Join our community to discuss!
In the sports industry, counterfeit tickets and merchandise need to be solved, and blockchain is providing the solution. The immutability of blockchain technology prevents counterfeiting of counterfeit tickets and collectibles, and tokenized sports games issued on the blockchain are a perfect use case for NFTs. In addition, some blockchain game projects have cooperated with world-renowned sports clubs to issue tokenized player cards and NFT collectible cards of great moments, such as NBA Top Shot, which has created a wave of collectible NFT cards among fans around the world. boom.
Use Cases: Sorare, NFT Top Shot, F1 Delta Time
At present, ticket counterfeiting and massive hoarding are a big problem that needs to be solved urgently. The records kept by NFTs on the distributed ledger are immutable, allowing tickets to be independently verified and authenticated on the blockchain, avoiding cheating methods. Additionally, to prevent mass hoarding, ticket purchases can be tied to specific blockchain-based identities to enable sales restrictions.
Use Cases: Mintbase, DigiTix
NFTs related to the fashion industry can also be put into use on the Ethereum blockchain network to launch projects.Now, more and more NFT projects are collaborating with fashion designers around the world to provide them with intellectual property protection. Designers earn more royalties every time someone buys their product. NFT projects also organize product auctions for users to participate in. More and more tools and technologies will be rolled out, allowing designers and developers to collaborate on virtual clothing materials, shapes, and interoperable game and VR fashion assets.
Use Case: DIGITALAX
proof of ownership
Another use case for NFTs is to monetize personal time or skills, and as a reward for engaging in tasks and time, the platform allows them to issue tokenized proof of ownership. For example, users can issue NFTs in various forms, including freelance work, podcasts, events large and small, videos, newsletters, artistic creations, charities, and more.
Use Case: The Microsponsors Marketplace
Piracy, infringement and plagiarism are major challenges facing the media and entertainment industry. NFTs can use blockchain technology to prevent fraud and prevent plagiarism of ideas and creative works.
Use Case: Blockchain App Factory
NFTs can also be used for domain name services similar to .com domains, but the difference is that NFTs are based on decentralized technology. The Ethereum Name Service was launched in May 2017, funded by the Ethereum Foundation, and in May 2019, the team upgraded the ENS smart contract to be ERC-721 compatible, which means the name It can be traded on the local open NFT market. Unstoppable Domains also launched a decentralized domain name system that raised $4 million in Series A funding from Draper Associates and Boost VC. UnstoppableDomains were originally built on the Zilliqa blockchain.
Use Cases: Ethereum Name Service, Unstoppable Domains
The Ethereum Name Service (ENS) maps human-readable names to machine-readable identifiers for blockchain and non-blockchain resources, such as Ethereum addresses. Simply put, ENS resolves .eth domain names to Ethereum addresses.ENS can make Ethereum addresses easier to remember, and ENS domain names can be bought and sold on the secondary market.
Unstoppable Domains can replace readable addresses with encrypted addresses and can be untracked for censorship.
NFT can be applied to identity authentication to achieve a complete record of user information while enhancing network privacy. Each NFT will contain its identity information in the smart contract. Smart contracts are contracts written in computer code on mainnets like Ethereum. When certain conditions are met, the contract automatically performs a series of tasks required in the contract. NFTs can also interact with other smart contracts without human intervention. Thanks to this, driver’s licenses, passports, birth certificates, etc. can all have a provable NFT. NFTs allow us to ultimately own digital and physical goods, giving users more control over their identities and artists over their creations, while reducing companies’ control and intervention over users.
Use Cases: Decentraland, CryptoKitties, Blockchain App Factory
Since the debut of CryptoKitties in 2017, non-fungible tokens (NFTs) have grown in popularity. While the gaming industry currently has the most active use cases for NFTs, other areas such as identification are also gradually starting to use non-fungible token technology.
The metadata possessed by NFT tokens is unique and is only associated with a specific unique asset. As such, NFTs cannot be replaced by any other token, as every other token — even one that adheres to the same token standard (ERC-721) — cannot replace its recorded metadata.
The ability to store and share data has brought many benefits, and the digitization of information has become a growing trend, but it has also raised many questions about the security of personal data. There have been many hacking and personal information breaches in recent years. There is a growing realization that consistently relying on third-party external servers to store personal data is not a long-term solution.
Blockchain attempts to provide a solution for this, balancing accessibility, privacy, and security. This move is mainly due to the development of non-fungible tokens (NFTs), which can be used exclusively to store and manage data identities and data.
NFTs contain unique information about a specific commodity or asset, which makes NFTs a great use case for identification and authentication on the blockchain. Everyone has unique attributes and identity information – NFTs can digitize information such as medical records, personal files, educational information, addresses, etc., allowing the data to be easily manipulated by users themselves. With more and more applications of blockchain, more and more people will use NFTs to store personal data. This technology has a bright future.
When it comes to digital identity management, blockchain will enable public and private organizations to operate more efficiently and improve service quality. Blockchain identity management provides a private, secure, and powerful software ecosystem. But while blockchain technology has significantly improved digital identity management, there are still some problems: availability, how (lost) private keys are handled, the number of users, etc. Additionally, most blockchains for digital identity management store some data in third-party systems (such as wallets that store information in the memory of a computer or server).
In this article, we will introduce a new concept, IdToken. The use of IdToken makes identification more secure, fast, and reusable.
Traditional Identity Management Model
There are some problems with the traditional identity management model. For example, it is often necessary to entrust a central agency and cannot guarantee transparency. Developing new identity management models for these use cases has become an important trend. In the blockchain ecosystem, there has traditionally been no centralized organization that collects identity information. The blockchain ledger is immutable and can verify and ensure the legitimacy of users, transactions, and messages. Blockchain authentication is done through smart contracts and does not require a third party to verify transactions. This reduces costs while increasing security and privacy.
In traditional identity management, the most popular blockchain software is undoubtedly Hyperledger Indy. There are many examples of using Hyperledger Indy for data management, such as Sovrin (decentralized global sovereign identity utility), MyData (jointly built with Sovrin) plans for self-sovereign identity and authentication mechanisms), etc. Indy is a distributed ledger specifically designed for decentralized identity authentication, with complete open source specifications, terminology and design patterns to help facilitate the proposal of decentralized identity solutions. Hyperledger Indy is a good solution for managing digital identity issues, but Indy doesn’t quite solve the problem.
Problems with Indy
1. User information is stored in the wallet or resume folder, and is not stored on the blockchain, so it is easy to lose.
2. If the user changes companies, the user needs to apply for all identity information from the original company, which is time-consuming and labor-intensive.
3. Each application needs to have Decentralized Identifiers (DID), that is to say, each application requires a new DID username and password, which occupies a large amount of memory in the blockchain.
4. If the DID length is too short, it may cause security data leakage and cause security problems.
In response to these questions, we take IdToken as an example to answer the above questions, which we will discuss in detail below. (Hyperledger Indy with IdToken is called IdChain)
IdToken Identity Management Mode
In order to better understand the development of IdToken and IdChain, for example, at least three elements need to be considered: users, companies and institutions (providing users with identity attribute guarantees). In IdChain, each user’s registration method and mode are the same. Users wanting to register in IdChain need to provide personal data (ie first name, last name) and biometric data (fingerprint or facial recognition). The biometric data is converted into a private key after cryptographic hash conversion, the private key is stored in the encryption engine of the personal device, and the public key is generated after the private key is generated.
After the registration in IdChain is completed, a new block needs to be created in the ledger, and the token smart contract generator will execute and automatically generate it. In the new block, users can insert, and store and encrypt all personal data with the public key. The user can read and insert new information in the IdToken using the private key (a hash of the biometric data); to grant someone read-only access to the data, the user must share the public key.
The advantage of this mode is that the user can insert all the information in the IdToken. In Hyperledger Indy, a lot of wallet data is stored on local devices (smartphones, computers), which may lead to information loss. But in IdChain, even if the user’s personal device is lost, it can still be accessed using biometric data without the intervention of a central authority.
If a user wants his company to obtain his or her identity information from an institution, the following steps are required:
- Users and companies have accounts on IdChain. Users use their IdToken to identify themselves to the company, and their identity is authenticated by their institution.
- The user applies to the company to provide IdToken access rights and provides the user’s personal public key. After the company receives the request, it verifies the verifiable credentials in the IdToken and accepts the request.
- User and company identities are verified (digital signatures).
- After authentication, the company sends the user a request for the information the business needs to decide whether to hire the user.
- The user accepts and sends the IdToken (which contains only the information required by the company and is verified by the institution).
- The company can read user data and decrypt the user’s IdToken with the public user’s key.
- In this series of steps, each operation will have a timestamp. This way, both parties know the identity of the other and can operate safely and securely.
Advantages of IdTokens
- No proprietary software or infrastructure is required. IdChain uses a public blockchain, and users do not need to invest a lot of money to build technical infrastructure for identity management.
- Data is revocable. Identity data can be revoked by the data owner. If the user changes the credit card number, the data owner can revoke the previous/invalid credit card number data on the blockchain.
- Global compatibility. Users can store and share identity information anywhere in the world. User data can be accessed and used regardless of the country. If the user changes to a new company, just open the access rights of the idToken to the new company.
- All information is native to the blockchain and does not require local storage.
- Security and Verifiable Credentials. Personal information will be encrypted by hash and stored securely in IdToken without worrying about security issues. In addition, IdToken is unique and cannot be copied.
This new approach to digital identity management and certificate distribution is useful and improves privacy, security, and efficiency. In addition, idToken can replace paper information exchange, speed up the identification of users and companies, and eliminate openness issues that cannot be solved in traditional digital identity management. Another important feature of this model is the increased usability of the blockchain. IdChain uses a cryptographic engine embedded in portable devices (such as smart cards, etc.) to separate identity information from specific devices (such as computers, etc.). The biometric key acts as a second authentication factor, addressing the lack of a certification authority in the Indy authentication system.
There are still privacy concerns in the future and further development of the use of biometric data (in addition to fingerprint schemes) in blockchain. In addition, it is also necessary to develop tools to partition the amount of data in the IdToken, so that the data accessed is only the data that is necessary to access, so as to improve the usability and practicability of the blockchain.
In the near future, we can foresee a highly secure identity management model, unlocking and sharing NFT tokens with more possibilities, proving item ownership and identity authenticity, providing security for user identity, and ensuring assets/tokens ownership is shared in a secure and trusted way.
Physical Asset Records & Insurance
Physical Assets and Documentation
NFTs can tokenize real-world assets and certificates such as real estate, stocks, documents, qualifications, licenses, medical records, birth and death certificates, etc. Take real estate for example. The traditional real estate industry has complicated paperwork to record all land titles and property registrations. And NFT can digitize the entire process. Properties can be tokenized on the blockchain network to become tradable tokens that can be easily traded in the secondary market. In this way, middlemen such as brokers, banks, agents and lawyers are eliminated. NFTs can also prevent disputes between buyers and sellers over property ownership. As in the virtual marketplace Decentraland, NFTs can represent land parcels in various regions. Users can monetize real estate by renting it out to other co-op players or through advertising.
Use Cases: Crypto Stamps, Blockchain App Factory
Thanks to the vigorous development of DeFi, insurance policies can also be tokenized in the form of NFTs and traded on NFT trading platforms. Tokenized insurance policies, as a unique NFT, can be transferred, bought and sold, and in some cases, income can be obtained. Compared with the mountains of red tape in traditional insurance, today, users only need to fill in the required encrypted asset items and amounts to obtain insurance policies, which greatly improves the efficiency.
Use cases: yInsure, iearnfinance
In short, non-fungible tokens are powerful and extremely flexible; not only appealing to people’s primal desire for scarce and unique items, but they also hold great promise for future applications. The use cases for NFTs are endless, and future development will continue to move forward as developers’ imaginations burst.
In recent years, economic uncertainty has almost reached an all-time high, and more and more people hope to preserve and increase the value of their assets. It’s not uncommon to make huge profits in the online world – Twitter CEO Jack Dorsey’s first tweet sold for $2.5 million, a famous “Nyan Cat” image was sold for 59 Sold for $10,000…
Although the commodities and prices involved vary, the transaction categories described above have one thing in common – those who want to make money from NFTs either intend to sell their NFT assets, or plan to sell them in the future, from potential Appreciation space profit.
It is undeniable that this traditional strategy has brought considerable benefits to many investors, but as the NFT market has become relatively saturated, this strategy has not been able to fully exploit the value embedded in NFT assets.
There are many well-known use cases for NFTs: gaming, crypto art, virtual worlds, insurance, domain names, and more. In addition, NFT can make digital assets play a greater role in the financial field.
The collision journey of DeFi and NFT
In just a few short years, DeFi (decentralized finance) has achieved great success in the crypto market, building many applications, and at the same time putting it into widespread use. MakerDAO allows users to create loans without a bank and offers the DAI currency, a decentralized crypto-asset pegged to the U.S. dollar. dYdX has created a new and efficient trading method for crypto asset lending, borrowing and margin financing. Decentralized exchanges such as Uniswap incorporate DeFi scenarios, allowing users to trade ERC-20-based crypto assets securely and seamlessly. In the lending ecosystem, popular DeFi protocols such as Dharma and Compound have also played their full role.
While NFTs are the most exciting craze in crypto right now, Decentralized Finance (DeFi) is still the catalyst that pushes NFTs to continue to push the boundaries. According to DeFi Pulse, DeFi is replacing traditional financial entities with decentralized financial entities, with a market cap of more than $43 billion.
The trend of combining DeFi and NFT has quietly taken root. Although most people’s eyes and market hotspots are still looking for composability within DeFi, some projects that cross the border from DeFi to the NFT field have begun to show great potential for development, and NFT lending has become a popular choice in the field of decentralized finance. The next breaking point. So how can two very different systems collide? What magic happens when digital assets are used as real asset classes?
Why NFT Lending Markets Are Needed
Leverage idle assets
Today, NFTs are booming, with record sales on many NFT platforms. But the main concern of NFT investors is poor market liquidity. In other words, selling NFTs and finding the right buyer can be time-consuming and labor-intensive. Therefore, investors need to carefully calculate the percentage of their portfolio allocated to NFTs. But liquidity issues aside, the rapid growth of the NFT industry is delivering solid returns for long-term investors.
For now, the debt market is the missing ingredient in the NFT ecosystem. A mature NFT ecosystem needs to build a marketplace where people can either use NFTs to get loans, or lease their NFTs for income. The assets in the wallets of many NFT users can only be used in specific games or platforms. Without these games and platforms, their NFT assets can only be left idle in the wallet to accumulate dust. If the market allows users to lease their assets as loan collateral, allowing other users to use other people’s NFTs on their own platforms, this will unlock the endless potential of NFTs.
Further Clarification of NFT Valuation
The NFT mortgage market may become one of the most efficient ways to determine the fair value of NFTs. Users can post NFTs that they want to use as collateral on the market, and other users can bid on it, offering an intentional price.
In addition, the market can also choose the loan term, whether the lender provides ETH or DAI payment method, such a market will ultimately help NFTs generate fair value.
For example, to seek a loan in the market with CryptoKitty as collateral, users can study the general CryptoKitty market situation, the final selling price (such as 20 ETH/$5,500), the situation of a single CryptoKitty, and its specific properties to determine their final bid. After research, maybe the average user is valued at 5 ETH/3 months, but CryptoKitty experts can come up with a valuation of 10 ETH/3 months based on its characteristics. In this cycle, the efficiency is gradually improved, and multiple quotations and valuations are more helpful to obtain a more reasonable fair value and make the valuation of NFT assets more stable.
Looking at the overall market, loans can unlock asset value and provide much-needed liquidity for NFTs. Investors don’t need to worry about selling assets and can instead use loans to explore other opportunities in the NFT space.
From a lender’s perspective, the NFT mortgage market also has many benefits. If the borrower defaults on the loan, lenders who choose their collateral wisely have the opportunity to obtain the collateralized NFT at a very low price.
Getting the most out of NFT assets has the potential to generate substantial income. But the role of NFT lending is especially important when the art and collectibles market is less liquid than other asset types, especially when the owners of valuable art and collectibles need funds in the short term. Art and collectibles are relatively illiquid, giving borrowers the opportunity to earn higher returns than conventional loans.
Three modes of NFT lending
In the final analysis of NFT lending, the lender provides liquidity to the borrower. For example, on NFTfi, lenders use wETH loans in exchange for temporary ownership of NFT assets that borrowers use as collateral. As a lender, you can set the loan value, interest, loan term, etc.
loan for profit
This pattern is the most common. Loans to others for financial returns. On the one hand, this model can avoid the risk of significant impermanent loss of smaller liquidity pools, and on the other hand, this model can provide a more ideal return on funds.
This model drives the initial use of most NFT lending platforms and is the most well-known model. So far, most NFT loans have an annual interest rate in the range of 40-100%, which shows that lending to other users does have relatively good returns, and over time, their ETH or DAI will also increase.
Of course, risks also coexist, but if managed properly, lenders can better balance the benefits and risks. Unlike other lending platforms, on NFT lending platforms, the lender does not have to trust the borrower.
(1) The loan-to-value ratio (LtV) refers to the ratio of the loan amount to the value of the collateral, that is, the ratio to the market value of the NFT. The loan-to-value ratio and the choice of loan term are the most important tools for managing risk. If the loan amount is set too high, borrowers may drop their NFT assets in the middle of the loan process. The longer the loan term, the longer the borrower chooses to forgo their NFT, which increases the market risk for the borrower.
(2) Make sure that you can sell NFT within 24-48 hours at a price higher than the loan amount or even profitable. After the NFT redemption right is cancelled, if the loan value of the NFT can be increased to 2 to 4 times the original value, if done properly, this can actually bring about a huge return.
(3) If you do not understand how to estimate, do not make an NFT quotation. Reference indicators such as recent sales prices are valuable but also potentially misleading. Open OpenSea to find the latest sale prices and lowest prices. But at the same time, you must use your own knowledge to accurately value NFTs and balance risks. Specifically, you can add Sophia (ID: lovebit98) or follow the “NFT Labs” public account to get the article “How to Value NFTs”.
(4) The longer the loan period (30-90 days), the more the income may be, but only for those NFTs whose market price performance is stable over a period of time.
(5) Decide whether to quote in wETH or DAI (or both) based on the existing overall portfolio.
Lend to acquire NFTs
This model has been adopted by some users, most of whom collect NFTs widely, but may also be adopted by large-scale NFT DAOs (decentralized autonomous organizations) in the future – purchasing NFTs with high cost performance.
Risks and opportunities also coexist. It should be noted that:
(1) Instead of trying to borrow money from others for the purpose of obtaining economic returns, it is hoped that the NFT can be obtained at a predetermined loan price in the event of a default by the borrower.
(2) This means that loans should only be made for NFTs that want to acquire, and the loan amount needs to be in a range that is still acceptable even if they default – the goal of the loan is for acquisition.
(3) This model has more strategic advantages than the traditional financial loan model. If the borrower defaults, the lower rate of return can be exchanged for foreclosure. This allows the lender to offer a more competitive interest rate (10-40% APR) in order to “win” the loan from the borrower. Because NFT lending is a p2p marketplace, borrowers are most likely to accept the most competitive offers.
loan to help
A little-known model of NFT lending is to provide friendly loans to friends or other users who need help, and the amount of the loan can be set by yourself.
have to be aware of is:
(1) This model can serve as a safer alternative to private lending among friends. Traditionally, after lending ETH to other NFT holders based on trust, there are still unexpected risks (even if the probability is very low); for example, loss of account access, hacking, etc., once these phenomena occur, even if the other party is willing to There is no way to repay the loan.But this can be avoided on NFT lending platforms.
(2) The NFT lending platform provides a safe and convenient way of lending. Lenders provide loans for free, but borrowers can use one or more NFTs as collateral to prevent any accidents. This pattern minimizes the double loss of monetary friendships.
(3) This model also applies to artists or project sponsors. While providing a large sponsorship amount, they obtain NFT as collateral for increased security. Although the current loan term is only up to 90 days, 2-4 overlapping loans can be made to extend the loan term.
Fungible Token Lending vs Non-Fungible Token Lending
It is necessary to make a distinction between token lending and non-fungible token lending:
(1) In homogenized token lending, most platforms only provide a few asset loans with high liquidity. In the NFT market, this is impossible to satisfy its long-term development, because NFT projects are diverse, and the attributes of the actual assets in the projects are different, and most of them are unique.
(2) In homogenized token lending, Oracle automatically performs high-precision valuation, and the price is objectively determined by the market. But in the NFT field, this cannot exist for a long time. Because in most NFT projects, price is not driven by transaction volume, but by scarcity, the actual valuation is mostly subjective.
(3) In homogenized token lending, when the borrowing price is close to the market price, liquidation will automatically occur, and the loan-to-value ratio (LTV) reaches a certain threshold. Under this mechanism, borrowers and platforms never lose money. But in the NFT field, even if there are thresholds to verify the actual number of asset classes related to collateral assets in the entire project or game, since the NFT market is driven by scarcity, when the system automatically liquidates assets, in order to prevent borrowers from With losses, there is always friction and downtime.
Combining the above three factors, we can find that NFT loans also face unprecedented challenges compared to “traditional” crypto loans using homogeneous tokens.
How to speed up NFT lending
One of the main drawbacks of P2P markets is that there is financial friction. Financial friction refers to the difficulty with which financial asset transactions occur. It can be measured by the optimal occupancy time for a certain amount of a financial asset to be traded, or by the price concession required for an instant transaction. Financial friction makes it difficult to match lenders and borrowers with aligned goals and needs.
To solve this problem, it is possible to build a service with a P2P market as the core, but provide users with quick loans: build a loan pool, and the assets are limited to specific assets of the appropriate system, and need to consider the main factors related to the project and assets.
Many NFT communities have long debated “how to assess assets”, but when assessing assets, there is absolutely no objective reality, so how the loan pool should play a role needs to be discussed.
To make loan pools work, you can continue to let the market subjectively value assets, but only focus on those projects or artists that are doing well, with a proven and credible transaction history, and reference loan-to-value ratios and interest rates to Reduce overall loan risk. In this case, it is the actual project that should be carefully evaluated rather than the asset to ensure that the loan pool does not lose money in the event of a loan default.
After balancing actual project risk, loan-to-value, and interest rates, the platform also needs to ensure that it can break even and avoid bankruptcy while only selling a fraction of the total defaulted assets in custody.
To create a loan pool that can provide quick loans, the following indicators cannot be ignored: transaction volume and growth rate of a specific project, asset price range/average asset value, etc., and other indicators related to the due diligence process.
Examples of NFT lending platforms
Several platforms have emerged that can lend NFTs as NFT collateral, such as Starter, UniLend, Lendroid and NFTfi. NFT owners can borrow through NFTs to make the best use of their idle NFTs.
What is NFTfi?
As can be seen from the name, NFTfi is the product of the DeFi combination of NFT.
Launched in mid-2020, NFTfi is a peer-to-peer NFT mortgage marketplace that allows NFT asset holders to stake their NFTs, borrow assets, and lend to others. NFTfi stated that the reason for launching NFTfi is that the market for art and collectibles is very illiquid compared to fiat assets, equity and other types of assets, especially for NFT assets. NFTfi products will provide a large amount of liquidity and lending functions for NFT assets to meet the diverse capital needs of users. Depending on the nature of the demand, it can be used for two purposes – lending & lending.
If a loan is required, any ERC-721 token can be pledged, just wait for the best loan quote.
If you want to lend crypto assets, you can find a suitable NFT and issue a proposal (including loan amount, repayment amount, term, etc.).
How does NFTfi work?
Specifically, borrowers can stake any ERC-721 token (NFT asset), and other users can lend on demand. If the borrower accepts the loan, it will receive the lender’s wETH and DAI, and at the same time, the NFT asset is locked in the NFTfi smart contract until the borrower repays the loan. If the borrower does not repay the loan by the due date, the NFT asset will be transferred to the lender.
For lenders, lenders can lend to any NFT asset they like, setting their own loan amount, loan term, and the total amount the borrower wants to repay after maturity. Loan terms vary from 7, 14, 30 and 90 days. If the borrower defaults and does not repay the loan, the lender will get the NFT.
NFTfi does not charge any fees to borrowers, borrowers only pay fees (interest) to lenders.
The specific operation steps of NFTfi
First, use the Metamask wallet (use Google Chrome browser or Opera browser of encrypted wallet), jump to “Borrow”, you can use the NFT assets in the wallet (currently only some asset types are supported) as collateral.
After clicking on an asset, you can see how much the asset can borrow. Click on the image of the asset, grant the NFTfi smart contract permission (Grant Permission), and the NFT asset can be published on the loan market. Once the transaction is completed, the user can receive offers from other lenders. (need to pay some GAS fee)
Assets can then be posted on the NFTfi lending market to be used as collateral to obtain loans (The Sandbox plot is used as an example in the image below).
Next, wait for other users to make loan offers to the published NFT. Once the offer is accepted, the wallet can get wETH (i.e. wrapped ETH, wrapped ETH, ERC-20 version of ether). The whole process is technically supported and guaranteed by the NFTfi smart contract. After the process is complete, the NFT assets will be handed over to a third party for escrow.
Loan to Others and Get Earnings
Loaning to others and earning a yield is a bit more complicated than a typical loan, but it’s also possible to get a higher return. Users can choose their favorite NFT in the market and lend it to it. The most important part of this link is that if the borrower does not repay the loan in time, the NFT assets will be owned by the user who provided the loan.
By choosing NFT, you can customize the loan offer – set the loan amount (how much you are willing to lend), the repayment amount (how much you want to get back) and the loan term (7 days, 30 days or 90 days). The system calculates the interest rate as a reference.
The graph above shows that a loan of 0.06 wETH is provided, the 90-day yield is 0.08 wETH, and the annual interest rate is 135%.
Lenders need to have enough wETH in their wallet to make a loan. After the borrower accepts the loan offer, the wETH in the wallet will be deducted, and the borrower’s NFT will be handed over to a third party for escrow – the loan is successfully paid.
What should I pay attention to when using NFTfi?
For both lenders and borrowers, using the NFTfi platform to borrow money also has certain risks. From the perspective of the lender, in the event of a default of the borrower, only the mortgaged NFT assets can be received, which requires the lender to set a loan amount lower than the value of the NFT asset in advance, and the asset value of the NFT requires the lender Evaluate carefully.
Another issue is that the value of NFT assets may decline or appreciate over time, and in the first case, the lender may suffer losses.
For borrowers, pay attention to the APR, and it may take longer to find a lower APR if the demand is not urgent. To avoid predatory pricing (pricing to drive out rivals), the system caps repayments at 50% higher than the loan amount.
Similar to NFTfi, a core function that can meet user borrowing needs and provide liquidity for NFT assets, while empowering digital collectibles, NFTs have entered an inflection point of development.
What is NFTX?
NFTX is a platform on Ethereum that uses NFTs as collateral to create ERC-20 tokens for trading. These tokens are called Funds, and (like all ERC-20s) they are fungible and composable, and with NFTX, users can create and trade funds directly from collectibles in DEXs like Uniswap.
The purpose of NFTX is to facilitate better circulation of NFT artwork, making it easier for users to capture the value of popular NFT artwork portfolios. NFT collectors are happy to search and trade individual NFT works, but most users do not have the time to engage in professional investment, nor do they have NFT expertise. Those ordinary users who want to participate in NFT investment more conveniently are the NFTX target user group.
In addition to the more well-known platforms mentioned earlier, there are two other projects worth mentioning.
Rocket, released by Alex Masmej, gained a lot of attention in early 2020. But this project has not been released and put into use, and the team behind it is waiting for the highest bid to transfer the ownership of Rocket.
In addition, Dragos I. Musan also built an NFT lending platform in the early days, and proposed some theoretical solutions to bridge some gaps in the current NFT market with appropriate DeFi principles. Its function is similar to that of NFTfi, and will not be described in this article.
Additionally, the Very Nifty team recently deployed the first-ever NFT flash loan, reaping amazing returns with this revolutionary new strategy. Of note is the NFT-20 protocol. Simply put, this new protocol allows ERC-721 NFT tokens to be split into multiple ERC-20 tokens, effectively enabling fractional ownership of non-fungible tokens.
Inventory of NFT Art Market Lending
After introducing the three major models, this article will further introduce the use cases available for NFT lending.Mainstream use cases for NFTs include crypto art, gaming, virtual worlds, insurance, and more. Next, this article takes a relatively mature art market as an example to introduce the application of NFT lending in encrypted art and the aspects that need to be improved.
In March, Beeple’s collage, a digital art for non-fungible tokens, reached an auction price of about $69.3 million.Regardless of everyone’s attitude towards NFT artworks, financial lenders have to face a situation where more and more customers want to borrow newly minted NFT artworks as collateral.
Real-world art loans often take the form of revolving lines of credit, with creative visual art works as collateral. These loans employ a variety of techniques to try to solve long-standing issues facing the art world, such as identity verification, changes in market value, risk of theft or loss, and obtaining a first-priority security interest in artwork. In this traditional way, the market tends to think that the borrower is richer and has a more prominent identity, so the default risk is relatively low.
If you want NFT art borrowers to enjoy the same benefits as traditional borrowers and get NFT-secured loans, you need to reconsider traditional credit request evaluation criteria, such as avoiding the risk of verifying the origin and authenticity of the artwork, regular evaluation to detect Change in value, perfect security interest and theft or loss insurance.
Reduce the risk of verification of artwork origin and authenticity
First, reduce the risk of verification of the origin and authenticity of the artwork. Real-world authentication methods have no place in the online world. An NFT is a unique “crypto asset”, but that doesn’t mean that each NFT only represents a unique piece of art – in fact, a piece of art can be sold through multiple NFTs, just like a real-world artist It is possible to license and sign the same printed versions of multiple original works.
To verify the authenticity of an NFT, artists can embed electronic signatures in the NFT’s underlying software code. It’s also important to note that NFTs themselves are not digital artworks, but cryptographic assets, consisting of “smart contracts” based on a specific blockchain that “point to” that asset, either a JPEG or another image file or video Record.
Although many NFT works can be displayed on the Internet through non-commercial means, they do not contain proprietary interests and are not copyright transferable. Taking the Beeple auction as an example, the collage is actually transferred to the buyer in the form of JPEG. The token can only verify the origin of the NFT itself, not the origin of the artwork itself. NFT buyers also need to unify many licensing conditions, such as paying the artist a 10% royalty on future profitable resale. The specific rights and obligations of NFT transfers must be analyzed on a lender-by-lender basis.
Improve NFT asset valuation
Second, the price of the crypto environment is volatile, which also poses challenges for the evaluation of NFT assets.Addressing this, allowing the secondary market for NFT transactions to expand rapidly, will help determine the “market” price.
Perfection of Security Interests
Third, perfect the security interest of the NFT collateral. Lenders can treat NFTs as “general intangible assets” as required by law and submit funding schedules. However, it is difficult to determine the specific lending purpose of the borrower on the network or the blockchain.
To design methods that can be used for cryptocurrency collateral-backed loans, consider the indirect holding system originally designed for equity securities, ie: lenders can ask prospective borrowers to transfer NFTs or other digital assets to a “securities intermediary” (usually a bank or trust company) “securities account”.
Under a tripartite account control agreement between lenders, securities intermediaries and borrowers, securities intermediaries can treat NFTs as “financial assets” (if the securities intermediaries expressly agree, any property, including real Assets in the world can become “financial assets”) and give “control” in the sense of the lender.
Under the tripartite model, securities intermediaries can promise that assets/NFT assets cannot be transferred except in strict accordance with legal terms; then the risk of irreversible transfer of on-chain assets can be mitigated.
Reduce the risk of loss from theft
Fourth, reduce the risk of loss, theft and other possible occurrences. There are reports that the theft of NFT artworks occurs from time to time, and the ownership rights of NFT minters cannot be guaranteed, so, just in case, an expanded new type of cyber insurance should be developed. There may also be protections in the Metaverse, but if digital art is to grow and prosper, existing cyber insurance is not enough.
Challenges of NFT Lending
There are many uncertainties in NFT liquidity, and the valuation of NFT assets also faces challenges, which all affect the development of the NFT mortgage loan field. Before the introduction of AMMs (Automated Market Makers), homogenized tokens (ERC-20) faced the same problem. Once these issues are resolved and the NFT pricing mechanism becomes more efficient, the NFT lending market will usher in a long-term prosperity.
In general, there are two main niches in the NFT space today, which are also the main drivers of growth: gaming and art.
These two niches meet different user needs, and different collectors in different markets have very different criteria for judging the value of their assets.
For example, in games, there is more emphasis on the utility of the asset, while in art, the asset is closely related to the brand created by the artist. But even in pursuit of practicality, the intrinsic value of NFTs cannot be ignored. Intrinsic value mainly depends on two factors: first, buyers’ perception of actual price; second, scarcity. Due to scarcity, objective valuation of non-fungible tokens will be more difficult than that of fungible tokens.
Many projects are trying to create efficient pricing mechanisms for NFTs, and it is precisely because of the lack of efficient pricing mechanisms that the auction and sales models that are widely used today are far from enough. Today, there are three more promising development models.
First, there are projects that are trying to model the creation of a homogenized (ERC-20) portion of a non-fungible token.This is likely to be the future direction of development.
Secondly, mainnet projects such as NFTX, NIFTEX, and NFT20 are also one of the solutions. Some of them have created ERC-20 token pools on Uniswap and Sushiswap through their protocols, bringing great liquidity.
Finally, UpShot One also proposes a viable solution. UpShot One will integrate the benefits of peer-to-peer networks, DMI mechanisms, and make full use of valuation, which is one of the best means of pricing non-homogeneous, illiquid assets.
How to better implement NFT lending?
large financial institutions
The first thing to conquer is the large trust financial institutions. While these institutions accept a variety of collateral, there is still a long way to go before digital assets are officially recognized as a viable form of collateral. But given the momentum of NFTs and DeFi, it’s just a question of “when” rather than “if”.
Explicit price discovery
A key to gaining acceptance from mainstream financial institutions is explicit price discovery, a process by which market prices for goods and services can be determined. The traditional collaterals above all have one thing in common: they have a real-world price tag. When it comes to digital assets and NFTs, the core problem remains that there is no precise understanding of the actual value of the assets. Buyers are largely overpaying for the novelty and uniqueness of NFTs.
Although crypto enthusiasts are still willing to pay millions of dollars for NFT assets so far, this value has not been transferred to the traditional financial field.
In a decentralized world, most lending protocols use price oracles like Chainlink to aggregate prices from multiple liquidity sources to determine the price of an asset or currency. Price discovery for NFTs has proven to be more challenging, as selling price, asking price, and true value can be inconsistent. Price discovery is a critical first step in order to use digital assets and NFTs as collateral in traditional financial markets.
The development direction of NFT lending protocol
It is only a matter of time to determine the launch of the non-fungible asset pricing scheme. At the end of the article, I also want to predict how the loan agreement with NFT as collateral will go in the future.
There are two main types of NFT lending schemes, which differ by the type of collateral they accept.
Accept the homogenized portion of a non-fungible token
The first scheme accepts the homogenized portion (ERC-20) in a non-fungible token, assuming that by creating an ERC-20 version of the NFT will effectively determine its final price.
There is no significant difference between this loan protocol and the current loan protocol for homogeneous token assets, both accepting ERC-20 tokens as collateral. This method is simple and reliable, and it is believed that the price of NFT can be determined by the mechanism promoted by NFTX.
The advantage of this scheme is that lenders can use the collateral (ERC-20 tokens) to make more profits (eg, provide liquidity to ERC-20 pools). Also, for borrowers, in the event of a margin call, they can still add more assets, preventing liquidations.
The disadvantage of this scheme is that the lender cannot use the potential functions of the NFT token, and only utilizes the characteristics of ERC-20, ignoring the role that the actual NFT token should play. For example, NFT tokens can represent ownership of virtual real estate, domain names, etc… In this case, lenders cannot benefit from the specific use of a specific NFT.
Accept the NFT itself
The second solution is a lending protocol that accepts the NFT itself (ERC-721 token) as collateral. But NFTs are different from each other, and this solution cannot be fully automated and decentralized until an effective price oracle is introduced, and it must be up to some central authority or personal preference to decide whether to accept a particular NFT As collateral, determine the value of the underlying NFT.
Compared to the first solution, in the second solution, the lender can take full advantage of the potential functions of NFTs (such as use in games). Additionally, lenders can earn additional funds by leasing NFTs to certain third parties or by collecting profits generated by NFTs (such as rents from virtual property ownership).
But in addition to relying on an efficient price oracle, there is an unresolved drawback of this solution, namely how to prevent liquidations in the event of a margin call. NFTs are not fungible, users cannot add more of the same NFT as collateral, but must add another viable NFT. This method cannot guarantee long-term availability, because it is difficult to find NFTs that meet the needs.
It is quite possible that the first solution will see the light sooner. Because it boils down to collateralizing ERC-20 tokens, which is similar to current lending protocols. From the perspective of the protocol itself, as long as there is an effective price discovery mechanism that can be used to track asset prices and prevent liquidation in the event of a margin call, whether it is standard ERC-20 tokens or homogenization of NFTs Part (still ERC-20) works.
The future of NFT lending
Over the past two years, the number of crypto lending platforms has continued to grow, especially after DeFi entered the NFT space, and its growth rate has been astonishing. In 2018, everyone was asking what the future utility of crypto lending would look like; now we can see that lending is breathing new life into the crypto lending market and realizing its true value.
The same is true for NFTs. As the NFT market grows, collectors will definitely want to get the most out of their assets without selling them. This idea is certainly stronger if the intrinsic value of the asset is also taken into account.
The integration of NFT and DeFi ecosystems will not only benefit holders of encrypted digital assets, but will also set a precedent for large mainstream financial institutions. Perhaps in the future, mainstream institutions will recognize that digital assets have value and are an acceptable collateral. Using NFTs as collateral to obtain crypto loans could completely reshape the properties of NFTs, further cementing their value.
Suppose an NBA Top Shot owner uses his digital assets to seek a loan from a bank – there is a good chance it will be rejected, as banks will generally undervalue their NFT assets (or not at all), even though NFT asset turnover is approximately $230 million.
Of course, one of the conditions for NFTs to be a common collateral in the future is that digital assets will be considered an asset class, not bubble art. Thereby greatly narrowing the gap between traditional finance and decentralized finance.
From digitized music and gaming collectibles to blockchain domain names, NFT-compliant data is in a wide variety of forms, and buyers are willing to spend huge sums on these assets. A tokenized album can sell for up to $3.6 million, and a domain NFT can sell for up to $100,000. In terms of monetary value, NFT has gained recognition, but in many other aspects, NFT still has a long way to go.
The past and present of NFT DAO
With the constant changes in market demand, blockchain has witnessed the history of changes from DeFi to NFT, and then to DAO.
Compared to the DeFi market, the community in NFTs expects deeper returns on a psychological level, not just financial returns. As the price of high-quality NFTs continues to climb, the minimum price of collections such as CryptoPunks has reached as high as $380,000, which is prohibitive for most people. This gave birth to the emergence of DAOs in the NFT field. For example, FlamingoDAO and PleasrDAO invested in NFTs through the joint efforts of DAO members to build a treasury. In addition, as digitally native objects expand, NFTs also show the potential to solve ownership problems in one fell swoop. As the community continues to grow, many traditional operating models are shifting towards becoming a fully decentralized autonomous organization.
NFT DAO example
Web3 Social DAO
Since its official launch in September 2020, FWB has quickly become one of the most influential social experiments on the internet, growing to 4,719 members. Friends with Benefits (FWB) grew out of the Discord private server and has become a global community connected by shared values, incentives ($FWB) and an IRL+URL experience, standing at the intersection of culture and currency.
On the entry threshold, joining FWB requires a written application, which is reviewed and voted on by community members, and requires holding a certain amount of $FWB, representing the ownership of the DAO. Holders can obtain DAO creative output income and have the right to manage the community finances. FWB is committed to innovating the incentive mechanism for the next generation of artists, creators and builders to help revolutionize the Internet.
Fragmented Bidding DAO
The establishment of PartyDAO and the product realization process of PartyBid realized the aggregation of personal power. PartyBid is the latest popular NFT call auction product launched by PartyDAO. The potential is to allow anyone to participate in NFTs without restrictions, with no funding requirements or other restrictions. Anyone can create crowdfunding through PartyBid and participate in designated NFT auctions, which greatly lowers the threshold for ordinary users to participate in sky-high NFT assets.
In PartyDAO’s gameplay, each crowdfunding created for an NFT is called a “Party”. Anyone can log in to the PartyDAO website and invoke the on-chain function to initiate a Party. When creating a Party, you need to set the Party name, split T and provide a link to the auction target (PartyBid currently only supports NFT auctions on the Foundation and Zora platforms). After the Party is successfully created, an exclusive link can be obtained, and anyone can make contributions by visiting the Party. After collecting funds by forming a team, the Party will participate in the designated NFT auction as a team. Foundation and Zora support UK auctions for a 24 hour time limit. When the crowdfunding fund pool reaches the reserve price set by the auction item, as long as there are sufficient funds in the fund pool, anyone participating in the crowdfunding can bid at any time within 24 hours. After the auction is successful, the NFT is deposited into the treasury jointly owned by the DAO holders, and the assets are jointly owned by the DAO holders. The DAO members who contributed can get the ERC-20 after splitting the NFT in proportion, and the remaining funds can be retrieved by the contributors.
PartyDAO’s mission is to grow into a long-term organization capable of funding its own continued existence. PartyBid can help individuals become more involved in the art collecting market where only a few people can participate in the past. In the future, there will be more qualified digital artists, collectors, and art connoisseurs active on such platforms, forming a strong influence in the market, helping retail investors to screen out the potential works of art that are underestimated, and gain access to more high-quality assets. appreciation potential.
Chain Game DAO
Unlike some of the above NFT DAOs that focus on the art field , Yield Guild Game (YGG) has established a YGG DAO composed of players and investors in a decentralized game, by investing in virtual worlds and based on blockchain technology. Profit from NFTs.
The company behind YGG is a Manila-based game studio founded by Gabby Dizon, who was part of the team that launched Axie Infinity and Yearn Finance Communities. The studio’s co-founders are also entrepreneur from Cambridge University, co-founder of CapchainX, former chairman Beryl Li and blockchain developer Owl of Moistness, one of the developers of the Axie Infinity algorithm. The YGG team now has more than 20 members, and Nolan Manalo (also known as Nate) is the head of game operations.
YGG DAO mainly earns profits by directly or indirectly renting or selling NFT assets owned by YGG. Guild members can use the guild assets to directly earn in-game rewards for YGG. And third parties (non-guild members) can use in-game assets for profit, such as economic activities on in-game lands, to generate income. In this way, NFT ownership will appreciate as the economic value of the in-game asset grows, which also reflects the value of the NFT held by the holder in the open market. In addition, players can also earn money by participating in the game.
The total supply of YGG is 1 billion. 45% of which has been reserved and will be gradually distributed over four years to support YGG community operations; about 40% will be allocated to investors (24.9%) and founders (15%) respectively; the remaining 15% will be used for the company’s Finance and Advisors.
For security reasons, YGG has established a sub-DAO to host game-specific assets and activities. Assets in the sub-DAO are purchased, owned and controlled by the YGG Vault through a multi-signature certified hardware wallet to ensure maximum security.
Crowdfunding to invest in DAO
PleasrDAO is an NFT DAO established to jointly raise funds and purchase high-value NFTs. Contribution fees and digital asset ownership are shared by PleasrDAO members.
PleasrDAO was originally formed to crowdfund the purchase of the Uniswap V3 NFT artwork “x*y=k” (commemorative video created to welcome the DEX-Wniswap update) designed by New York-based 3D digital artist pplpleasr. After buying the UNI V3 NFT, PleasrDAO also made headlines in the mainstream media by acquiring the only NFT digital artwork named “Stay Free” by Edward Snowden. On April 16, 2021, PleasrDAO purchased the first officially released Snowden NFT at the Foundation auction at a price of 2224E, the highest price in Foundation auction history, and the purchase funds were subsequently donated to the Press Freedom Association to promote the media Internal journalism transparency and decentralization.
PleasrDAO will continue to purchase and commission NFT artwork, while investing in decentralized finance, incubating new products, cultivating new digital artists, and making angel investments in digital markets.
Flamingo DAO primarily expands DAO funding by researching emerging investment opportunities on-chain. With the firm belief that blockchain collectors are a new wave of investors and curators, Flamingo DAO believes that turning to research on digital property ownership issues will play an important role in creating unique and unknown digital content markets and consumption patterns.
Famingo DAO aims to gain a foothold in the digital market, especially the recent promising blockchain art market.Members of the Famingo DAO have the opportunity to deposit personal NFT assets into the DAO treasury, thereby gaining access to a line of credit secured by digital assets. In addition, after becoming a member of the DAO, investors can enjoy a variety of benefits. For example, members can showcase their NFTs in the DAO digital gallery, store NFTs in the DAO vault for maximum security, split NFTs, or use them as collateral in other DeFi platforms.
Jenny Metaverse DAO
Jenny DAO mainly lowers the threshold for NFT investment through structural design. JennMetaverse is a decentralized organization built and managed on the Unicly platform. JennyDAO is an NFT collectible represented by ERC20 (uJenny).ERC20 can indicate the holder’s share in the NFT collection, and it is also a symbol of the holder’s future voting rights in JennyDAO, which can decide issues such as which works of art should be included in the collection.
Regardless of whether the holder is a member of the DAO community, every user on the platform can purchase a piece of art from the JennyDAO vault after earning a certain amount of T. JennyDAO community members are also responsible for putting NFTs into the vault and locking them into smart contracts, estimating the total value of locked NFTs, creating/adding new NFTs, arbitrating NFT and Jenny values, and evaluating long-term offers for purchased NFTs. Users with JennyDAO community memberships can also access private Telegram and Discord, get additional information, market news and updates from the NFT marketplace, and influence how JennyDAO treasury funds are used. After the treasury sells NFT, JennyDAO members can obtain a certain percentage of premium income based on the DAO share.
Bored Ape collector Kylo established an NFT DAO through NIFTEX, and the community has grown into one of the most valuable vaults for Bored Ape collections. APED DAO collected 70 E’s in just four days, no doubt a huge success.
The APED (Baddest Alpha Ape Bundle) collection initially contained 49 patterns (including 48 bored apes and 1 female cypherpunk), after which several DAO members decided to fund the DAO by adding more NFTs to the smart wallet vault.As a result, artworks such as baby CyberKongz, Arabian Camels, Punk’s Comic, Bonsais, Crypto Balls and Avastar have been added to the collection. APED DAO quickly fills the treasury in this way, far beyond the ecosystem scope of the bored ape.Currently, the DAO is looking for ways to transfer treasury funds to new NFT projects to further develop collections managed by APED DAO members.
APED DAO is governed by its community, using $APED shards created by NIFTEX to execute decisions. Currently, the APED DAO has over 230 members, proving that access to some of the rarest NFTs in the Boring Ape ecosystem has been greatly democratized.
In NFT projects, Noun is issued in a very special way. The auction house mints a Noun every day, which looks like a colorful pixelated, bespectacled blocky figure that looks like graffiti casually dropped on grid paper in his spare time. The Nouns DAO project holds an auction every day. Only one Noun will be auctioned at a time, and only E bids will be accepted. All E from the auction on that day will go into the project treasury. After the auction of the day ends, the auction house will immediately mint a new Noun, which means that there will always be one and only one Noun in the auction process.
Nouns DAO is the main management organization of the Nouns community ecosystem, and community management is carried out by modifying the Governor Bravo contract of the Compound protocol. Holders of Noun simultaneously acquire NFT ownership and become members of Nouns DAO, and the membership is irrevocable. In addition, a Noun is equivalent to one vote in all governance matters of the DAO. Noun’s voting rights are not transferable (if the holder sells his Noun, the voting rights will also disappear), but the voting rights can be delegated, which means that as long as the holder has his own Noun, he can transfer his own Noun. Voting rights are allocated to others.
HeadDAO is a digital art collection stored on the blockchain. HeadDAO members hold $HEAD, which represents partial ownership of the NFT held by the community treasury. Members can also have exclusive access to the DAO community, browse Shamdoo cat photos, and have the right to vote on DAO assets. HeadDAO splits blue-chip NFTs, of which 80% of minting revenue and 75% of royalties are owned by DAO.
The concept and attempt of DAO existed early, and promoted the development and progress of the blockchain industry through the smart contract model. As the NFT craze continues to sweep the world, investors focus on NFT artworks with collectible value, and the number of DAOs established to invest in NFTs also increases. It is believed that in the future, DAO, which is completely run by NFT, will inevitably usher in further innovation and development. The DAO community will also incubate more diverse forms of operation and profit, which will bring unexpected development space for NFT in the longer term. Let’s wait and see.
“From 0 to 1 (One): The Universal NFT Knowledge Graph Makes You Proficient in NFT”
“From 0 to 1 (Three): The Past and Present of the Metaverse”
“From 0 to 1 (four): NFT encryption art strategy”
“From 0 to 1 (Five): NFT Project Inventory”
“From 0 to 1 (Six): NFT Essentials”
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/from-0-to-1-two-nft-application-scenarios/
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