How popular are digital collections with Web3.0?

With the popularity of NFT in the world, the domestic market has also moved with it, and it has developed in full swing as a “digital collection”.

In order to let everyone have a systematic understanding of digital collections, we have specially prepared a series of articles on digital collections, which will show you the basic concepts, development status and applications, security problems and solutions of digital collections. Cognitive digital collections.

The last article introduced the basic knowledge of digital collections for everyone (hype?

How popular are digital collections with Web3.0?

The picture comes from the Internet

How hot are digital collections?

Let’s first look at a set of numbers. According to the “2021 China Digital Collection (NFT) Market Analysis and Summary” data from China Science Network:

In 2021, various domestic digital collection sales platforms will sell about 4.56 million items, with a total circulation market value of about 150 million yuan and an average price of about 33.33 yuan .

How popular are foreign NFTs?

Digital collections originated from NFTs. Let’s first take a look at how popular the foreign NFT market is recently.

2021 is the first year of NFT recognized by the industry. The foreign NFT market has rapidly entered an explosive period, and the transaction volume has skyrocketed.

How popular are digital collections with Web3.0?

Data from blockcrypto.com screenshot

How popular are digital collections with Web3.0?

 Data from blockcrypto.com screenshot

According to the latest data from Coingecko, as of May 12, 2022, the total market value of NFTs is about $16.9 billion, and the daily trading volume exceeds $11 billion. The top three NFTs in the market are Flow, ApeCoin, and Axie Infinity, all of which are billions of dollars.

How popular are digital collections with Web3.0?

Data from screenshots of Coingecko’s official website

How popular are domestic digital collections?

Back in China, we have shown the record of domestic digital collections in 2021 above: the number of digital collections sold is about 4.56 million, and the total circulation market value is about 150 million yuan.

In addition, Alibaba, Tencent, NetEase, Ant Group, JD.com, Baidu, Xiaohongshu, Station B and other major Internet companies have deployed digital collections . It is reported that in 2021 alone, there will be 38 digital collection platforms in China.

Major museums and major media platforms have also launched digital collections individually or jointly. During the Two Sessions this year, Chuanguan News released the first digital collection of the National Two Sessions, “Sichuan to the Future”.

How popular are digital collections with Web3.0?

The picture comes from the Internet

The rapid development of domestic digital collections did not wait too long . On June 23, 2021, Alipay and Dunhuang Fine Arts Research Institute released the first domestic NFT trading skins, Dunhuang Feitian and Nine-color Deer, based on Ant Chain. The global limited edition of 16,000 pieces was sold out on the day of their release, and the popularity was unprecedented. . Subsequently, on August 2, 2021, Tencent launched the first domestic NFT trading app “Magic Core” , and released 300 audio “Thirteen Invitation” NFTs.

How popular are digital collections with Web3.0?

The picture comes from the Internet

Note that we talked about the earliest “NFT” in China, not “digital collection” , because the concept of digital collection was officially proposed in October 2021 , when the “NFT” in the NFT distribution platform under the domestic Ant and Tencent ” were all changed to “Digital Collection”. Since then, the concept of digital collections under the supervision of the state was officially born.

Compared with the overseas NFT market and user scale, the domestic digital collection market is still at an early stage and has huge development potential.

Why are digital collections so popular?

As collectors of digital collections, we can not only view the collection and enjoy the beautiful experience of collecting, but also share the insights and joy of collecting with others. The reason why digital collections are so popular, especially among young people, may be due to the following reasons:

Art collecting becomes more democratized

With digital collections, the boundaries of art collections extend to the digital world and are no longer limited to the physical world. Art collection is more popular, and there is no need to worry about the storage and circulation of artworks.

And the price is close to the people, you can buy your favorite collection for a few yuan to dozens of yuan, and everyone can afford it.

It also solves the disadvantage that physical collections are easily damaged or lost, and makes viewing pictures without time and space restrictions.

Meet the consumer needs of modern young people

The scarcity and uniqueness of domestic digital collections are in line with contemporary users’ pursuit of limited quantities. After all, gold is hard to buy. I like it. Whether it is collection or self-viewing, it is very convenient.

become the new social medium

The sense of identity attached to digital collections is forming a unique circle, and digital collections have become social media, connecting people with the same sense of identity.

collectible

Through blockchain technology, digital collections have the same uniqueness and scarcity as traditional artworks, avoiding malicious additional issuance and unlimited duplication of digital collections. Blockchain technology makes digital collections have rare attributes and enhances their collection value.

Development of the domestic digital collection industry chain

The NFT market can be divided into three layers from the industrial chain: infrastructure layer, project creation layer and derivative application layer.

Different from foreign NFTs, domestic digital collections have not fully opened up their derivative application fields .So, in terms of digital collections:

1) The infrastructure layer mainly provides the support of the underlying chain platform for the casting, issuance and trading of digital collections;

2) The project creation layer mainly performs casting and distribution according to the digital collection agreement, including IP licensors, project creators, project issuers and distribution platforms.

Infrastructure layer – chain layer

The infrastructure layer provides blockchain, smart contracts, and storage technology support for digital collections, and provides security and stability guarantees for the entire digital collection ecosystem .

At present, the domestic blockchain technology support for digital collections mainly includes alliance chains , such as Ant Chain, Tencent Zhixin Chain, Baidu Super Chain, JD Zhizhen Chain, BSN Alliance Chain, etc.

How popular are digital collections with Web3.0?

Domestic mainstream digital collection bottom chain platform and its research and development company

Compared with the public chain, the alliance chain has given up some decentralization capabilities, but it has certain advantages in hype supervision, storage and energy consumption. Among them, the most important thing is that the casting and trading rules of digital collections on the alliance chain are controllable within a certain range, and it has the ability to restrict second-hand transactions and OTC transactions, which avoids excessive speculation of digital collections and reduces regulatory risks .

Infrastructure layer—issuing platform

With the popularity of the domestic market for digital collections, the issuance platform is also rapidly taking shape, which mainly provides blockchain technology and traffic support for project issuance through independent research and development of blockchain technology or in the form of cooperative blockchain companies .

According to China Science Network’s “2021 China Digital Collection (NFT) Market Analysis and Summary” data, there will be as many as 38 domestic digital collection distribution platforms in 2021 . The issuers behind its platform include:

How popular are digital collections with Web3.0?

Part of the domestic digital collection distribution platform and the chain platform

1) Internet companies with chain platform infrastructure support;

2) Internet digital content ecological companies with resources such as audio, video, pictures or web articles;

3) Companies conducting Metaverse exploration based on blockchain technology.

Project Creation Layer—Copyright and Distributor

The copyright owner mainly provides the original IP of the digital collection , which mainly includes specific groups or institutions, film, television, music, animation and other manufacturers, game companies and individual artists.

The issuer is mainly for the distribution of digital collections , which can be the copyright owner or the licensor, and presents prototype designs and digital products through secondary creation of works.

How popular are digital collections with Web3.0?

Overview of the digital collection industry chain The picture comes from the “Digital Collection Development and Application Report” of the Gyro Research Institute

Application scenarios and typical cases of digital collections

art collection

Art collections are the main application of current digital collections .

Digital collections can track their transaction flows through on-chain records, disclose their transaction prices and details, and make market pricing transparent, solving the problems of lack of market pricing and honest transactions in the traditional art collections market .

On the other hand, the emergence of digital collections has also broadened the trading channels, enriched the form of traditional culture dissemination , solved the problem of geographical limitations of traditional collections of artworks, and brought new vitality to the traditional cultural and creative market.

For example, on the eve of the Lunar New Year in 2022, 24 museums (academies) released 3D digital collections from “Tiger Relics”, “Zodiac Relics” and “Treasures of the Town Hall” on WhaleTalk, a digital collection platform under Alipay. On April 21, Xu Beihong Art Museum and Times Beihong Culture and Art Center jointly launched Xu Beihong’s limited digital collection for the first time.

How popular are digital collections with Web3.0?

The picture comes from the Internet

music

Digital collections of music are also gaining momentum.

Musicians upload their works and related information to the blockchain, store them through digital encryption technology, collect and generate smart contracts to ensure the copyright and ownership of digital music, and effectively avoid infringement and piracy .

For example, Tencent Music announced the launch of the digital collection series “Musicians are more than musicians” and the 20th anniversary vinyl NFT of Hu Yanbin’s “The Monk”, becoming the first music platform in the field of digital collections in China, and may be applied to digital albums and limited peripheral products in the future. .

How popular are digital collections with Web3.0?

The picture comes from the Internet

physical education

Sports-themed digital collections are one of the hottest trends combining sports and tech.

Sports as a participatory and experiential national culture, various derivative souvenirs connect the event itself and sports fans. The use of digital collections, a new form of interactivity, fun, uniqueness and authenticity, combined with sports memorabilia, not only means that more ordinary people have the opportunity to own these rare, rare but full of historical and artistic sports collections At the same time, in the context of the huge impact of offline sports events in the epidemic era, it has opened up a broader imagination space for the digital exploration of the sports industry and the digital inheritance of sports spirit.

For example, the series of digital collections with the theme of “Inheriting the Sports Dream” previously released on WhaleTalk are favored by sports enthusiasts.

How popular are digital collections with Web3.0?

The picture comes from the Internet

Ticketing

Traditional tickets have problems such as the proliferation of scalpers, difficulty in preservation, inconvenience in collection and waste of paper , while ticketing digital collections are sold by casting various types of tickets on the chain into digital collections, which not only helps to solve the above problems, It is also in line with market hotspots and attracts traffic with new marketing methods.

On March 3, 2022, China Oriental Performing Arts Group joined hands with Damai and Lingjing Culture to launch the digital collection commemorative ticket “Only Green” in China’s performance industry. On April 30, the official flagship store of Fliggy Resort released a digital collection of Badaling Great Wall tickets, limited to 10,000 copies.

How popular are digital collections with Web3.0?

The picture comes from the Internet

Derivative application scenarios

The application scenarios of the derived blockchain digital collections include : digital insurance policies, digital education, digital scientific research, games, Metaverse, etc.

In these fields, there are similar pain points to digital collections, including ownership confirmation, intellectual property protection, etc., and blockchain technology can solve these pain points well, enabling traceability, confirmation of rights, collectability, and tradability . Facilitate value discovery in digital collectible derivatives.

Core Values ​​of Digital Collections

Assetization of digital content

The core value of digital collections lies in the assetization of digital content. Under the current Internet, we only have the right to use digital content and cannot truly make digital content an asset.

The emergence of digital collections has broadened the boundaries of digital assets: digital assets no longer only refer to digital currency, but expand their scope to non-homogeneous digital content such as images, audio and video, bills, and sports peripherals . That is, any unique asset can be cast into a digital collection.

On the other hand, the low transaction cost and high transaction efficiency of digital collections also promote the value capture and release of digital assets and improve the liquidity of digital content .

Copyright confirmation and protection

From the perspective of copyright protection, digital collections can effectively confirm the ownership of assets by marking the ownership of assets, and ensure their unique Sex, authenticity and permanence.

In addition, the original certificate, version number, on-chain time, collectors and other information recorded in the metadata of the digital collection will be permanently stored on the blockchain. The cost of fraud on the chain is huge, which also reduces the possibility of illegal acts such as infringement. It has broad application prospects in the field of content.

Creator Economic Innovation

The popularity of digital collections has stimulated the transformation of valuation and pricing. Art works have shifted from a centralized platform-led bargaining model to marketization, that is, creator economy.

The creator economy improves the commercial status of content creators to a certain extent and reduces the commission share of centralized platforms.

Through digital collections, creators can issue licensing agreements with different conditions in batches, so that licensing agreements can be circulated and priced in the market, and the circulation of works has changed from the original centralized platform for centralized sales to point-to-point records. Transactions can be tracked and paid directly. Continued royalty income can also be obtained from subsequent transfers.

How popular are digital collections with Web3.0?

How popular are digital collections with Web3.0?

At present, the application of digital collections continues to increase, and the market is becoming more and more popular. Representative well-known applications have begun to emerge in the fields of cultural consumption, IP creation, and Metaverse, and the construction of the industrial chain is also accelerating.

However, because its development is still in the early stage, the digital collection industry still has problems such as the urgent need to improve the safety performance, the price mechanism has not been perfected, the regulatory laws and regulations are still being explored, and the market order still needs to be optimized. The next article will focus on explaining the hidden dangers and problems faced by the current digital collections.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/how-popular-are-digital-collections-with-web3-0/
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