Zhu Jiaming: The digital economy and the non-homogeneous era – NFT

On March 26, 2022, ForeChain and Zero One Think Tank hosted the “Global Trends of Digital Collections and China’s Innovation – Global Digital Collection Annual Report Conference”. Hengqin Digital Finance Research Institute is the academic support unit of the conference. Zhu Jiaming, chairman of the academic and technical committee of the research institute, delivered a speech on the topic of “Digital Economy and Non-homogeneous Era – NFT, Virtual Demand and Virtual Supply”. The popularization of NFT, “Everyone can create NFT, and everyone can meet the needs of non-homogeneity, and there is hope for NFT.”

Mind also has a time to cultivate and a time to reap.

Ludwig Wittgenstein

Zhu Jiaming: The digital economy and the non-homogeneous era - NFT

The Merge

Source: Nifty Gateway

I chose a background today, which is an NFT product that was released on December 4 last year with a price of $91.8 million, called The Merge in English . The content of this work is just a few balls. The publisher is digital artist Murat Pak.He first created a token ASH, and then issued this NFT. More than 20,000 people participated in the purchase, and the final sale price reached $91.8 million. The Merge contains a series of features of NFTs. However, its most fundamental feature is the creation of a unique and unique virtual creative supply, which radiates some people’s existing virtual needs. When combined with the smart contracts and tokens supported by the blockchain, Finally realized the transaction transaction. In conclusion, this is a typical NFT case.

It is recognized that Quantum , which was released in New York in 2014, is the first NFT, authored by artist Kevin McCoy, and it has been eight years since then. However, it is 2021 that NFT has entered people’s field of vision widely and attracted attention and participation from all walks of life.

Here are some of my basic observations and thoughts about NFTs:

one

Existence is the basis of NFT, and NFT is an expression of existence. The so-called NFT, the premise is NF (non-fungible), that is, non-homogeneous. The world is made up of various non-homogeneous material and spiritual beings. The phenomenon of non-homogenization in the real world is all over the place. German mathematician Leibniz (Gottfried Wilhelm Leibniz, 1646 – 1716) famously said: “There are no two identical leaves in the world.” Each person has its own unique life process. It can even be said that every life is a non-homogeneous performance art. Therefore, existence is a non-homogeneous “set”. Therefore, existence and non-homogenization are equivalent, which is the premise of NFT.Ancient agricultural society, economic behavior, and even financial and monetary behavior are also dequalified. It can be said that non-homogeneity is the basic characteristic of human civilization since ancient times.

two

Homogenization is the tendency of human civilization that coexists with non-homogenization. In the process of human civilization, there is still a strong pursuit of homogeneity. This is true in the fields of thought, spirit and values, as well as in economic and social activities. In the industrial age, homogenization became the mainstream of economic activity. The non-homogeneous handicraft industry before the industrial age was replaced by homogeneous products produced by large machines. The essence of large-scale industry is the pursuit of low cost, high profit and marginal benefit, which requires standardization and scale. People are to be assembled in factories to work. Because of homogenization, both micro and macroeconomics can be quantified. In a word, there is no industrial revolution without homogenization, and the industrial age is an era of high homogeneity. Therefore, people’s clothing, food, housing and transportation are homogenized, and consumerism is based on homogeneity; advertising is for the needs of homogeneity; famous brands are a result of homogenization; mass media is also the homogeneity of non-material products change. It can be said that the industrial age is an era dominated by homogeneity.

three

The information society drives the return of non-homogeneity. Because of digital technology, a digital economy and an information society have been formed, and people have begun digital transformation, that is, they have begun to transform and return from homogenization to non-homogeneity. Because of digital technology, people can break through the physical and physical constraints constructed in the industrial age, and people’s imagination and creativity can be revived. In the information society, everyone is a producer, creator and consumer of information. Information products expressed in immaterial form do not need and cannot be homogenized. Therefore, the demand and supply of the information society are no longer quantifiable. In fact, in all activities in the spiritual realm, supply comes from creation, creating and stimulating demand. For example, Hollywood products create market demand, not the other way around.

Four

Blockchain and smart contracts, the core features of NFT, have been valued through tokens. NFT is NF plus T, and T is token. Because of the token, any non-homogeneous existence gains value. Of course, just as non-homogenization is not new, tokens are not completely new either. However, the wonderful thing is that the NFT token itself is diversified, and it is a digital token that excludes uniqueness. For example, the token I mentioned earlier that supports The Merge is ASH, and the history of ASH is only a few months earlier than The Merge . However, the significance of NFT is not only to realize the combination of non-homogeneous products and tokens, but also to realize its value through the digital trading platform because it absorbs the Internet, blockchain and smart contract technologies.

Fives

The scarcity of NFTs is an early phenomenon. It is likely to be misleading to define scarcity as an important feature of NFTs. If NFT is scarce, it means that each specific NFT product is likely to be unique and scarce. Traditional economics is based on the assumption of scarcity of economic resources. If NFT is defined as a form of digital economy, it is difficult to say that the resources supporting the NFT economy are also scarce, and it is inferred that the NFT economy belongs to a shortage economy. In fact, NFT resources, not specific material resources, are not only not scarce, but also extremely abundant and can be reproduced continuously. Therefore, if NFT is considered to be scarce, it refers to a specific NFT, or refers to the characteristics of the early stage of NFT.

six 

NFTs are in a stage where both total demand and total supply are growing explosively. The current NFT market size is limited, and the price fluctuates wildly, and its market value lacks stability. In particular, certain NFT products are clearly hyped and manipulated. This shows that the demand and supply of NFTs have not entered a historical stage that tends to be in equilibrium. The deep virtual demand triggered by NFT is the first immaterial demand in human history, and it is still in a state of chaos and ambiguity. Because of this, some specific NFT products may generate higher prices than people imagine, a demand that is almost stimulated by art auctions.

seven 

There is an inherent logic of popularization in NFT. In the digital age, with the development of digital technology, especially the emergence of smart phones, the public has the ability to create non-homogeneous resources, create and consume non-homogeneous products at the same time, and it happens anytime, anywhere. In fact, Douyin is the base for the production of non-homogeneous resources. Therefore, NFT needs to step down from the “altar”, integrate with people’s lives, and achieve popularization. In short, NFT must be turned into an industry or ecology that the public can produce, the public can buy, and the public can trade. Everyone can create NFT, and everyone can meet the needs of non-homogeneity, and there is hope for NFT. Therefore, there must be more and more convenient NFT creation and transaction platforms to reduce the price and transaction cost of NFT. Of course, the popularization of NFTs does not exclude the nicheization of specific NFT products.

Eight

NFT has the potential for industrialization. Now NFTs have formed categories including: Electronic Arts, Music, Video Games, Sports Moments, Trading Cards, Memes, Domain Names, Electronic Fashion, and Twitter Tweets, to name a few.Obviously, each of the above fields may develop into an industry, thereby forming an NFT industry system. The foreseeable NFT industry has at least these characteristics: (1) based on digital technology, closely integrated with computing power and algorithms; (2) through digital finance as a medium; (3) high participation of the public; (4) imagination and creativity Promote; (4) Realize distributed storage and distributed energy; (5) Incorporate carbon footprint management, low carbon, and reduce material resource consumption; (6) NFT has the duality of indivisible and divisible, and divides the ownership of NFT. The industrialization of NFT will trigger a great economic revolution. NFT needs to go beyond the categories of art, music, and sports, because an idea, an idea, and a discovery may be the first driving force of the NFT industry.

Nine 

Zhu Jiaming: The digital economy and the non-homogeneous era - NFT

In the US, the majority of buying and selling NFTs are millennials

Source: Morning Consult

The main body driving NFT prices now is millennials. Now it is not the general public who support the NFT market, but mainly the millennials. The enthusiasm and ability of millennials to participate in NFT transactions exceeds that of Generation Z. Why are millennials the biggest buyers of NFTs? Because they are really the first generation of humans to generate virtual needs.

 ten 

Zhu Jiaming: The digital economy and the non-homogeneous era - NFT

Internet meme Shiba Inu Doge

Source: HitBTC.com

The challenge of NFT is to break through the human imagination. Memes have created an open model for NFTs. [1] However, whether it is a Shiba Inu or a cat face, it reflects that people’s imagination is limited. People’s imaginations are not as endless as people think. So, what happens to the limited supply of human imagination versus the virtual demand that humans are expanding? This will cause most of the NFT products in the future to have no shock, causing people to quickly enter the stage of aesthetic fatigue. Therefore, some artistic or cultural NFT markets that are now thought to be able to grow continuously will decline. Even Qi Baishi’s works, Picasso’s works, their charm and market are not infinite.Therefore, the non-homogeneous demand of NFT will constitute a continuous driving force for people’s imagination and creativity.

Epilogue

The current NFT is still in its early stage of development, and it is mainly reflected in the field of art products-although there is a market, hype, and value, they all belong to various forms of experiments. However, NFT has opened a new era of various non-homogeneous existences that people pursue and appreciate, an industrial era that is completely different from the most mainstream of homogenization. In other words, the current digital transformation is the transformation from homogenization in the industrial age to non-homogenization in the information age, and this historical process has just begun, and NFT is the precursor to such a historical process. In particular, in the non-homogeneous social and economic movement represented by NFT, there are materialized NFTs, for example, a bicycle, a backpack, a book that anyone has used can become an NFT; however, more importantly NFTs are bound to be spiritual, ideological and artistic. A scientific discovery and theorem, a new concept, will become an NFT. The measure of the value of NFT will be the content of imagination and creativity.Therefore, because of NFT, the metaphysical and metaphysical concerns of human intelligence will enter a new situation.

Finally, it needs to be mentioned that the Metaverse and NFT are interdependent: the Metaverse will provide a multi-dimensional development space for NFT, and the Metaverse will also be enriched and enriched by NFT.

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