Crisis under prosperity
NFT, or Non-Fungible Token, is called Non-Fungible Token in Chinese. “Pass” refers to the establishment of verified and publicly proven ownership of photos, videos, audios and other types of digital files through blockchain technology.
“Non-homogeneity” makes this kind of digital assets lack interchangeability and can provide a unique proof for it. The originally infinitely reproducible digital world has now formed a “value” digital asset through NFT.
It is not equivalent to virtual currency, nor is it equivalent to blockchain, but a new technology on top of blockchain. By exploring the possibility of combining physical assets and digital technology, NFT has opened up a new digital world.
In this digital world, NFT carries the unrealized value of IP in the past: “uniqueness confirmation” solves the problems of digital asset confirmation, collection, and transaction; “smart contract technology” helps creators share subsequent value-added benefits and become a culture Accelerator of industrial innovation and development.
For example, the policy environment and development background of blockchain technology are consistent, and NFT has formed a domestic market dominated by “alliance chains” and a foreign market dominated by “public chains”. The public chain is an open network, anyone can participate in consensus anywhere, and the “token mechanism” is the most essential feature of the public chain. Ethernet Square , Flow and other public chain, has become the mainstream technology overseas NFT, but no barriers to entry, no real names, no risk management and control mechanisms of public-chain systems for a number of people an opportunity to leave.
According to the data of Nonfungible, there are big differences in the NFT market in 2018 and 2021. The number of transactions this year did not exceed the peak in 2018, but the highest transaction volume has increased by 1 billion times. In contrast, the current NFT market’s productivity and production relations are not compatible.
Productivity in the narrow sense refers to regenerative productivity, that is, the ability of human beings to create new wealth. But at present, the NFT primary issuance market is slightly weak, high-quality works are limited, and the threshold for creators to participate in the distribution is getting lower and lower. The quality and quantity of NFT’s works failed to show the vitality that fits this period of explosive growth.
Production relations refer to the mutual relations formed by people in the process of reproduction, including production relations, such as production, distribution and exchange, and consumption. In the comparison of the NFT two-tier market, the production relationship characterized by profit-seeking is more obvious. The secondary market is showing a trend of crazy growth, which reveals the current mentality of participants, that is, to make a profit by changing hands, rather than based on the value of IP itself.
NFT transaction quantity and transaction amount
Data source: Nonfungible.com
Back in China, technology companies based on Tencent , Alibaba , and Byte, bind high-quality IP, and focus on the concept of “collection” on the basis of not touching tokens and based on alliance chains, and promote the cultural IP industry with technology confirmation. develop. Earlier, Tencent launched the NFT trading platform “Magic Core” App, and the digital art collection NFT and Wanhuajing Digital National Illustrated Book of “Thirteen Invitations” that were already online sold out instantly.
AntChain fan tablets have successively launched more than 10 digital collections including Dunhuang Feitian, Feng Zikai cartoons, public welfare paintings, Hangzhou Asian Games digital torch, and T-shaped silk paintings collected by Hunan Museum, which have been liked and collected by young people.
Is it a collector or a gambler?
NFT is crowded, but “hype” is disrupting the order of the market.
Because there is no real name and risk control, some people imitate and adapt other people’s paintings into new digital works through public chains, and even distribute products through plagiarism and plagiarism. The phenomenon of counterfeit and piracy is endless. Many celebrities’ tweets, photos, etc. were copied and distributed without permission. In this process, buyers and sellers no longer care about the existence of the IP party behind the work, and no longer think about the “true value” of the work.
In the alliance chain scenario, over-the-counter transactions breed. Some people buy and sell in spite of the “restricted transaction” rules. The technology originally used for digital content protection has been “demonized” by a group of gamblers known as “collectors”.
NFT’s fledgling, wrong development ideas or the biggest crisis that NFT will face at present.
One of the wrong development ideas for NFT is to regard it as a kind of “coin issuing” behavior. NFT is characterized by “non-homogeneity”, that is, endows the underlying digital assets with uniqueness and authenticity, and allows digital assets to be used to measure value and circulation. However, many speculators who have heard the news regard it as a kind of financing opportunity for “issuance of coins.”
Pass crudely crafted digital paintings, audios, or videos and issue them to earn income. Speculators are holding hands to bet, and the wait-and-see is waiting for the final loser who beats the drums to pass the flowers. In the market, a pixel-level work or “wonderful” work has been traded at sky-high prices. However, the threshold of creation has never been low, and the wrong attitude towards NFT may make it a cheap industrial product.
Another misunderstanding of NFTs is “financialized products.” NFT can be used as the underlying asset of a mortgage loan, allowing the loan to obtain income. By embedding the copyright of the NFT in the smart contract, the owner can realize cash flow income and asset appreciation through the NFT. Fragmented NFT can cut the underlying rights of NFT, allowing players to hold part of it. The logic of various structured financial products is applied to the NFT. Although the original intention of constructing these NFTs is to improve liquidity and lower the barriers to entry for participants. But on the other hand, this has indeed changed the nature of NFT. The digital works have changed from the palace of the white snow in the spring to the market of the lower Liba people.
“There is no difference between art dealers and gamblers. They study the basic forms of art, read magazines, listen to other people’s comments, and then try their luck.”
——Nicholas Logsdail, founder of Lisson Gallery
In the NFT market, speculators and speculators are indispensable. Faced with huge profits, they look forward to setting off a new wave and profiting from it. But at the same time there is another group of people who are well aware of the dangers of NFT hype, and they also know that the end of crazy growth is death. They called for the market to return to rationality and NFT to return to the value of IP itself.
On September 24, a user with the ID named “Hip-hop Geek” posted information on the bidding and disposal of the “Asian Games Torch” on the auction platform. He planned a false high price by placing orders with his left hand and shouting orders with his right hand. At the auction, the auction price of the “torch” displayed to the outside world once reached 3 million yuan. Immediately afterwards, AntChain and Alibaba Auctions jointly removed the corresponding illegal products and dealt with users accordingly.
In the subsequent “Solemn Statement”, AntChain clarified its attitude to the hype and called for the healthy and healthy development of the industry:
“We firmly oppose all forms of digital collection hype, and resolutely resist any form of illegal activities in the name of digital collections, which are actually virtual currency-related activities; resolutely resist any form of malicious speculation on the price of digital collections, and use technical means to ensure products. Prices reflect the reasonable needs of the market; resolutely resist any illegal activities such as equity transactions and standardized contract transactions in digital collections, and oppose the financial productization of digital collections.”
Whether NFT will be a short-lived or become an immortal innovation is on the line at the moment. NFT is a new thing, and its initial development model has laid down its future growth space. It will not last long to make quick money by hyping it.
But as mentioned in the AntChain statement, “hype goes against the basic law of value, and the rise of false fire is harmful to society.”
AntChain’s “Three Don’ts” statement is like thunder on the ground, stopping a group of speculators and unsuccessful consumers who are determined to go astray, reflecting its determination to resist the NFT hype. But to turn the tide, it is far from enough to rely on a few companies. This requires the regulation and cooperation of the entire market. Participants need to improve their self-cultivation, industry associations and companies also need to maintain market order, establish a market ethics system, and guard against fraud or financial risks.
“Painting does not ask for a name, but also for profit? Every time I see Wu people painting is not money, and they regard the amount of money as good and ugly, it is very contemptuous, and it is better to have no painting.”
——Hua Yilun “Painting Theory”
NFT is the product of the digital world moving towards civilization. When numbers move towards reality, NFT will inevitably be contaminated with society’s greed, profit-seeking, impetuousness and noise, but as a product of future world civilization, it needs to be defended, continuously enriched and developed.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/nft-rashomon-the-defense-behind-prosperity/
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