What are the application scenarios of NFT?

On September 23, foreign media reported that Christie’s, a well-known art auction house, will auction a painting called “Block21” on October 7. This painting uses NFT technology and is expected to sell for as much as $12,000-18,000. , about RMB 80,000-120,000. "Block21" is not an exception. Many NFT works have been traded at high prices in history. The NFT project CryptoPunks has 10,000 NFTs, and each NFT is a unique pixelated punk avatar. The most expensive avatar was fired to 100ETH, which was worth about 140,000 RMB at the time;  Cyberpunks, pictures from the Internet in 2017 The popular CryptoKitties series was sold at the highest price of 600ETH, and was worth more than 1.15 million RMB at that time; the decryption game with the same concept as the NFT has the same effect. A rich man once placed 310 bitcoins in the decryption game as a reward. Worth 14 million RMB... NFT continues to show the world a huge space for hype. On the one hand, creators incorporate encryption into their works to promote blockchain culture with various art forms and techniques; on the other hand, technologies such as NFT also carry abstract functions similar to the flow of artwork ownership. The differentiated value and entertainment diversity value of NFT are being more and more reflected. This article will analyze the current situation and characteristics of the NFT market based on several typical application scenarios. NFT + Liquidity Mining Painter Huang Yongyu's NFT digital collection sales totaled 2.37 million: Jinse Finance reported that the 98-year-old painter Huang Yongyu's NFT digital collections sold a total of 2.37 million. Huang Yongyu's digital art "Zodiac" series is a traditional Chinese painting created by the famous artist Huang Yongyu since 2006. Recently, the Baidu Encyclopedia Art Project and the artist Huang Yongyu jointly launched the digital collection NFT of the "Zodiac" series on the Baidu APP exclusively on the Internet during May 12-14, 2022. It comes from the Baidu Super Chain. The form of digital collections has been recorded for a long time and is going international. [2022/5/16 3:18:01] Taking over the popularity of DeFi, but the market is still niche. Example: Meme and Aavegotchi In the scenarios of Meme and Aavegotchi, users participate in NFT mining in the same way, all by pledging tokens Get NFT rewards. Meme has two liquidity mining pools. One pool obtains points called "pineapples" by mortgaging the platform's own token MEME. Different amounts of "pineapples" can be exchanged for NFT cards of different levels; the other pool It is to obtain higher-level NFT cards by mortgaging the market-making equity tokens on Uni. NFT cards themselves have value for hype. NFT cards on Meme On Aavegotchi, users can obtain the image of little ghosts by mortgaging atoken (the equity token on Aave), and each little ghost is an NFT token. The special feature of Aavegotchi is that the collateral atoken behind the little ghost is an interest-bearing token. Over time, the value of the collateral will increase. Autohome and Bitmap released NFT digital trendy play: May 9th news, recently, the car consumer service platform Autohome Modification Planet announced the cooperation with the digital trendy game platform Bitmap, and will jointly release 3 issues from May to July "Modified Planet NFT (Digital Collection) Digital Blind Box". It is reported that the first phase of the "Modified Planet Interstellar Wandering Edition" digital blind box will go on sale on the Bitmap platform at 11:00 on May 10, with a total of 1,100 pieces (100 hidden models), and a single price of 128 yuan. [2022/5/9 3:00:31]   Aavegotchi’s little ghost image summary: NFT has continued the enthusiasm for liquidity mining, but the market is still niche, with a high degree of nesting dolls and high participation thresholds. DeFi liquidity mining is cooling down After coming down, we saw that industry participants took the initiative to graft NFT to the liquidity mining method. Affected by this, the various indicators of NFT increased, and NFT continued the popularity of DeFi liquidity mining. On the NFT trading platform OpenSea, there are NFT-related auctions, castings, listings and other activities every few seconds on average; some popular NFT projects, the transaction volume has increased by dozens to hundreds of times in the past seven days; RARI (the token of the trading platform Rarible) and NFT tokens such as MEME, the currency price has increased by more than 5 times in the past month. On the one hand, the NFT market has grown rapidly, on the other hand, we also need to note that NFT is still a niche market. According to NonFungible data, the market value of NFT this year is more than 300 million U.S. dollars, which is still a drop in the bucket compared to the more than 300 billion U.S. dollars in the entire encryption market. In addition, according to network information, the current weekly trading volume of NFT is more than 1 million US dollars, which may not reach the trading volume of a trading pair on an exchange. NFTs are still a niche market. Hybrid blockchain project Kadena launches gas-free DEX and native NFT standard "Marmalade": Jinse Finance reported that according to Kadena's official social media account, the hybrid blockchain project will launch a gas-free decentralized trading platform "Kaddex", And through the integration with Simplex, it will bring a better legal currency entrance to the DeFi ecosystem. In addition, Hypercent Launchpad, an encryption project verification platform, and ZoidPay, an encryption liquidity provider, have also recently completed their integration with Kadena. According to the development roadmap, Kadena will also launch a native NFT standard called "Marmalade" and encapsulate native tokens. According to previous reports, Binance launched Kadena on March 11 and launched KDA/BTC, KDA/BUSD, and KDA/USDT trading pairs. [2022/3/12 13:52:21] In addition, if we observe carefully, we can find that NFT+ liquidity mining has a high degree of nesting dolls (complexity), which involves liquidity mining market-making equity generation Tokens, NFT platform tokens, NFT tokens (cards), etc., which means introducing more risks. On the other hand, users' investment habits generally tend to be clearer logic and simpler operations, and the high degree of nesting dolls also raises the threshold for participation. NFT+ (artwork) trading Examples of differentiated value and hype space for NFT: Rarible, OpenSeaRarible and OpenSea are currently two mainstream NFT trading platforms. Users can create and trade encrypted artworks on it. Taking Rarible as an example, the picture below is the trading page of Rarible, which shows various encrypted artworks on sale. The number marked in the red box is the selling price, and the unit is ETH. The avatars marked in the red box are those who participated in the creation of the work , users who trade. The former file sharing website LimeWire will be relaunched as an NFT market: On March 9th, a pair of Austrian serial entrepreneurs Paul and Julian Zehetmayr bought the defunct music platform LimeWire and created LimeWire GmbH, a company that plans to sell music, content-zce and art Product NFT. It is reported that the new company LimeWire GmbH was launched in May last year and has no relationship with LimeWire's original team. Additionally, the startup will launch its own utility token through a private sale over the next three weeks. LimeWire was one of the early web-based ways of consuming music and was hailed as a haven for illegal downloads. In 2010, it was shut down due to copyright infringement. A $105 million out-of-court settlement was subsequently reached between the major labels and then-CEO Mark Gorton of LimeWire. (Bloomberg) [2022/3/9 13:46:36] The uniqueness of the Rarible page Rarible is that the platform currency RARI incorporates the gameplay of liquidity mining, and the token RARI will be allocated to NFTs traded on the platform on a weekly basis. users, and some RARI will be airdropped to NFT holders. If you browse the trading interfaces of OpenSea and Rarible, you will be amazed at the artistry and creativity of the NFT market. There are mainstream styles, animations and so on, among which there are many bold and avant-garde innovations, as well as some exquisite works. Taurus will launch TDX, a trading platform that supports cryptocurrencies and NFT: Taurus, a Swiss compliant digital asset institution, has obtained a securities company license issued by FINMA, the Swiss Financial Market Supervisory Authority, and will launch its Taurus Digital eXchange (TDX) securities trading on May 10 platform. The platform enables investors and banks to trade multiple assets, including tokenized securities, private assets, real estate, artwork, NFTs and cryptocurrencies. Taurus said that TDX can conduct both initial issuance and direct listing transactions, and can manage central limit order books, auction-based quotation systems or quotation systems according to the underlying assets and regulatory framework. In addition, the platform can also handle transactions on Ethereum or Tezos. Published smart contracts. [2021/4/19 20:37:12] Summary of works on Rarible: The differentiation of NFT brings value differences and room for hype, and also hinders circulation. The full name of NFT is Non-fungible token, non-homogeneous token , which is a type of currency that is different from homogeneous tokens such as Bitcoin and Ethereum. Satoshi Nakamoto created 21 million bitcoins, which are indistinguishable from each other and interchangeable. And different (types) of NFT are like women's bags, some are Hermes, some are Longchamp, and they are different from each other. The differences between NFTs create value potential for NFT assets. Because they are different, they are not equivalent. Today, the types and quantities of assets in the NFT market are limited, the differences between them are large, and there is no unified pricing standard, which provides a good soil for NFT price speculation. Those NFT works that have been fired to a high price often have some abstract value, such as "Block21" mentioned at the beginning of the article, which is a series of works called "Portrait of Thinking", the 21st of a total of 40 paintings, the entire The series is more than 50 meters long and is known as the largest art work in the history of Bitcoin. It describes the history of conceptualism in the 20th century and the myth of the birth of Bitcoin. As for the encrypted art on Rarible, the price has been raised to tens to hundreds of ETH, which is about hundreds of thousands of RMB. It is not uncommon for NFTs with a price of tens of ETH on Rarible. The hype space of NFT artworks has attracted a large number of encryption enthusiasts and speculators. There are nearly 8,000 NFT players on Rarible, and more than 13,000 NFT items have been traded. On Twitter, industry KoLs including Binance Changpeng Zhao, FTX’s Sam, and yearn.finance’s Andre are all mentioning NFT. NFT has indeed become an industry trend. The differences between NFTs determine that the attributes of NFTs are cool and fun. At the same time, it also provides a channel for community members to express their emotions such as freedom, innovation, boldness, and ridicule. However, the differences between NFTs also make them more complex than homogeneous tokens such as the ERC20 standard, and their compatibility with each other is worse, so circulation and transactions are easily blocked. At present, some solutions dedicated to solving NFT liquidity problems have appeared in the market. For example, some projects support the functions of mortgaging NFT, borrowing ETH and other mainstream currencies, so as to liberate the value of NFT and let it flow. For example, there is a project called WCK, which supports breaking NFT into ERC20 tokens for trading. NFT + game/VR scene The entertainment diversity value of NFT Example: Decentraland Decentraland is a decentralized virtual world built on Ethereum, which combines the gameplay of VR + NFT. Players can buy and sell land on it, create objects on the land, and these objects can be tokenized and traded. The token MANA that has been frequently mentioned recently is the platform token of Decentraland. MANA has been deeply embedded with the platform itself. Players need to use MANA for buying and selling land, buying and selling items, naming, donating, and even voting on platform governance. The value of MANA is directly linked to the development of the platform. DappReview described his experience of participating in the Decentraland treasure hunt in an article titled "I spent a day in Decentraland, admiring artworks, picking up wool, watching dancers...", which is very interesting. The combination of NFT and VR makes the game particularly rich and imaginative. For example, the following scenes are mentioned in the article: Image source: DAppReview Summary: NFT+game/VR makes entertainment richer and more diverse, and is also conducive to the purchase of game props The combination of right confirmation and circulation NFT and VR allows the game to touch the realm beyond the boundaries of most people's imagination, as if we are really not far from the world described in "Ready Player One", the game becomes more fun, the game The ownership of assets is confirmed and transferred more smoothly through NFT. But at the same time, we also need to notice that games like Decentraland are still running on the Ethereum public chain, TPS limits the game experience, the blockchain is still in the early stages of development, and the game applications on it are still in the early stages. NFT of off-chain assets can not solve the problem of traceability. Example: Nike CryptoKicksNike obtained a patent called CryptoKicks last year, which uses NFT technology. This technology can create ERC721 standard NFT for shoes, and NFT can record the shoes Properties, such as color, style, etc. Summary: NFT cannot solve the problem of asset traceability under the chain, but it can reduce transaction friction and help data exchange and circulation. However, in essence, the NFTization of off-chain assets cannot achieve the purpose of anti-counterfeiting, traceability, and confirmation of rights.

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