Review of the status quo and future prospects of NFT ecology in 2021

特邀专栏作者

2021-12-21 08:23

This article is about 6610 words, reading the full article takes about 10 minutes

NFT is a very young field in the encryption industry. Over time, transaction volume, asset liquidity, and the number of new users are rapidly expanding. It is expected that use cases such as metaverse and fragmentation still have the potential for rapid

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The blockchain industry has experienced rapid development and changes in recent years: from the bud in 2017, the smart contract in 2018, to DeFi in 2020, and in 2021, NFT is undoubtedly the hottest topic.

NFT debuted in 2015, the first batch of projects were launched in 2017, and it will usher in rapid growth in 2021. In the first half of 2021, the total market value of NFT is 2.5 billion US dollars. In July alone, sales soared to $1.5 billion. However, in the second half of 2021, the NFT market will gradually calm down.

Unlike cryptocurrencies, central bank digital currencies, stable coins, etc., which can be spent and changed flexibly regardless of denomination size, each NFT is unique, indivisible, and non-replaceable, so it has become an emerging digital art value and transaction. medium.

Rarible is an open-source, non-custodial platform for users to mint, sell and create collectibles. Any user can create and display their own artwork, and can also use Ethereum to purchase artwork for collection. Users own the ownership and intellectual property rights of NFT. Buyers and sellers can transact on Rarible at almost negligible cost.

Looking forward to 2021, what new use cases have NFT developed, and which use cases may be taken to a higher level in 2022? Let's explore together.

NFT Function: Art

Often referred to as "Cryptoart," NFT art is one of the fastest growing NFT segments. Painters, designers, musicians, and more create NFTs through blockchain-based minting platforms to gain more control over their sales.

SuperRare

SuperRare is a social networking platform for art creators and collectors powered by blockchain technology. Creators can create digital artwork and have it tokenized on the Ethereum blockchain. Thanks to smart contracts, collectors can buy and trade artworks, with royalties paid back to creators.

Rarible

Pixlr Genesis

NFT Function: Metaverse

NFT Function: Collectibles

Physical collectibles may increasingly become a thing of the past as Ethereum provides an easy and viable way to produce high-quality digital collectibles, either native NFTs or NFTs related to real-world collectibles.

CryptoPunks

Launched in the summer of 2017 as one of the earliest NFTs, CryptoPunks was the first NFT project released via Ethereum and paved the way for the ERC-721 token standard that has dominated the NFT ecosystem so far . There are only 10,000 of the punks, categorized as Alien, Ape, Zombie, Human, they are rare and beautiful collectibles. CryptoPunks is the originator of NFT and is recognized as the starting point of the "crypto art" movement. The known leading payment company Visa, Cai Wensheng, the chairman of Meitu, Hong Kong actor Shawn Yue, and Sun Chenyu, the founder of Tron public chain, are all holders of cryptopunk NFT.

Bored Ape Yacht Club

Bored Ape Yacht Club (bored ape) is issued by Yuga Labs, an American Web3 company. The 10,000 bored apes generated by algorithms provide users with rich choices and diverse features. The characteristics of each ape are randomly generated, so each ape has a unique background style, clothing, earrings, eyes, mouth and fur. Known famous rapper Post Malone, well-known host Jimmy Fallon, famous investor Mark Cuban, legendary hip-hop music producer Timbaland, NBA legendary star Shaquille O'Neal, etc. are all holders of Boring Ape NFT.

NFT function: game

Blockchain games powered by Ethereum are moving towards a "Play-to-Earn" future. Players play games, earn more assets, and can trade in the process. NFT plays an important role as a form of ownership of game items.

Axie Infinity

Axie Infinity is a Pokemon-like NFT game that allows users to collect, breed and battle iconic Axie monsters for glory and profit through tradable and sellable NFT game assets. Axie Infinity is not only the biggest Ethereum game, but also one of the most used applications on Ethereum right now. As the pioneer of "gold-making" in the blockchain field, this summer fired the first shot of the NFT and GameFi frenzy, which also made blockchain games enter a stage of frantic development in the past few months.

Sorare

Sorare is an emerging fantasy football game that has made significant strides through partnerships with some of the largest professional football franchises in the world. Players create fantasy teams using digital trading cards, then go head-to-head in matches to see who's the best football manager. The game runs on Ethereum, and each player card is an NFT. As of writing, Sorare has been officially authorized by 215 football clubs around the world, including Real Madrid, Juventus, Bayern Munich and other well-known teams.

NFT Function: Metaverse

The virtual land/house, which is an important item in the encrypted metaverse, is formed in the form of NFT. Users can invite other players to help "develop" your land, or rent it out to creators for a profit.

Decentraland

“Music NFTs are changing the way fans connect with their favorite artists. From 3LAU to Imogen Heap, creators of all kinds are innovating on the blockchain, in an industry that underserves independent creators , the desire for change is palpable." - Opensea

Sandbox

The Sandbox runs on the Ethereum blockchain, giving players the freedom to create their own virtual worlds, using their creativity and imagination to customize as they wish while collaborating with others. Sandbox has launched P2E activities, in the virtual world, players can spend time completing a series of tasks to earn assets. It’s worth noting that SandBox raised $93 million a month ago, led by Japan’s SoftBank’s Vision Fund.

Cryptovoxels

Cryptovoxels is a virtual world built on the Ethereum chain. The website has built-in editing tools, and players can buy, sell and build virtual art galleries, shops and anything that players can imagine. In addition, Cryptovoxels also offers live avatars and text chat.

NFT Function: Streaming

In March of this year, encrypted artist Beeple's digital artwork "Every Day: The First 5,000 Days" was auctioned at Christie's for more than 60 million US dollars, which made NFT instantly popular in the art circle, and some musicians and artists joined in.

Opensea

OpenSea is the most popular NFT marketplace and NFT minting platform. Artists can mint on multiple chains, including Ethereum and Polygon. The file types supported by Opensea include MP3, MP4, WAV.

Royal

Royal is an NFT music platform that was only established in May. Its seed round in August raised 16 million US dollars, with the participation of top institutions such as A16z and Coinbase. Royal's business logic is very clear, which is to allow musicians to produce and sell NFT works, and then fans can get future royalties after purchasing. The founder of Royal is the DJ producer 3LAU, who conducted an experiment at the end of October: 333 NFTs were released for 3LAU's new single "Worst Case", accounting for 50% of the single's streaming media ownership, it is worth mentioning Surprisingly, the song now has more than 3 million plays per month.

Async Art

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Audius

Audius is a decentralized music sharing platform based on the Solana blockchain, which aims to remove the intermediate links and additional costs of music streaming services, allowing artists to directly receive their due revenue share. Specifically, users of the platform can use tokens to unlock music, or earn tokens by watching advertisements to unlock. When users listen to songs in this decentralized music library, the wallet automatically pays. Among them, about 85% of the proceeds belong to the artist. The remaining part is obtained by the song provider and the development team.

NFT Function: Publishing

Mirror

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NFT Function: Public Utilities

In the early days, NFTs were often associated with traditional media types such as art, music, game assets, and more. But today NFT can be used to represent anything, including domain names and more. Such use cases are expected to proliferate in the coming years.

ENS

The Ethereum Name Service (ENS) allows Ethereum users to create and manage decentralized domain names on Ethereum. These decentralized domain names are minted as NFTs, such as ethereum.eth, and wallet management through these NFTs becomes considerably simpler compared to long alphanumeric addresses.

In addition to ENS, Unstoppable and Handshark are also worthy of attention.

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NFT function: DeFi+NFT

In the encryption ecosystem, the two brightest stars are NFT and DeFi. In the past year, we have seen more integration and innovation of NFT and DeFi.

NFTX (NFT Fragmentation)

NFTX is a platform for creating a liquid market for NFT, and it is also a representative project of NFT fragmentation. Users can deposit their NFTs into the NFTX vault and mint a fungible ERC20 token (vToken) that represents the assets within the vault. Typically NFTs are illiquid and difficult to price, but NFTX makes the NFT marketplace much simpler, including creating an instantly liquid marketplace for newly created NFTs. In other words, it is to pledge the NFT issuance into a pool, and then issue the corresponding ERC20 token. Fragmented NFT improves transaction liquidity and will also bring out the value of asset liquidity.

NFTfi

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public chain

public chain

Currently, Ethereum remains the leading NFT blockchain as it hosts the largest number of projects. The public chains WAX and Flow that focus on NFT, the Layer 2 solution ImmutableX that focuses on NFT, and the emerging public chains BSC, Solana, and Polygon are also worthy of attention. Despite its dominance, Ethereum’s transaction fees remain a perennial problem. As we all know, the transaction fee of Ethereum is much higher than that of other blockchains. The transaction fee of BSC is about $0.45, that of Flow is $0.02, and that of Polygon is $0.0001.

Top NFT Game Studios

DapperLabs: Developed the NFT game that was once popular in the entire encryption industry-CryptoKitties (encrypted cats), which once caused congestion in Ethereum. In order to avoid the high transaction costs of Ethereum, DapperLabs established Flow, a public chain focusing on NFT. In addition, the NBA Top Shot series NFT jointly produced by the studio and NBA officials is also very popular among fans.

Animoca Brands: It is a game development company located in Hong Kong. Since the beginning of 2017, Animoca Brands has been actively involved in the blockchain. In addition to various large-scale expansion investments, it has also established various cooperations at a fast pace. Currently, Animoca Brands' blockchain games include Metaverse The Sandbox, casual game platform GAMEE, 3D action game Phantom Galaxies, and racing simulation game REVV. It is worth mentioning that the company has also developed an NFT collectibles marketplace called Quidd, with partners including Disney, Marvel, HBO (Game of Thrones), CBS (Star Trek) and the NBA.

NFT DAO

Governance DAO: Governance DAO refers to the use of tokens to decentralize project governance rights to the community, thereby achieving community-driven and decentralized governance. Token holders can propose, vote, and govern projects. At present, there are mainly NFT trading platforms Rarible and Mintable, index fund protocol NFTX, Metaverse Decentraland, etc.

Investing in DAO: Investing in DAO (Venture DAO) is the main category of the integration of NFT and DAO at the current stage. The main logic of this type of DAO is that community members make decisions together, invest, hold or release NFT art collections. At present, there are mainly JennyDAO, Whale, PleasrDAO, etc.

As one of the most direct and perceptible joints between blockchain and valuable objects, NFT is expected to continue the trend of "out of the circle". In real life, game accounts, original music, videos, figures and even real estate can all be classified as non-homogeneous assets. Already, many innovative companies or individuals with big brains have begun to use blockchain technology to issue these tangible assets on the chain to achieve more convenient circulation.

Summarize

NFT is a very young field in the encryption industry. Over time, the transaction volume, asset liquidity and number of new users are rapidly expanding. It is expected that use cases such as metaverse, fragmentation, and streaming media will still have the potential for rapid development in 2022 . As more use cases emerge and mature, the NFT ecosystem is expected to gain wider access to crypto investors.

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