Hype or consensus? Explore the connotation and extension of NFT avatar

It can be seen that the NFT avatar is showing strong development potential with a momentum, but where does its value come from? In fact, from the perspective of avatars alone, the value of current avatar-like NFTs is mainly reflected in the following three points, namely, identity, scarcity, and financial attributes.

Digital identity. In fact, identity is the most iconic long-term intrinsic value of the avatar category. “Identity” is the mark that everyone is born with. According to different time and space, people have different identity attributes, and there is a unique proof relationship. In cyberspace, to establish who I am and who I belong to, people also need a symbol that can represent identity attributes to determine the personal coordinate relationship. Generally speaking, the NFT avatar is a bust of a character, which is often used as a digital profile picture, which has a high degree of compatibility with personal status symbols. For example, in 2D virtual reality, various ape-man heads represent flat 2D self-identity, and in the three-dimensional world, Meebits, Animetas, etc. appear as three-dimensional identification.

Hype or consensus? Explore the connotation and extension of NFT avatar

At the same time, identity is a necessary condition for the formation of an organization. From the perspective of social networks, avatar-like NFTs give a kind of institutional proof of identity in the digital native world, forming a spontaneous group worldview, and thus leading to various The community is constantly emerging. In a deeper sense, the avatar-like NFT reflects the current individual’s operating philosophy of the cyber world. In the real world, you represent you. Then who are you in the virtual world and what social class are you in? Identity makes NFT avatars have empathy value, and the gradual formation of communities has stimulated this value through network effects and class divisions. In the long run, migration in the digital world is inevitable, and identity will continue to run through it.

Scarcity. Scarcity and identity complement each other. Behind scarcity means class differentiation and identity enjoyment. At present, most NFT avatars are generated from the combination of features through algorithms, the number is constant and effective, and they are generally unique and have different scarcity. Due to its natural limited scarcity, strong marketing ability, changeable gameplay, and strong characteristics, the NFT avatar is similar to many luxury brands, and its price corresponds to the value of the luxury brand. From this perspective, Having an NFT avatar not only gives people the enjoyment of non-equal rights and interests, but a constant number also gives them artistic value from another level.

Financial attributes and entertainment. NFT is based on the representation of its ownership and the attributes of digital assets. Its value is also the sum of authenticity, transferability and ownership. In this context, claims from digital goods to physical assets can be represented by NFT, and the NFT avatar is used as A type of digital asset with extremely prominent financial attributes. As an alternative financial investment product, projects such as crypto punk have a return rate of hundreds to thousands of times. Compared with the US Nasdaq 100 index annual return rate of 20% and gold’s 1.5% in the past 10 years, obviously More tempting. The strong financial attributes have also stimulated the continuous enhancement of entertainment. More people have participated in it out of curiosity and interest. Recently, some people have begun to create their own characters to play their apes.

Summary and outlook: NFT is a bridge between the real world and the virtual world

In terms of reality, the real use value of NFT is based on its ownership representation and the attributes of digital assets. Its value is also the sum of authenticity, transferability and ownership. In this context, from the digital world The claims from commodities to physical assets can be expressed by NFT, and the application potential is huge.

From a macro perspective, human exploration of the digital world is only a drop in the ocean. In just a few decades of exploration, human society has gradually transitioned from digital twins to digital natives, and is constantly migrating to the cyberspace where virtual and real are intertwined. New technologies It gave birth to unlimited possibilities. NFT, as a standardized value carrier in the Internet of Value, has the ability to construct physical space equivalents, and the value it contains is self-evident.

Although at present, it is undeniable that there are still a series of problems in NFT, such as market order that needs to be adjusted urgently, innovative models to be explored, and policies and regulations still need to be improved. However, there is still a long period of business cognition and mass communication surrounding NFT technology. Development period.

But in the final analysis, technology is neutral, and any technological invention may be used by humans for constructive or non-constructive purposes. In the initial development period of technology, whether to harvest cognition by using information gap or adhering to the concept of science and technology to develop steadily for good may be a question that practitioners in every industry must think about. For example, is there a large number of bubbles in the well-known avatar field? Can empathy value really promote industry innovation? The answer is thousands of people. We also expect that in the coming era of value interconnection, NFT can truly exert its effectiveness, as a bridge connecting the real world and the virtual world in the meta-universe, and becoming a new industry disruptive force in the exploration of digital space.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/hype-or-consensus-explore-the-connotation-and-extension-of-nft-avatar/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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