NFT grand collection: all about non-homogeneous tokens

NFT bible: all knowledge about non-homogeneous tokens
Lao lu's block chain notes

Non-homogeneous token NFT is a unique blockchain project with block chain management right. For example, ownership records for collections, game items, digital art, event tickets, domain names, and even physical assets.

If you've been living in a cryptocurrency world for a while, you've probably heard the term "non-homogeneous token" or "NFT." Maybe you're a skeptic, a believer, or maybe you don't know what that non-homogeneous token is. Anyway, this article is for you!

As a marketplace for NFT transactions, OpenSea has a unique advantage: since the NFT standard came out at the end of 2017, almost all projects related to NFT have gone online.

In fact, I bet you a GodsUnchainedCard if you ask us for information about the NFT project. We've heard about it, and it's possible that at some point they've talked to us developers! The NFT ecosystem is made up of incredible innovators, everyone from hobbyists to developers, players to entrepreneurs to artists. It's been an honor to be part of this community.

The purpose of this article is to provide an in-depth overview of non-homogeneous tokens: technical analysis of ERC721, the history of NFT, common misconceptions about NFT, and the current state of the NFT market. We hope this makes sense for those new to the field, as well as those who already know NFT but want to better understand the details of its inner workings.

Orders to record

1. What are non-homogeneous tokens?

1.1 non-homogeneous tokens based on blockchain

1.1.1 standardization

1.1.2 interoperability

1.1.3 tradability

1.1.4 liquidity

1.1.5 invariance and provable scarcity

1.1.6 programmability

2. Non-homogeneous token standard

2.1 ERC721

2.2 ERC1155

2.21 composable items

2.3 non-ethereum standards

3. Non-homogeneous token metadata

3.1 chain up and chain down

3.1.1 metadata on the chain

3.1.2 under-link metadata

3.2 under - chain storage solutions

3.2.1 centralized server

3.2.2 IPFS

4. History of non-homogeneous tokens (2017-2020)

4.1 -- 0 BC: before CryptoKitties

4.2 0 BC: birth of crypto cats

4.2.1 speculative mechanics

4.2.1 viral stories

4.3 2018: hype, hot potato games and tier 2

4.3.1 layer 2 games and experiences

4.3.2 hot potato

4.3.3 interest on venture capital

4.4 2018-2019: return to the construction period

4.4.1 digital art

4.4.2 traditional IP entry

Japan leader

4.4.4 virtual world expansion

4.4.5 trading card games

4.4.6 decentralized domain name service

4.4.7 other experiments

4.4.8 casualties and resuscitation

5. The myth of non-homogeneous tokens

5.1 scarcity alone can drive demand

5.1.1 smart contracts mean assets will always exist

5.1.2 removing the chain will solve all our problems

6. Non-homogeneous token market

6.1 current market size

6.2 market growth

6.3 sales mechanism

6.4 the NFT distribution

6.5 what is the next step for NFT? Our projections for 2020

What are non-homogeneous tokens?

Irreplaceable assets are just normal. Alternative assets are strange!

Most discussions of non-homogeneous tokens begin with the introduction of the idea of homogeneity, defined as "the ability to replace or be replaced by another item of the same item." We think it will make things more complicated. To better understand what non-homogeneous assets mean, just consider most of the assets you own. Your chair, phone, laptop and anything else you can sell on taobao. It's all non-homogeneous.



Homogeneous assets actually turn out to be strange assets. Money is a classic example of a homogeneous asset. Whether the serial number on the specific $5 bill is $5 or deposited into your bank account, $5 is always $5. You can swap currencies by replacing the $5 bill with another $5 bill.

Note that the swap is relative; it only applies to comparing more than one thing. Business class, economy class, first class. Each ticket is roughly interchangeable on the same flight, but you can't trade first class for business class. Even the chair you sit on can be used interchangeably with a chair of the same type, unless you have developed special accessories for a particular chair.

Interestingly, homogeneous asset definitions can also be subjective. Back to the ticket example: someone concerned about a window or aisle seat might think that two economy class tickets are not interchangeable. Similarly, a penny less than a penny may be worth a penny to me, but more to a coin collector. As we'll see, some of these nuances become important when representing these projects on the blockchain.

Non-homogeneous tokens based on blockchain

Just as we had digital currencies (such as airline credits, gold in games) before cryptocurrencies, we have had non-homogeneous digital assets since the Internet. Domain names, event tickets, in-game items, and even social networks like Twitter, Facebook, and Weibo are non-homogeneous digital assets. It just varies in terms of tradability, liquidity and interoperability. Many Games are valuable: in 2018 alone, Epic Games made $2.4 billion selling apparel through its free-to-play game Fortnite; The event ticket market is expected to reach $68 billion by 2025; The domain name market will continue to grow steadily.

We have a lot of digital assets, but we never really had them.

Obviously, we already have a lot of digital assets. But to what extent do we "own" these digital assets? If digital ownership means only that an item belongs to you and not to anyone else, then in a sense you own the assets. However, this is not always the case with digital assets, if digital ownership is more like real world ownership (which can be held and transferred indefinitely). However, you own these assets in a particular context, and these assets may or may not move elsewhere. Try selling Fortnite skin on taobao and you'll find it difficult to transfer digital assets from one person to another.

That's why blockchain is here! Blockchain provides a coordination layer for digital assets, granting ownership and management rights to users. Blockchain changes the relationship between users and developers to these assets by adding unique attributes to non-homogeneous assets.

standardized

In the digital world, traditional digital assets, from tickets to domain names, have no uniform expression. Games can represent in-game collections in a completely different way from event ticketing systems. By displaying non-homogeneous assets on the chain, developers can build common, reusable, and inheritable standards for all non-homogeneous tokens. This includes basic primitives such as ownership, transport, and simple access control. Other standards (for example, specifications for how to display NFT) can be placed at the top for rich display in the application.

These are similar to other building blocks in the digital world, such as file formats for JPEG or PNG images, HTTP protocols for inter-computer requests, and HTML/CSS for displaying content on the Web. A layer has been added to the top of the blockchain, giving developers a new set of stateful primitives to build their own applications.



interoperability

A non-homogeneous asset standard allows them to move between multiple ecosystems. When developers launch new NFT projects, these NFTS are immediately visible in dozens of different wallet providers, can be traded in the marketplace, and have recently been shown in the virtual world. This is possible because open standards provide clear, consistent, reliable, and licensed read-write data apis.

Can be traded

Interoperability is most persuasive in open markets and free trade. For the first time, users can move outwards into the raw environment of an item, entering a market where they can take advantage of complex trading functions such as ebay-style auctions, bids, bundling, and the ability to sell any currency, such as stablecoins and proprietary currencies.

For game developers in particular, the tradability of assets represents a transition from a closed economy to an open market economy. Game developers no longer need to manage every aspect of the economy: from resource provision to pricing to capital control. Instead, they can let the free market take some of the blame!

liquidity

The rapid tradability of non-homogeneous assets will increase liquidity. The NFT market caters to a wide range of audiences, from strict traders to less sophisticated ones, making assets more widely available to a wider range of buyers. Just as the ICO boom of 2017 spawned a new class of assets driven by instant liquid money, NFT has expanded the unique market for digital assets.

Invariance and provable scarcity

Smart contracts allow developers to set strict limits on the supply of non-homogeneous tokens and force the use of permanent properties that cannot be modified after NFT is published. For example, developers can programmatically enforce that they can only create a certain number of certain rare items and not provide more common items. Developers can also enforce that certain properties do not change over time by coding the chain. This is particularly interesting for art, which depends heavily on how to prove the scarcity of the original work.

programmability

Of course, like traditional digital assets, NFT is completely programmable. CryptoKitties (which we'll discuss later) are representatives of digital cats directly bred by breeding technicians. Many NFT mechanisms today are more complex, such as forging, fabrication, conversion, random generation, and so on. Design space is infinite.

Non-homogeneous token standard

Standards are the part that makes non-homogeneous assets robust. They assure the developer that the asset will behave in a specific way and describe precisely how it interacts with the asset's basic functions.

ERC721

Proposed by CryptoKitties, ERC721 is the first standard to represent non-homogeneous digital assets. ERC721 is an inheritable smart contract standard, which means that developers can easily import it to create new OpenZeppelin libraries that are consistent with erc721-contracts (we created the first useful tutorial for ERC721 contracts here). ERC721 is actually quite simple: it provides a mapping from a unique identifier (each identifier represents an asset) to an address that represents the owner of the identifier. ERC721 also provides a licensed way to transfer assets using the transferFrom method.

Interface ERC721 {
function ownerOf(uint256 _tokenId) external view returns (address);
function transferFrom(address _from, address _to, uint256 _tokenId) external payable;
}

If you think about it, these two approaches are really all you need to represent NFT: one is to check who owns what, and the other is to send what. The standard has several other features (some of which are important to the NFT market), and the core of ERC721 is very basic.

ERC1155

ERC1155, pioneered by the team at Enjin, proposes a semi-homogeneous scheme for the NFT world. In ERC1155, the ID does not represent the asset, but the class of the asset. For example, an ID might represent a sword, while a wallet might have 1,000 swords. In this case, the balanceOf method returns the number of swords owned by the wallet, and the user can transfer any number of swords by calling "sword ID" from transferFrom.

interface ERC1155 {
function balanceOf(address _owner, uint256 _id) external view returns (address);
function transferFrom(address _from, address _to, uint256 _id, uint256 quantity) external payable;
}

One advantage of such systems is efficiency: with ERC721, if the user wants to transfer 1,000 swords, they need to modify the state of the smart contract (by calling the transferFrom method) to get 1,000 unique tokens. With ERC1155, the developer only needs to call 1,000 transferFrom and then perform a transfer. Of course, this increase in efficiency comes with a loss of information: we can no longer track the trading history of a single sword.

Also note that ERC1155 provides the superset functionality of ERC721, which means that ERC1155 can be used to build ERC721 assets (you only need to set the ID and quantity for each asset, respectively). Due to these advantages, the ERC1155 standard has been adopted more and more recently.



Analysis of ERC20, ERC721, ERC1155 standards. ERC20 maps the address to the amount, ERC721 maps the unique ID to the owner, and ERC1155 has a nested map that maps the ID to the owner and the quantity.

Composable item

The erc-998 dominated composable item provides a template through which NFT can own non-homogeneous, homogeneous assets. Although only a few NFT combinations are deployed on the main network, we think there are many exciting opportunities to use them!

Crypto cats may have scratching posts and trays, and the dish may have some homogeneous "pig" tokens. If I sell this crypto cat, I'll sell all the relevant assets.

Non-ethereum standard

While ethereum is currently home to most of the business, several other NFT standards have emerged in other business chains. DGoods is a pioneer of the mythic games team, and has been working to provide feature-rich cross-chain standards since EOS. The Cosmos project is also developing an NFT module, which is available as part of the Cosmos SDK.

Non-homogeneous token metadata

As mentioned above, the ownerOf method provides a way to find the ownerOf the NFT. For example, by looking up ownerOf (1500718) in the CryptoKitties smart contract, we can see that when CryptoKitty#1500718 was written, the ownerOf the CryptoKitty was the account address 0x6452.

OpenSea or cryptokittey.co can be used by accessing their CryptoKitty authentication files.



But how do OpenSea and CryptoKitties determine the appearance of #1500718 CryptoKitty? What is its name and unique properties? That's metadata.

Metadata provides descriptive information about a specific token ID. For CryptoKittty, metadata is cat names, cat pictures, descriptions, and any other attributes (cattributes in CryptoKitties). For things like tickets, metadata can include the date and ticket type of the event, in addition to the name and description. The metadata for the cat above looks like this:

{
"name": "Duke Khanplum",
"image": "https://storage.googleapis.com/ck-kitty-image/0x06012c8cf97bead5deae237070f9587f8e7a266d/1500718.png",
"description": "Heya. My name is Duke Khanplum, but I've always believed I'm King Henry VIII reincarnated."
}

The question is how and where to store this data so that applications focused on NFT can access it.

Up and down the chain

Developers first have to decide whether to represent metadata on or off the chain. That is, do you place metadata directly in a smart contract for tokens, or do you host it separately?

On-link metadata

The benefits of representing metadata in a chain are:
1) it exists permanently with tokens and remains constant throughout the life of any given application;
2) it can be changed according to the logic in the chain. The first point is important if the asset's continuing value far exceeds the value it created in the first place. For example, digital art will continue to exist throughout the age, whether or not the original sites used to create art exist. Therefore, it is important that the lifetime of the token identifier must retain its metadata. Furthermore, the logic on the chain may need to interact with the metadata. For example, for CryptoKitty, its "generation" affects the reproduction rate of CryptoKitty, and all the reproduction happens on the chain (the reproduction rate of high-generation cats is slower). Therefore, logic in a smart contract needs to be able to read metadata in its internal state.

Unchained metadata

Despite these advantages, most projects are off-chain metadata storage conditional on the current storage limitations of the ethereum blockchain. Therefore, the ERC721 standard includes a method called method tokenURI that developers can use to tell applications where to look up metadata for a given project.

function tokenURI(uint256 _tokenId) public view returns (string)
The tokenURI method returns a public URL. A JSON data dictionary similar to the example CryptoKitty dictionary above is then returned. Metadata should be consistent with the official metadata standard for ERC721 for use by applications such as OpenSea. At OpenSea, we want developers to build rich metadata that can be displayed in our marketplace, so we've added extensions to the ERC721 metadata standard to allow developers to include features, animations, and background colors.

Below the chain storage solution

If you want to store metadata off the blockchain, you have two options:

Centralized server

The simplest metadata storage solution is to store it on a central server or cloud storage solution like AWS. Of course, there's a downside to this:

1) developers can change metadata at will

2) metadata may not exist if the project is offline.

To address problem 2, several services (including OpenSea) currently cache metadata on their own servers to ensure that metadata is effectively provided to users even if the original hosting solution fails.

IPFS

More and more developers, especially in the digital arts, are using the interstellar file system (IPFS) to store metadata offline. IPFS is a point-to-point file storage system that allows content to be stored between computers, so files can be copied to many different locations. This ensures that A) the metadata is immutable because it is uniquely addressed by the hash of the file, and B) the data persists over time as long as one node is willing to host it. Now, with services like Pinata, developers can simplify the process (in theory) by dealing with the infrastructure to deploy and manage IPFS nodes and the high-expectation Filecoin network, by adding a layer on top of IPFS to incentivise the nodes to host files.

History of non-homogeneous tokens (2017-2020)

Now that we know what non-homogeneous tokens are and how to construct them, let's take a closer look at how they came about.

-- 0 BC: before CryptoKitties

Experiments in NFT began when colored COINS appeared on the bitcoin network. Rare Pepes (Pepe). Some were sold on eBay and later sold rare Pepes at a live auction in New York.

The first ethereum-based NFT experiment was CryptoPunks, made up of 10,000 unique collectible punks, each with its own unique set of features. Constructed by Larva Labs, CryptoPunks has an on-market chain that can be used with wallets such as MetaMask, thereby reducing entry barriers to interaction with NFT. Today, with a limited and powerful brand to offer early adopters, CryptoPunks is probably the best candidate for true digital antiques. In addition, the punks live on the ethereum network, which allows them to connect with the market and wallets (although they are less of a new asset than earlier ones that used the ERC721 standard).



0 BC: birth of the crypto cat

CryptoKitties is the first project to mainstream NFT. Launched at the ETH Waterloo hackathon in late 2017, CryptoKitties features a primitive chain game that allows users to breed cats together to produce rare and unusual new cats. The generation 0 cat is being sold through a Dutch auction, and the new cats may also be sold on the secondary market.

While some in the gaming community later labeled CryptoKitties "not a real game," the team actually did a lot of work to develop the game mechanics on the chain, given the design limitations of the blockchain. First, they built a chain-breeding algorithm hidden in a closed-source intelligence contract used to determine the cat's genetic code (thus identifying the cat's "category"). The CryptoKitties team even ensured the randomness and predictability of reproduction through a sophisticated incentive system, and these predictive kittens could be retained as tools for future promotions. Eventually, they introduced the Dutch auction contract, which became a major price-discovery mechanism at NFT. The CryptoKitties team was visionary and contributed greatly to the development of NFT space.

We think the reasons for the CryptoKitties' viral outbreak can be summarized as follows:

Speculative mechanics

CryptoKitties's breeding and trading system offers a clear path to profit: buy a few cats, breed them into a rare cat, and repeat (or just buy a rare cat and hope someone buys it). This has led to the development of breeding communities: users dedicated to breeding and breeding rare cats. As soon as a new user comes in and plays the game, the price goes up.

At the height of the frenzy, CryptoKitties was trading at close to 5,000 ETH, while Founder Cat#18 ($110,000) was trading at 253 ETH. Subsequently, Dragon#600 ETH (September 2018) traded for $170,000, offsetting Dragon's trading price, despite many speculations that Dragon trading was illegal. That high price lured more users into the gold rush.

Viral story

CryptoKitties' success lies in its story. CryptoKitties are cute, shareable, and fun, and the idea of paying $1,000 for an encrypted electronic cat is so ridiculous that it's good news. In addition, the fact that eager users of smart contracts "broke ethereum" is a story in itself. Since ethereum can only handle a limited number of transactions at once (about 15 transactions per second), the high network throughput has led to an increase in pending transaction pools and higher fee prices. The average number of transactions processed per day increased from 1,500 to 11,000. New potential cat buyers will have to pay astronomical fees and wait for confirmation.

These factors led to the "CryptoKitty bubble" : new demand entered the CryptoKitty world and rising prices brought new demand. Of course, all bubbles must eventually be eliminated. In early December, the average kitten price began to fall and the number of kittens decreased. Many realized that the CryptoKitties gameplay was very primitive compared to the "real game" and would not attract more speculators. Once the new product disappears, the market will also be affected. Now, the weekly trading volume of CryptoKitties is around 50 ETH.



2018: hype, hot potato games and tier 2

Despite the market downturn, the establishment of CryptoKitties brought a magical moment to many people. For the first time, a team deployed an application based on a non-financial blockchain that has gone mainstream, albeit for only a few weeks. Since CryptoKitties, NFT experienced a second minor hype in early 2018, as investors and entrepreneurs began to think about owning digital assets.



Level 2 games and experiences

During the period after the emergence of CryptoKitties, the game developed by third-party developers on top of CryptoKitties had nothing to do with the original CryptoKitties team. The magic of CryptoKitties is that these experiences can be developed "without hindrance" : developers simply place their own applications on top of the public CryptoKitty smart contract. In a sense, CryptoKitties can have a life beyond the primitive environment. For example, KittyRace allows users to compete with CryptoKitties to win the ETH, while KittyHats allows users to decorate their own CryptoKitties with hats and drawings. Later, by having your CryptoKitties exchange ERC20 tokens with CryptoKitties, various interesting results can be achieved in the CryptoKitty market, allowing the kittens in the CryptoKitty market to interact with DEFI. Dapper Labs, the startup behind CryptoKitties, used these projects to form KittyVerse.



During this time, the "hot potato" game also appeared. If you already know what a "hot potato" game is, you really are NFT OG. In January 2018, a game called CryptoCelebrities was launched. The principle is simple. First, buy collectible celebrity NFT. Immediately the celebrity can buy (or "snatch") a higher price than before. When someone buys your celebrity, you get the difference between your purchase price and the new purchase price (minus the developer's purchase price). As long as someone is willing to buy your celebrity, you will get something. But if you're the last celebrity, you get nothing.

Because of this speculative mechanism, the CryptoCelebrity viral mechanism is so scary that celebrities like Donald trump can be sold for sky-high prices (123 ETH or $137,000). While the CryptoCelebrity game may destroy the entire space, we actually think that exploring pricing and auction mechanisms in the NFT design space is part of the madness.

Interest on venture capital

In early 2018, venture capital and cryptocurrency funds also started to get curious about NFT's space.

CryptoKitties raised $12 million from top investors and another $15 million in November.

RareBits, founded by Farmville's co-founders, raised $6 million in early 2018.

LucidSight, a blockchain game studio, raised $6 million.

Later, Forte and Ripple raised a $100 million blockchain gaming fund. Immutable, the company behind Gods Unchained, raised $15 million, including Naspers Ventures and Galaxy Digital. Mythical Games raised $19 million, by Javelin investment partners Javelin VenturePartners led to the development of EOS flagship brand Blankos Block Party game.

OpenSea has also made a modest seed round of funding and strategic investments to further develop our vision for a universal open market. Thank you very much to all our investors!

2018-2019: back to construction

The NFT project entered the construction phase after a small hype cycle in early 2018. Like the team of AXIe unlimited and neon zones, CryptoKitties later became their starting point and doubled up to build their own core community. NonFungible.com has launched an NFT market tracker that incorporates the term "non-homogenization" as the main term to describe new asset classes.

Digital art
Around this time, the art world began to get excited about NFT. Digital art has proved a perfect fit for irreplaceable currencies. The core elements that make a work of art valuable are the ability to reliably demonstrate ownership and the ability to display it in a place never before seen in the digital world. Excited digital artists began their experiment.

Digital art platforms have also emerged. SuperRare, Known Origin, MakersPlace and Rare Art Labs have all built a platform for publishing and discovering digital Art, while Mintbase and Mintable have built tools designed to make it easy for ordinary people to create their own NFT. Other artists, like JOY and Josie, are using their own wisdom to build true brands for themselves in the space. Cent, a social network with a unique micropayment system, has become a hot topic for sharing and discussing encryption.



Josie's "Tune In", a CryptoArt, was sold on OpenSea for 6 ETH

Traditional IP entry

Following CryptoKitties, traditional IP owners have entered multiple collection Spaces. Major league baseball (MLB) teamed up with Lucid Sight to launch an MLB cryptocurrency in April 2018, mainly for games on the baseball chain. Formula 1 has teamed up with Animoca Brands to launch the F1DeltaTime, a $100,000 race to sell opensea-powered 1-1-1 cars. Star trek launched a series of ships in the Lucid Sight game CryptoSpaceCommanders, which was joined by a number of licensed football trading card companies, including Stryking and SoRare. Recently, PaniniAmerica, one of the largest sellers of physical collectibles, announced the launch of a blockchain-based trading card collection. MotoGP is also working with Animoca on a blockchain game.

Japanese leader

Japanese games pioneered more advanced user models and attracted early players. RPG MyCryptoHeroes, a complex economy in the game, and continues the DappRadar ranking. MyCryptoHeroes was one of the first games to combine on-chain ownership with more complex off-chain activity. Players can use their heroes in the game and move them to ethereum when they want to sell them on the secondary market.

Here are some of the "secrets" to why my cryptographic hero is selling so much on OpenSea.
"The key word"

-- Michael Arnold | akzent.eth (@marnold_mch) November 15, 2019

Virtual world expansion

Launched NFT in the new blockchain virtual world to acquire global land ownership and assets. Decentraland has raised $25 million for ms tokens, ICO, and start in virtual reality space sold at $10 million. In 2018, most of the time, LAND NFT Decentraland volume NFT volume is bigger than others. Decentraland project now have an open Beta, it has quite a good early experience, such as BattleRacers, a racing game can be run on a global scale.

Another virtual world project, Cryptovoxels, takes a more streamlined approach. In mid-2018, CryptoVoxels launched with a very simple webVR experience and was led by a developer, gradually expanding its business, but being careful not to sell more land than needed. Today, trading volume of CryptoVoxels exceeds 1,700 ETH, and land prices are rising steadily.



CryptoVoxels (and Decentraland) is the most exciting elements to show the world the ability of NFT. Collectors have created a CryptoKitty museum, a cyberpunk gallery, an NFT advent calendar, a tower with NFT's top items, and a virtual store where wearables can be bought. The CrypoVoxels environment has grown rapidly among digital artists, especially Cent's users, as a new content platform for encrypted people. Some artists even use Roll as an app to set up their own currency, or "social currency," which can easily deploy new ERC20 tokens and sell art in social currency.

Other virtual world projects have been launched, including works by second life creators such as Somnium Space and HighFidelity. Sandbox recently sold land similar to Roblox's universe in an effort to improve the capabilities of builders and content creators. This is one of the most anticipated blockchain games.

Trading card game

From the start, card games were a good place to play NFT. A physical card game like magic is more than just a game. It is a monolithic economy with dozens of partner sites and markets for buying, selling, exchanging and exchanging. In theory, like hearthstone legend, Magic's digital equivalent could establish an in-game market for their CARDS, but such efforts would be cumbersome and not necessarily consistent with the business model of selling new products. Blockchain provides instant secondary markets that can run outside of the game.

@blizzard_ent has just banned @blitz chunghs and stripped him of his hearthstone bonus because they care more about money than freedom. We will pay for all his lost prize money and a ticket to a $500,000 tournament: no player should be punished for his beliefs.

The GodsUnchained team "locked" the card for a long time (allowing it to deviate from the core functionality of the ERC721) before the game was released. During this period, third-party marketplaces allow users to sell CARDS, but because they are not transferable, they cannot actually purchase them. When the card was unlocked in November, the GodsUnchained trading market suddenly opened up, generating more than $1.3 million in secondary trading.

Other card games are quietly building up dedicated adherents. Chando leader Skyweaver raised $3.75 million in seed funding from Initialized and released its public beta, Epics became the first blockchain-based collectible electronic trading card, and CryptoSpells was the leader in Japanese card trading games.

Decentralized domain name services

NFT's third "asset class" (after games and digital art) is a domain name service similar to the ".com "domain, but based on decentralised technology. The Ethereum Name Service, launched in May 2017 and funded by the Ethereum Foundation, locks 170,000 ETH by Name between 2017 and 2018 (the successful bid is locked into the contract as long as the bidder owns the domain Name). In May 2019, the team upgraded the ENS smart contract to erc721-compatible, which means names can be traded locally in the open NFT market.

Due to standardization (more standardization this year) More interoperability -> More network effects)
Many of the best projects are growing this year. The best example is that @ensdomains is compatible with ERC721, so they can use the @opensea auction name in pic.twitter's fourth quarter. Com/mN1K8FuEJn

-brian Flynn (@flynnjamm) December 31, 2019

Unstoppable Domains has recently introduced A decentralized domain name system, the system with the support of venture capital, from Draper Associates and Boost VC raised $4 million for A round of funding. UnstoppableDomains was originally set up in Zilliqa block chain, recently released as ERC721 assets. Crypto.

Other experiments

While most of NFT's experiments are done in collectibles and games, other use cases are being added. Nft.nyc and Token Summit both sell their event tickets at NFTs and coin.kred prices. The Cored Kred team released "NFT gift bags" for the event. Binance recently launched a holiday book, and Microsoft has released Azure Heroes for Azure ecosystem contributors.

CryptoStamps (a project of the Austrian postal service) allows people who buy real postal services and physical stamps to receive special QR codes so they can access the private keys of rare random "encrypted stamps" that can be sold on OpenSea. The project is particularly interesting because it links the scarcity of digital assets to useful physical assets and appeals to the existing community of collectors.

DapperLabs, the founder of CryptoKitties, offers a game-style game called CheezeWizards. Interestingly, due to an initial error in the smart contract, the fork in the game led to the emergence of "unpasteurized" and "pasteurized" wizards. The project is a complex chain game that emphasizes the need for NFT metadata, contract upgradability, and ensuring that auction capabilities are properly updated to achieve more standardization as core attributes of items change.

Casualties and resuscitation

Not that there have been no casualties over the years. Today, almost all of the early 2018 hot potato games are dead (though OpenSea still has assets to show for it). Interestingly, some of these projects were brought back to life by community members. Whether or not CryptoAssault and Etheremon (now Ethermon) were restored. Attempts to revive CryptoCelebrities through celebrity reproduction games have not yet failed.


The symbolic myth of non-homogeneous tokens

Now that we've given you a broad overview, let's talk about misunderstandings.

Scarcity alone can drive demand

In the early days of the non-homogeneous token ecosystem, it was believed that users cared about the provable scarcity of NFT and were eager to buy NFT simply because they were in the blockchain. Instead, we believe that demand is driven by more traditional forces: utility and source.

The utility is obvious: I'm willing to buy a ticket to NFT because it allows me to attend conferences, and if I can present it in a virtual world, I'd rather buy a piece of art, and I'd be willing to buy an item if it gives me special abilities in the game. The origin of the concept encapsulates the story behind NFT. Where does it come from? Who has? As space technology matures, interesting NFT stories become more complex and begin to have a meaningful impact on token values.

Smart contracts mean assets will always exist

It is also believed that assets can be made permanent only through the deployment of smart contracts. This ignores the fact that there are other entities (websites, mobile applications) that act as portals for ordinary users to interact with these applications. If these portals fail, the value of the assets is greatly reduced. Of course, it is possible to deploy decentralized applications in a fully distributed "unstoppable" way in the future, but for now, we are in a mixed world.

Removing blockchain will solve all our problems

In 2018 and 2019, some projects adopted a "blockchain abstraction" approach to hide all NFT mechanisms from users, providing username and password authentication for managed wallets. This is an interesting approach because it provides a simplified entry experience like a centralized application. The problem is that interoperability with the NFT ecosystem has been lost. We find that projects entering the existing NFT ecosystem may sacrifice usability in the short term, which is more attractive to current early adopters.

The market for non-homogeneous tokens

Current market size

With spot asset prices low, the market for non-homogeneous assets remains small and harder to measure than the cryptocurrency market. For this analysis, we focus on secondary volume (that is, peer sales of non-homogeneous assets) as an indicator of market size. Based on this indicator, we estimate the current monthly turnover in the secondary market at around $20 million to $3 million. Turnover of the following items in the past six months:

Market growth

The number of users interacting with NFT is determined by sending, bidding, buying, or selling. The market has seen the first signs of steady growth.

After the CryptoKitties bubble in late 2018, the number of independent accounts interacting with NFT increased from about 8,500 in February 2018 to more than 20,000 in December 2019. The market seems to be power users driven by the following core groups. On OpenSea, for example, a mid-range seller sold $71.96 worth of stuff and an average selling price of $1,178, which means there are a lot of sellers. Note that large accounts like official game accounts do increase game averages. The average OpenSea purchase was $943.81, with a median purchase of $42.72.

Given that it is too early, the best way to measure market growth may be to look at the leading indicator: developers' interest in the sector. Last year, the number of contracts for major networks ERC721 doubled as new developers entered the field, reaching 1,000 by June 2019.



statistics
Weekly number of purchasers (estimated) 1,500
Weekly purchases (estimated) 18,000
Average number of purchases per user (estimated value) 12

Sales mechanism

Currently, NFT is mainly sold in the dispersed ETH market. Surprisingly, stable currencies like DAI or USDC rarely trade, probably because of the friction of acquiring them. Dutch auctions and fixed-price sales are usually used for low-priced items, while English (eba-style) auctions are for big-ticket items, such as Gods Unchained CARDS or legends. Bundling is also a very popular way of selling, and the percentage steadily rose to 20 percent in December.

NFT distribution

One might ask: what is the overlap between the various NFT projects? Is the community around the project relatively isolated (" GU "players can only play" GU "games), or is there too much overlap between communities? Is it possible for CryptoKitties enthusiasts to own the ENS domain name and participate in the digital art ecosystem?

If you can see this, we congratulate you! We hope you learn a lot from the fun, weird world of NFT and will be inspired to research projects and even build your own. In the next article, we will discuss the future of NFT and make a series of predictions for the next few years. Subscribe to us for more updates!

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Fortnite is the world's most popular escape game, and on July 27, 2019, Fortnite celebrated its second birthday with a lavish celebration, aptly called the first World Cup, and millions of dollars (in part more than $30 million) in prize money. Kyle "Bugha" Giersdorf,16, of Pottsgrove, pa., won $3 million to become Fortnite's first World Cup champion.

November 19, 2018 Opensea supports the use of Dai to auction and bid for NFT

OpenZeppelin: github.com/OpenZeppelin

EOS of NFT standard game mythical games

Cosmos NFT Module
https://github.com/cosmos/cosmos-sdk/issues/4046

https://github.com/ethereum/EIPs/blob/master/EIPS/eip-721.md ERC721 metadata standards

Simply use the IPFS method https://pinata.cloud/

Colored COINS: used to represent and manage the currency block above the chain method of real world assets at https://en.bitcoin.it/wiki/Colored_Coins

The frog character Pepe, http://rarepepedirectory.com/

Dragon, worth 600 ETH, about $170,000



Ethereum domain name service https://ens.domains

Unstoppable Domains https://unstoppabledomains.com

Lao lu's block chain notes Luyaoyuan111

Warning: the general public should be vigilant against illegal fund-raising and fraud in the blockchain as a gimmick, improve risk awareness and discrimination ability, do not blindly follow the investment, rational view of the blockchain technology and the ground application, this article is not as any investment advice and reference.

Source:weixin.qq.com

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