What kind of sparks can Polkadot and NFT make?

Who can be the dark horse or king of NFT in Polkadot ecosystem, we still need to spend more time to observe and practice.

Polkadot Eco Watch is a special section for us to observe and analyze the projects in Polkadot Eco from the perspective of different eco-positions. By observing the ecological niche, we can see the whole picture and have a clear understanding of the whole development of Polkadot. Only with a clearer understanding of Polkadot’s ecological development can we, as investors, participants or developers, better grasp the dividends of Polkadot’s ecological development. (This article will inevitably cover the project and is intended only as an expression of opinion and not as any other advice.

Background

From the crypto cat in 2017 to the NBA Top Shot in 2021, the change of NFT can be considered another growth curve of the crypto world, and what is surprising is that NFT has come out of the circle this year, seemingly from “no one asked for it” to “10,000 people at once “From artwork, to music, to copyright, and even to some luxury goods, NFT is appearing in the public eye like never before.

And last week, CNN and Fox Broadcasting began to experiment in the field of NFT. Themed “CNN’s Fortune, The Moment That Changed Us,” the NFT chronicles noteworthy moments in history being recorded on the Flow blockchain. And Fox Broadcasting has partnered with its subsidiary BentoBox Entertainment to launch a $100 million fund.

The momentum of NFT is sweeping through all industries, and NFT on Ether is currently shining the brightest – after all, more than 80% of NFT works appear on Ether, which is the appeal of ERC721 – after all, the earliest NFTs were born from that standard and are bound to be noticed by those who come after.

Although there are already public chains like Flow in the blockchain industry that focus on the NFT track, there will still be other public chains entering this track, after all, in the days of “big fish in big water”, no one can be sure that they will be the last player to “leap from the carp to the dragon”. In the days of “big fish and big water”, no one can be sure that they will be the last player to jump to the top.

Of course, as the current hot Polkadot ecology, NFT also swept a lot of projects, and in this article we will focus on the construction and development of NFT in Polkadot ecology for you to understand and learn.

What exactly is NFT?
Although NFT has already exploded out of the circle, known, but to get to the bottom of the discussion of what it really is? There are not many people who can give a complete answer. So before exploring the value Polkadot can bring to NFT, we still need to spare some space to explain what NFT is and why it has extraordinary value.

What is NFT?

As we all know, a pass-through is a smart contract built on top of an existing blockchain, and NFT is also a pass-through, which stands for Non-Fungible Token, or non-homogenized pass-through. Unlike Fungible Token (homogenized pass), NFT is tamper-evident, indivisible, irreplaceable and unique.

The common Bitcoin, Ether, Polkadot, etc. are Fungible Token, which can be substituted and split between the same type of pass.

Let’s take the most simple example here. If a person named Alice has 5 DOTs in her hand, there is no difference between these 5 DOTs, Alice can give 0.5 DOTs to Bob, or give Bob any DOT when he buys 1 DOT from her, these DOTs are Fungible Token.

And suddenly one day Alice had a whim and numbered these 5 DOTs and gave an avatar to these 5 DOTs, then the DOTs Bob bought are unique. When he buys 1 DOT, he needs to make a choice. Also he cannot buy 0.5 DOTs that are numbered and given an image, the image cannot be cut, and any two of the DOTs are not identical and are not interchangeable. Just as there will be no identical fingerprints in the world, there will be no identical NFTs.

In other words, NFT is actually a traceable and authenticated, non-detachable, non-tamperable and valuable programmable pass. This type of pass has unique data and properties, just like a stamp collection of a philatelist, each one has a different charm and value, and cannot be split (torn and invalidated).

Origin of NFT

The emergence of NFT is not a coincidence; as early as 2013, an artist experimented with ASCII character drawings through Bitcoin’s transaction script. In order to seek the advantages of blockchain technology, which is tamper-proof, decentralized, secure and privacy-protected, to change the plight of the art field at that time, where the brokers were sitting on a mountain of money while the artists were poor, and to solve the series of problems caused by piracy.

However, due to the limitations of technology at the time, such applications did not develop. All the way to 2017, Ethernet launched the pass-through standard ERC721, making each ERC721-based standard under smart contracts have an independent number of type uint256, allowing them to have unique properties and correspond to unique items.

Larva Labs, which soon believed that the pass-through standard ERC721 could power most digital art and collectibles, developed a set of pixel avatar items called CryptoPunks, with a total of 10,000 and claimed by those who own an Ether wallet. So far, 9,446 CryptoPunks have been circulated on the secondary market, and CryptoPunks #7804 has fetched a high price of $7.57 million.

What kind of sparks can Polkadot and NFT make?

And just 6 months after CryptoPunks was released, the mini-game Cryptokitties developed by Dapper Labs quickly became a hit, setting off the crypto-cat craze and exploding the entire NFT market.

Since then, more and more NFTs have entered our vision, whether it is the NFT works of Beeple, a digital artist that everyone is talking about, Every Day: The First 5,000 Days, which fetched a sky-high price of 450 million RMB at Christie’s, a world-renowned auction house, or NBA TOP SHOT, which turned baller cards from a niche game to a national carnival.

As well as both NFT for Good, a one-stop open digital art donation platform promoted by Coinan, and Ethernity Chain, which aims to build the world’s largest NFT identity verification repository and provide funds for charitable organizations.

NFT is no longer just a concept, but has truly become a part of our lives.

What is the significance of NFT

So what exactly is the significance of NFT?

The meaning of NFT is actually broken down, we can write a separate long article, here we will briefly talk about our understanding of NFT a major.

To be clear, many of you may think that NFT is just a small section in the whole blockchain field, and the volume is far worse than DeFi.

NFT+FT is like Tai Chi Yin Yang, only the combination of the two is the expression of all the values in the complete digital world, and this is the biggest meaning of NFT. So, for NFT, you can enjoy, its future value is unlimited.

The development and classification of NFT
“No accumulation of steps to a thousand miles”, the development of NFT does not happen overnight. From 2017 until now, it has undergone a long evolution of standards and differentiation of categories to have a thriving scene today. In order to give you a more comprehensive understanding of NFT, we will only provide a brief explanation of the evolution and classification of NFT standards.

The evolution of the NFT standard

As mentioned above, NFT emerged from the launch of the pass-through standard ERC721. ERC stands for Ethereum Request for Comments, which is a standard proposal submitted by ethereum developers, followed by a number representing the number, which will become an ethereum improvement proposal and serve as one of the common standards of ethereum after public consideration.

And NFT originated from EIP-721 (Ethereum Implementation Proposal 721) at the end of 2017. This standard is also the first standard for NFT on Ether, created and published by Dieter Shirley, the CTO of CryptoKitties, the hottest NFT project in 2017, yes, he invented ERC721 and created one of the hottest projects based on it, which is a great talent. The subsequent explosion of CryptoKitties also made ERC721 well-known, and more and more projects such as Decentraland began to explore NFT based on ERC721.

Of course, ERC721 is not perfect, it is limited to building NFT, has certain limitations, for building complex NFT-based games, ERC721 is obviously not good enough, so more and more tend to NFT standards are being proposed. 2019 by Enjin released ERC1155 is another well-known NFT standard.

ERC1155 seems to be the master of the two veins, allowing NFT and FT to coexist and transform each other in this standard, as well as introducing the new concept of semi-homogeneous passwords. countless types of passes without wasting data, can also support bulk transmission of multiple token IDs in a single transaction, and has improvements in several areas such as legacy metadata and ID replacement.

ERC1155 is like an evolved version of ERC721, more powerful and efficient.

However, it is not only the Ether pass standard that can build NFT, Polkadot also launched the RMRK specification for building NFT, and the birth of RMRK specification opened the door to a new world of NFT.

In addition to the most basic functions of sending, casting, destroying, shelving, and purchasing, the RMRK specification brings a new interaction model. Namely, EQUIP / UNEQUIP (equipping child NFTs to parent slots), SET (setting custom values on NFTs), RESADD (adding new resources to NFTs as issuers of collections), and REACCEPT (accepting new resources to be added to existing NFTs). And it makes nested NFTs, multi-resource NFTs, conditional rendering of NFTs and NFT DAO possible.

The RMRK specification allows the NFT in the hands of a user to no longer be just a pass, but to be the basis for building a meta-universe. Users can build NFTs that have other NFTs, and also allow specific NFTs to show different states and visual effects under different conditions. It is even possible to let the same NFT be identified by Audible, Kindle, Opensea to different states of audio and video, etc. It is also possible to decompose homogenized passes according to NFT, and have the community determine the state and flow of a particular NFT.

And we also believe that in the future there will be more advanced NFT standards and a constant stream of vitality for NFT.

The development of the NFT ecosystem

At the same time, the entire NFT ecosystem has evolved from a single game NFT and art NFT in the beginning to an ecosystem with parallel development of public chains, DApps, assets and other directions.

What kind of sparks can Polkadot and NFT make?

The origin of NFT comes from Ether, and there is no doubt that the most active and oldest NFT public chain is still Ether, and more than 70% of the projects are developed on Ether, however, its high Gas fee is not friendly to high-frequency transactions and poor user experience, which is not good for retaining and expanding new users. So we have several NFT public chains such as Flow, Wax and Efinity.

Among them, Efinity is an expandable NFT cross-chain network based on Polkadot built by Enjin, which guarantees the improvement of throughput and transaction speed, and also ensures the interaction and communication between NFTs based on different public chains. It provides a good platform for the development of NFT.

And the DApps related to NFT are no longer limited to the game NFT, the DApps in the NFT ecology have made great development in art NFT, game NFT, NFT platform, and even the combination of NFT and DeFi. And gradually lead the whole crypto field.

Plasm, a solution based on PolkadotLayer2, launched the first NFT game DApp PolkaPet, which sold out 800 copies in 4 minutes and built the NFT community in the Plasm ecology, greatly reducing the transaction cost of NFT, realizing the cross-chain of NFT and enhancing its ease of use. plasm can bind the wallet to Twitter binding, greatly reducing the threshold of users.

And NFT’s earliest developed asset direction is gradually coming to maturity. British perfume company Rook Perfumes created Perfume DAO, where participants can participate in creating perfumes by purchasing NFTs; Porsche digital subsidiary Forward 31 launched NFT startup Fanzone to release German soccer team player cards to expand support for the soccer league; TechCrunch founder and cryptocurrency investor Michael Arrington sold his apartment in Kiev, Ukraine, under the NFT name.

In both the short and medium to long term, the NFT ecosystem is still evolving, and developers and creators will create a steady stream of new use cases for NFT beyond our imagination.

The development of PolkadotNFT
At present, the NFT of Polkadot ecology has just started, and various project parties still belong to the state of running around, exploring different areas of NFT respectively, some innovate on NFT standard, some want to build NFT market, some build NFT public chain, and some build a virtual world based on NFT, subject to getting official Grant (allowance), we can briefly understand Now the NFT projects in Polkadot ecology are doing what kind of exploration.

Bit.

Bit.Country is a decentralized eternal meta-universe. Users can create their own small metaverse (Bit Country), blocks (Blocks), lands (Subdivison) and items (Items) as crypto collectibles and non-homogenized tokens (NFTs). In this world, users will have their own trading market, NFTs, community tokens, fan economy and 3D virtual worlds. In the era of decentralized Web 3.0, let anyone create their own metaverse, community and economy on the blockchain network as their own little metaverse (Bit Country).

Unique Network

Unique Network is an NFT public chain based on Polkadot and Kusama designed to enable anyone to customize their NFT minting scheme through an open source component library and circumvent problems such as high gas fees on Ether.

RareLink Network

The RareLink protocol creates the infrastructure for dynamic NFT, supports cross-chain transfers and provides support for new decentralized financial (DeFi) applications. Dynamic NFT is a permanent smart contract that uses a prophecy machine to communicate with and react to external data and systems. The prophecy machine allows NFT to use external data/systems as a mechanism for casting/destroying NFTs, peer-to-peer transactions and checking state that can respond to real-world events.

NFTMart

NFTMart is a fully scalable, decentralized, cross-chain trading platform based on an independent public chain, and the first professional decentralized NFT trading marketplace on an independent main chain.

DNFT Protocol

DNFT Protocol is a cross-chain decentralized NFT asset network based on Substrate, dedicated to building a new generation of NFT protocol. It aims to create a decentralized NFT and game center to support cross-chain applications for Polkadot and Substrate ecosystem.

CryptoGraph

CryptoGraph is a one-of-a-kind digital collection created by icons and artists and forever supporting good causes. at the heart of the Cryptograph platform is the desire to inspire creators and support philanthropy in a model that perpetuates the interests of creators, collectors and our platform.

Starry Network

A functional NFT protocol. The Starry protocol now includes bulk minting/transfer of NFTs, composable tokens (Graph Token), divisible NFTs, and Moloch DAO with added NFT tributes. the first project on Polkadot to support bulk minting, the first to support composable tokens, the first to support divisible tokens, and the first to fully support Moloch DAO. the first project to fully support Moloch DAO.

DEGO Finance

DEGO is the Lego block of the decentralized world, building an ideal decentralized financial ecology through the diverse combination of NFT+DeFi. DEGO adopts the modular combination design concept, combining various elements of the product to form a generic module with specific functions, and by combining with other modules to create a new system with multiple functions and performance, just like Lego blocks to achieve The effect of 1+1>2 and generate infinite possibilities.

Gamepower

Gamepower is the first fully decentralized game publishing platform built on Kusama and Polkadot. Discover new games and freely trade users’ digital games and get rare collectibles with real-world value.

Of course, in addition to the above projects that have received official Grant support. There are also some NFT projects that have not received an official Grant, some of which have not yet passed the official review, and some of which are unnecessary to get Grant support, and Efinity is one of the latter projects that deserve attention.

Future development trend of NFT
On-chain native asset development (Metaverse direction)

Metaverse, called Metaverse in English, first came from the science fiction novel “Snow Crash” by author Neal Stephenson, describing a world where people interact with various software in 3D space with virtual images.

According to Wikipedia, a metaverse is a collective virtual shared space created by the aggregation of virtually augmented physical reality and physically persistent virtual space, including the sum of all virtual worlds, augmented reality and the Internet, connected by persistent, shared 3D virtual space to a perceptible virtual universe. If this seems complicated, it may be understood simply as a universe composed of virtual spaces.

The term Metaverse is made up of the words “Meta” and “Universe”, which mean “beyond” and “universe” respectively. Therefore, the Metaverse is considered to be the future of the Internet.

However, according to this description, the metaverse is not limited to the blockchain, but the existing Internet technology can also go to build parts of the metaverse. In fact, in terms of the Internet, there is already capital that has been laid out first and started to invest in the metaverse field. In March this year, Roblox, a sandbox game platform, was the first to put the flag of “meta-universe” on the New York Stock Exchange, and on the first day of its listing, it exceeded $40 billion, instantly exploding the capital circle, and behind Roblox was the global game giant Tencent. Subsequently, many game manufacturers and game-related industries have also announced to enter the blue ocean of meta-universe, and giants such as Nvidia, famous game company Epic Games, Facebook, Microsoft, Byte Jumping, etc. are not shy, and soon meta-universe became the meat and potatoes of the capital hot pursuit.

However, a lawsuit between Tencent and DD373 game trading platform in May this year has triggered us to think. Who is right and who is wrong in this lawsuit, we will not go into the details, mainly lies in the sentence of Tencent in its defense, “The ownership of the game account does not belong to the player, but to the game manufacturer.” It triggered a wide range of discussions. It turns out that we have worked hard to spend a lot of time and money on our own game accounts, and in the end, the ownership of this account does not belong to myself? So, if it is a virtual world built by a centralized giant like Tencent according to the same logic, wouldn’t the property inside still not belong to myself?

Therefore, the decentralized metaverse is the most promising direction in the future, because everyone would prefer that the time we spend in the virtual space is meaningful and valuable, just like in the movie Top Gun, and the virtual assets we acquire should also be valuable and belong to us.

Naturally, there is no better technology to host decentralized virtual assets than cryptocurrencies and NFTs that are native assets on the chain. Although it is still very early in the development of metaverse, some projects that combine metaverse properties such as 3D virtual space display, native NFT assets, and the design of pass-through economy are gradually exploring new possibilities. As some technologies related to metaverse such as AR/VR, smart devices and 5G gradually mature, and more creators and capital are deposited in this field, the decentralized nature of metaverse will definitely lead a new wave, and NFT and cryptocurrency will definitely stand on the stage of history in fancy clothes again then.

The development of off-chain entity combination

In addition to the NFT on the chain, the non-homogeneous property of NFT has also attracted the attention of many traditional enterprises, which have tried to use their influence to combine with NFT to obtain new growth points.

NBA Top Shot belongs to the old business model on the chain and can enjoy the convenience brought by the blockchain. NBA Top Shot is an NFT-based application, a blockchain-based digital collectible game launched by the NBA official and Dapper Labs, the team behind Crypto Kitties, where users can buy, sell and collect Officially licensed digital collectibles containing iconic moments of individual players.

The app can quickly gain dozens or even millions of users and can have a monthly turnover of hundreds of millions of dollars in February and March 2021, actually because it has a foundation. the NBA has had physical star cards before, which itself has a huge mass base, and this NBA Top Shot is equivalent to turning physical cards with patterns into digital collectibles with videos, which is better than Only pictures, the iconic moments of the stars are obviously more collectible, and NFT has many advantages over the physical card. Physical card transactions must be offline transactions, this alone limits its circulation, in contrast, NFT can do anyone in the world at any time, anywhere can be traded, the transaction level almost no threshold.

Secondly, the physical card is easy to counterfeit, how to identify the authenticity is a time-consuming and technical work, and even the birth of Beckett Media, such as the professional market collection platform operating for nearly 40 years, so the demand and market is not to be underestimated, but NFT can be easily verified on the chain, there is no such anti-counterfeiting problems.

And just after the chain, the old business model has reduced the transaction threshold, anti-counterfeiting costs, and released the liquidity, which is the truth that NBA Top Shot is hot. From this, we can see that the old business model on the chain can gain the advantages of NFT, so as to revive the second spring, which is a set of solutions that have been proven to be feasible and worthy of reference and exploration by existing traditional enterprises. For example, it can be further extended to sell some rights or certificates as NFT, we can even see the VIP qualification as NFT for sale, or rent, or such rights as Warren Buffett’s dinner qualification as NFT, we can take out a certain day of a celebrity to sell, to play the fan economy, etc.

Of course, this is only a very small piece of the chain of physical enterprises combined with the NFT application direction. After all, this is still only the old city transformation, not yet involved in the traditional enterprises to use NFT to explore new business models in this area, here due to space limitations, we do not do too much expansion, NFT is a large area, we will continue to analyze the breakdown, you can look forward to our subsequent interpretation of the NFT.

The two affect each other

If the chain NFT assets can be seen as an expression of decentralization, the chain entity combined with the NFT can be seen as an extension of centralization, then we need to face a point of view is that we must look at the development of technology and business inclusively, can not be one or the other, centralization also has the benefits of centralization, decentralization also has the advantages of decentralization, so the development direction of the two NFT, it is more likely that each have their own ecology, and in some ways can be combined with each other to build and share. However, it is still early in the development of NFT, the stage has just been set, NFT will bring what amazing performance, let’s wait and see.

Postscript
Although NFT in the past six months after the hype, began to appear a small cooling, but this does not affect the development of NFT in other industries, we see more and more traditional enterprises began to get involved in the NFT market, whether it is traditional retail enterprises, or Internet technology companies, have extended their “interest” to the NFT market. The NFT market has become more and more traditional enterprises.

But the cross-chain problem of NFT is also plaguing the development of the industry. In addition to cross-chain projects like Polkadot, other public chains are also exploring the cross-chain problem of NFT, but this article will not discuss it, but this direction is also worth our attention.

As for who can become the dark horse or king of NFT track in Polkadot ecology, it is still very early, after all, Polkadot has just kicked off, which requires us to spend more time to observe and practice. This is what Polkadot ecology may bring to NFT.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/what-kind-of-sparks-can-polkadot-and-nft-make/
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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