Will NFT, which has increased 6 times in 3 years, become the currency meme of 2020?

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Source | PANews

How to get out of the circle, reach a wider audience, so that the circle is no longer the carnival of a few people? This is the question before every practitioner. Popular logo up the chain, the game is a lot of people are optimistic about the race track, there is a behind the concept of nearly two years to leap up the red -- NFT.

A set of recent data released by NonFungible.com shows the rapid growth path of NFT since its birth in 2017. The 2019 NFT annual report analyzed Dapp data represented by ERC721 on ethereum. The data showed that there was a lot of new blood coming into the NFT market in 2019, especially in the gaming sector, and there were many successful cases.

1. Market value increased 6 times in 3 years

What is NFT? NFT full name non-fungibletoken (non-homogeneous token), you generally see is homogeneous token. So if you have a BTC on your hand and someone else has a BTC on their hand, they're the same thing, they have the same anchor value, they can be exchanged at will.

Non-homogeneous Token (NFT) is a unique Token in vernacular language. Even in the same system, NFT exists as a separate attribute. And unlike BTC and ETH, NFT can be divided into 0.1 or 0.0002. The unit of NFT is always 1.

Since 2019, mainstream chains and cross-chain systems including ETH, NEO, universal chain, Vechain, EOS, Cosmos have supported the embedding of NFT modules. NFT token standard from erc-721 to erc-1155 multi-token mode has also been gradually polished into shape, recognized and accepted by the industry.

Photo credit: NonFungible.com

In 2018, the cryptocurrency market as a whole was in a bear market, but the total market value of NFT increased by 482% compared with 2017, and the number of players of NFT cryptocurrency increased by 92% compared with the previous year. In 2019, NFT's market value increased by 17%, while the number of players increased by only 1%. NonFungible.com expects NFT's total market value to grow by more than 50% and user growth to exceed 30% by 2020.

Photo credit: NonFungible.com

The active degree of smart contracts can be regarded as the heartbeat of a market. It can be seen from the active time of NFT smart contracts in 2019 that 2018 and 2019 are in a stable growth trend.

These data suggest that the NFT market is brewing.

2. Three games account for half of the trading volume

NFT is naturally suitable for cryptographic games, creating personalization and scarcity. There are seven main types of NFT game items, including collection, unreal world, art, features, TCG CARDS, role playing, and strategies. Among them, the most popular items are collection items, such as Cryptokitties that once blocked ethereum.

Based on the distribution of users and the number of transactions, Cryptokitties, My Crypto Heroes and 0xUniverse account for half of the NFT market.

Photo credit: NonFungible.com

Cryptokitties, which continues to dominate the charts, is the world's first cat game developed with block chain technology, launched by Canadian company Axiom Zen. There are two ways cats are born. One is that the authorities release a new kitten every 15 minutes, with a total limit of 50,000 cats known as generation 0. Every cat is unique and cannot be copied, stolen or destroyed.

Unlike other collectibles, infatuated cats can be virtually interbred to produce a first generation of infatuated cats with unique genes, which owners can choose to continue developing and selling. Behind every infatuated cat, there is an NFT.

Not only is the player's favor, the capital market also throws olive branch. In September 2019, for example, Gods Unchained, a cryptocurrency game, was led by Naspers and Galaxy Digital in a $15 million funding round. Gods Unchained is a card game in which players enter the game and receive a set of free standard CARDS, which they can purchase through the website, fight, or purchase from other players to obtain unique attributes. Gods Unchained once auctioned off a card called Typerion for $62,000, the most expensive card in the world. Gods Unchained's NFT tokens were traded a whopping 13 million times in November 2019. & have spent

In the above NonFungible.com report, the erc-1155 data for the Enjin platform was not recorded.

& have spent Enjin (gold) is currently the world's largest online gaming community to create a platform, was founded in 2009, the global total of more than 250000 games community unions, tribes, fan site, etc., to "mass" is used to describe resources stocks of users, this part of the user through the Enjin platform will be direct contact with encryption currency, into the market incremental encryption.

Enjin has developed a new standard system erc-1155. On June 18, 2019, erc-1155 became the standard for ethereum. In the short term, the Enjin platform will be the main battleground for the future of the erc-1155 token model.

On February 18, 2020, Enjin platform was officially launched. The base of Enjin adopts ethereum network as its own data processing engine. Users can trade and create games through Enjin's trusted platform.

3. NFT can permeate life

In the future of standardization and token legalization, NFT can bring us huge imagination space. NFT is really penetrating into our life scene, not only virtual products, but also identity authentication, electronic storage certificates, collection bottles, even every book in the library, store bags and so on.

At present, there are already physical objects starting to combine with NFT. In December 2019, NIKE, a world famous sports brand, obtained a patent in the United States that could be used as a token on the ethereum block chain. The patent name is CryptoKicks. This patent can generate a unique ID for the shoe, creating the erc-721 standard NFT. NFT ACTS as a unique identifier for shoes, recording their attributes, colors, styles, and so on.

When consumers buy sneakers, they can unlock the 10-digit identification code on the shoe tag with their phone or other device to create a unique NFT. This NFT represents the ownership of the shoe, and when the shoe is transferred, the NFT is transferred to the buyer along with the shoe. The NFTS, which represent shoes, are all stored in a program called Digital Locker, similar to cryptocurrency wallets.

Source: a screenshot of the Nike website

CryptoKicks borrows from the CryptoKitties obsession with cats in a trendy way. Sneakers can be made into sneakers. Buyers can put the shoes in Digital Locker and pair them with other shoes to reproduce, and if the manufacturer is willing to produce them, these virtual shoes can eventually be made into physical shoes.

KnownOrigin is a DApp that runs on the ethereum network, enabling users to create, buy, transfer and trade unique digital art. When a user purchases or transfers a knownorigin.io item, it means that the NFT for that item is automatically transferred to the user's ethereum address. Artists can also easily distribute their digital artwork through KnownOrigin and create their own NFT. And knownorigin.io are working on similar application scenarios to MakerSplace, Superrare and Rareart.

Image: KnownOrigin website

4. Collection of NFT or new meme

In his book the selfish gene, Richard dawkins first proposed the concept of meme, which is translated into Chinese as "meme" or "pseudochild". The basic unit of culture is transmitted in a non-genetic way, especially by imitation.

From the perspective of cultural theory, many popular phenomena are the set of meme, and there are many ways to make money from meme. For example, diamonds and gold are constantly implanted in people's minds such concepts as "diamonds represent love" and "rarity". Online games also design demands for players. Bitcoin is also a result of meme's success.

The uniqueness and constancy of NFT is a special use of block chain technology. Strictly speaking, NFT is not a "coin". NFT is more like a service. In the example above, more attention is paid to the scarcity of NFT. Admittedly, NFT is very scarce and provable, as if NFT alone can increase the scarcity of products. What audiences are actually more willing to buy is the products and services behind NFT, as well as the story.

In 2019, the total market value of NFT is only 210 million us dollars (only the erc-721 series), which is an order of magnitude less than the market value of the single currency currently ranked among the 30 digital currencies, indicating that the NFT market still has a lot of room for growth.

NFT is different from homogeneous token, and the application scenarios of NFT are more accurate and extensive. By leveraging scarcity and the cultural implications behind the product, NFT may become the new set of memes that permeate the broader landscape and realize the true emergence of the cryptocurrency concept.

The original link: https://mp.weixin.qq.com/s/I4bjI_mxPu0QNMusc2gNKw

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