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The picture comes from the Internet, ERC20

ERC20 is not the underlying protocol standard of NFT, but understanding ERC20 will help us understand ERC721.

In the ecology of the blockchain industry, ETH occupies an important position. One of the reasons is that ETH is the king of the function of "issuing coins". There are two meanings here: First, because the ETH ecological construction is complete, there is a consensus basis for issuing coins with the Ethereum public chain. For example, the hot DeFi field this year basically grew up on ETH. Second, it is very simple and convenient to write the currency issuance program in the solidity language of ETH. Some integrated websites can achieve one-click currency issuance, with low cost and short time, which is very efficient.

The currencies in the above picture are basically tokens issued by the ERC20 protocol, that is, "ERC20 tokens". There is no need to build an additional public chain, and tokens can be issued on the ETH public chain. At present, the market value of the top 50 ERC20 tokens has reached 60 billion US dollars (data on November 25, 2020), and the transaction volume has also reached the level of 10 billion US dollars.

• This website contains 853 Ethereum ERC20 tokens around the world. The US$60 billion in the previous article is the result of calculation based on ETHerscan data:https://ETHerscan.io/tokens?sortcmd=remove&sort=marketcap&order=desc

• The relevant on-chain data of the most commonly used ERC721 protocol in the NFT field can be seen here:https://ETHerscan.io/tokens-nft

• Data on the ERC1155 chain:https://ETHerscan.io/token/0x5963fd7ca9b17b85768476019f81cb43d9d1818e

Let's take a look at the situation of NFT.

The picture data comes from Nonfungible.com, about the change curve of transaction volume and average transaction price in the market, which is the data from June 2017 to November 2020.

This is the data from November 2019 to 2020.

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NFT daily trading volume

Since November, the trading volume has remained at around US$300,000-400,000 in a single day. This is a positive trend maintained by the NFT market after it has slowly climbed, because the transaction amount has stabilized at US$200,000 to US$300,000.

The above is the content of some data reports. The current daily trading volume is only around 300,000 US dollars, and the overall NFT market value is still very small. The NFT market under the ERC721 protocol is still in its infancy, from 300,000 US dollars to ERC20. Hundreds of daily trading volume There is a gap of more than a thousand times in the market value level of 100 million US dollars, which means two things:

First, the NFT field is still in its early stages, and there is still a long way to go before it becomes truly mature;

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Traffic problem and industrial upgrading of scalpers

Statistics show that in 2019, the number of global e-ticket purchases reached about 1 billion. This data itself is problematic, because it is difficult to count, and this data is too small. Think about how many people there are in the Spring Festival in China every year. Of course, this is not a ticket, but a train, high-speed rail, or plane ticket. However, it is still one of the biggest landing scenarios for NFT in the future.

So someone made an optimistic estimate, assuming that the number of transactions is 1 billion people per year, and then there are 10 million blockchain-related personnel (practitioners + people who have traded BTC) worldwide (although many people think that there are not even 10 million people), Then if 1% of 1 billion people are converted, the traffic in the blockchain field can be doubled-in theory, this is the case. This is only in theory, and I don’t know how long it will take for the landing of NFT. In the past two months, all NFT concept coins such as Rari, Whale, etc. have experienced similar declines.

As long as a ticket has room for speculation for a period of time, a secondary market can be formed, and then NFT can be involved. Of course, for the same reason, there will be scalpers involved.

Take the tickets for a certain boxing match (Mayweather and Pacquiao fight) as an example, assuming that a ticket costs 10,000 US dollars, in fact, it may not be possible to buy 20,000 US dollars, so scalpers were born. The ticket number, location and other information are different to form an NFT of the electronic ticket, and then directly online as an NFT for secondary market transactions, and then enter the competition site according to the NFT blockchain information. Of course, admission is not the most important thing in this model, the most important thing is that the secondary market of this note is most suitable for NFT. This commemorative ticket can also be used as a personal collection after watching the game, and the ticket NFT becomes a collectible NFT and forms a market. This situation is also used in the concerts of superstars like Michael Jackson. Michael’s last concert that year was unable to proceed normally due to his death. However, most fans still cherish this ticket that has not been redeemed, rather than choose Refund. If it was NFTized tickets at the time, this is also a good secondary market.

Summarize

Summarize

Recommended reading:

Recommended reading:

NFT Part 1 (3 Protocols): "How much do you know about the 3 protocol standards of NFT?》

The second part of NFT (6 sections): "The panorama of the 6 major areas of the NFT business sector》

Today is the third article of NFT (data future article)