NFTs 2.0: NFTs on Polkadot and Kusama

This article is a general overview of NFT, and various NFT methods in Polkadot.

Homogenization

NFT means non-fungible token. Homogenization means that the internal elements of a set of things are interchangeable.In theory, a $20 bill is always worth $20 in a store and is worth the same as any other $20 bill. However, it is not interchangeable with a $1 or $100 bill.

A “Fire-breathing Dragon” Pokémon card and a “Jenny Turtle” card are not interchangeable, but “Fire-breathing” cards are interchangeable.

Homogenization is a range – what is homogenous to some may be non-homogenous to others. In fact, Pokémon cards, a prime example of a non-fungible asset, are actually more fungible than dollar bills because each bill has a unique serial number that may be important to government agencies, whereas these cards do not serial number.

NFTs 2.0: NFTs on Polkadot and Kusama

Source: Investopedia

Additionally, in-game digital items like the “Purple Magic Sword” can be interchanged with another visually identical sword if the player only cares about the character’s appearance. However, swords with the same appearance are definitely not interchangeable if the other sword has a different function and that function affects the outcome of the player’s upcoming adventure.

Remember, the simplest explanation of NFTs is that NFTs are arbitrary, project-specific, and non-interchangeable lines of data that can be cryptographically proven to “belong” to someone. This data can be anything—concert tickets, attendance badges, simple words, avatars, plots in the Metaverse, audio clips, house deeds and mortgages, and more.

NFT standard

A general-purpose blockchain is not built to natively understand the concept of NFTs. It only natively perceives and optimizes its own native tokens, but the implementation built on this chain is essentially a “magic change”.

For example, Ethereum is a general-purpose blockchain, and it has no concept of “tokens” (fungible or non-fungible) built into it. Tokens in Ethereum are essentially tables of information that are interpreted and read in some way by various user interfaces. The way to read such information is called “standard”.

The most common homogenization token standard is ERC20, which you should have heard of, while the most widespread NFT standard is ERC721, followed by ERC1155. The downside of having to define these standards is that they are always instructions on how to read spreadsheets that pretend to provide information in a way that, by definition, cannot be optimized. For this reason, interacting with an NFT on any EVM chain costs a few dollars, even on good days when network congestion is extremely low, while each interaction (transaction, minting, sale) on Ethereum in 2021 will average It costs $100.

This would prevent the current craze for collecting NFTs on Ethereum though – profile pictures, generated “look and put it away” artwork, ENS addresses and proof of attendance badges, etc.

NFTs 2.0: NFTs on Polkadot and Kusama

a typical NFT on Ethereum

For comparison, we can call them NFT 1.0: static NFTs, which are almost entirely image-based collectibles of varying rarity.

NFTs 2.0: NFTs on Polkadot and Kusama

This is where Polkadot technology shines, and where NFT 2.0 comes into play.

Polkadot allows heterogeneous application-specific shards to exist, and builders are able to locally optimize for complex NFT use cases without the trade-offs that would be very inefficient and expensive to interact with in other systems.

The following are NFT solutions that exist and/or are under development in the Polkadot ecosystem.

Unique network

Unique network is an NFT-focused blockchain offering innovations such as sponsorship transactions, bundling fungible tokens with non-fungible tokens, and splitting NFTs into fungible tokens for fractional ownership.

Unique Network has launched two NFT projects so far: Substrapunks from Hackusama, and Chelobricks from Polkadot Decoded. They are currently running a betanet connected to Kusama, and these NFTs are already tradable on it: see Unqnft.io.

NFTs 2.0: NFTs on Polkadot and Kusama

Users can send KSM to their Unique Network escrow account, conduct transactions there, and send back any earned or remaining KSM.

Unique Network aims to make their marketplace technology open source and user friendly for whitelisting. In theory, it should be simple to create a new marketplace for your project using Unique’s technology. Unique network aims to be a parachain on Polkadot and Quartz is their network on Kusama.

RMRK

RMRK is a “hack”, a mandatory standard directly on top of the Kusama Relay Chain. Since Kusama is lightweight, it can handle various parachains connected to it, but that doesn’t mean it has other complex chain logic like native NFTs or smart contracts to enable them. However, due to market demand and the “chaotic” nature of Kusama, the RMRK team decided to take a “colored coin” approach from Bitcoin and implement NFTs as graffiti on the Kusama chain.

The RMRK standard is a set of rules and specifications on how to interpret special graffiti on Kusama, called “remarks”, accessible through kernel system modules in any Substrate chain.

The RMRK team just launched version 2.0 of the protocol, a set of “NFT Lego bricks” that, when put together, allow builders to compose NFT systems of arbitrary complexity without smart contracts. These “Lego bricks” are:

  • NFTs can own other NFTs, and NFTs can equip other NFTs for visual changes
  • NFTs can have multiple resources (different outputs based on context and resource priority)
  • NFTs can have on-chain expressions (reactions) for price discovery and social mechanisms
  • Conditional rendering of NFTs (for example, if Mona Lisa has 50 kisses? emoji, show her blushing)
  • NFTs can be managed by the community through fungible tokens (segmentation of NFTs)

The upcoming 3.0 release (Q1 2022) will be a module and smart contract (EVM) version of all RMRK 2.0 logic, integrated into partner chains to cheaply and easily deliver irreplaceable across dozens of chains s things.

NFTs 2.0: NFTs on Polkadot and Kusama

The RMRK team is working closely with the Unique network. RMRK’s logic and technology will be deployed on Unique Network in the form of runtime upgrades (FRAME modules).

Two RMRK-based NFT marketplaces already exist, with hundreds of projects launched so far:

Additionally, RMRK 2.0 functionality with composable, nested, multi-resource NFTs can be accessed and tested on the Kanaria platform (https://kanaria.rmrk.app/).

For more RMRK information, please check the video explanation (https://url.rmrk.app/rmrkcc) and documentation explanation (https://docs.rmrk.app/)

Efinity

Spearheaded by Enjin, author of the Ethereum ERC1155 standard and maker of the Enjin wallet and Unity plugin, Efinity is an NFT bridge chain that will land on Kusama and Polkadot in 2022.

Their plan is to build a paratoken that will become the standard for token migration across different parachains in the Polkadot ecosystem, but also in and out of Ethereum and other EVM systems.

Moonbeam

Moonbeam and Moonriver are full EVM deployments with Ethereum RPC endpoints.

This means that the entire toolkit for other EVM chains (Hardhat, Remix, Truffle, Metamask, etc. stacks) is available to Moonriver / Moonbeam users and developers, leading to a significant lead in attracting existing user bases.

There are dozens of well-known teams releasing their products (or re-releases) on Moonriver/Moonbeam. However, it is important to note that Moonbeam is an EVM chain and as such will be subject to the same limitations as any other EVM chain in terms of NFT customization and feature richness.

However, a significant advantage is that Moonriver/Moonbeam is still a Substrate chain, which means it is still possible to integrate custom modules into the runtime, which makes NFT-specific optimizations at the chain runtime level a good way to maintain EVM compatibility, At the same time, the storage and interaction of NFTs are optimized.

unique

Uniques are FRAME modules deployed on the Statemint public welfare parachain. It is an implementation of the most basic NFT – a data record that references some metadata. This metadata reference is mutable until frozen, so NFTs and their classes (entities derived from them) are mutable unless the issuer explicitly makes them immutable.

Uniques deliberately takes a very simple approach in order to make the Statemint chain a simple balanced chain that is fungible and irreplaceable.

Uniques NFTs can be viewed and interacted with on RMRK’s Singular platform by switching the upper right menu from Kusama to Statemine. https://singular.rmrk.app/

NFTs 2.0: NFTs on Polkadot and Kusama

It is also possible to interact with Statemine directly via its external tabs! https://polkadot.js.org/apps/?rpc=wss%3A%2F%2Fkusama-statemine-rpc.paritytech.net#/extrinsics

NFTs 2.0: NFTs on Polkadot and Kusama

More UI pages are in development!

bridging

Bridging the Substrate chain and the EVM chain takes a lot of effort, but it’s a much-needed feature in the NFT industry.Combining collections and client bases makes a lot of sense, so multiple projects are working to make it happen.

In addition to the aforementioned RMRK (XCMP-native Substrate-to-Substrate seamless remoting) and Efinity (Paratoken), the following work is also in progress:

  • MyNFT: EVM to EVM bridging works.
  • RMRK<->EVM Simplified Bridge: Bridge developed during the RMRK Hackathon to port RMRK NFTs to Simplified IOUs on the EVM chain, to be deployed on Moonriver in November 2022.
  • RMRK<->EVM Full Bridge: The EVM version of RMRK 2.0 is ready in December 2021, which means it is possible to fully migrate RMRK 2.0 NFTs from RMRK (Kusama) to Moonriver (and other EVMs).

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/nfts-2-0-nfts-on-polkadot-and-kusama/
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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