Why have non-homogeneous tokens not yet had a chance to erupt in the crypto world?

Author: Lu distant

Source: Lao Lu's Blockchain Notes

Foreword : 2019 is almost over. Most of the well-known blockchain games this year are TCG (GodsUnchainedCards). These games have attracted more attention and are more exquisite than previous games. With the low frequency of TCG game asset exchanges and the good support of wallet tools, they have all issued their own NFTs as game assets.

• Why is the blockchain industry about to usher in a wave of entrepreneurship?
• On the "chain" real economy, how does Lava do it?
• Bank Blockchain Application and Case Analysis Report: Analysis from Patent Perspective, Screening 7 Application Scenarios

NFT (Non-FungibleToken) Non-homogeneous token, since it is a token, it also has several basic attributes of the token

① name

② Quantity

③ price

Coupled with the unique ④ profile ⑤ picture , it has become the most common NFT, ERC721 standard token. The most popular application at the time was the ether cat CryptoKitties. So far there have been 1,799,991 cats.

Enjin's ERC1155 also defines the combination of NFT, FT, and NFT, which increases the attribute of ⑤ foundry cost , and solves more game scenarios and richer digital assets. It is visually felt that this is the blockchain game I want.

Of course, there are some non-game NFT usage scenarios. Tickets, collectibles, asset mapping, coupons, ad-free vouchers, community symbols, etc. are all examples. You can even use NFT for DEFI and DAO.

Blue Fox Notes (the few teams in the industry that produce high-quality content) wrote an article the day before yesterday, "Why does NFT have a chance to break out in the crypto world?" Today, I will talk about why NFT has not been based on my personal knowledge and experience of NFT. Opportunity breaks out in the crypto world? Discuss the past, present, and future of NFT rationally.

Below, I will personally comment on the four major features listed by Blue Fox. We can even expand the concept of non-homogeneous tokens and discuss digital goods by the way.

• Uniqueness of NFT

NFT is not unique. If it is scarce, it cannot escape market supply and demand. Rare physical goods (AJ, Birkin, etc.) are often very valuable in the second-hand market (goat and stockx footwear collection markets). More premiums, mainly because the market supply is less than demand, the buyer gets a sense of belonging and superiority and social status recognition in social activities.

In fact, NFT can be an extension. Digital game products are scarce. Dota and CS accessories are considered by all players in the game as special. They can only be purchased in special international competitions. The scarcity of these items is important, but it is not important in itself. The important thing is that most players think it is important. It is a wonderful story that the buyer market and the holders believe together.

Because the amount of assets that can be collected in any category is limited, value can be stored and it has value. If there are as many sand grains in the world as there are in the world, and there are no two identical sand grains in the world, each grain is also scarce, because the only logic that is scarce and valuable is not true. In the final analysis, it is still a group consensus .

Therefore, I personally think that NFT does not have any uniqueness. It can be tampered, copied, and replaced. Ordinary game props can, and game assets NFT can also.

NFTs that cannot win favorites over time will tend to zero in the market, because the cost of making them is zero.

• Permanence of NFT

The permanence of NFT is probably inheriting the permanence of ERC20, etc. The tokens minted by the token protocols of all public chains such as ERC20, TRC20, NEP2, BEP2, etc., do exist permanently once they are owned. But do I own an NFT to lie cold in my wallet, or to enjoy the services, practical functions, and value storage brought by NFT?

No one can guarantee the long-term service, just like the permanent free to benign close service promoted by major web disks. Can the blockchain service corresponding to NFT exist forever? The answer must be no, even if you use smart contracts to run on the blockchain and open source it to anyone can set up your service at will (this is my ideal Dapp form), lacking artificial maintenance and updates, keeping up with the times Progressive iterations are gradually being replaced by better similar Dapps on the market.

The objective existence of NFT is permanent, but the moment the service is terminated, the corresponding NFT also becomes crypto junk, a waste product on the chain. I do n’t believe you see the crypto assets corresponding to the blockchain games that have been closed for two years. No DAO).

• NFT ownership

NFT's ownership attribute is also inherited from Token. Don't talk about using it, just talk about ownership, isn't it a rogue. Seats for high-speed trains, airplanes, and concerts can be regarded as one-by-one NFTs. When you purchase these NFTs, you are informed that the number of trips, flights, and concerts have been canceled. Must go to command? The right to use can only be changed through refunds, reissues, etc.

Among them, blockchain games have such a scenario. Why do we use blockchain games, because traditional game accounts are banned and stopped, the game assets are gone, and they can continue to be owned by the blockchain. In fact, this scenario Has been misleading everyone.

Blockchain games are no better than traditional games. MLB Champions ’two-million-dollar NFT disappears out of nowhere. No one has responded to consumer rights. Your game assets will also be banned by the law (code) on the blockchain. Blockchain games will also be stopped and the game assets will become invalid crypto junk. This is the result of one or two points of separation from consensus and services. It's the same, obvious conclusion. Do you expect that the residual data after a game is stopped can form an equivalent consensus when the game is running normally?

Unless added with the good medicine of time, it will become a crypto collection in many years. NFT is that your other people really can't take it, but the corresponding service can be terminated, canceled, and banned to restrict your use, that is, you get my people but can't get my heart.

• NFT Cross-Game Properties

The use of props across games is actually not new. Cross-service use in traditional games can also be regarded as partial use. If you think of Tencent's members, VIP, and QB as NFT, you can indeed use these services for different games. .

Personally, I do not think that the use of certain privileges and props across games can bring about an explosion. Perhaps it is more a fusion of gameplay and ecology. This is more in line with the blockchain. Tokens can be cross-chained. Is NFT cross-chained?

The Crypto Cat has also been combined with DEFI because of liquidity issues.

This is Cryptowedding, two different games of NFT for the wedding, and other NFTs can be invited as witnesses.

The combination of Ethereum and the various gameplays brought by cross-chain and conversion is indeed worth looking forward to, but it is not a revolution.

NFT past, present, future

NFT's past may only be a token model. Tokens in the game are tokens of certain resources. A game has many tokens to represent various resources. Afterwards, NFT experienced many protocol upgrades from ERC721 and expanded to ERC 1155. The display and functionality have brought greater imagination to blockchain games.

The current NFT refers to the definition standards on Ethereum. TRON, COCOS, EOS, COSMOS will also have their own NFT, dgoods standards, etc. Other excellent public chains should gradually improve this puzzle.

The improvement of standards, the opening of the trading market, and the full support of tools have also helped the development of NFT.

What is the existence of the NFT trading market , the following is an incomplete statistical NFT market.

The earliest peak of the NFT market transaction should be when the crypto cat became hot, a few tens of ETH, hundreds of ETH were traded like that. The number of cards traded by GU surged a while ago, and the handling fee brought by the huge market value change gave NFT market confidence.

The current NFT market transaction data can be seen through DappReview . The daily Opensea trading volume on the head is less than 200 ETH. Compared to the entire digital commodity, this is a niche market with opportunities and uncertain factors.

In fact, NFT can be listed on the same exchange as Token. The Coingecko market website is also more concerned that NFT has also issued its own New Year NFT.

The leading exchanges in the industry, Binance, the United States' leading Internet company Microsoft, and Bayern Munich Football Club, all have the support of NFT assets.

The NFT market's recognized standard is Opensea. Many small markets are also re-developed based on its SDK. There are also some differentiated markets that are completely independent of Opensea. The transaction volume of GU cards of Tokentrove was more than ten times that of Opensea. SpiderDEX is also working on the domestic NFT trading market, and believes that the advantages of Spider localization will bring different experiences.

Why hasn't NFT exploded in the crypto world yet?

① NFT is actually not so mysterious, the essence is still token, which corresponds to service

② The big environmental impact of the blockchain industry, the closure of wallets, industry service providers, and exchanges

③ The development degree of blockchain games is limited, and there is no top blockchain game works.

④ The NFT trading market is too small and the transaction scale is small

⑤ Existing NFT standards and markets are controlled by several teams

Remember a FNFT phishing attack on Opensea, the world's largest NFT trading market?

FNFT (Fake Non-FungibleToken), the cause of the matter is this, my friends who follow me know that I have been applying for the commemorative NFT of Binance. Yesterday, Binance issued the fourth and fifth NFT. No, the fourth market price is limited to 250-500 RMB and the fifth one is limited to 100. The market price is 2000-2500 RMB.

I have always had an idea without experimenting, and it is also an experiment that supports my views on NFT features. If I use the same name, profile, and picture to cast the same NFT, do you think my FNFT is equivalent to the copied NFT?

From a technical perspective, physical counterfeiting requires higher material costs and technical costs, while digital commodity counterfeiting only requires the same production process, which is the same as many people use the same name ERC20 Token to go fishing.

First, we created Binance's NFT contract on the Ethereum mainnet. For convenience, we used ERC721 instead of ERC 1155. Create a contract to edit the platform information in Opensea. It is the same as Binance and displayed in the market.

The following are cast for five FNFT, tests.

The following is the genuine Binance NFT

The difference lies in the platform name, logo, picture size, text description and other details. In fact, it can be exactly the same. In order to distinguish, a lowercase b is used.

After clearing these points of attention, next we just need to copy the content of Itam. The total quantity does not matter. You only need to set the item name, profile, and picture to the same, and even the seller name displayed is changed to Binance, and then started to be listed on FNFT.

Test the display on a wallet app, no problem!

After confirming that there is no problem, I began to list prices for the shelves, and even the sixth NFT that was not officially minted by me was created and put on the shelves.

At the on-chain level, the FNFT I created is parallel and conforms to the NFT standard. It can be circulated, but it shows the same.

The current situation is that my FNFT was listed and successfully traded. Although I bought my NFT without knowing it, a consensus was formed after the transaction took place, and there was also a market price.

The final result was that after being reported by Discord, Opensea officially banned the NFT contract, showing 404, and even my account was briefly banned. This result is expected, the ban can only be valid for a single contract, and if the cost is low enough, I can copy a large number of independent FNFT to the Opensea confusion market.

Many people hate Putian fake shoes. One is the quality difference caused by workmanship and materials, but paid the genuine price.

FNFT has the same casting price and quality as NFT. Once it has a permanent existence, it can control and transfer autonomously, and its position on the chain is the same and equal. Why can Opensea subjectively deny my NFT contract to be banned directly, so that our consensus is destroyed by ruthless centralization. Both BTC and ETH can be forked. Why can't NFT as a Token be forked?

Opensea is a decentralized NFT trading market, and it is actually another center. This is the case in the blockchain industry. Decentralized content platforms are also another center.

I heard that Opensea will mark the verified NFT to prevent FNFT from confusing the market. Is there a possibility that the market will appear in the form of DAO + DEX?

Experimental conclusion: FNFT can successfully phish the NFT market without the artificial intervention of Opensea, and it is still feasible in other DEXs.

The market is limited and the number of NFTs is unlimited. The NFT is unique in its owner's consensus and quality service, not in itself. What makes NFT valuable is its valuable description and service content. Scarcity can play a role, but what's more important is the future vision and current usage and consumption.

References:

Why is NFT a chance to break out in the crypto world?

https://mp.weixin.qq.com/s/oNoUrCXXEgeG30aiK00_8g

The reality is cruel-I failed to be the "cat" you like

https://mp.weixin.qq.com/s/W-bCWtdNetTp-vw8VRXc8Q

Two million dollar "NFT" disappears

https://mp.weixin.qq.com/s/Q0HaaNSkybRCEXJJd85MRg

Enjin ERC-1155 and gaming multiverse

https://mp.weixin.qq.com/s/peBAtIAe7YkILT6DaQYVdg

We will continue to update Blocking; if you have any questions or suggestions, please contact us!