The revolution of digital capitalists: What are the possibilities of NFT?

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In addition to working in the field of encryption art and games, NFT is also temporarily emerging in the DeFi ecosystem.

Original Title: “NFT: The Revolution of Digital Capitalists”
Written by: Robert Stevens
Translation: Fenbushi Capital

When most people think of NFT (a cryptocurrency that has proven to be unique), they can’t help but think of virtual trading cards and the digital art market. But facts have proved that NFT is not just a bubble of financial assets.

The NFT market exploded this summer, and transaction volume soared by 57%, bringing the industry’s valuation to approximately US$100 million. Now, developers are enthusiastically designing the NFT platform in an innovative way.

The new agreement for the art market allows users to divide the NFT into thousands of parts and then group them into one. The application of NFT not only allows gaming platforms to sell land in a decentralized virtual world, the loan agreement now also accepts NFT as collateral.

Fragmented digital artwork

The rise of decentralized finance and non-custodial financial agreements has turned the NFT industry into a money printing machine. The ever-emerging platforms make trading and speculation of digital art easier. Some platforms provide users with additional tokens for trading NFTs, while other platforms allow users to purchase part of the NFT.

Singapore’s NIFTEX allows the NFT to be split into thousands of fungible ERC20 tokens. You don’t have to buy a whole piece of encrypted artwork, you can buy a small part of it, and then trade on Uniswap, a decentralized exchange.

“I think emotional sustenance is very important. However, if you are sitting on an NFT worth 100 Ether, some people think that it will benefit a little from it.” said Joël Hubert, co-founder of NIFTEX.

Duncan Cock Foster, co-founder of Nifty Gateway, a crypto art market, believes that this NFT experiment is “awesome”, although he is skeptical of traders who may invest in art purely for speculative purposes. He said: “If you just use it as an investment and just want to get financial returns, then you are wrong and doomed to fail.”

The revolution of digital capitalists: What are the possibilities of NFT?

But the splitting of NFTs has opened up a whole new market, Hubert said. Developers can develop tools: for example, lease land for virtual video games, and tax the people who build the land. Or a clan can allocate shares to virtual swords so that different members can collaborate to kill dragons at their convenience. “The NFT market will only develop further. Owning NFTs will have more and more complex rights,” said Hubert, whose platform has generated approximately $1.8 million in revenue since its launch in May.

“Peasant uprising

Yat Siu, chairman of Animoca Brands, is one of the members engaged in NFT. Siu’s company sells NFTs for video game projects, such as virtual racing cars and auto parts. These NFTs are fully owned by investors and they can be resold in the secondary market.

“We believe that NFT essentially represents the property rights of the digital world. From a social perspective, any time you introduce real estate property rights into the community, some magical things will happen. This “magic power” based on real estate is “capitalism exerted Necessary conditions for the role”.

The revolution of digital capitalists: What are the possibilities of NFT?

For video games, Siu believes that NFT can solve the unfair status quo that game companies control access to the items they sell to you. If you buy character skins and emojis from Fortnite, the most popular game in the world, it doesn’t mean you own these things; because if you violate the rules of Fortnite, developers can drive you off the platform and take yours. article.

“This is a complete dictatorship,” Siu sneered at this, adding that people must believe, “The game company will take your best interest at heart-not in 90% of the cases, because this is not a game. The way the company makes money.” Siu is leading a peasant uprising, and he thinks he is like a medieval serf liberated from the feudal hegemony.

Animoca Brands’ flagship game The Sandbox will launch its first public beta version in December. The Sandbox looks like Minecraft and feels like Second Life; in this virtual world, players can exchange user-created items for Linden Dollars as they wish. Linden Dollars is a virtual currency named after Linden Labs, the creator of Second Life.

The revolution of digital capitalists: What are the possibilities of NFT?

Sandbox sells LAND, which is a kind of NFT, which means that brands can build their own virtual world in it. Smurf bought a whole piece of land with “SAND (Sandbox token)” in the pre-sale, and will build a virtual Smurf village on this basis.

Siu’s revolution is clearly aimed at capitalism. “NFT has brought a new wave of paid games. This financial freedom is only effective when you like games based on microtransactions. This is a niche market,” Siu said.

DeFi behind NFT

The NFT market can go further. Some platforms are using NFT as collateral for loans or derivatives . “Using creative works as collateral or derivatives will open up a whole new financial market, which may have a huge network effect,” said Eden Dhaliwal, Conflux Global Managing Director. The company established Tspace in collaboration with NFT artist Song Ting.

This year, YFI, underwritten by the DeFi insurance project Nexus Muatual, has been launched on the NFT platform Rabile. Nexus’ insurance business has soared from US$1 million in January to US$48 million today. Even if there is no funds in the smart contract, you can still buy insurance for the DeFi smart contract. If the hacker violates the agreement, the contract will pay out the funds.

Rarible also provides users with additional cryptocurrency tokens to trade NFT on the platform. In other words, users can win governance tokens by trading NFT on the platform, that is, “liquid mining”.

Zilliqa is a blockchain that supports multiple NFT markets. Chua Han Wen Chua, senior vice president responsible for ecosystem growth, said: “As DeFi infrastructure continues to mature, NFT growth will only grow faster.”

Source link: decrypt.co

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