Overnight, NFT became the outlet.
This concept, which seems to be popular only in the geek circle, is now extremely popular “outside the circle”. Starting in 2020, from Elon Musk to Yao Ming, from Coca-Cola to Disney, Marvel, to LV, GUCCI, eBay, Facebook, all walks of life have begun to play NFT.
The sky-high auction is an important driving force for the NFT out of the circle-a set of works by digital visual artist Beeple, “Everydays: The First 5000 Days”, was sold at Christie’s for a sky-high price of US$69.35 million in the way of NFT; the one posted by the Twitter CEO The “world’s first tweet” consisting of only five characters was transferred and auctioned for US$2.9 million. At present, there are already 4 crypto artists in the world worth hundreds of millions of dollars due to their works being popular in the NFT field.
Digital visual artist Beeple’s work “Everydays: The First 5000 Days” was sold for US$69.35 million by way of NFT
Many weird things have been cast into NFTs, such as Jobs’ handwritten “job applications”, highlight moments in the NBA arena, sneakers, WeChat/QQ avatars, virtual stones, Buddhist amulet, real estate, World Wide Web source code, Nobel Prize papers, “Times Weekly” cover, etc.
What exactly is NFT in the scene of “Everything can be NFT”?
NFT is a non-fungible token (Non-Fungible Token), and its “non-fungible” means that every NFT is unique and indivisible. This means that when a work is cast into an NFT, the work becomes a unique digital asset on the blockchain.
Technological revolutions, copyright protection variables, speculative bubbles, meta-universe preludes… Different people have very different meanings in NFT. As NFT advances in overseas markets, more and more domestic players are embracing this new thing. After the rise of the art field, domestic Internet giants have also sought to enter the NFT. What changes will it bring about, and what do the big manufacturers want?
Why is NFT hot?
Judging from the most practical technical landing results, the entertainment and art industries are currently the most enthusiastic embracers of NFT.
It has always been extremely difficult for creators to protect the copyright of their works-most artistic creations can be easily copied, but the difficulty and high cost of investigating every infringement has severely discouraged the enthusiasm of creators.
NFT provides new ideas for solving copyright issues. When a work is cast into NFT and listed on the chain, the work is given a unique code that cannot be tampered with to ensure its uniqueness and authenticity. In this way, no matter how many times the work is copied or disseminated, the original author is always the sole owner of the work.
Not only that, compared to the traditional art trading form, when NFT is in circulation, every transfer of its ownership means that the creator can profit from it. Taking the trading platform Super Rare as an example, when performing a first-hand transaction, the artist gets 85 % Of revenue, the platform will get 15%; when you trade again, the seller will get 90%, and the artist will get 10%. In the traditional trading method, even if the original works are speculated to sky-high prices in multiple circulations, it is difficult for artists to profit from it again.
The potential for profitability has attracted speculators. Coupled with the existing cases of high returns on NFTs, many entrants expect the purchased NFTs to appreciate overnight.
Data from nonfungible.com, a website that tracks NFT market activities, shows that this year’s NFT market transaction volume reached 100 million U.S. dollars for the first time after Christie’s works were sold at a price of more than 60 million U.S. dollars. Although the decline of the cryptocurrency market since then has a certain impact on the NFT transaction volume, in early May, the NFT market’s transaction volume that week soared close to 200 million U.S. dollars.
With the support of enthusiastic artists, geeks, investors and other parties, a mature NFT trading mechanism has gradually formed overseas-after the creator releases the NFT for the first time, other buyers can be in the NFT trading platform Continue to change hands and purchases twice.
The process of an NFT being sold for the first time takes place in the primary market. There are many popular NFT projects in overseas markets. According to data from nonfungible.com, in the second quarter of 2021, three NFT projects in the primary market have sales of more than 10 million U.S. dollars, and there are currently four projects worthy of the market. Among them, MeeBits, the most valuable NFT project, is worth 90.76 million US dollars. In addition, NBA Top Shot, which sells highlights of NBA stars, and CryptoPunks, which sells pixel avatars, are also very popular NFT projects.
NFT Project CryptoPunks
The circulation process after issuance is the secondary market transaction. In addition to OpenSea , the world’s largest digital collection trading platform , trading platforms such as Nifty Gateway, MakersPlace, and Rarible are also very active. Most NFT trading platforms are based on the public chain “Ethereum”, but due to the low throughput of Ethereum, high transaction costs, and congested channels, some platforms will also choose to be based on new public chains such as Flow and GSC. In addition, large-scale NFT trading platforms such as OpenSea and Rarible also have the “issuance” function of the primary market.
Chinese players embracing NFT
Compared with the popularity overseas, the development of NFT in China is a little late, but now more and more domestic players have entered the NFT.
The popularity of NFT in China is also based on art. Chinese encryption artist Song Ting is the record holder of China’s NFT encryption art auction in 2020. Since March this year, musicians Gao Jiafeng and A Duo have released their own NFT digital music works, which were bought at high prices.
However, it is the entry of companies and institutions that are more conspicuous and more influential. Currently, one of the institutions that most actively embrace NFT is the music copyright agency:
- According to news from the chain, in April this year, Douban music copyright company Vfine Music and the streaming media NFT trading platform CyberStop reached a cooperation, which marked the official entry of Chinese music copyright distribution into the NFT market;
- On May 26, the music copyright service platform Spark Yinyue announced the establishment of Free Spark, which faces the global market and is committed to the NFT of works, and carries out planning, cooperation, and risk control;
- On May 30, the original music service platform Music Bee launched the NFT section, and in July gave the NFT casting and selling rights to the musicians, and launched a one-stop service of protection, trading, and rights protection. As of August 21, the official website of Music Bee showed that 25 music works have been cast as NFTs, and the official APP has 6 NFT records. The difference is that the former is only used as an NFT deposit certificate, and the latter can be sold and traded.
It is very common that music creators are infringed and it is difficult to defend their rights. Therefore, there is an urgent need for a more complete copyright protection mechanism. This is also confirmed by the entry of music copyright agencies into the NFT. At the same time, the joining of Alibaba, NetEase, Tencent and other major manufacturers has set the vane for the development of NFT in China.
In May of this year, Ali Auctions launched a special NFT digital art session, and then Alipay co-branded Dunhuang Fine Arts Institute and domestic animation “Assassin Wu 67” in June to launch 4 NFT payment code skins; in July, the IP of NetEase’s game “Forever Tribulation” It also authorized the issuance of NFT; Tencent launched the NFT trading software Huanhe APP in August, and sold 300 “Sound “Thirteen Invitations” Digital Art Collectibles NFT” in the first period. Tencent Music (TME) also announced the first batch of limited editions. “TME Digital Collection” will be launched on QQ Music one after another.
However, unlike the public chains chosen by most overseas NFT trading platforms, when Tencent and Alibaba entered the NFT field, they were respectively based on the alliance chains of Zhixin Chain and Ant Chain created by their own companies. Compared with public chains, consortium chain participants are controllable and have stronger privacy protection capabilities. In addition, NFTs launched by Tencent, Alibaba, and NetEase are unable to conduct secondary transactions.
For example, after purchasing the “Sound “Thirteen Invitations” Digital Art Collection NFT”, users can only watch and collect them. The platform does not provide opportunities for secondary transactions, and users currently cannot list their own NFT works on the platform. Similarly, users can only watch and collect Alipay payment code skins, and cannot transfer them as gifts and secondary transactions.
In the context of the immature development of domestic NFTs, the cautiousness of major manufacturers is obviously to prevent the water test from turning into a speculative hype. However, the signal revealed by the successive entry of the entertainment industry and technology companies is equally obvious: NFT is already an existence that cannot be ignored.
It went viral, and then
People’s attitudes towards NFTs are divided into two polarities: supporters believe that NFTs will not only affect copyright protection methods, but from a longer-term perspective, NFTs will make the concept of “meta universe” a reality; but opponents believe that NFTs are just a kind of A new way of speculation.
Both are not unreasonable, the impact of NFT itself is multiple.
The meta-universe refers to a virtual world that is born out of the real world, and parallels and interacts with the real world, and is always online. NFT can be used as an important infrastructure of the meta universe, capable of mapping virtual items and becoming the main carrier of the original assets in the meta universe.
In March of this year, as the game company Roblox wrote in the IPO prospectus that “Metaverse is realizing”, in the following six months, the game industry ushered in a metaverse boom. According to the Financial Associated Press, in the first half of 2021, NFT-type blockchain games have raised up to 1.4 billion U.S. dollars, and the number of daily active users of NFT blockchain game Axie Infinity is as high as 250,000.
Players can trade Axie NFT in the Axie Infinity game
There are also related projects in China that have gained capital attention. For example, in January of this year, the blockchain NFT card game developer “Journey to the West NFT” obtained strategic financing from many institutions such as Ant Group and Wise Capital. Journey to the West NFT is a blockchain NFT card game. By purchasing NFT blind boxes, users can obtain card heroes with different combat powers; they can improve card combat power by upgrading, adding equipment, and combining. NFT cards are placed in the mining pool for mining, and governance tokens XY can be obtained.
Some participants who have nothing to do with the blockchain are also entering the NFT game. On August 4, French fashion giant Louis Vuitton announced the launch of its own NFT mobile game; in July, Coca-Cola released the decentralized NFT virtual devices worn on Decentraland, a virtual reality platform.
William Quigley, the former co-founder of USDT publisher Tether, said in an interview in July: “NFTs, as a unique form of entertainment, will coexist with movies, music and video games. All consumer goods that cannot be eaten will become NFTs. .
Supporters regard NFT as part of their beliefs, but there are not a few people who are cautious and even negative towards the development of NFT.
Speculation is the most obvious chaos in the NFT boom. The higher the price of the NFT, more and more outsiders are jealous, and it continues to attract new players eagerly into the arena. Many voices compared the NFT with the “spam distribution of air coins” in previous years. At that time, the exchanges at the top of the food chain did not strictly review the air coins, causing a large number of air coins to emerge, and the exchanges were therefore questioned about wanton “harvesting”. Project parties and investors.
Will NFT follow in the footsteps of Aircoin? There is no answer yet. Although many celebrities are supportive of NFTs, it is hard to ignore the loudness of doubts about NFTs.
Fred Ehrsam, the founder of Coinbase, said earlier: “90% of NFTs produced may lose value in the next 3 to 5 years and are almost worthless. This is the same as the situation of early Internet companies in the late 1990s. “And the artist Beeple, whose work was auctioned at a high price earlier, also accepted CNN’s “First Move” and said that NFT’s sale at a price of $69.35 million was “crazy”.
Litecoin founder Charlie Lee also believes that only a few of the NFT has a very high value, such as well-known artists such as Picasso works created, but “due to the cost of creating NFT is almost zero, if the artist in order to profit while rushing into this One area, then the market will be overwhelmed by this fanaticism, supply will overwhelm demand, and prices will eventually collapse.”
Regulation is another pressure that NFTs may face. The cautious attitude of major domestic manufacturers in implementing NFT reflects their emphasis on compliance. Alibaba and Tencent have repeatedly emphasized the scope and boundaries of their deployment in the NFT field.
In response to the misunderstanding of whether NFT is equivalent to issuing tokens, AntChain has made it clear: NFT is not a virtual currency. “NFT is an effective and reliable technical means to solve digital artwork confirmation. It has uniqueness and indivisibility, and does not have the characteristics of equivalent exchange. It is fundamentally different from virtual currencies such as Bitcoin.”
At the online roundtable forum held by Tencent Research Institute, Qin Qing, director of Tencent Cloud’s blockchain product, also stated that the issuance of NFT on the alliance chain can truly remove the attribute of currency. “We infer that the NFT issued by the alliance chain can be Issued in compliance.”
NFT is complicated. Although it is a better method of copyright protection, it also has potential hype attributes. It is inevitable to face supervision in the road of domestic development. How to make the development of NFT use its strengths and avoid its weaknesses, all Chinese participants need to explore a suitable development path for NFT.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/what-is-the-magic-of-ali-tencents-entry-into-nft/
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.