This article is 5120 words and the reading time is 12 minutes
Foreword: 2019 is coming to an end. Most of the more famous blockchain games this year are TCG (Gods Unchained Cards). These games have attracted more attention and are more exquisite than previous games. Due to the low frequency of TCG game asset exchange and the good support of wallet tools, they all issued their own NFT as game assets.
NFT (Non-FungibleToken) is a non-homogeneous token. Since it is a token, it also has several basic attributes of tokens
① name
② Quantity
③Price
Coupled with the unique ④ introduction and ⑤ picture, it becomes the most common NFT, ERC721 standard Token. The most popular application at the time was CryptoKitties, and 1,790,991 cats have been produced so far.
Enjin's ERC1155 defines the combination of NFT, FT, and NFT, and adds the attribute of ⑤ casting cost, which solves more game scenarios and richer digital assets. It makes people feel visually that this is the blockchain game I want.
Of course, there are also some non-game NFT usage scenarios, such as tickets, collectibles, asset mapping, coupons, ad-free vouchers, community symbols, etc., for example. You can even use NFT for DEFI and DAO.
Blue Fox Notes (one of the few teams in the industry that produce quality content) wrote an article "Why NFTs have the opportunity to explode in the encrypted world?" the day before yesterday, and today I will talk about why NFTs have not yet Opportunity to explode in the crypto world? , discuss the past, present, and future of NFT rationally.
Next, I will talk about my personal views according to the four major characteristics listed by Blue Fox. We can even expand the concept of non-homogeneous tokens and discuss digital commodities by the way.
Exclusivity of NFTs
NFT is not something unique. When it comes to scarcity, it cannot escape market supply and demand. Rare physical goods (AJ, Birkin, etc.) are often very valuable and can be obtained in the second-hand market (footwear collection markets such as GOAT and StockX). The high premium is mainly because the market supply is less than demand, and what the buyer gets is a sense of belonging, a sense of superiority and social status recognition in social activities.
In fact, an extension can be made to NFT. Digital game products are scarce, Dota, CS accessories, all players in the game regard them as special things, and they can only be purchased in special international competitions. The scarcity of these items is important, but not important in itself, what matters is that most players think it is important, and it is a good story that a buyer's market and holders believe in together.
It only has value because there is a finite amount of assets that can be collected in any category and thus store value. If there are as many NFTs as there are grains of sand in the world, there will be no two identical grains of sand in the world, and each grain of sand is also scarce, because the logic that the only thing that is rare and valuable is not valid. In the final analysis, it is still a group consensus .
Therefore, I personally think that NFT does not have any uniqueness. It can be tampered with, copied, and replaced. Ordinary game props can be used, and game asset NFT can also be used.
NFTs that cannot win collectible attributes over time will tend to 0 in the market, because the cost of making them is 0.
Permanence of NFTs
The permanence of NFT probably inherits the permanence of ERC20 and the like. Tokens minted by token protocols of all public chains such as ERC20, TRC20, NEP2, and BEP2 can indeed exist forever once owned. But do I own NFT for the sake of NFT lying cold in my wallet, or do I enjoy the services, utility functions, and value storage brought by owning NFT?
No one can guarantee the permanence of the service, just like the permanent free to benign shutdown services advertised by major network disks, can the blockchain service corresponding to NFT exist forever? The answer must be no, even if you use smart contracts to run on the blockchain and open source so that anyone can set up your service at will (this is my ideal Dapp form), lack of artificial maintenance and updates, keeping pace with the times The advanced iterations are gradually replaced by better similar Dapps on the market.
The objective existence of NFT is permanent, but the moment the service is terminated, the corresponding NFT will become encrypted garbage, waste products on the chain, if you don’t believe me, look at the encrypted assets corresponding to the blockchain games that have stopped operating and closed for the past two years (maybe No DAO bar).
Ownership of NFTs
The ownership attribute of NFT is also inherited from Token. If you don’t talk about use but only about ownership, isn’t it a hooligan? Seats for high-speed rail, airplanes, and concerts can be regarded as NFTs one by one. You bought these NFTs and were told that the train number, flight, and concert were cancelled. You don’t feel as uncomfortable as eating flies. Can you hold NFTs as an owner? Go command must be carried out? The right to use can only be replaced through refunds, ticket changes, etc.
Among them, blockchain games have such a scene. Why do we use blockchain games? Because after the traditional game account is banned and stopped, the game assets are gone, and the blockchain can continue to be owned. In fact, this scenario Been misleading everyone.
Blockchain games are no better than traditional games. MLB Champions’ NFT worth two million dollars disappeared out of thin air, and no one has responded to consumer rights protection. Your game assets will also be banned by the law (code) on the blockchain, and blockchain games will also be suspended and the game assets will become invalid encrypted garbage. This is the result of breaking away from consensus and services at one or two points Same, obvious conclusion. Do you expect that the residual data after a game is shut down can be equivalent to the normal operation of the game to form an equal consensus?
Unless the medicine of time is added, it will become an encrypted collection after many years. NFT is yours and others cannot take it away, but the corresponding services can be terminated, canceled, and banned to limit your use, that is, you get my people but not my heart.
Cross-game attributes of NFT
The use of props across games is actually not a new thing. Cross-server use in traditional games can also be regarded as partial use. If you think of Tencent’s Xinyue members, VIPs, and QBs as NFTs, you can indeed use these services in different games .
Personally, I don’t think the use of certain privileges and props across games can bring about an explosion. It is probably more about the integration of gameplay and ecology, which is more in line with the blockchain. Tokens can be cross-chain. Is NFT cross-chain still far away?
CryptoKitties has also been combined with DEFI because of liquidity issues.
This is Cryptowedding, two NFTs of different games are married, and other NFTs can be invited as witnesses.
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NFT past, present, future
The past of NFT may be just a token model. The token in the game is used to tokenize the quantity of certain resources. A game has many tokens to represent various resources. Afterwards, NFT experienced many protocol upgrades from ERC721 and expanded to ERC 1155, which brought more room for imagination to blockchain games in terms of display and functionality.
The current NFT mostly refers to the definition standards on Ethereum. TRON, COCOS, EOS, and COSMOS will also have their own NFT, dgoods standards, etc. Other excellent public chains should gradually improve this puzzle.
The improvement of standards, the opening of the trading market, and the complete support of tools have also boosted the development of NFT.
What kind of existence does the NFT trading market exist? The following is an incomplete statistics of the NFT market.
The peak of the earliest NFT market transactions should be when CryptoKitties became popular, and a few tens of ETH, hundreds of ETH were traded out like that. Some time ago, the number of GU card transactions surged, and the handling fee brought by the huge market value change gave confidence to the NFT market.
The current NFT market transaction data can be seen through DappReview. The daily trading volume of the top Opensea is less than 200 ETH. Compared with the entire digital commodity, this is a niche market with opportunities and uncertainties.
In fact, NFT can be listed on the same exchange as Token, and the Coingecko market website is also more concerned about NFT and has issued its own New Year NFT.
Binance, the leading exchange in the industry, Microsoft, the leading Internet company in the United States, Bayern Munich Football Club, etc., all have the support of NFT assets.
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Why hasn't NFT had a chance to break out in the encrypted world?
① NFT is actually not so mysterious, the essence is still token, corresponding to the service
② The impact of the blockchain industry environment, the closure of wallets, industry service providers, and exchanges
③ The development level of blockchain games is limited, and there is a lack of top blockchain game works
④ The NFT trading market is too small and the transaction scale is small
⑤ Existing NFT standards and markets are controlled by several teams
Remember FNFT's phishing attack on Opensea, the world's largest NFT trading market?
FNFT (Fake Non-Fungible Token), the reason for this is this. Friends who follow me know that I have been applying for Binance’s commemorative NFT. Binance issued the fourth and fifth NFT yesterday. Didn't win, the fourth one has a market price of 500-700 RMB and is limited to 250 pieces, the fifth one is limited to 100 pieces, and the market price is 2000-2500 RMB.
I have always had an idea that I did not try, and it is also an experiment to support my views on NFT characteristics. If I use the same name, profile, and picture to cast the same NFT, do you think my FNFT is equivalent to the copied NFT?
From a technical perspective, physical counterfeiting requires higher material costs and technical costs, while digital commodity counterfeiting only requires the same production process, which is the same as many people using the same name ERC20 Token to go fishing.
First, we created Binance's NFT contract on the Ethereum mainnet. For convenience, we directly used ERC721 instead of ERC 1155. After creating the contract, edit the platform information in Opensea, just like Binance, and display it in the market as well.
Below are five FNFTs, minted for testing.
The following is the genuine Binance NFT
The difference lies in the platform name, logo, picture size, text introduction and other details, in fact, they can be exactly the same, and the lowercase b is used to distinguish them.
After clearing these points, we only need to copy the content of Itam. The total quantity does not matter. We only need to set the item name, introduction, and picture to be the same, and even change the displayed seller name to Binance, and then start to list FNFT.
Test the display on MathWallet.org App, no problem!
After confirming that there is no problem, I started to mark the price and put it on the shelves. I even made the sixth NFT that was not officially minted and put it on the shelves.
On the chain level, the FNFT I created is parallel, conforms to the NFT standard, and is negotiable, but it shows the same.
The current situation is that my FNFT was put on the shelves and the transaction was successful. Although I bought my NFT without knowing it, a consensus was formed after the transaction occurred, and there was also a market price.
The final result is that after being reported by Discord, Opensea officially banned the NFT contract, showing 404, and even my account was temporarily banned. This result is expected. The ban can only be effective for a single contract. If the cost is low enough, I can copy a large number of independent FNFTs and list them on Opensea to confuse the market.
Many people hate Putian fake shoes. One is that the difference in quality caused by workmanship and materials is not enough to pay the genuine price.
The casting price and quality of FNFT are the same as NFT. Once it has a permanent existence, it can be transferred independently and controlled, and its status on the chain is the same and equal. Why Opensea can subjectively disapprove my NFT contract and directly ban it, so that our consensus will be destroyed by ruthless centralization. Both BTC and ETH can be forked, why can't NFT be forked as a Token?
Opensea is a decentralized NFT trading market, which is actually another center. This is the case in the blockchain industry, and the decentralized content platform is also another center.
I heard that Opensea will mark the verified NFTs to prevent FNFTs from confusing the market. Is it possible that there will be a Market in the form of DAO+DEX in the market?
Experimental conclusion: If FNFT is not in the case of Opensea's human intervention, it is possible to fish and succeed in the NFT market, and it is conceivable that it is still feasible in other DEXs.
The market is limited, and the number of NFTs is unlimited. The specialness of NFT lies in the owner's consensus and high-quality services, not itself. What makes an NFT valuable is its valuable description and service content. Scarcity can play a role, but what is more important is the vision of the future and current usage consumption.
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References:
Why NFT has the opportunity to explode in the encryption world?
The reality is cruel - I failed to be the "cat" you like
Enjin ERC-1155 and the gaming multiverse
Reminder: The general public is reminded to be alert to illegal fund-raising and fraudulent behaviors using blockchain as a gimmick, improve risk awareness and discernment, do not blindly follow the trend of investment, and rationally view blockchain technology and its application. This article does not serve as any investment advice or reference .
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