Paradigm evolution of the encryption industry: the development of consumer-grade encryption ecology and social finance
Article author: Blake
Summary
Summary
The final form of popularization of any technical solution is to serve consumer-level applications. A good solution will move from a laboratory test product to life, and consumer-level opportunities will flourish as emerging infrastructure matures.
Loot-type assets place more emphasis on the interaction between individuals and the overall ecology, and more emphasis on value contribution. Do-to-Earn emphasizes the interaction between individuals and platforms and protocols. There may not be an overall value contribution, but the two complement each other.
Social finance is a new way to drive interaction between users and between users and the system. Group behavior is social, so the incentive social mechanism based on user ownership is an important innovative way to build a community ecology.
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Apocalypse of the Internet
If you want to have an overview of the development of the entire encryption ecology and social finance, you have to review the birth and evolution of the Internet first:
In the 1950s and 1960s, there were only predecessors of closed intranets (such as ARPANET) and standalone computers that could only perform calculations. After decades of evolution, the Internet has expanded from an independent and abstract information matrix and hosts to the interconnection between two or more hosts and local area networks. The Internet has completed the evolution from point to line, and then has become a two-dimensional information plane structure through which the entire network is connected.
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Image credit: hackernoon.com/mainframe-communication-layer-for-web3-94df76a6c72a
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Consumer applications emerge
The final form of popularization of any technical solution is to serve consumer-level applications. A good solution will move from a laboratory test product to life, and consumer-level opportunities will flourish as emerging infrastructure matures. Referring to the evolution of computers and the Internet, infrastructure service providers such as Google, Amazon, Netflix and other companies have shown the public the real form of infrastructure and the performance of services that can carry tens of millions to hundreds of millions of users, and educate the public to understand technological changes In which industries and daily behaviors life falls into, so will blockchain and encryption technology.
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Paradigm evolution of the encryption industry
In recent years, there have been several obvious events in the encryption industry, which confirm that blockchain and encryption technology are gradually breaking through the industry margins and evolving into a consumer-level development stage.
The first is the NBATopShot series of NFT blind boxes. When it was most popular, hundreds of thousands of basketball fans lined up online to buy thousands of NBATopShot NFTs; It can be easily obtained in the Drop activity in the primary market, and even in the secondary pending order market, there are extremely low prices that can be purchased at any time.
In the early days, a small number of hard-core NBA fans kept collecting at low prices. They passed the silent stage and had a first-mover advantage in terms of quantity and series integrity than the influx of users during the outbreak period, thus making a lot of money. The single Legendary NFT of Lebron James mentioned above can be purchased for hundreds of thousands of dollars at most. Previously, NBATopshot ranked at the forefront of the overall NFT trading market in terms of trading volume and number of holders.
Secondly, on the GameFi track, the long-established Axie Infinity has been focusing on the development and design of chain games since 2018, although most practitioners at that time believed that entertainment on the blockchain was a pseudo-demand. Axie aims to use the combination of ecological incentives and games to play the ownership and transferability of game assets, so that players can obtain real ownership and fair incentive distribution.
In the past two years, when players in developing countries in Southeast Asia gained more rewards from participating in games than the wages of hard work in real life, a large number of low-income players poured into the game ecosystem, which opened up the explosive growth of Axie Infinity users; later, due to similar The maturity of the economic model has developed a player-based crowdsourcing platform and upstream game unions, such as YGG, etc. have also squeezed into the ranks of top projects.
The above few cases only cite their efficiency when consumer-level users flood in and break through industry boundaries, which means that these native encryption projects and products can acquire customers on a large scale like Internet applications in a short period of time, and are accepted by their users at the same time And benefit from it; in fact, there are many applications with the potential of consumer-level user scale. In the early stage, they rose in the native encryption ecosystem and gradually showed similar Internet customer acquisition trends. We list them according to the concentrated forms that can be observed at present:
Community Driven Stories
Loot NFT, its IP started with the community, and the community built games, avatars and media around the original IP distributed. It has no team or top-down vision, but is entirely driven by a community of loot holders and supporters. As a bottom-up brand, Loot's success stems from the community that supports it. The community comes together to make a particular product easily identifiable and famous in a certain way. Similar games such as Legend Map are also based on this development model.
Partner and community semi-driven platform
The WilderWorld team comes from two brothers of star fashion designers, pseudonyms Frank Wilder and Phoenix Wilder, and a 3D animation design and blockchain engineering team of nearly a hundred people behind them. WilderWorld is positioned as a 5D immersive virtual reality space. Its vision is not only focused on NFT distribution itself, but also committed to creating the next decentralized version of Marvel Studios. Pass
By emphasizing Metaverse + Marketplace + Cryptoartist Guid, the world's top artists are brought together to collaborate on stories, characters, architecture, etc. Real participants such as partners and NFT holders participate in the customization and development of Metaverse. In the Metaverse of Wilderworld, we will find partners who have already reached cooperation, such as YGG, Illuvium, BossLogic, Jack Paul, etc.
DAOs based on specific behaviors or purposes
DAOs built to realize their respective visions have highlighted strong social attributes, such as FlamingoDAO, PleasrDAO, and PartyDAO around NFT investment; NounsDAO around governance; The LAO around investment; ConstitutionDAO around the auction of the original constitution; governance around encrypted Index products IndexCoop and more. Essentially, DAOs, for whatever purpose, are a form of consensus-based social community.
Curating the Web and the Hunter Economy
Yup is a decentralized social network built for curators. Users will rate and collect Web2 and Web3 decentralized network content and organize them into classification groups according to specific rules or themes. Targeted reading and sharing; Yup uses blockchain technology and ecological incentive mechanism to establish an overlay content network that has been organized and classified in the so-called Underlay content network that already exists on the Internet.
At present, Yup has been integrated with Twitter, SuperRare, Opensea and other large-scale Internet social platforms, NFT trading markets, and emerging social platforms. Users can easily collect them through browser plug-ins similar to Mask and right mouse buttons.
By definition, the hunter economy is a series of products that enable people to acquire the status of hunters and curators, with social and financial capital acquiring their favorite people, businesses and ideas in the process. Yup is an application based on Web3 in the hunter economy. In addition, products such as Oncyber's 3D art gallery and CPLCrypto, which performs copying based on investment performance, also have hunter economic and social attributes.
Loot Token and Do-to-Earn
Loot Token represents a general asset class, not Loot NFT or any other project named after Loot. This concept was first proposed and summarized in Adams Cochran's Medium article post, which describes "Loots are tokens that you earn by contributing to a collective goal. They improve your status within the community, access rights, Reputation or authority can be used within the community, not just consuming and owning them, you will want to contribute more to the community over time.” The nature of Loot tokens is in most native encryption ecological projects. Yes, but it is more obvious in the generalized encrypted social.
Do-to-Earn is a general concept summarized by the author, similar to Play-to-Earn proposed in GameFi, Voting-to-Earn in the governance system, and Invest-to-Earn in the decentralized investment platform. The Buy-to-earn that has appeared on the NFT trading platform for a long time (for example, based on NFT transactions to obtain airdrops of platform tokens such as SuperRare and Pianity), and the Trading-to-earn of Swap and aggregators, that is, trading airdrops, etc.
Loot-type assets place more emphasis on the interaction between individuals and the overall ecology, and more emphasis on value contribution. Do-to-Earn emphasizes the interaction between individuals and platforms and protocols. There may not be an overall value contribution, but the two complement each other.
In addition, there are still some new situations and fields to be explored. Due to its exquisite story and incentive design, it has the natural ability to go out of the circle and the potential to quickly acquire consumer-level user groups. Social finance is a new way to drive interaction between users and between users and the system. Group behavior is social interaction, so the incentive social mechanism based on real ownership is an important innovative way to build a community ecology, and we are also continuing to follow up and try to participate in this process.
disclaimer
disclaimer
The information in this research report comes from publicly disclosed information, and the opinions in this article are for research purposes only and do not represent any investment opinions. The opinions and forecasts issued in the report are only the analysis and judgment of the date of issuance, and do not have permanent validity. In addition, in any case, the organization and the author shall not be liable for any loss caused by anyone using any content in this report.
