When commenting on the progress of this round of NFT, if you consider the crypto market, pop culture, Generation Z consumerism, technology, cyberpunk, and digital art as a multitude of unrelated independent activities that happen to be carried out at the same time, we will fall into A sense of isolation in various fields, while turning a blind eye to the most important overall facts-digital value carriers have occupied an increasingly important position in the world we live in, and cultural values have also moved towards digital forms. The beginning of full digitization means that the world we interact with will evolve into a more virtual era, in which “virtual” is the reality that everyone faces.
The birth and advancement of NFT
“NFT” in the first quarter of 2021 is undoubtedly a phenomenon-level buzzword. From the birth of American digital artist Beeple in the Christie’s auction room, his NFT work “Every Day: First 5000 Days” sold for $69 million, to the soaring NBA Topshot (photos of NBA stars’ moments released by Topshot) Nikkatsu, NFT has changed from an obscure professional term into a kind of popular entertainment commodity that is readily available. In fact, the original intention of NFT (Non-Fungible Token) is only to describe a standard for encrypted tokens. The ERC721 standard was officially launched in 2018, perfecting the NFT technology we are currently familiar with. NFT’s market enthusiasm, transaction volume does not increase linearly, but has reached several orders of magnitude in the short term after 2021.
An overview of the NFT direction can be divided into three development stages:
- Embryonic period (2012-2016): Non-homogeneous and unique digital asset standards began to emerge, and began to be practiced in the directions of bills, bonds, games, and collectibles;
- Development period (2017-2020): Starting with CryptoKittie, on-chain games and collectibles appear for the first time with phenomenal applications, and the division of labor and upstream and downstream industries related to NFT have begun to take shape;
- Outbreak period (2021-present): Infrastructure is beginning to take shape, the encrypted asset industry is in an upward cycle, consumer behavior shifts, digital art creation groups are booming, and classic IP enters.
Observing only the NFT transaction volume in the past year (as shown in the figure below), the explosive growth this year can be summarized as follows: First, the increase in supply has stimulated the increase in demand, the entry of traditional IP (including sports, film and music, etc.) and high-quality originality The accumulation of works provides a wealth of tradable assets for NFT suppliers. Secondly, the growth of assets on the chain and the entry of new users are manifested in the strong demand for NFT purchases and transactions. Finally, the supporting tools and infrastructure are relatively complete, providing a convenient place for transactions and reducing friction costs.
From the perspective of technological development and business model, NFT uses IP as a carrier to provide an unprecedented high liquidity market for copyright-related transactions; using encrypted assets as a trading medium brings a new concept of assets and ownership. NFT has become a bridge connecting real world assets and digital world assets. Although the transaction volume and popularity of NFT have fallen recently, the number of daily active users has remained at the level of tens of thousands, the daily transaction volume has remained at the level of millions of dollars, and the market value of NFT-related projects has reached billions of dollars.
As of the end of March 2021, the total market value represented by NFT has exceeded US$20 billion, accounting for 1% of the total market value of the crypto market during the same period. Regardless of the growth of market value, transaction volume or market popularity, the NFT field has basically broken away from the crypto market. The upper limit of its own growth.
Digitalization of cultural values and new business forms
If NFT is understood as a container of value, firstly, the adaptability of the container should be clarified, and secondly, the content value it carries cannot be separated. In theory, NFT can be anything digital: sound, image, text, a prop in a game, or even a digital certificate of ownership of a physical object in reality, etc. Each NFT can be bought and sold like a physical asset, but it is not Blockchain technology allows people to track their ownership and validity. Gucci has worked with technology companies in the AR virtual shoe series. And Louis Vuitton (Louis Vuitton) and Burberry (Burberry) respectively designed limited skins with brand characteristics for the characters in “League of Legends” and “King of Glory”.
From the perspective of contemporary art, the great success of Beeple’s work is a major leap forward in the digital art form, and the success of the fusion of its creative concepts and experimental presentation methods. Long before NFTs or digital assets, the exploration of digital art has started since the birth of the information industry. In the 1950s, Lapoky, who used oscilloscopes to capture lightwave images, was the first artist to use digital forms to create works. He used precision instruments to perform electronic photography and assembled a series of works. In the 1990s, Faure Walker, which integrated various creative tools such as painting, photography and PS, also insisted on creating a digital artwork every day for several years. Until today, Beeple has originally issued tokenized artworks on the chain. These creators are trying to expand the carrying limit of humanistic value with the help of technological innovation. Previously, it was difficult to imagine how a JPEG file would be priced and traded. Based on the blockchain, creators completed a complete set of creation, circulation, pricing, and confirmation of works in their native digital environment and using its open network facilities. And the anti-counterfeiting traceability process, and avoid these complicated links.
In the field of commercial art and its derivative art consumer products and cultural peripheral products, the younger generation of consumers’ acceptance of new things and the enhancement of their consumption power of cultural products have gradually revealed the potential of the popular collectibles market. Generation Z is an audience experience established in digital narratives. They are the aboriginals of the contemporary digital world. They are different from the millennials who have grown up in the transition between fine art and digital art narratives. Agree with the value of electronic forms. For millennial consumers, NFT is naturally highly integrated with various Internet memes, and the high recognition in terms of fun naturally greatly enhances the attractiveness of NFT.
The characteristics of high liquidity, price openness, and transparency of the transaction process realized based on the blockchain are beyond the reach of offline transactions. NFT has overturned the power structure of the creative and content industries and returned more control to creators. I believe that more and more creators and IP will join the NFT ranks. Taking the current data on the chain as an example, the average single transaction value of NFT is about 10,000 yuan, and a new market of hundreds of billions like Bubble Mart may be generated on the chain.
As cultural identity is gradually condensed on the digital carrier, the digital world’s ability to meet various human needs is also improving. When people can carry out sufficient economic and cultural activities in the virtual space, a new interaction with the world The way of is also produced, namely the meta universe.
Meta universe: reality built on virtual
Blockchain builds an open and stable value carrier, and provides sufficient possibilities for digital value flow and collaboration between individuals, but building a complete worldview experience requires huge infrastructure support. 5G, VR equipment, IoT facilities, AI technology and clean computing power are all indispensable key industry pillars. In the direction of blockchain, digital identity systems, decentralized storage and fog computing still need to be developed.
According to the current consensus, the five elements of Metaverse include a reliable economic system, virtual identity and assets, strong sociality, immersive experience, and open content creation. If Metaverse is to ultimately create an independent immersive virtual digital world, with an open, self-consistent economic system, low access restrictions, smooth reality interaction and continuity, then what we are now in is still Metaverse. Budding period.
According to the development level of the pillar industries, the meta-universe process can be divided into the following stages:
- The first stage-social + games: immersive experience takes shape, basic entertainment and social functions can be realized in the virtual world, and a small number of players have a sense of belonging to the meta universe.
- The second stage-the concept of virtual/reality is gradually blurred: consumption, finance, life services and other real-world elements are connected to the virtual network. The user base and use time are further improved, and the meta-universe has become an important part of social life.
- The third stage-the real Internet: the digital universe of the “oasis” level in “Top Player”, the virtual and real worlds are inseparable, the user base and usage time reach a huge, and a new civilization is formed in the virtual world.
Looking at the development status of each pillar industry, the direction of the blockchain is the direction with the highest degree of development and the most likely landing. NFT has become a new value-bearing object, capitalizing virtual goods, thereby realizing the value flow of data content. By mapping digital assets, all online equipment, decorations, and land property rights have tradable entities.
DeFi’s efficient and reliable financial system can accelerate the construction of the meta universe. Users’ financial operations are not restricted by geography, economic level, and trust. Through smart contracts, it can execute automatically and avoid black box operations. The combination of DeFi and NFT can be extended to the content, intellectual property rights, records and identity certificates, financial documents, etc. of the meta universe, which can create a transparent and autonomous financial system that can accommodate more diversified assets and more complex transactions, and support the civilization of the meta universe Build.
Blockchain has also begun to take shape in the field of meta-universe. The old virtual reality project decentraland has entered a stable development stage. The recent rapid growth of cultural and creative-driven digital image field has increased the ecological richness. In addition, the game development company headed by Flow has broken strength and can expect more interesting game products to appear.
What is worth looking forward to is that we have seen the influx of early residents of the future world. According to Roblox’s annual data last year, there have been an average of more than 30 million users active in Roblox’s element world every day, with a year-on-year growth rate of nearly 80%. Rapid growth. Of course, this is just the beginning, and we are looking forward to the arrival of a broader and richer digital world.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/how-will-decrypt-the-nft-enter-the-meta-universe-blockchain-and-the-value-entity-link/
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