NFT ecological development status, challenges and imagination space on BSC
Author | Hu Tao
According to NonFungible.com data, from 2017 to 2020, the total market value of NFT has grown rapidly from US$31 million to US$320 million, with a growth rate of more than 9 times and an average growth rate of 300%. According to a recent report released by Protos, the peak value of NFT’s single-day transaction hit an astonishing record of US$102 million this year, and some industry insiders even predicted that the total market value of NFT could break through US$700 million this year.
first level title
01 Under the explosion of the industry, who will become the preferred public chain for NFT projects?
On April 16, according to data from Coingecko, the total market value of NFT exceeded $30 billion for the first time, setting a record high. Although the entire digital currency market encountered "Black May" in May this year, the market value of NFT was halved, but with the gradual recovery of the market, the NFT industry is also slowly recovering. At the time of writing (June 15th), the total market value of NFT has rebounded to $17.9 billion.
However, when the market is generally improving, some problems have been exposed one after another.
At this stage, most NFT projects are still running on the Ethereum network, yet many users are still plagued by its limitations. It is no exaggeration to say that improving the performance of Ethereum has always been the direction of NFT and the entire cryptocurrency industry. However, until now, the high Gas cost and network capacity issues have not been fully resolved. The market has had a bigger impact than initially thought.
On the other hand, although the beacon chain has been successfully launched, it still takes a long time for Ethereum 2.0 to complete its deployment. Under such circumstances, some DeFi and NFT projects have begun to explore migration to other blockchains, including exchange public chains such as Binance SmartChain (hereinafter referred to as BSC), and FLOW, which specifically targets the NFT market. public chain.
In order to let everyone have a more intuitive understanding of Ethereum, BSC and FLOW public chains, let us use data to compare the three most important public chain infrastructures for the NFT market (data from the Internet, data extraction time June 15, 2021):
On the whole, BSC is ahead of Ethereum in terms of performance and transaction costs. The current network block generation time is basically about 3 seconds, and the average daily transaction volume is also stable at more than 5 million. Recently, the number of BSC's only active wallets has reached 1,293,686, which is 1.77 times that of Ethereum in the same period. In addition, compared with other similar exchange public chain products on the market, the BSC miner reward is gas, and will be distributed according to the miner's mortgage ratio.
In contrast, although there are 11 encrypted projects with a locked-up volume of more than 1 billion US dollars on Ethereum, it should be noted that these projects have basically been online for three years, so it shows that BSC supports DeFi and NFT. It has its own unique advantages, otherwise it would be difficult to attract so much lockup in just a few months.
Recently, Binance also launched the second phase of the Most Valuable Builder ("MVB") accelerator program. The theme of this round is "NFT Big Bang", which will focus on the NFT ecology and innovative NFT on BSC. +DeFi development and high-performance infrastructure construction, the final selected project team will have the opportunity to receive incentive resources such as bonuses, communities, and investments from Binance to jointly create the development of the BSC ecosystem. As of the beginning of June 2021, the number of MVB registered projects has reached 356, and the total locked-up volume of projects has reached 1.8 billion US dollars.
In fact, in addition to stronger network performance and lower fees, BSC also performs well in terms of infrastructure, including extensive wallet support, fiat currency deposit channels and payments, NFT bridges, APIs, etc. The BSC ecosystem is largely composed of infrastructure and tool projects, bridges to achieve cross-chain interoperability, APIs to achieve seamless data sharing and processing, and security projects to analyze the network and provide risk assessment;
In terms of user experience, BSC currently has many well-known wallets that support the ERC721 standard and maintain good security records, such as Trust Wallet, MetaMask, Math Wallet, SafePal, etc., as well as Binance Extension Wallet.
first level title
image description
Data source: BSCProjectorg
Although it has been less than a year since its launch, the diversification of NFT on BSC is already relatively high. According to BSCProject data, when this article was written, BSC has launched a total of 650 projects, of which NFT mainly covers six vertical ecological fields, namely: digital art, games, metaverse, social media, NFT+DEFi and infrastructure, among which there are many Star projects of NFT tracks, such as:
BakerySwap, as a member of the Marketplace track in the BSC NFT ecosystem, is a decentralized exchange (DEX). Unlike many DeFi projects, BakerySwap is built on BSC and adopts an Automated Market Maker (AMM) model, which makes it the first AMM and NFT platform on BSC.
It is worth mentioning that Elon Musk’s mother, Maye Musk, recently revealed that she will launch her #DiamondsAreForever NFT with Koda on June 18, and the blind box series will be launched on BakerySwap on June 24.
Dego, as a member of the DeFi+NFT track in the BSC NFT ecosystem, Dego has brought a new concept of a sustainable DeFi ecosystem. It adopts a modular combination design concept to combine different products into one system to achieve 1 The effect of +1>2, and can be used for governance, mortgage, fees and other scenarios of the NFT ecosystem.
Not only that, there are currently 6 encryption projects with more than US$1 billion locked in BSC, namely: PancakeSwap (US$7.68 billion), Venus (US$2.66 billion), Belt Finance (US$1.77 billion), MDEX (US$1.54 billion US$), Pancake Bunny ($1.08 billion) and Ellipsis ($1.04 billion).
In contrast, although there are 11 encrypted projects with a locked-up volume of more than US$1 billion on Ethereum, it should be noted that these projects have basically been online for three years, so it shows that BSC has a strong presence in DeFi and NFT. It has special advantages in terms of support, otherwise it would be difficult to attract such a large amount of locked positions in just a few months.
As more and more NFT players try to enter BSC, its competitiveness is bound to increase further,In the long run, the current major NFT ecological categories and use cases dominated by Marketplace, games, DeFi+NFT and artwork will also change, and some other more sustainable NFT ecological categories and use cases will enter BSC.
However, because BSC is compatible with EVM (Ethereum Virtual Machine), it is easy to make BSC clones of Ethereum dApps and NFTs. This problem has also caused criticism from the encryption community, such as Binance Punks (Bunks). CryptoPunks on the blockchain are very similar, Bashmasks are also considered to be "copies" of the Ethereum NFT art project Hashmasks, and Musical Beats also seems to be "copying" EulerBeats.
To a certain extent, we can think that BSC is a public chain driven by the community, and anyone can deploy on it. Under the background of ecological explosion, there will inevitably be uneven project quality, innovation and imitation . In fact, the BSC community has been advocating innovation, such as Cybertino in the direction of NFT, which is the world's first interactive NFT market for influencers and their fans, and has signed a large number of top Internet celebrities with more than 200 million fans.
first level title
03 In the next 3 to 5 years, what kind of public chain is needed to adapt to the explosion of NFT?
Frankly speaking, the cryptocurrency industry may prefer to see further innovations in the macro sense of NFT, such as:
Fractional ownership of real assets: Imagine if a crypto artist's next real work could be partly owned by people, and NFT investors could be rewarded when reselling;
Derivatives: NFT mortgage, which means that people can mortgage (loan) it after purchasing NFT and use it to buy other assets;
Interoperability between all platforms: NFT can be used across different ecosystems, imagine BSC, Ethereum and FLOW, and even seamlessly interact with other exchange public chains - in fact, Binance's NFT trading platform MarketPlace It will be launched on June 24, and will focus on supporting the BSC ecology.
It is understood that the platform has cooperated with many celebrities such as Brit Award winner Lewis Capaldi, visual artist Trevor Jones, e-sports team eStarPro, star Owen and Alphonso Davies, and will launch their NFT works.
In order to achieve the above effects, the NFT industry may have higher requirements for the public chain in terms of performance and threshold. Compared with Ethereum, NFT based on the BSC ecology does have certain advantages.
There is no doubt that the NFT world is full of vitality and great potential, and more and more NFT projects are eager to try, accelerating the mainstreaming and breaking of NFT. With the continuous improvement of the exchange public chain infrastructure, many new ideas related to NFT, New projects will be accelerated.
NFT allows people to see infinite possibilities. If Bitcoin has brought about a revolution in financial sovereignty, then NFT has brought about a revolution in digital asset ownership. This revolution may push the ecological development of the entire blockchain to a new level. Incredible height and dimension.Today, NFT is no longer a "pure" digital asset, but has become a symbol of ownership. Having NFT means owning the basic asset ownership claim.
With the accelerated development of Ethereum 2.0 and vertical NFT public chains like FLOW creating better user experience and richer application scenarios for consumers, the future NFT competition landscape may be changeable, but it is undeniable that BSC's The advantages are being further expanded, and it is bound to have a more profound impact on the NFT ecosystem. It is worth paying attention to who is most likely to become the first basic public chain of NFT.
For the encryption community, it is lucky to be in the first year of NFT. Who can become the "Next Big Thing" in this field? We will wait and see.
