2020 can be described as the year of "DeFi". After several years of dormancy, it finally exploded with amazing power in 2020. Among the dazzling DeFi projects, the non-homogeneous token (NFT) that has been rising silently and steadily is like a hidden boss behind the scenes , with amazing potential.

In December 2020, digital artist Beeple sold a series of artworks for a total of $3.5 million. Recently, Justin Roiland (Justin Roiland) released the artwork series "Rick and Morty", one of which sold for $290,000. The event was a sensation and NFT entered the public with its irreplaceable nature and collection attributes.

The small explosion of emerging fields under DeFi

Nowadays, the volume of encrypted art transactions is growing, enabling creators to obtain more additional income, and some new artists have also begun to enter this field, hoping to gain prestige from it.

In addition, NFT is not limited to the use in the field of digital artwork, but can also be applied to games and even real-world assets. In the recent Binance Smart Chain NFT panorama, there are 22 projects, covering wallets, NFT & game foundation, collectibles, community & fans, DeFi NFT, games, markets and other fields.

Tokenized Finance in the Age of Intellectual Property

One of the biggest uses of NFT is to use it for intellectual property, such as digital content works such as pictures, videos, blogs, music, and artwork. This means that when a digital product exists in the form of NFT, you have to spend money to buy it, which is not equivalent to the actual "purchase" transaction behavior.

It is possible to link the purchase of tapes, but in fact, the purchase of tapes is a kind of behavioral purchase, which is different from the content license in NFT. NFT emphasizes more on the "monopoly" of content at this point. , that is, you own the copyright of this song.

If this kind of licensing is widely used, it will disrupt the digital creative economy, and the art industry will bear the brunt of it. So far, most encrypted projects are nothing more than the reproduction of human behavior in encrypted versions, from markets, transactions, lending to speculation, and the art industry is of course no exception. The traditional art market, which has been formed hundreds of years ago, has a relatively complete industrial chain, and the application and exploration of the financialization of art assets has a good practical foundation, which makes it possible to intervene in the traditional art market in the form of encrypted finance.

On the other hand, the DeFi mining fever that began to rise in 2020 has brought a lot of quick money to open finance. Investors need to invest these DeFi earnings in new targets, thereby heating up the NFT market. According to data from NonFungible.com, as of today (January 22, 2021), the trading volume of the NFT market has reached 160 million US dollars, and 5.2 million NFTs have been sold.

At present, the ground floor has not yet been built, and the art of the upper floor needs to be changed urgently

In practical application, there are still a series of problems in the landing of NFT in the art industry.

First of all, the scarcity represented by NFT non-homogeneity is suitable for a series of applications that reflect unique value, but it is precisely because of its uniqueness that it is difficult to evaluate the value, which makes it difficult to realize the free trade of NFT artworks and generate liquidity sexual issues.

In the current encryption art or NFT ecology, there is no such a systematic, frequent interaction, and healthy ecology as the traditional art market. At present, the encryption art industry lacks an ecology. What's more, the construction of infrastructure is currently known to the public as the "Encryption Kitties" many years ago, but due to the limitations of single functions and high thresholds in the later stage, it has declined.

There is still a long time to go out of the circle. In the entire NFT ecosystem, creators are the source, investors are the terminal, and ecological experience is the driving force. When verticalization is not yet obvious, NFT is still developing with a good momentum . Although the scale of the NFT field is still relatively small, it empowers creators in an unprecedented way. In the near future, we may see more integration between DeFi and NFT, and the future is full of infinite possibilities.