Why is NFT a catalyst for the expansion of Web3.0 territory?

The full name of NFT is Non-fungible Token, and its Chinese name is non-fungible token. Unlike our common tokens (such as BTC, ETH, etc.), the important feature of NFT is that it is unique and has a unique identifier, and the two are not interchangeable. The unit is 1 and is indivisible.

In 2021, NFT has become a network hotspot reported by many Internet news media. While some people are still questioning the development potential of NFT, the development direction shown by NFT has “full bloom”, including but not limited to various fields such as art, collectibles, games, personal identification, investment, mortgage lending, and meta universe. , And the development of NFT these days has also accelerated the expansion of the Web3.0 layout to a large extent. In this article, we will discuss with you the status and importance of NFT in Web3.0, and look forward to the resonance development of NFT and Web3.0.

Authentication

To establish contact on the Internet, users first need to create their own personal identity. In the Web2.0 era, user information is stored by a third-party centralized server, but unfortunately this information is not controlled by the user. If you violate the rules of the centralized platform, the platform can delete your account at any time, or when the platform goes bankrupt, the content of the user account will also face the end of permanent disappearance.

Web3.0 is a decentralized network operation mechanism based on a peer-to-peer model. On the one hand, the Web3.0 model pays more attention to individual users and can provide guarantees for the security and privacy of users’ personal data. On the other hand, it is a more user-friendly Internet world, dedicated to removing the barriers between data and information. In Web3.0, users do not need to register and log in repeatedly, and only need one identity authentication to be unimpeded in different platforms and applications.

In Web3, the authentication of personal identity is particularly important. The non-homogeneous nature of NFT determines that it can be used as a credential for identity verification, including identity qualifications, medical reports, and so on. Digital creators with great influence and many fans can also use NFT to mark their personal IP to avoid theft and forgery.

Digital wallet is an important tool for Web 3.0 identity authentication. Users can control the private key of the digital wallet by themselves without worrying about the transaction information being mastered by the centralized platform. Take the Phantom Wallet, a very important member of the Solana ecosystem, as an example. Users can install the Phantom Wallet through the Google plug-in to store, send and receive and trade Solana blockchain assets simply and safely without worrying about personal information being leaked and funds Theft and other issues. At the same time, users can also complete free transactions on DEX, purchase NFTs, participate in Web3 applications, and Sol Staking through the Phantom wallet. Now Phantom Wallet is gradually supporting the Ethereum network to solve the problem of asset liquidity between different public chains.

Why is NFT a catalyst for the expansion of Web3.0 territory?

Why is NFT a catalyst for the expansion of Web3.0 territory?

Through the mass adoption of digital wallets, it is foreseeable that Web3.0 is perfectly capable of helping Web2.0 users overcome the “barriers” they face when using the Internet.

Confirmation of digital ownership

Another important significance of NFT for Web3 lies in the confirmation of digital ownership it provides. We often wonder why a copyable JPG can easily sell for millions of dollars. In fact, when NFT is auctioned, it is not its images or audiovisuals that are auctioned, but the content ownership of the work.

The sale and transaction of works created by Web2.0 users on the Internet need to rely on a centralized platform. Once published, the provenance cannot be proved in a verifiable way, and the original author’s right to the digital art works is difficult to cause the trend of copying, plagiarism, and plagiarism to flourish.

The birth of NFT can empower the confirmation of digital ownership. NFT gives creators a brand new method to encapsulate the value of their “creation”. Based on secure, decentralized, and open and transparent blockchain technology, each NFT anchors a unique scarcity value, through which creators and purchasers can obtain rights that are difficult to obtain in Web 2.0.

Under the combination of Web3.0 and NFT, entities that are inconvenient to transfer and works created on the Internet can be traded conveniently and quickly, and transaction data will also be distributed and stored in the network, transparent and immutable.

The confirmation of digital ownership will be a key step in the transfer of Web2.0 users to Web3.0.

Resonance of NFT and Web3.0

NFT market trading platform

The NFT trading market is an essential part of the NFT ecosystem, and OpenSea is one of its earliest markets. In the past July, the transaction volume of the OpenSea platform has exceeded 325 million U.S. dollars, an increase of 118% from the previous month and a record high.

Why is NFT a catalyst for the expansion of Web3.0 territory?

virtual reality

Why is NFT a catalyst for the expansion of Web3.0 territory?

The virtual world is also an important part of Web3.0 . On virtual platforms such as Cryptovoxels and Decentraland, from virtual land to handicrafts on the walls of virtual painting gardens -most of the property that gamers can buy, collect, and sell are NFTs. In addition to collecting NFTs in the virtual world, players can also collect personal encrypted NFTs online for 3D display exhibitions, or invest in plots in the virtual space waiting for appreciation. Since the global outbreak of the new crown epidemic in 2020, people have increasingly accepted the form of online exhibition halls, and the popularity of Cryptovoxels, Decentraland and other products has also increased.

Such a platform is not so much a blockchain game, it is more like people’s imagination of a digital parallel world. In the future, the virtual world will also expand and become a meta-universe with unique properties.

Why is NFT a catalyst for the expansion of Web3.0 territory?

gaming platform

The popularity of CryptoKitties in 2017 caused a huge congestion in Ethereum, and the imitators of CryptoKitties also poured in and launched similar chain games. However, the life cycle of these chain games is very short, and so far there are very few survivors. Nowadays, after years of development, the chain game has evolved a new life form, and the fiery market of Axie Infinity and My DeFi Pet also confirms its vigorous vitality.

The game can attract more non-digital encrypted users to the NFT ecosystem, and help them quickly transfer from the Web2.0 ecology to Web3.0 through the easy and concise game mechanism and the new model of “Play to Earn”.

Why is NFT a catalyst for the expansion of Web3.0 territory?

infrastructure

Ethereum occupies a dominant position in the NFT ecosystem. As of July 2021, 8 of the top 10 NFT agreements ranked by total sales were created on Ethereum. However, the expensive gas cost ( the cost of transactions on Ethereum ) and the delay of the network are making many users dissatisfied, seeking a new infrastructure for on-chain operations. This also brings more users and funds to Layer 2 and other high-performance public chains. Many agreements have also begun to actively embrace other infrastructure construction, opening up a new pattern of multi-chain development.

For example: Axie Infinity successfully developed and launched the Ethereum sidechain Ronin. Ronin shifted the main operation from Ethereum to the application chain to reduce the cost of users. At the same time, Ronin’s response speed is faster, and the payment gateway is integrated through Ronin Wallet, which lowers the threshold for deposits. Overall, the adoption of Ronin has greatly reduced the threshold for users to play Axie Infinity.

For example: Solana public chain chosen by Metaplex. Solana is a public chain with high TPS and high scalability. Without data sharding, Solana can achieve 60,000 TPS and process up to 22 billion transaction data. Efficient computing speed directly reduces the cost of transactions on the chain, and each transaction only costs 0.00025 US dollars, which is almost negligible.

Why is NFT a catalyst for the expansion of Web3.0 territory?

Concluding remarks

People have been expecting the popularity of Web3.0 for a long time, but Web3.0 has extremely high requirements for the technology and infrastructure of computing, indexing, data management, hosting, storage and other important services. In the years of construction and continuous growth, many Web3.0 protocols have entered a stage of rapid development and have begun to carry a large number of user needs through virtual worlds, games, and streaming media. While attracting a large number of investors, the unique nature of NFT is also leading users to explore new areas of Web3.0, catalyzing the development and expansion of Web3.0.

 

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/why-is-nft-a-catalyst-for-the-expansion-of-web3-0-territory/
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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