Original - Odaily
Author - Nan Zhi
introduction
Polygons official on-chain information account announced on the
Previously, Smart Layer also launched Smart Cat Loot, the first asset-backed xNFT issued on Polygon. It was sold out within 4 hours of its launch, and the current market price is more than twice the Mint price.
What is xNFT? Its full name isExecutable NFT, meaning that in addition to being an asset, it is alsoBuilt-in runnable code, can realize various on-chain and off-chain functions, and can perform operations directly in the wallet. There is also Executable Token, which has the same properties.Compared with traditional Token/NFT assets, its characteristics include：
The function is built into the asset and does not need to rely on external websites. It can be executed directly in the wallet, making it convenient and easy to use;
Link tokens to external scripts via ERC-5169, turning them into multi-functional assets with high utility and greater scalability;
The token integrates the ecology, has comprehensive information and functions, and is easy to be externally called and coupled with the ecology.
Recently, Smart Layer announced a series of major developments and plans. On January 3, Smart Layer officially launchedAnnouncement of upcoming airdrop, its Launchpad on January 8Launch of public beta, allowing game, DeFi and Loyalty developers to create and launch Executable Token/NFT projects on EVM and distribute them to Web3 users.
The Executable Token/NFT launched by Smart Layer creates a new paradigm of assets on the basis of changing traditional functions, provides an open and multi-functional ecological development foundation, and brings production and consumption to DeFi, brand Loyalty and Web3 games. Path innovation. Through this asset, developers can create a richer ecosystem to attract users, and users can fully enjoy convenience and rich functions, and benefit from the mutual prosperity of the ecosystem.
New needs, new paradigms
The outbreak of the global financial crisis in 2008 led to bank crashes, debt crises and economic recession in many countries. Distrust of the traditional financial system and doubts about the central banks monetary policy gradually increased, and Bitcoin came into being. Bitcoin has inherited the basic functions defined by traditional currency, such as value scale, means of circulation, etc. It has also created a new asset form and infrastructure called cryptocurrency for the world, opening up a trillion-dollar encryption market.
However, since the development of cryptocurrency, innovation has begun to hit a bottleneck, especially on the asset side. In addition to FT token forms such as ERC-20 and BRC-20, only ERC-721 new asset tracks have emerged. Current tokens are often used to symbolize assets, and the focus of development is on external architecture.
The needs of the encryption industry are constantly escalating, and a hundred flowers are blooming. There are RWAs that are expanding off-chain, traditional brands coming from off-chains, and long-term Builders hoping for a mature and efficient model. The market is in urgent need of a new asset paradigm and infrastructure to meet the rich needs of users and developers. Executable Token/NFT not only further improves the basic functions, innovates the development, consumption and operation models, but also serves as a new asset paradigm, providing an open and multi-functional infrastructure to meet the comprehensive needs of the Web3 ecosystem.
Ecological integration and price discovery
Cryptocurrency has a value scale function, and is priced on the chain or through LP, or externally integrated multi-dimensional data input through means such as Chainlink. However, due to the existence of multi-chain ecological barriers and large fluctuations in the assets of LP opponents, it still faces problems such as insufficient pricing and high volatility.
For example, there are two LP pools for a certain token. When the pricing is inconsistent, the users purchase will be arbitraged by Bot. Even if the pricing is consistent, it will be Backrun by Bot due to slippage. Although these automated arbitrage can also be called Bot to help market prices. It was found that the only beneficiaries were Bot developers, while users and related ecosystems suffered corresponding losses. In addition, if a non-stable asset is used as one end of LP, the price of the token will also fluctuate accordingly. Therefore, how to make the market fully effective in price discovery still needs further improvement.
As mentioned earlier, Executable Token/NFT can integrate a complete ecosystem into assets, which means that all ecological information will also be concentrated in assets, including user history and real-time purchases and sales, lending and leverage, and market dynamics. Dynamic data is all integrated. Even if assets are distributed across multiple ecosystems, the market is still a unified whole. When all information, markets, and traders are concentrated, sufficient pricing can be achieved to ensure user interests, and developers can also concentrate resources and energy to control the markets basic assets and corresponding operations. Executable Token/NFT provides a direct and effective way to price discovery through ecological aggregation.
From the circulation medium to the circulation channel itself
ERC-20/ERC-721 is circulated like traditional currencymedium. Except for some memes that add mechanisms to the token code itself, usually if you want to build an ecosystem based on tokens, you need to design and develop it externally. The token itself only serves as the circulation and verification medium for the external ecosystem. . In the current usage scenario, there are several problems when using ERC-20/ERC-721 as the basic asset and accessing the site separately:
Developers need to pay UX and UI design costs, promotion and customer acquisition costs, and site operation and maintenance costs;
For new ecology/projects, users need to pay the cost of application search, security screening, application management, etc. Especially when the ecosystem explodes and phishing websites and hacker attacks occur frequently, there will always be users facing hundreds of new projects. Situations in which you accidentally fall into a phishing trap, or fail to obtain the site in time and are attacked by hackers, and engage in high-risk interactions and suffer losses.
Through the built-in program, Executable Token/NFT is no longer a circulating medium, but aDistribution channelsIn itself, for developers and users, the production and consumption logic changes:
For developers, the steep decline in the above-mentioned types of costs is conducive to low-cost development of start-up projects and is also suitable for agile development of small projects.
For users, convenience has been significantly improved, especially with the promotion of blockchain and the trend of development towards mobile terminals. Running directly in the wallet without the need for external systems means that it can be used by users at any time without the need for developers to adapt; On the other hand, promotion will also bring a large number of people with low blockchain base. The direct link between these users and the ecology means that no addressing is needed, and phishing losses from wrong sites are avoided.
A new paradigm for assets
In addition to the above-mentioned basic functional changes, Executable Token/NFT has opened up a new paradigm of tokens, that is, assets with functionality, scalability, and coupling.
Feature:The underlying language Solidity used by EVM has a series of problems such as immature development tools and libraries, security, and performance limitations, and there are certain limitations in the business it can implement. Executable Token links tokens to external scripts through ERC-5169, allowing the addition of various on-chain and off-chain functions. On the one hand, it ensures compatibility with different ecologies, languages, and developers, and it also significantly improves the functionality of existing assets. Improve and provide new solutions to business problems that cannot be achieved with Solidity alone.
Take RWA (Real World Assets) as an example. RWA creates a special purpose vehicle (SPV) from real estate, securities, stocks and other items, and then distributes them through tokenization. For example, currently RWA is the most widely used U.S. bond. On the one hand, the price of the bond will fluctuate due to the influence of the interest rate market. This is high-frequency information off the chain. The final end of the information is the price of the RWA token. Through the Executable Token, no need to link the information. On external sites, users can directly obtain changes in underlying assets and then make decisions about tokens. On the other hand, how can changes in underlying assets be fully priced by the market on the token side? For example, the U.S. bond market includes Treasury bond auction markets, government bond trading systems, brokers and many other platforms. Developers can not only achieve the aggregation of multi-market data in Executable Token, but all transactions of RWA tokens can also be set up by developers in one The complete aggregation of information and transactions within the market means that full and effective price discovery can be achieved.
Scalability:Assets developed based on smart contracts, including ERC-20, usually cannot be upgraded. At most, the original setting parameters are modified. Unless a proxy contract is used, the development of the proxy contract is complicated and the application scenarios are limited; if developers use the asset form of Executable Token, they can flexibly adjust to achieve rapid iteration of ecological design to adapt to market demand.
Coupling:One of the major differences between blockchain game projects and traditional games is that assets are owned by users and can be used across games. However, there has yet to be a truly cross-ecological application of game assets in the market. One of the main reasons is that current games Asset ERC-721 or ERC-1155 is just an asset certificate, proving that the user owns this item. However, the item has very little information and has no characteristics, so it has no cross-ecological application value. The user is the most valuable. The footprint characteristics mainly exist in separately designed systems and become information islands.
Executable Token/NFT carries complete information and functions. This feature helps assets be called into other ecologies and achieve true cross-ecological development. It also brings added value to users’ assets through mutual promotion between ecologies. Not only in chain games, it is a major improvement in the coupling between all systems. For example, a brand aims to acquire customers through another brands Loyalty and plans to airdrop its NFT Loyal Customers. If it is a traditional NFT, what can be read is the historical data of the transfer, including its purchase and holding status. But there is no further user portrait. Based on Executable Token/NFT, we can further understand the users comprehensive consumption trends through the complete information it carries, and realize the decision-making and operation of this system more effectively based on sufficient scheduling data.
Ecological integration has multilateral network effects. As the number of participants in the system increases, the effect will become more obvious, and this growth is not linear. The high degree of coupling provided by Executable Token/NFT will bring about exponential growth in ecological prosperity.
Smart Layer Network
On January 15, Smart Layer announced the official launch of the Smart Layer Network (SLN) Alpha test network. The test network continues to provide off-chain logical operations for 2.5 million xNFTs, and 2.5 million Smart Passes will be migrated to SLN. At the same time, Smart Layer has become a SocialFi Week partner of OKX X 1 Network, and users can experience casting Cool Cat derivatives on the X 1 Network.
What is Smart Layer Network and what is its relationship with Executable Token/NFT?
According to official documents, Smart Layer Network is a programmable service network based on blockchain, which converts goods, services and digital rights into programmable tokens and realizes integration with various systems and agents in a decentralized and scalable manner. The complex interactions of coins, including but not limited to seamless integration across digital environments, frictionless markets and user authorization, are designed to solve integration, privacy and trust challenges.
Executable Token/NFT is the key component programmable token, also known as Smart Token. It obtains programmable features and connects on-chain and off-chain functions through ERC-5169, allowingOn-chain networks enable rich, scalable interactions with other systems. SLN provides off-chain information, integrated systems and applications toRunning through the token incentive service agreement is the fundamental guarantee for off-chain operations and services, as well as asset scalability and functionality.。
Summarize
The new asset paradigm brought by Smart Layer, Executable Token/NFT, will change the application scenarios of cryptocurrency, provide new channels for developers, and bring new experiences to users. Through this asset, developers can create a richer ecosystem to attract users, and users can fully enjoy convenience and rich functions, and benefit from the mutual prosperity of the ecosystem. As the wave of encryption development approaches in the new year, various rich demands will continue to emerge. Smart Layer Network will reshape the Web3 ecological operating model and further unleash its infinite possibilities.
