NFT single month 10,000 times the myth, what is the mystery of the meta-universe door?
NFT’s past to future.
NFT, the full name in English is Non-FungibleToken, meaning non-homogenized pass.
It is indivisible, non-interchangeable and unique in nature. Currently NFT is mostly used to represent crypto artworks, game props, virtual goods and tickets, etc.
In March 2021, the artist BEEPLE’s Everydays: THE FIRST 5000 DAYS sold for $69.34 million at Christie’s, the third highest price for a work by a living artist at auction.
NFT was early on just a concept “colored coin” on the Bitcoin chain, before blockchain players implemented the Spells of Genesis and Rare Pepe app arrangement on Bitcoin’s extension platform Counterparty, capable of preserving non-homogeneous content. 2017 NFT and the ERC-721 pass-through standard for Ether were launched and NFT began to make its mark on Ether, then entered a settling period as the market winds shifted. Since 2020, NFT has entered a flourishing period, thriving on Ether, Ether sidechains and other public chains and becoming an ecological star.
In total, NFT has four core characteristics: interoperability, tradability, real holdings and scarcity, and tamper-evident and split substitutability.
The same pass-through standard allows NFT to circulate in various different DAPPs, for example, props within a game platform can also be sold on Opensea. Asset reuse can also be achieved, where characters and props in game A can be used in game B.
The high liquidity brought by Defi and various nft trading platforms make NFT trading more convenient and diversified.
Real holding and scarcity
The NFT held is unique, and the same version of NFT is marked with different numbers on the blockchain. nft in Web3 wallet, only the holder has the right to deal with this NFT, and no matter who can’t remove or transfer this NFT from the holder.
Untamperability and split substitutability
The NFT contract settings can be set up so that features such as alterations and additions cannot be made at the time of uploading, and the ERC721 pass attributes cannot be split like the ERC20 pass.
The qualities of NFT bring various application scenarios of NFT today.
(On-chain assets: cryptocurrency, crypto artwork, in-blockchain game equipment, pets, etc.)
Off-chain assets and credentials up-chaining: e.g. identity and other documents, luxury goods certificates, competition & exhibition tickets, real estate certificates and other credential assets up-chaining.
Started with the concept of bitcoin colored coins in 2012, colored coins consist of small denominations of bitcoins with the smallest unit satoshi (satoshi). Multiple asset symbols and other uses are enabled by on-chain notes.
The point: the core of the use of colored coins, need users to have a strong consensus on colored coins, once someone does not recognize colored coins can represent assets, the consensus collapses and the value goes to zero.
In March 2015 EverdreamSoft released the first blockchain deck within the Spells of Genesis game, in August 2015 SoG in-game pass BitCrystals was crowdfunded, in April 2017 EverdreamSoft launched the world’s first blockchain card game Spells of Genesis.
BitCrystals passes (in-game currency in circulation) were first issued on the Bitcoin chain, taking a multi-chain approach to development, and later mapping some passes on the Ether network. At that time SOG was a pioneer in blockchain preservation of game items and blockchain crowdfunding.
Image credit: spellsofgenesis.com
2016 meme players make RarePepe on the bitcoin chain through Counterparty. players can create and release rare Pepe frogs on their own and trade them through the bitcoin chain.
In terms of concept and form RarePepe is closer to the current NFT artwork, the site has a variety of original Pepe works in different styles, developing crypto artwork that blends MEME and various art styles, pop, psychedelic, classical, abstract, etc.
Photo credit: Rare Pepe Directory
Companion applications were launched for the Rare Pepe Directory, Rare Pepe Wallet, and PEPECASH for PEPE purchases.
In June 2017, NFT for Ethernet began to emerge.
CryptoPunk was launched by Larva Labs, a New York-based company, with 10,000 algorithmically generated CryptoPunks, each unique. Any Ether wallet can claim it for free and soon all the Cryptopunk are claimed.
The secondary market has been trading CryptoPunk since the heat increased and the market started to accept the concept that crypto artwork is unique. the ERC-721 pass-through standard did not exist at that time, but Punk is not part of ERC-20 either, it is a combination of both. It pioneered the first NFT non-homogenized pass.
#7523 $11,754,000 #7804 4200ETH
CryptoPunk was followed by Dieter Shirley, technical director of Axiom Zen, who proposed the ERC-721 pass-through standard in September as the main sponsor.
In October 2017 Axiom Zen developed CryptoKitties (Obsessed Cats/CryptoCats) emerged, a blockchain-based NFT game that allows players to adopt, breed and trade virtual cats.
CryptoKitties is the first DAPP to apply the ERC-721 standard.
The emergence of CryptoKitties coincided with a bull market. Some people made huge profits by raising CryptoKitties for a short period of time, thus gaining more traffic and even clogging up Ether at the time due to the overwhelming number of CryptoKitties users. In just two months, the trading volume peaked at $21.9 million, and the most expensive CryptoKitties “Dragon” was sold for 600 ETH, which exploded the blockchain game concept at that time.
Data source: nonfungible.com
Settlement period – 2018
Axiom Zen, the parent company of CryptoKitties, established a new company Dapper Labs (FLOW public chain, the R&D company of NBA Top Shot ) to receive nearly $30 million investment from A16Z, Google Ventures, Samsung and other companies, and in the same year the NFT trading platform OPENSEA was born, which currently The market share is the highest.
After the CryptoKitties fad, CryptoCelebrities mania was ushered in, where you buy a celebrity’s card portrait and wait for the next purchaser to buy your celebrity portrait at a higher price, earning the difference (BitClout is similar to this concept, but actually different) which is essentially a drumming game.
Because of the wealth effect of CryptoKitties, many blockchain games and peripheral supporting platforms sprang up in 2018. However, not many blockchain games or NFT-related platforms established in 18 or 19 years have eventually survived to date.
Enjin, Decentraland, SuperRare, Cocos-BCX and other NFT platforms and games born in 18 and 19 years can survive until now because they have user base and technical strength support.
Data source: nonfungible.com
The data in the chart shows weekly active addresses, weekly interactions with smart contracts, and weekly dollar transaction volume regarding NFT products between FY18 and FY19. The number of smart contract interactions increased slightly and active addresses rose sharply, while transaction volume fell by more than 80% year-over-year in ’18.
This is because at the time it was only a local hotspot formed by a separate project (CryptoKitties) and no real industry trend was formed. Only education within the industry was conducted, and no exit from the circle was completed, and NFT’s followers were still stuck in the cryptocurrency geek community.
The end of 2017 to early 2018 was the initial outbreak period of NFT and the bubble period. In 2019 and early 2020 was a period of digestion of the bubble generated at that time, and a period of settling.
NFT qualitative change
From 2020 to 2021, the combination of NFT and DEFI realized Gamefi, the launch of FLOW public chain, the launch of NBA card collection, and then the outbreak of the primary and secondary markets of crypto artworks and the exit of NFT from the circle. This is how to usher in the second carnival moment belonging to NFT.
In May 2020, WhaleShark, a popular person in the NFT circle, released the social traffic pass $WHALE in Ether, and the base value (Vault) of the WHALE pass is the NFT collected by WhaleShark himself, bringing additional value to the pass with the value of NFT, combining NFT and Defi from another direction.
WHALE’s NFT holdings: 0xe7079eec020ddfc3f1c0abe1d946c55e6ed30eb3
August Gamefi began with ConsenSys head Jordan Lyall’s tweet “The Degenerator” (jokingly mocking “aircoin projects” that can issue coins in a matter of minutes), and someone created a mocking tweet for it. “), someone created a pass for the mocking tweet, called MEME, with a full airdrop of passes. Anyone who joined the telegraph group early on would get 350 MEME passes.
Because of the strong community consensus and cohesiveness, $MEME, a pass that was established as a result of a joke and was itself difficult to define the value of, was developed into an NFT pass with supporting application scenarios.
The project has developed various ways to play during the development process, such as users pledging MEME passes to earn non-transferable pineapple points, which can be exchanged for NFT through the pineapple points play.
After combining DEFI and NFT, plus MEME elements, $MEME price skyrocketed, pass price rose to a high point of more than 2000 u within a month of a few u. After that MEME kept cooperating with artists to launch new cards for players to exchange, and during the same period Beeple tweeted that he would like to launch NFT together with MEME.
Image source: dontbuymeme.com
September DEGO has gained a large amount of user traffic by tweeting NFT airdrops, while users holding NFT from DEGO airdrops can participate in NFT mining and take part in project dividends and governance. The NFT in the hands of users can be traded freely on the secondary market. Through DEGO more players are exposed to different ways of playing NFT.
The NFT boom in the third quarter of 2020 made the crypto world start to be familiar with NFT.
And with the introduction of FLOW public chain, NFT started to enter the public eye, setting the stage for the big NFT bull market in 2021.
FLOW is a star public chain developed specifically for NFT, gaming, and digital assets. Investors include: Warner Music Group, Google Ventures, etc. Cooperative IPs include: NBA, CryptoKitties, MOTO GP, UFC, UBISOFT, etc.
NBA Top Shot
NBA Top Shot is a star card game developed by Dapper Labs, built on the FLOW chain and officially licensed by the NBA. The project started public test for invited users in August 2020 and open public test in October. The user base skyrocketed in January 2021, and the total turnover surpassed CryptoKitties on January 26, 2021, reaching $29.48 million.
The blockchaining of baller cards can turn videos into nft, and the recorded moments are non-tamperable and unique, so the price of baller cards in the secondary market has skyrocketed.
In the same period, a large number of NBA stars and sports KOLs were active in various related activities on social media, which made NBA Top Shot usher in the heat of coming out of the circle. A large number of NBA fans, driven by them, also began to understand nft and began to actively participate in card pack raffle activities and secondary market transactions. And the NBA official, even set up a blockchain advisory committee for this purpose.
The heat of February nft was on Hashmask, an algorithm-generated crypto artwork nft with a total of 16,384 pieces, priced using a joint curve mechanism, the less inventory the higher the purchase price, and the last three pieces of hashmask sold for even as much as 100 ETH, with 16,384 unique crypto artworks sold out in five days. In addition, Hashmask uses a blind box mechanism so that no one knows what they are buying until it is sold out, adding to the fun of the art.
Hashmask is a combination of different elements, some of which are limited in number, bringing it a certain rarity and making its price climb a lot, so everyone will be after the rare Hashmask. the highest price is No. 9939 hashmask, with a price hype of 420 ETH, and the second No. 6817 is also priced at 300 ETH.
After that, many NFT blind boxes with similar rules appeared in the primary market, generated by the same algorithm and offered at joint curve prices, but performed ordinary in the secondary market. Only a few of the more distinctive NFT projects have been sought after.
MoonCats an old project in August 17, because of the recommendation of the NFT circle KOL, in just three hours generated nearly $ 60W in gas fees, all in order to participate in MoonCats to pick up the gas fees, in the secondary market MoonCats also continued for a period of time trading fever.
Meebits-Larva Labs third NFT project, a total of 20,000 Meebits, part of Meebits by CryptoPunk and Autoglyphs holders to receive free, the remaining part of Meebits through the form of LBP auction for sale.
Meebits will be more widely used than CryptoPunk and are 3D modeled movable dolls, the ERC-721 contract standard created. The purpose is that they can be used as their own on-chain avatars in the Metaverse.
After Meebits went on sale, the on-chain transaction amount and volume peaked at 176,042,317 USD on May 9.
Data source: nonfungible.com
The hottest NFT recently is Bored Ape Yacht Club. with an initial price of 0.08 ETH, a fixed price, and a blind box mechanism similar to Hashmask. Many people buy it for the star effect and low price. The project was initially able to reach the reached fever because of the recommendation of KOL. But afterwards, the united community and wealth effect kept the trading volume of Bored Ape Yacht Club at a high level and was the top of the NFT trading list in the recent week.
Besides the internal pursuit of the crypto world, the fact that NFT is known and participated by the wide public is the major reason why NFT is hot today.
According to Google Trends, when Beeple’s “Everydays: THE FIRST 5000 DAYS” was auctioned, the global search index for NFT reached a stage high and then dropped. In mid to late April, many celebrities and KOLs released NFT, which once again brought NFT to the attention of the public, and the search index rose.
After the Beeple auction. Zion Williamson, Takashi Murakami, Snoop Dogg, Eminem, Twitter CEO Jack Dorsey, Edward Snowden, Paris Hilton, Yao Ming and other celebrities and artists from all walks of life have released NFT through various NFT platforms, making more people understand that besides crypto artwork and games, NFT can also be a traffic cashing A tool for fan economy
Through this series of events in March and April, NFT has completed breaking the circle, allowing NFT to go to the outside world and leave the crypto world to gain the attention of the public.
Why NFT will break out
- Technical progress has solved many fundamental problems in this NFT bull market.
The purpose of FLOW chain development is that Dapper Labs wants to solve the problem of poor sense of experience and high threshold of use caused by the congestion of Ether. The emergence of various Layer2 and other public chains has also shared part of the congestion of Ether to a large extent. At the same time, the application scenarios of NFT have also increased a lot, there are crypto artworks, games, music, and even NFT tickets can be used.
- Numerous excellent NFT projects have attracted many new users in this bull market.
Traditional blockchain game projects, through Play-to-Earn and the entertainment of the game itself can attract active users, such as Axie Infinity through playing the game can earn SLP passes, many players in Southeast Asian countries are attracted to play Axie, through Axie to earn no less than a salary. There are also NFT products that can be traded through Opensea or other NFT exchanges, allowing for increased liquidity in NFT transactions, and an artist can earn income from creating NFTs.
DEGO and MEME allow more people to participate into the NFT market through Gamefi.
The combination of traditional IP, traffic stars and blockchain, like NBA Top Shot, the combination of traditional star cards and blockchain, can get the official authorization. F1, MOTO GP, UFC, etc. have combined with blockchain to release NFT, games and other on-chain products. Traffic stars also participate in the sale or production of NFT, NBA’s Zion Williamson and SLAM magazine jointly launched NFT for sale in opensea, Snowden also released NFT on Foundation platform with an auction price of 2224ETH.
- Defi success and the wealth effect of NFT itself
Defi’s success brought sufficient liquidity and users on the chain, and the successive NFTs emerged with much less hindrance. At the same time, the promotion within the crypto world also made NFT appear in the users’ vision, and NFT projects invested by major exchanges and investment institutions appeared one after another.
One of the keys to break the circle is the wealth effect brought by NFT, from NBA Top Shot Nesian, James a star card sold for hundreds of thousands of dollars. And then to Beeple’s NFT works sold at auction for $69.34 million. Let the traditional world understand the value of NFT and the direction in which NFT can be applied. Celebrities inside and outside the circle have begun to produce their own NFT, through fans and their own traffic to NFT cash.
- Incremental market, flow economy
The market can stay up in a bull market, in a state of incremental market. People and money from outside the circle are constantly involved in this market through various ways. A part of the money will also flow to NFT.
Meanwhile celebrities, artists, KOLs and famous IPs from all walks of life are good at playing the role of traffic economy. By releasing NFT, fans or enthusiasts will participate in the bidding of NFT and be able to sell it for a high price, which also helps the development of NFT.
The future is here
Although NFT has a wide popularity and application this year, the current market heat is more focused on the first and second level crypto artwork application market. And crypto artworks will appear to be hot after just going online and being hyped, but after a period of cooling down, the heat and trading volume will decrease due to the lack of application scenarios and community base, and there will even be no one to trade with, thus leading to the situation that the assets are idle and cannot be traded.
At this stage, there are still very few NFTs for other application scenarios. At present, only the combination with ERC-20 with sufficient liquidity can bring really strong liquidity to NFT. UNIswap V3 has also NFT’d LP TOKEN. After that NFT will appear more and virtual pass, assets, real assets, notes and other DEFI projects combined with the art of decentralized finance.
For the lack of liquidity and practical application of crypto art and collectibles, which are the hottest problems of NFT now, Metaverse will be the most ideal solution for NFT application.
The Metaverse has elements of identity, social, freedom, pluralism, economy and transaction that need to be partially solved by NFT and blockchain technology to solve the pain points.
The ERC-721 standard allows for an open technical interface where users are free to add content, and each content object will be an NFT. internal economic system transactions are through the exchange of passwords such as ERC-20 and ERC-721. large NFT exchanges like opensea will become street convenience stores, or art auction exchanges, or furniture stores. In it you can buy various NFTs, and through NFTs you can complete the construction of your own space in the Metaverse and change your appearance and tools.
In the Metaverse, space (or land) is also NFT, just like real estate NFT in the real world, and can be traded freely through NFT and pass. (The Sandbox land sold out in 15 seconds)
If Metaverse can access other 721 passwords standard through open technical interface, it can also solve a key problem of crypto artwork – the usage scenario of artwork, and can achieve the function of asset reuse.
When you buy a crypto artwork, the function of crypto artwork can only be displayed in the wallet (now some wallets and block browsers cannot support displaying NFT) or can only be viewed and traded in trading platforms such as DAPP and Opensea, which means the NFT you bought can only be in idle state and it is difficult to display or use.
But if you can access NFT artwork to Metaverse, then as long as the NFT developer package is modeled within Metaverse. You will be able to display everything you buy NFT. Being able to reach this point completes the reuse of the asset and can amplify the functionality of the crypto artwork NFT use.
In the not-too-distant future, a Metaverse like Top Gun or World of Swords might be able to be shown to us.
You control Meebits in the Metaverse to shop in a clothing store, furniture store or shoe store, and the NFTs you buy in the store can be used to get real goods in a physical store offline.
Through that world, you can be a curator and showcase your crypto art collection. Uniswap will be like a stock exchange in the Metaverse, where you can exchange passes through your WEB3 wallet. It is also possible to participate in various games such as CS, GTA, NBA, FIFA, etc. inside the Metaverse.
Through Metaverse, you can immerse yourself to get social, entertainment, adventure and other experiences, and you can also spend your life in it like a Sims and have a life on the blockchain.
And in Defi World NFT becomes another expression of decentralized finance.
In the near future, NFT will be the door to the virtual world will also be Defi’s artwork.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/nft-single-month-10000-times-the-myth-what-is-the-mystery-of-the-meta-universe-door/
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