NFT changed its name to “digital collection” pain points that Internet giants need to solve

The popularity of NFT this year has given domestic Internet companies see opportunities, so they have deployed their NFT business. Alibaba and Tencent have successively developed corresponding NFT platforms and sold a lot of NFT art collections through the platform. However, as the country’s NFT hype bubble The big companies have also renamed their platforms one after another, avoiding the use of the word “NFT” and using digital collections instead.

Renamed “digital collection” difficult problems

Although the NFT was renamed digital collections in order to clarify the boundaries so that Tencent Ali can avoid misunderstanding or regulatory attention, there are still some problems with digital collections.

1. The issue of ownership of digital collections

The distribution cities of digital collections such as Tencent and Alibaba are based on their respective alliance chains. In terms of experience, they are only displayed on the user’s related registered account. Although the digital collection held by the user has a unique number, in theory, the user purchases The digital collection of does not really belong to the user, it is only displayed on the user account.

We all know that the alliance chain is also a kind of blockchain, and it also has the same public/private key system as the public chain, and this part is not open to users, which means that the private key of the digital collection owned by the user on the platform is still In the hands of the platform, the platform can theoretically perform operations such as transfer and modification at any time without user confirmation, which is very critical.

2. The circulation value of digital collections

The discovery of value is generally through market circulation for price discovery. For example, traditional artworks can be traded and circulated among different people at will, which makes people continue to buy and sell art collections, thus creating the value of art collections , There are even special auction houses to conduct auctions of traditional collections, which is also a form of marketization.

And for digital collections, since is different in kind, and therefore the flow of digital collections is critical, it means that there is room for speculation circulating, and if sealing off the flow function, then it means that the value of the hype is sealed, which At that time, the holder of the digital collection did not own the copyright to the collection, so at this time, the digital collection can be said to have no use except for viewing it in the mobile account.

NFT is another way to express it. Because it is built on the public chain, it is truly owned by the holder. Just like encrypted assets, no one can steal your NFT unless you disclose your own. Private key. In addition, NFT can truly realize free circulation, so there is a certain price valuation in the market, which is more in line with the characteristics and market value of collectibles.

NFT is more in line with the digitization of collections

If we observe carefully, we can actually find that this form of NFT on the chain is very similar to the art market in the real world.

There is a certain creative cost

In the real art market, anyone can make art creation, and on the shared chain, anyone can make NFT production. They all need to pay a certain cost, including funds, energy, inspiration, etc.

Free to trade

The real art market can be freely traded, and the NFT on the public chain can also be freely traded. The price is matched by both parties, and the price is not subject to any restrictions, and auctions are also conducted.

Clear ownership of the holder

The property rights belong to the holders. Both NFTs and artworks can be used to confirm the property rights, and no one can deprive them, unless they can be transferred by robbery.

On the hype issue

Of course, regarding the issue of hype, in fact, for the NFT market, since there are no restrictions on making NFTs, anyone can create NFTs. Therefore, it can be seen that the cost of NFT creation is relatively low, and NFTs that can be truly hyped in the market must have their own hype. the value of. And not all NFTs can be hyped, so the hype of NFTs is differentiated.

The same is true for the hype of collections such as artworks in the real world. For example, celebrity works and works with a certain period of history have high hype value in the market, while most ordinary people or works of low level do not have corresponding hype. Value and hype value are also market-oriented.

The solution to the problem of consortium chain digital collections

It can be seen from the comparison that the current NFT has many advantages over digital collections. Therefore, for investors, the current digital collections do not have real collection significance. Due to the low cost of distribution, there is still a very high bubble. An ordinary painting can produce tens of thousands of digital collections, and one can easily obtain sales of hundreds of thousands of yuan. It may even be considered by the market as cutting leeks. Act of.

In order to avoid relevant national supervision, the digital collection has not yet opened the market transfer and gift function, and the holder of the digital collection does not have the corresponding copyright, and cannot make secondary creations. Therefore, at present, besides staying in their own centralized account Inside, you can take it out and see, there are no other additional functions. It is easy for users to realize that the digital collections they buy are worthless, and thus lose their interest in buying. They also have a serious sense of distrust of these Internet companies, which consumes their reputation in society.

To solve this problem of digital collections and attract the attention of the market, for companies such as Tencent and Ali, only by adding more ecological empowerment to their digital collections can they attract users to pay for them.

Empowerment means holding digital collections to enjoy corresponding privileged services. For example, holding digital collections can enjoy membership. This method is similar to Tencent’s QQ membership, red diamond, blue diamond and other services a few years ago. NFT is used in the use of its company’s games, so as to ensure that users are interested in digital collections, increase their desire to purchase, and achieve an ecological closed loop.

NFT changed its name to "digital collection" pain points that Internet giants need to solve

Digital torch

Judging from the performance effects in the past, the increase in usage scenarios of Internet giants can make the market have a higher demand for the use of their digital collections, and at the same time can increase the loyalty of users, which is of great significance to their own brand building.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/nft-changed-its-name-to-digital-collection-pain-points-that-internet-giants-need-to-solve/
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