Recently, Fujian Province issued the “Reminder Letter of the Working Group of Fujian Province to Clean Up and Rectify Various Trading Venues on Preventing the Risk of NFT Violations” (hereinafter referred to as the “Reminder Letter”), stating that “You must not engage in NFT transactions without approval, and you must not participate in NFT in disguised form in violation of regulations. Activities” and other four prompts, aroused the attention and heated discussion in the industry. What is the relationship between NFTs and digital collections issued in China, and what impact it will have on the development of digital collections, has also caused extensive discussion.
Today, I will talk to you about the difference between digital collections and NFTs.
The so-called digital collection is the name of the well-known NFT in China. In 2021, the global NFT market has ushered in a big explosion, and in China, many hot platforms have also been born. Different from foreign markets that are closely linked with virtual currency, since my country has a prohibitive attitude towards virtual currency, domestic digital collections and virtual currency are completely demarcated. Many friends who don’t know it will think that digital collections are the same as NFTs. But the fact is that the two are similar, but there are also essential differences.
What is NFT
NFT – short for non-fungible Token, which stands for non-fungible token, is a unique digital asset (art, music or game asset), you can think of it as a cryptocurrency token.
The so-called non-fungible token is an irreplaceable token, that is, the only information recorded in the smart contract.Once authenticated on the blockchain, each NFT is unique. NFT uses blockchain technology to mark the property rights of files in the Internet. It is a product of web3.0 and is considered to be an important infrastructure for the future Metaverse. ETH) is traded at will, and it is easy to be hyped. The most famous trading platform is OpenSea, and the most popular projects currently include Bored Ape Yacht Club and Phanta Bear.
What is a digital collection
Digital collections can be understood as Chinese characteristics and are essentially regulated NFTs. They are digitized specific works, artworks and commodities that are uniquely identified using blockchain technology, such as digital paintings, pictures, music, videos, 3D models, etc. . Each digital collection maps to a unique sequence on a specific blockchain that cannot be tampered with, indivisible, or substituted for each other.
Each digital collection represents a single digital replica of a specific work, artwork and commodity or its limited release, recording its immutable on-chain rights. Therefore, digital collections are fundamentally different from equivalent tokens such as virtual currency. They are supported by the actual value of specific works, artworks and commodities, and do not have any monetary attributes such as payment functions.
Let’s start with the commonalities:
(1) Uniqueness. Both have their own separate numbers.
(2) Scarcity. Both are limited releases.
(3) Ornamental. Whether it is or not, at least sometimes it is a kind of ornamental for some people.
(4) Traceability. Both are traceable to this issuer.
Here are the features:
(1) The most fatal essential difference is the blockchain. The works of NFT are all based on blockchain technology and based on Web3. The underlying construction of each domestic platform is basically built under their respective alliance chains.
Generally speaking, for example, the works released by Tencent Magic Core are based on Zhixin Chain. This work cannot be transferred to other platforms at present. That is to say, digital collections cast by different platforms cannot be circulated at present, and its value If you become a platform and say that your work is valuable, it is valuable, and if it is not valuable, it is not valuable.
The work of NFT is that I can sell the work to any platform, and its value is determined by the market value. And this also forms the characteristic that NFT is easy to be hyped.
(2) Since NFT requires community consensus, everyone needs to feel the value of this work. As their publisher, they need to operate the work. The simple understanding of operation is hype. Only if there are more people who appreciate it, everyone feels that it is valuable. Based on its limited amount, its value will be steadily increased, or soared.
Digital collections are different. Under the current regulatory environment, digital collections themselves are prohibited from being hyped, and domestic digital collections reflect the value of commodity rights confirmation.
(3) The definition of NFT is a non-fungible token, and domestic digital collections are not a token, which is an essential difference.
(4) Digital collections cannot be purchased through virtual currency, but can only be purchased in RMB or digital RMB, while NFT can be purchased through ETH, USDT, SOL, etc.
(5) Compared with foreign NFTs, digital collections cannot be freely circulated and traded in China for the time being, which can be said to be good and bad. After all, because NFT works have no legal and policy basis, and there is no market supervision, platform works are mixed, which easily leads to the emergence of various imitations and fraudulent offers. The strict restrictions on secondary market transactions for domestic digital collections can reduce the occurrence of speculation and speculation.
(6) Another important point is ownership. When NFT buys a picture or a work, the ownership belongs to you. You can do commercial activities on this NFT, for example, it can be printed on clothes, or any environment. While purchasing digital collections, there is almost no right to use any commercial activities, and no copyright means that you will be held legally responsible for misuse.
In general, digital collections are the application exploration and presentation mode of NFT localization and compliance.
Digital collections empower industry development and boost brand value
This year, the domestic digital collection platform has grown rapidly. According to incomplete statistics, there are more than 400 digital collection platforms, large and small, and the digital collections issued involve intangible cultural heritage culture, sports, film and television, aerospace, well-known artists and other industries and fields. . According to Tianyancha data, there are 53 companies related to digital collections, and more than 1.83 million companies related to the digital economy and technology layer. Among them, nearly 700,000 newly registered companies will be registered in 2021, with a growth rate of 68.48%.
As an innovative application of blockchain technology, digital collections are of positive significance for the dissemination of excellent culture. However, due to the relatively short time in my country, the identification and supervision standards have not yet been established, resulting in chaos. In order to prevent the digital collection market from continuing to “run wild” with problems, benign supervision and industry regulations should be established in a timely manner, so that technology can better serve art.
The future direction of digital collections
After the digital collection is stripped of its financial attributes, its value core is still evolving in the domestic market. Through the integration with different industries, it has developed a richer connotation.
The combination of digital collections and art is changing the traditional concept and behavior of art collecting. On the one hand, with the unique and immutable characteristics of blockchain technology, it solves the stubborn problem of fakes in the traditional art collection market to a certain extent. On the other hand, the relatively cheap prices of domestic digital collections make it easier for art collections to enter the public’s field of vision, allowing more artworks and artists to connect with more audiences, thereby better promoting the art collection industry. develop.
For brand marketing, digital collections provide a new idea of traffic acquisition. The IP attributes and social attributes of digital collections can quickly help brands build fan groups, which is conducive to maintaining long-term relationships between brands and consumers. For example, in December last year, Nai Xue’s tea created the Metaverse IP image “NAYUKI” and launched a limited-edition digital collection blind box, which achieved GMV 200 million in 72 hours, which is a good attempt of the “digital collection +” marketing model.
It is foreseeable that the blue ocean of digital collections is attracting more and more players to enter the game.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/what-is-the-difference-between-digital-collections-and-nfts/
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