Internet companies get together behind NFT: evangelize the Metaverse through digital collections

How much can a virtual painting sell for? The answer is $96.3 million.

In March last year, a digital collection titled “Every Day: The First Five Thousand Days” fetched a whopping $96.3 million.This is the third highest auction price of a single artwork by all living artists in history, which is not too high. Since then, NBA stars Curry, Jay Chou and many other international celebrities have paid high prices to photograph the “Boring Ape” series of digital collections, bringing the popularity of digital collections to their peak and bringing the concept of NFT into the public’s field of vision.

Just like 20 years ago, Jack Ma, the evangelist of the domestic Internet, preached the great vision of e-commerce to people everywhere, but was regarded as a liar. What exactly are NFTs? What is the relationship between digital collections and NFTs? No more people know this than people who understood the Internet 20 years ago.

But an indisputable fact is that the digital collection platforms launched by the giants are gradually entering our lives.Alibaba launched the Whaletan digital collection platform, Tencent launched the Magic Nucleus digital collection platform, Jingdong launched the Lingxi digital collection platform, and there were also digital collection platforms launched by content platforms such as Visual China and Mango Supermedia.

In 2021 alone, there will be 38 digital collection platforms in China. At the same time, digital collections launched by most digital collection platforms are often in short supply.

The wave of NFT is sweeping. In order not to be swept off the train by the wave, I understand you and try to use this article to return to the following three questions: 1) What exactly is NFT, and why is it popular now? 2) What are the differences between domestic and international NFTs? 3) What is the real value of NFTs deployed by giants?

Born in 2017, Fire in 2021

2021 is known as the first year of NFT. This year, countless tech giants who are at the forefront of the times and ordinary people with the dream of gold nuggets flooded into the NFT track like a tide.

Internet companies get together behind NFT: evangelize the Metaverse through digital collections

But NFT is not a new concept. In 2017, Ethereum launched a pixel avatar project called “CryptoPunks”. Anyone who owns ether can receive an avatar for free, and users can put it on the secondary market after receiving it. trade. To a certain extent, this is the initial prototype of NFT.

So, why did NFT completely detonate the market after four years? To understand this problem, you must first understand what NFT is.

The so-called NFT is a non-fungible token based on the blockchain. How to understand non-fungible tokens? Comparing with Bitcoin, it is clear that Bitcoin is exactly the same, and can also be divided into 0.1, which is a homogenized token. On the contrary, it is a non-fungible token. It has three salient features:

The first is irreplaceability. The digital files of traditional works of art can be copied at will, while NFT allows these works of art to obtain a “digital ID card” with a unique identification by means of blockchain confirmation;

The second is indivisible. The smallest unit of each NFT exists as a whole, and cannot be circulated in units of measurement below “1” like other cryptocurrencies such as Bitcoin;

The third is continuation of income. According to the transaction agreements of different platforms, each transaction of NFT commodities can make its previous owners get a certain percentage of the share.

The popularity of NFT is essentially the above three features that reconstruct the copyright relationship in the content industry and improve industrial efficiency. In this regard, it is easy to understand by taking the most popular application digital collection of NFT as an example.

First, the irreplaceability greatly reduces the possibility of fraud. In the past, in the traditional art collection circle, it has been plagued by the problem of fakes for a long time, causing great losses to collectors.

This fact often happens in reality. Netflix’s “Let You Watch: The True Story of Art Fakes” documentary once recorded the true story of a female liar who relied on imitation of famous works and sold them to buyers, ultimately causing a total loss of 80 million US dollars to collectors .

But if the works are minted into NFY assets through blockchain technology. Then all transaction records and transaction prices of this work will be publicly displayed, and there is only one copy, which greatly increases the difficulty of counterfeiting.

The second is that after the digital collection is cast into NFT, it has the attributes of financial assets, realizes asset ownership, and can be traded and circulated, which not only protects the rights and interests of creators, but also improves the efficiency of realization.

For example, after an image IP is minted into NFT, in the process of digital asset circulation, the sharing agreement is written into the smart contract, and the original creator and artist can enjoy the sharing income in the process of resale of digital artwork, which means that the creator can In order to obtain more due benefits, it will greatly stimulate the enthusiasm of creativity.

It is this feature that can be transferred multiple times and continued to generate income, which has made many digital collections auctioned at sky-high prices again and again. This has also attracted a lot of people who want to dig gold into this track.

Taken together, on the one hand, digital collections on the supply side reconstruct the copyright relationship in the content industry, fully protect the rights and interests of creators, and provide more possibilities for creators to monetize; Under the “calling” of powerful figures, the price of digital collections continued to rise, and a large number of “speculators” were attracted to enter the market on the demand side. Under the multiple combined forces, it is not difficult to understand the NFT fire.

Domestic VS foreign countries, two faces of NFT development

At present, the development of foreign NFTs starts earlier than domestic ones. Among the many overseas NFT platforms, behemoths such as the OpenSea platform have already emerged. According to data, the market share of OpenSea will remain above 98% in 2021.

Compared with OpenSea, which was established in 2017, domestic NFT platforms have to play a lot to start, and most NFT platforms are established in 2021.

In addition to the different starting time points, users who have experienced platforms at home and abroad at the same time will find that there is a big difference between domestic NFT platforms and foreign NFTs. One of the most notable features is that digital collections on domestic NFT platforms cannot be donated, compared to overseas digital collections that can be donated multiple times.

This is mainly related to the underlying technology. At present, domestic NFTs mainly rely on the alliance chain, which is a cluster composed of multiple private chains and a semi-centralized blockchain managed by multiple institutions, while foreign NFTs are entirely built on the on a centralized public chain. The most important thing is that none of these mainstream NFT platforms in China open the function of secondary transaction, only support personal collection and use functions, and the alliance chains are not connected with each other, and the transaction radius is limited.

The reason behind it is not difficult to understand. Essentially, this is for the orderly development of NFTs within a regulatory framework. After all, due to the characteristics of NFT, there are huge risks such as speculation and potential money laundering.

The difference in the underlying technology also makes the business model of NFT very different. In other words, although they both sell digital collections, there are many differences between the two.

First, the value proposition is different. As mentioned above, NFT has the ability to cast digital products into assets. But domestic digital collections do not have this attribute. Its attributes are similar to WeChat accounts. It does not have ownership, but only has the right to use it. Most users buy digital collections, which is equivalent to buying a set of skins in the game.

Based on this difference, the NFT platforms launched in China have changed their calibers to call themselves “digital collections” platforms, emphasizing the attributes of collections. However, foreign digital collections are different. Because they can be freely traded and cast into assets, they take into account all the attributes of NFT.

Second, the issuance methods and transaction methods of the two are different. At present, the domestic distribution method is mainly PGC, that is, a professional company produces digital collections (due to regulatory requirements, in general, only qualified companies are qualified to issue digital collections), while the overseas regulatory environment is relatively loose, mainly It is a PGC+UGC model, and both professionals and ordinary people can participate. At present, OpenSea is the largest comprehensive NFT trading platform. Most of the NFT works are mainly based on personal originality, that is, the UGC model.

In addition, domestic NFTs are not only manufactured and released by specialized companies, but also have the characteristics of non-transferability. And overseas hanging on the public chain, not only can be sold for the first time, but also can be transferred multiple times.

In general, in the domestic market, NFTs can be equated with digital collections, but in overseas markets, digital collections are only a subset of NFTs.

What is the intention behind the accelerated layout of digital collections by major manufacturers?

Regarding NFTs, the market is not all praise, and some people have questioned the value of NFTs.

Digital collections combine token attributes, “trend art” elements, and various attributes of scarcity. Its hype attributes far exceed categories such as sneakers and blind boxes. The high transaction prices that have been refreshed repeatedly have also made many direct calls, NFT is just a drumming pass. game.

But the other side of the doubt is that the big Internet companies have begun to accelerate the layout of the NFT track.

Internet companies get together behind NFT: evangelize the Metaverse through digital collections

AntChain, a subsidiary of Alibaba, is one of the first giants to be deployed. On May 20, 2021, Alibaba’s 520 Auction Festival will launch a dedicated digital collectibles section. In December of the same year, AntChain completed the brand upgrade and changed its name to WhaleTalk. Thanks to the first-mover advantage, Ali’s digital collections have also achieved good results. According to Essence Securities, as of 2021, Whale Scout has issued a total of 2.945 million digital collections.

Tencent is not too far behind, launching the domestic magic core APP in August 2021. The digital collections launched by Tencent are mainly created based on IP such as painting and music. Compared with Ali’s large-scale issuance, Tencent’s circulation is not high. Overall, it also shows the characteristics of high pricing and ecological diversification. According to Essence Securities, as of 2021, the total number of digital collections issued by Magic Core is only 30,000.

Internet companies get together behind NFT: evangelize the Metaverse through digital collections

In addition to Internet giants, content companies such as Visual China and Mango Supermedia have also released digital collection platforms to increase the NFT track.

Faced with doubts, why do Internet giants accelerate the layout of the NFT track? As mentioned above, the so-called digital collection is just a small subset of NFT, and NFT has many applications.

Read Jun Zeng’s story in “Capital Flocks to Web3, a “New Bottle of Old Wine”? 》 mentioned in the article that Web3.0 is the underlying technology, NFT is equivalent to the middle-tier application, and the Metaverse is equivalent to the top-tier application. The rise of the Metaverse is based on many applications, and NFT is a crucial part of building the Metaverse.

In the existing cognition, if the Metaverse is to be connected with the real scene, the trading system is essential, and NFT is an important way to connect the virtual and the real. For example, the game equipment in the game can be cast into NFT, and then traded out through the blockchain network, thereby opening up the economic system inside and outside the game.

The potential of the Metaverse is unquestionable. Although, the current domestic NFT has not fully opened the transaction function. However, there are already a few domestic companies whose NFT platforms have begun to integrate with international standards.

Taking Unique Art as an example, the unique digital developed by it is not only in line with the domestic alliance chain, but also with the overseas public chain, completing cross-chain transactions, attracting a large number of painters and gold diggers to settle in.

It is not difficult to predict that it is not impossible to open domestic NFT distribution channels, cross-chain transactions, and secondary markets after the relevant technologies are mature and supporting policies are perfected. At that time, the giants, relying on their layout in the Metaverse field, can once again seize the opportunity of the new era and successfully get the third ticket to the sea of ​​the world.

The wheel of history is rolling forward, and the era of NFT is accelerating. What changes will it bring to our lives is worth looking forward to.

Posted by:CoinYuppie,Reprinted with attribution to:
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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