Will NFT follow Defi and be the next big thing?
Original title: "will NFT relay Defi, the next hot spot? | spark interview"
Source: X-Order
introduce
For this spark interview, we spoke with PM Lu Yuan, the product manager of Maiziwallet, who is often referred to as Lao Lu in the industry.
As the early participants in the industry, old miss has been paying attention to the project of the cutting edge in the industry, so to speak, and within the circle on the new project has deeper research, is also a circle NFT early research (Non - fungible Token) old driver, Defi project while wool experts (: P).
How has NFT fared in Defi's booming market and can it take over from Defi as the next industry direction?
We had a good chat with Lao Lu with a series of NFT-related questions. See the details below.
PS:
1. Lao Lu has an album called NFT related articles in his official account "Lao Lu's Block chain Notes", which has been updated with seven articles, showing his understanding of NFT and some of his practices in the FIELD of NFT in a comprehensive way. If you're interested in the NFT, check it out.
2. The views and positions of X-Order are not represented in this article
NFT Intro
1. After the hype of 2017-2018, NFT gradually began to combine with art field and well-known game IP in 2019, with a lot of action. So where is NFT now? At present, the difficulty in promoting NFT is technology or ecological application?
Old miss:As far as I am concerned, NFT is still at an early stage and has not made any substantial breakthrough. It has not yet made its debut in applications and audiences, but mainly in Ethereum and some public chains that imitate the NFT ecology of Ethereum.
However, the whole NFT market is actually quite depressed now, with trading volume of just over $1 million a week, which may not be as much as the volume of a single pair of trades on a single exchange.
So for the current blockchain industry, NFT is actually a very niche thing. The head exchange is also only laying out NFT as a possible future direction, not devoting a lot of resources to it as the hot Defi. For exchanges, if they don't capture Defi now, they may miss a lot of opportunities and even fall in the rankings.
The strategy of head exchanges at NFT is different. Like OK's CHIEF strategy officer Xu Kun on a public Meetup to focus on NFT, in fact, it seems to me that this may be because OK didn't take the opportunity of Defi in the early days as Coinan did to bring all the COINS with Defi related heads online. This causes some Defi tokens on OK now to be inferior in quality to some header exchanges. So they will find some other track to lay out. And the direction of the fire coin key layout is the Boca ecology.
Coin-an has put the most effort into NFT and invested a lot of money, such as deep cooperation with Enjin, investment in Sandbox, and several issues of its own NFT. None of this is to say that the NFT is very mature.
In my opinion, the difficulty in the development of NFT lies not in the technology, but in the promotion of the market. At present, NFT is realized by technology, but the key point is that the market is too small and the competition is not fierce, leading to the emergence of some monopolies in NFT head market. For example, Enjin, if you want to use ERC1155, you have to integrate Enjin. You can't even integrate Ethereum.
Opensea is the interface used by almost all wallets on the market, and data sources are given to them through Opensea. If a wallet supports NFT, it must be using Opensea data, and if Opensea bans the interface, or doesn't allow certain games, or doesn't allow certain NFT's to appear in Opensea, then it can't appear in other wallets.
There is currently an NFT NBSP; NBSP; in the country; The Store is called Spider NBSP;; The spider Store. They are the only project in China to do NFT market alone, but their market share is obviously lower than Opensea's. Although Opensea has achieved this level, its localization support in China is not very good.
In fact, there must be another competitor to do the NFT mall, but because the market is small, there are few people, so no one to grab the cake.
So the difficulty in the development of NFT is actually ecological application. To make a good NFT application, the development cost must be relatively high. And because the NFT audience is so small, the project benefits cannot cover the development costs. Blockchain games have come all the way from 17 years, few survive well, now we are familiar with some boutique blockchain games, but also took a lot of investment in the early days to maintain, but many applications are not capable of hematopoiesis.
Tokentrove.com specializes in trading GU's market
Another problem with NFT trading markets is that many popular games set up their own NFT trading markets instead of trading on Opensea. For example, many times on Tokentrove, GU's card transaction volume is higher than Opensea's.
Supplement:
Reference:Nonfungible.com/market/history
2. What is the combination of NFT and Defi? Are there any difficulties? Does NFT necessarily need Defi? Can I detach from Defi?
Old miss:I haven't seen much lately. In the recent case of the combination of NFT and Defi, the Yam rescue programme launched after the founders of the Yam project announced its failure, if you voted for an upgrade you would receive a Yam NFT medal for being a participant in the Yam rescue programme.
In addition, on KNC, if you hold the relevant NFT, you can deduct the fee.
Others, such as Lend721, can lease out your NFT. Another program, called WCK, breaks the NFT into ERC20 tokens and trades them.
NFT doesn't really work with Defi much more than with games, and NFT ACTS as a sort of souvenir badge, or some kind of entitlement. It is difficult to combine NFT and Defi because the NFT standard is not suitable for moving between common addresses. Contracts like ERC 721,777, or even 1155 are more complex than ERC 20. It would be difficult if Defi applications were compatible with some non-ERC20 standards.
Therefore, I think NFT is now more like Defi. For example, the Rarible platform, which specializes in NFT collection and trading, has also set up a transaction namely mining mechanism. For any transaction, both the buyer and the seller will get RARI token, but these organizations are not decentralized, and the project side can still block users at will.
Resources:
Blockchain is round, CryptoKitties and NFT think again & NBSP;https://www.uucj.com/archives/116188
3. What is the case of the combination of NFT and Layer 2?
Old miss:Matic their main direction is to make games, so there must be a lot of NFT on it, this is a big case at the moment, they have a lot of blockchain games and cooperation.
Another project WAX is a strong one. They are preparing for a Steam second-hand store that has a lot of IP resources in the game space.
And Near, they made a rainbow bridge that can transfer the NFT to another common chain.
Nft-related wallet formats
1. Could you briefly introduce the current difficulties in combining wallet with NFT? What are the differences between wallets that support NFT?
Old miss:In fact, the combination of wallet and NFT is relatively simple, as long as you can look up a address ERC 721 and 1155 what the assets are, and then display it, and realize the function of sending.
I researched almost all wallets that support NFT in the market and found that most overseas wallets only support ERC 721 and only a small number support ERC 1155. Some features that support ERC 1155, such as display, are not available. So in general, there are a couple of things you can do with your wallet right now:
1. Most of the general support NFT wallet, only support 721 transfer and collection
2. ERC 721 and 1155 are supported, but only Enjin and Math are supported for 1155 sending.
3. Enjin is the only one that can not only send NFT assets but also send them in batches.
But Enjin's problem is that he doesn't support the ERC 721, so the second-tier wallet is actually the best. And for the experience of domestic users, we also specially do a forwarding operation. So at home, with your other overseas wallet, your NFT assets, you might only be able to show them online scientifically, but with the Wheat wallet you can show them directly.
2. Wheat Wallet has long supported NFT assets. Besides receiving and rolling out NFT, how can we play NFT with wheat wallet?
Old miss:In fact, we have only improved the basic functions of NFT assets, except batch transfer.
Another is that we have done a separate classification for NFT, your wallet in wheat background, is to be able to see most of the support NFT block chain applications, and we also screening for these applications, if the application basic don't operation, we will take it off the shelves, so in the above shows that the application is still active. This is something that we've specifically designed from the user's point of view.
Views on the NFT market
1. Which aspect of NFT development do you most like? Such as wallet, IP cooperation, art transactions and so on.
Old miss:For the wallet, NFT is actually an entry point for traffic. Our overseas community is still 1-2w, and the participation of online activities is still high.
And in IP cooperation, I think there is room to play, but now no particularly big IP come in. This kind of cooperation needs to be promoted by people with sufficient resources to be effective, rather than relying solely on the efforts of a project or a user.
As for the combination of NFT and art, actually there have been several projects of NFT art trading market before, but this is bound to be a small market, and the case of art cannot be copied. Because in this kind of auction process, the creator can give value to the work of art, the same collector can give value to the work of art, such as qianlong's stamped landscape painting. But this is hard to replicate.
In the long run, I am more optimistic about IP cooperation. I did THE NFT activities for The previous COIN security, and OK also launched NFT in overseas operations. The nature of this activity is similar to solidifying a brand's influence.
However, AS a niche market, NFT has less traffic. Unless there is a great breakthrough in the technology and a great optimization for the improvement of user experience, it will attract large external IP to enter this market, because the project will naturally go to places with more traffic and greater influence.
At present, however, the NFT market is not mature enough for large external IPs, and many such project parties will worry about policy risks. However, once there are some typical cooperation cases, in fact, many projects will seek for cooperation again. For example, the NFT project we cooperated with the exchange before was actually quite difficult, and they did not know much about it. However, after the cooperation, some other exchanges will seek for cooperation, and they know the value of it.
2. What do you think of some NFT token projects on the market? Mana, Enjin, Sandbox?
Old miss:Mana has been working on this project for two years, but the products made now are at a discount compared with what I expected for Mana at that time. In this way, it is better not to fall. After the landing, but the reverse effect, and many people will see his picture is actually dizzy.
When the project was just launched, there were many users, but the experience needed to be improved, and the gameplay was relatively small, so it was not very free. It's a far cry from the freedom you'd expect to see in a top-gamer movie.
In fact, Enjin is just a kind of NFT standard. The technology will be developed in the future, and it is likely that a larger standard will replace it in the future. But for the time being, Enjin is absolutely essential to doing NFT on Ethereum.
As for the Sandbox project, I think the NFT trading volume on its platform is not as high as the trading volume of its token on the coin, which has a feeling of upside down valuation. He's probably more of a conceptual product, with a high valuation.
NFT imagination
A. N. FT. Possibilities in future games
1. What might the combination of NFT, VR and AR look like? What do you think is more likely to happen in the future?
Old miss:There will be a combination of AR/VR and NFT, and the first player will be followed by VR. However, the promotion of VR and AR itself lags behind.
There's a recent AR app called RakugakiAR that makes your cat or other object on the table move. If you combine this with NFT, there's a lot of room for imagination.
This needs to be combined with a client or APP segment to achieve. And if it is on the APP side, there must be a dedicated NFT wallet to achieve the relevant functions. In other words, some NFT project makes these functions and then packages them into an APP for other users to use. This APP is loaded with some nFT-related functions. For example, if you have some NFT, you can play these games through AR.
There is a VR game called Somnium Space this year, but it is still a long way from being implemented. Its partners are also very strong, like Oculus, VIVE and Steam, and its IP resources are very strong. But this project is still a long way off.
2. We have been able to buy NFT assets in the game "Centre and (MANA)", does it mean that NFT assets will be in many future games? Why do game makers use it? What are his strengths? What are the benefits to all sides of the game ecosystem?
Old miss:I don't think the game will necessarily be NFT. Because many good games don't need assets either.
For non-blockchain games, it doesn't matter whether there is NFT or not. For blockchain games, it is similar to FOMO 3D. In fact, only one token is needed, including just game, and only one key is needed. But it will involve other applications that complicate the token, including auctions. These are at the application level, rather than putting the entire rule on token. But the NFT can also support these things.
If the game manufacturer wants to enter the blockchain game, then he will give priority to partial blockchain asset release way.
The advantage of doing this is that the game assets can be more widely circulated and can be co-operated with other games, or the manufacturer has a lot of games under its ownership, but it doesn't want to get through in a centralized form, so it can also get through with a decentralized NFT.
There are a lot of small games like Steam that have collaborations between them, where characters and items are introduced into each other, and this collaboration is sure to happen all the time in the future, and the NFT serves as a bridge in the middle. There are higher-dimensional asset transformations, like asset crossing chains.
In my opinion, NFT is more of a plus for a fun game than a major game label.
B. NFT & assets
1. What is the relationship between NFT assets and real world assets? Is it in addition to the actual assets? Or will it also replace real world assets?
Old miss:At the moment, NFT assets are not very closely related to real world assets. In fact, not only NFT, but also in terms of asset chain, it is very difficult to link NFT assets to real assets.
Since the process of asset chain is centralized, such as the mechanism that performs the operation of asset chain is centralized. Even if other processes are decentralized, it can only be said that we chain a label, but it cannot be said that the label must correspond to that object.
If NFT assets are to be bound to real assets, some preconditions are required, such as strong endorsement or large institution acceptance. Because NFT only has the benefit of liquidity over real assets. For some real heavy assets such as real estate, the transaction process is very complicated, but as long as you can ensure that the NFT tied to it can be cashed 1:1, this liquidity is its advantage. But since this precondition is hard to hold, even if its merits are good, it is more of an assumption.
In fact, Bubble Mart is a project that I think can well combine NFT and real assets, because bubble Mart has been expanded from offline to the Internet, and then from the Internet to the block chain, in fact, it is relatively easy. It has been so successful on the Internet that it takes a WeChat applet to unpack a new blind box.
IP - biased assets like this can be transferred to the blockchain, and by supplementing it, it can bring a lot of new twists. But in the current infrastructure is not perfect, the market is not mature, will lead to some rote.
2. Does NFT mean that a lot of assets will emerge in the future? Take the exponential growth of asset classes. If this is going to happen in the future, does it mean that the opportunities and risks for us as ordinary people are also greatly increased? What are the opportunities and risks?
Old miss:In fact, I don't think it is necessary to distinguish NFT from token too much. In fact, NFT is also a kind of token standard. As long as Token appears a lot of high-quality assets, NFT can also appear a lot of high-quality assets.
Take the y-token Curve, a basket of stabilisers, whose price will go up all the time because it will have a certain benefit included in it.
This includes things like mUSDT, which is also a fixed token that charges interest, and Compound CTokens, which continue to appreciate, albeit at a slower rate. I'm talking about Defi, but if you replace this ERC 20 with ERC 721, it's actually pretty easy to convert.
But I think the risks outweigh the opportunities in this market. Because there are no obvious standards in the NFT market right now. The bottom line is that NFT is still too early in the game. In less than five years from 2017 to now, there is a lot of change, and there will be a lot of standards and ideas to experiment with in this market.
NFT is still small, NonFungible.com
The risk of participating in such a market is particularly high. For example, if I introduce some new NFT standards or tokens, if you place a big bet on them, and you find out that there is no track, you will lose a lot of money.
And most of what we're talking about right now is the NFT of Ethereum, and a lot of other NON-Ethereum NFTS are also developing, and it's possible that in the future the NFT ecology of other public chains will be larger than the ecology of Ethereum, and then other, larger NFT standards will engulf the Ethereum standards, as long as the market is big enough and the performance is good enough. It's also a big risk for investing in this market.
I think the NFT has more entertainment value than real value at the moment. That in itself is an unstable thing.
3. To continue the above problem, if NFT leads to exponential growth of asset classes, there will be more opportunities and risks for ordinary people. Will there be countless tulip bubbles? Will the number of bubbly assets in the future explode, with shorter and shorter life spans?
Old miss:The average user who participates in these NFT games is not clear about its pricing. Users may be able to buy extremely expensive tokens, such as SLP, which is actually a potion used in battle games, which also goes up a lot. This kind of thing is very opaque to the average investor, because the average user doesn't even know that there's an infinite amount behind it. The cost of casting this token is very low, perhaps as long as one game of play.
Axie Infinity's Love potion (SLP) is up more than 2,000% in a week
NFT itself has low modeling cost, which also leads to a chaotic NFT market, full of fake NFT, which requires participants to have high identification ability.
The asset class will certainly grow over time, and it will certainly bring more risk. In fact, there are many opportunities as well as risks, such as many new ways of playing NFT, such as NFT trading mining, or liquidity mining. Both Defi's and NFT's can be fitted together.
These assets will certainly have a short life cycle, and NFTS skewed towards service types will be more valuable. But once the CONTENT of the NFT service is terminated, the NFT is worthless. Let's say I buy the privilege of a decentralized exchange, but if the decentralized exchange has no depth, I have no value in holding this NFT.
C.NFT & The real economy
1. The general manager has ascended before yao in the new financial market infrastructure based on block chain "mentioned in the block chain ecological edge can also carry assets (such as stocks, bonds and futures public financial and physical assets outside of the trading platform), the block and NFT is very close, such as tide shoes trading or fine wine trading, if mainstream chain on the edge of the assets, will have any impact on NFT?
Old miss:Nike has applied for this kind of patent, which is similar to blockchain coding, and its function is similar to tracing the source. But that's because you believe in Nike, not in traceability.
So this trust improvement is not in the blockchain technology, but in the centralized system of the whole link. The crux of the problem is the man-in-the-middle attack.
Hardware wallets have always had this problem. Maybe the hardware wallet was good when it came out of the factory, but then it had to be handed over to the manufacturer of the hardware, to the distributor, to the transporter, and every one of those things could be rigged, like looking through the mnemonic and then putting it in, or putting something in, and that would be a problem.
It is not because the application of NFT technology can solve this problem, the key is to solve the trust problem of the middle man, that is, whether people recognize the centralized organization using NFT technology or blockchain technology. NFT plays a more important role in reducing trade friction, which is similar to data platform for data exchange.
These physical assets, by using NFT technology, actually bring traffic to the NFT market, which is good for NFT, but the use of NFT technology has no impact on the mainstream economy.
2. What will happen to the transaction form if the mainstream adopts it? Is the technical form compatible with NFT? Or will it be limited? You can't use Ethereum or anything like that?
Old miss:Mainstream games will definitely build their own NFT rather than the existing NFT system. Because once you have a large enough volume of mainstream games, it will definitely have an impact on the existing NFT ecology, and even overturn the entire NFT. These teams will definitely develop their own systems because they are more internet-enabled and take ecology into their own hands. For example, if Tencent block chain wants to enter the NFT market, it will definitely bring its own standards in, restricting the existing NFT technology, rather than incompatible with it.
Even if these mainstream projects use the existing NFT ecology, it is because there is no need to redevelop. And if they're going to enter the market, they're going to do their own NFT ecology. Because they are so influential, they will force the change of the existing NFT ecosystem.
3. If the mainstream accepts it, will there be industry regulation and what will this regulation look like?
Old miss:There must be regulation. Defi is actually regulated after that. If the mainstream accepts THE NFT, it should be industry regulation before the market pushes, and finally the mainstream accepts the market.
In terms of regulation, it is necessary to find a balance between centralization and decentralization. At present, these are far away and the market is not so mature. Because no ordinary STO has been implemented, the integration of the NFT with the real economy will have to wait.
Welcome to join the official BlockBeats community:
Telegram Subscription Group: https://t.me/theblockbeats
Telegram Discussion Group: https://t.me/BlockBeats_App
Official Twitter Account: https://twitter.com/BlockBeatsAsia
Related Articles
