Tag: viewpoint
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This article introduces the mystery of NFT homogeneity, analyzes mainstream NFT tokens from SOCKS tokens to “limited edition” NFTs, and then proposes a gentle solution: recognize that “NFT” is not only a technical standard, but also represents Realm (actually two realms).
Written by: Trent McConaghy
Translation & Proofreading: Min Min & A Jian
Introduction
Recently, after appearing on the famous American comedy show “Saturday Night Live”, NFT (non-homogeneous token) out of the circle is already a certainty. This is big news in helping creators earn income! Driven by the NFT boom, blockchain technology will also be further widely implemented.
However, there is also a serious problem with the “NFT” concept, which fortunately can be solved. Let’s take a look at the following example: the favorite of science fiction fans-UFO.
https://www.theguardian.com/us-news/2021/mar/22/us-government-ufo-report-sightings
Just like those “unexplainable” UFO bizarre phenomena, NFTs also have the “unexplainable” mystery of homogenization . For example, is the TAPE token issued by RAC “NFT”? Is Unisocks “NFT”? “NFTs” are issued in limited quantities, but they all seem to be interchangeable with each other. Is this a contradiction? Is the fungible ERC1155 token “NFT”?
This article will explore these questions and then give a gentle answer, hoping to solve the doubts of the NFT fans (including myself) and open up a new path of exploration.
“Homogenization” in “non-homogenization”
Grammy Award winner and famous musician RAC is one of the explorers in the field of NFT. At the beginning of 2020, he issued $TAPE, a total of 100 tape tokens. One TAPE token can be exchanged for a physical tape of RAC’s “BOY” album. Currently, the transaction price of a TAPE token is $4,200, making it the most expensive cassette tape ever.
You want to say that it is a “NFT” token, right? However, one TAPE token can replace any other TAPE token, and each TAPE token is interchangeable. This is exactly in line with the definition of homogenization (not “non-homogeneity”). In addition, the TAPE token adopts the homogenization token standard ERC20 (note that this is not “non-homogeneity”). You can even split a TAPE token for trading. So is TAPE token really “NFT”? 🤔
RAC’s “BOY” album physical tape
Then look at the token $SOCKS of the limited edition socks Unisocks. There are 500 $SOCKS tokens in total. Each $SOCKS token can be exchanged for a pair of physical socks. The current trading price of a $SOCKS token is 86,000 U.S. dollars, the highest in history is 164,000 U.S. dollars. A pair of socks sold for the price of a Tesla! Mike Demarais claims to be the $SOCKS Socks Party.
My opinion on Unisocks is: in the 19th and early 20th centuries, the Faberge egg sculpture was once a rare artwork loved by the Russian royal family, with only 69 pieces in the world. In view of the fanatical pursuit of meme in the cryptocurrency world, Unisocks can be called a rare artwork loved by the cryptocurrency community in the 21st century. In other words, Unisocks is the Faberge egg sculpture in the world of cryptocurrency.
You want to say that it is a “NFT” token, right? However, SOCKS tokens also use the homogenized token standard ERC 20 (rather than the non-homogeneous token standard). 🤔
Let’s take a look at “Limited Edition NFT”. For example, NBA star Damian Lillard’s wonderful slam dunk moment NFT. There are 6 versions of this NFT, and each version may have a unique serial number, but the serial number is not very important, and it does not even appear on the graphical user interface. Each of these NFTs can be exchanged for another, and they are interchangeable. Hey, this is also homogenization.
You think again about the ERC1155 token standard. If you only mint one token, it is non-homogeneous because there is only one. However, if you mint a second token, it immediately becomes homogenized.
Looking for a solution
So, are TAPE tokens and SOCKS tokens NFT? [0] How should we view “Limited Edition NFT” and ERC1155? There seems to be some contradiction in this.
I have a way, inspired by the previous “blockchain” concept. From 2014 to 2015, with the rise of the concept of “blockchain”, many people began to argue about what kind of system can be defined as a “blockchain”. The Bitcoin Church says “Only Bitcoin is the blockchain”. Others have given a broad definition, such as “a chain consisting of many blocks (block N stores the hash value of block N-1)” or “a replicable database that is not controlled by anyone (using BFT) , PoW or PoS and other consensus protocols)” [1].
These controversies did not reach the final result, but disappeared as the “blockchain” was regarded as a field. The definition of blockchain is formed! Without a strong boost, it was just formed.
Now “blockchain” has two meanings:
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From a technical perspective , a blockchain is a database-like tool composed of a series of blocks, which can be replicated.
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The field or sport where the technology is applied .
The understanding of (2) has eased people’s debates, and has a great empowering significance, and has spawned many new ideas about (1).
“AI” is the same. In the past, there were fierce debates among technology fans (including myself) about the definition of “AI”. However, with the development and growth of the AI field, AI also has two meanings [2]: one refers to the technical definition (controversial!) and the other refers to the field .
A gentle solution
“Blockchain” and “AI” have both technical definitions and domain definitions. “NFT” can do the same! In addition to the technical definition, “NFT” can also refer to the sub-fields of the blockchain. After research, we found that NFT represents two sub-fields: one refers to the creative part; the other refers to the non-homogeneous part. We put these three definitions together:
The triple definition of NFT
Let us elaborate on these three definitions.
NFT Definition 1: The technical standard used to create a unique token
The only token standard is only used to create non-fungible tokens. ERC721 is the most widely known example. This definition is not limited to the token standard on Ethereum, but also applies to token standards on Bitcoin or other blockchains.
Please note that I deliberately did not use the term “non-homogenization” because it would cause confusion.
ERC1155 also meets this definition, at least for those unique ERC1155 tokens.
NFT Definition 2: The creative subfield of blockchain
This field includes all digital art, physical art, photos, music, etc. on the blockchain. In general, all creative products with intellectual property (IP) belong to this field.
This means that NFT may adopt the “Unique Token” standard, but it is not necessary to do so. NFT can adopt ERC20 token standard, or any other token standard.
Next, answer a few core questions:
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The $TAPE token (music) meets the definition.
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$SOCKS (Entity Art) meets the definition.
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“Limited Edition NFT” meets the definition.
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Non-unique ERC1155 tokens also meet the definition.
NFT definition three: the only token standard subfield of the blockchain
The third definition includes non-creative blockchain applications that use the ERC721 token standard, such as real estate and financial supply chains (such as Centrifuge). This definition can also include creative applications that adopt the ERC721 token standard, which partially overlaps with (2), which is okay!
As shown below:
The relationship between the three definitions of “NFT”
to sum up
This article introduces the mystery of NFT homogeneity, analyzes mainstream NFT tokens from SOCKS tokens to “limited edition” NFTs, and then proposes a gentle solution: recognize that “NFT” is not only a technical standard, but also represents Realm (actually two realms). This knowledge can at least dispel my doubts 😉
Finally, I will post more interesting facts about NFT, so stay tuned…
Note:
[0] Regardless of whether these NFTs are really valuable, I think RAC is cool and SOCKS is interesting.
[1] For the actual definition, please refer to the “Blockchain Framework” section in Nature 2.0.
[2] For the actual definition, please refer to the “AI Framework” section in Nature 2.0.
Thanks to Wilkins Chung for providing NFT definition three as a supplement to the other two definitions. Thanks to Sarah Vallon and Monica Botez for reviewing. Finally, thanks to everyone who participated in the discussion.
Source link: blog.oceanprotocol.com
Value is determined by the number of content holders, not by unique owners.
Original title: “Viewpoint丨The scarcity of NFT is just a lie? 》
Written by: Robert Brisita
Translation: Jeremy
Where does the value come from? Is it inherent to tangible objects? Is it in manufacturing; are there ads hidden behind it? No matter what you believe, it all comes down to effort. The effort someone puts to create something is the input and output of human creativity. This article explores the efforts in the digital art space and the role of non-fungible tokens (NFTs).
What is NFT? In short, it is the only verifiable digital object that cannot be changed in the system in which it was created . Think of it as a “support contract” or “appreciation contract” to encourage creators and provide a source for their digital works.
Digital Dadaism
Digital assets appear in many forms: authenticity certificates, ringtones, music, audiobooks, videos, downloadable content (DLC), and now NFTs. The basic motivation of the people is some people’s demand for collection and others’ demand for customization . In the past month, there have been several high-profile high-priced NFT sales. Although the US dollar currency is the framework, these are actually paid in Ethereum (ETH). In the past five years, the dollar value of Ether has ranged from US$10 to US$2,000.
Who wants to be a Pixelaire! ?
Expensive pixels-three pictures (the third is 1×1 transparent pixels), a total of about 46255ETH (46,000-92.5 million US dollars).
The following is an analysis of three sales situations using input and output, the above-mentioned dollar range, and the “price per pixel” (PPP) of each of the above-mentioned pictures:
Knowledge pixel
The common denominator here is that all participants have a particular interest in the currency used and its supporting system. Those cryptocurrency enthusiasts want to support new online markets that rely on their shares. The most interesting is the sale of Beetle and Metakovan, both of which are business partners of a company (holding 2% or 200,000 tokens and 59% or 5.9 million tokens, respectively), which sells tokens for the art of Beele , Used in its open art projects.
What are you actually buying? artwork? Token? Strictly speaking, this is a data link representing NFT . Some NFT projects do better than others. For example, CryptoPunks is an index of an address array. All data is unique and stored on the chain in a centralized server. In addition, CryptoKitties actually included unique data in their NFT and added gamification elements to their contracts. There are other platforms that allow further creativity, such as Async.art and their programmable art methods. In terms of data (metadata), the best method is to decentralize file storage, and the most popular is InterPlanetary File System (IPFS). This technique considers the content of the file rather than the location or name. The format of metadata files has not yet been standardized.
Unfortunately, most markets and platforms use the Ethereum network. Currently, this is an expensive traditional decentralized blockchain, which is a layer-1 network at the base layer. The speed of technological development is so fast that it is difficult to believe that major changes in scalability, safety, and sustainability can be avoided in a reasonable period of time.
Energy consumption lies in the inefficiency of using Proof of Work (PoW) to provide a safe state for all participants. The result of the trade-off is that safety is higher than availability . The most basic analogy is to imagine that if participants A and B own an acre of forest, they both have a business opportunity to reward the person who cut down 100 trees first. Suppose A reaches the goal and wins the business contract, B throws away all the 99 trees they cut, and the competition starts again.
The cost is high, not only because of the environment, but also because of the transaction procedures. Even before the sale, a creator has already paid the cost of minting NFT on the Ethereum network. According to the recent U.S. dollar prices and some additional fees on platforms and markets, the range is 100-600 USD. Any future contract owner must consider these costs before supporting the creator. Even before that, creators and their supporters had to go through a process of creating a wallet and obtaining cryptocurrency, and its user interface (UI) still needed improvement.
Of course, when selling an NFT at the high price of ETH (thousands of dollars and millions of dollars), this cost is negligible. As a new creator, this is a huge barrier to entry . The absurd thing is that this process even advocates waiting for the right time of day so that transaction costs will be lower. The current popular planning platforms and markets have become invitation-based to prevent the torrent of hype that attempts to use robots and flippers to amplify. The rankings amplify the sales of top creators through a positive feedback loop. This creates further barriers to entry for legitimate creators.
Virtual symbiosis
Let us step out of this scene and focus on the positive side. The output data is visible, but the underlying technology is invisible. The greatness of the modern blockchain field, and the beauty of decentralization, is that no one is subject to any particular technology ; especially when there is no staking. Using the most popular blockchain is only to truly support the technology, not to support the efforts of creators. It is fascinating to see enthusiasts insisting on using outdated and inadequate technology because of their special interests. Technology prioritizes individual sovereignty rather than centralized control and interests .
There are already better low-cost and eco-friendly technologies. EOS and Wax sidechains are already available. Polkadot and NEAR are being tested and released and are more decentralized than EOS. Wax advertises itself as the “King of NFTs” with the goal of video games and entertainment attributes. AtomicHub uses Wax and allows finer control in the construction of NFTs. It works harder than some platforms and markets, but it has the ability to serve single and multiple creators. Multiple creators can act as a collective and can be hosted on a portfolio or a series of portfolios to create a network circle. When making a sale, a 2% platform commission fee will be charged; this is very different from the method seen before.
You need to create a wallet and get the corresponding cryptocurrency, which cannot be bypassed. But 2-3 clicks are always better than browsing the setting creation or support on a different website. If Ethereum can act together one day, there will be bridges in all these implementations that allow transfer from one blockchain to another.
It is becoming more and more obvious that browsers are the main observers entering the digital world , and supporting this attention will benefit browser creators. Brave is the only browser that is positioned as the default gateway for individuals to interact with cryptocurrencies without the friction mentioned earlier. Imagine that a creator uses attributes on semantic tags to allow patronage and purchase of certain data? This will bypass websites that use virtual currencies to visualize appreciation, and these virtual currencies cannot be exchanged for monetary value. The preferred end result is a micro-transaction system, if done well, currency can provide support. This opens the door for creators who create value on the platform and benefit from this mutual relationship.
Scarcity is a lie
In mature tangible markets, the term “scarcity” is used to express value. Further value comes from the owner’s protection of this scarce resource. Tangible collectors can buy, sell, and trade, but cannot copy. Digitization removes all of this and preserves production efforts. The traditional market ideology is not applicable in virtual space. Only through artificial means can the word’scarcity’ exist in the numbers . Scarcity means technically unpopular and obsolete. This is the democratization of the market that is difficult for ordinary people to understand. The new system requires new terminology. The new perspective is different from the way society treats concepts. Stop selfishly setting up warehouses with a total of $100 billion for tax collection purposes on the port.
Multiplicity is prestige
Technology allows information to spread. The perfect copy can be transferred without restrictions. It is not a single copy, but anyone can make a copy according to their needs. Value is determined by the number of content holders, not by unique owners . There is no longer any incentive to restrict usage rights. One person’s output can be enjoyed by everyone. Think of it as free advertising; digital word-of-mouth. The real psychological change is that popularity conveys value in society.
Dissolution of institutions
The auction house shows that 96.1% of sales come from male creators. There are no women among the 40 highest-selling artists. 80% of creatives in New York’s top galleries are white. According to statistics, a maker has very little chance of success because there are many factors beyond their control.
Secondary market
Most makers make a living by serving their customers. Now through NFTs, they can directly reach supporters. In the traditional market, these creators usually only get paid from the initial sales, and supporters have the ability to resell the creator’s output, which usually generates higher value. NFTs allow creators to be paid in the secondary market. Currently, platforms and markets have a 5-15% royalty range, but the real power lies in the creative community; a sustainable and transparent platform is required to allow makers to get most of the sales returns, and supporters get 5-15% of royalties. What they can do.
Here is an opportunity for creators to unite, stand on their own beliefs, and make this opportunity more fair . As mentioned earlier, the overall goal should be to bring a micro-transaction system that supports creators. The focus of this article is on digital art, but this applies to all creative undertakings: cultural creativity, fashion, jewelry, music, etc. If the maker freed us from the system, the enterprise and the corruption, it would be a beautiful story.
Disclaimer: As a blockchain information platform, the articles published on this site only represent the author’s personal views, and have nothing to do with the position of ChainNews. The information, opinions, etc. in the article are for reference only, and are not intended as or regarded as actual investment advice.
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