What is the internal and external “double drive” that increases the value of NFT | Contribution to Ontology

Current status of NFTs

This time, he contributed an article to Ontology on the theme of “What is the internal and external ‘double drive’ that enhances the value of NFTs?”

Currently, Web3 is entering the “Winter Age”, and Web3-related industries are on the decline across the board. However, in this “depression era”, the development of non-fungible tokens (NFT) has become a “clear stream”.

For example, “Doodles”, which recently completed funding, has a seven-day trading volume of 3,697 ETH and a low of 15 ETH as of June 23, 2022, and has not been affected by the winter season of Web3. It looks like

Relation:NFT company “Doodles” raises 7.8 billion yen from 776 and FTX

In addition, “blue chip NFTs (NFTs with excellent profitability and growth potential)” represented by BAYC have also formed their own subculture, and many investors are “pilgrimage”.

NFT’s masterpiece, BAYC, makes users feel the madness of JPEG worth hundreds of millions of yen, but on the other hand, doubts about ‘NFT’s utility’ are growing.

NFT internal development

Truth be told, these questions are nothing new, and the search for NFT utility has already begun.

It can even be argued that standards such as ERC-1155 were originally developed to give utility to NFTs. For example, GameFi game items can be designed to create multiple weapons of the same type using the ERC-1155 standard.

Not only that, but the development within the NFT never stops. In particular, utility-type NFTs are already in sound development, and you can own NFTs to access specific games, activities, and documents, or purchase artwork NFTs to physically own artworks in real life. Many usage scenes are being explored, such as

Also, as the Soulbound Token (SBT) concept is gradually implemented, NFTs will be able to more securely present a user’s on-chain identity by incorporating the SBT concept.

For example, POAP, an NFTized proof-of-participation badge, allows users to leave their experience on the public chain as a qualification for participating in certain activities and communities. In addition, there is also an NFT distributed ID (DID) with excellent convenience and image performance, and it is possible to realize applications that can be used in many situations based on NFT DID.

Relation:What is the “financialization” of DAOs and decentralized IDs | Contribution to Ontology

Internal use of NFTs currently covers most areas, but innovative technology cannot be confined to a small circle and must cooperate with external resources to form a strong Web3 ecosystem. I know there is. Therefore, the NFT industry is also actively promoting the expansion of the external ecosystem.

External extension of NFT

Currently, the external expansion of NFT is centered on NFT display within social media, such as Twitter Blue’s support for NFT avatar display, and Meta suggesting support for NFT posting and display on Facebook and Instagram.

On the business side, NFTs are increasingly being used for brand publicity, such as luxury brands releasing their own NFTs and popular NFTs being purchased by celebrities and brands for promotion.

External extensions of NFTs are generally focused on attention, and the technology is only ancillary. In other words, the general public does not need to understand the technology or meaning behind NFTs, but they can appeal with visual expressions such as photos and music, topical events, and brand awareness. This form is currently the most acceptable to users outside the ecosystem and is actually increasing new users joining the NFT ecosystem.

summary

NFT is an imaginative and scalable medium and tool. It has already been proven that NFT can be applied to various usage scenarios, and its use is progressing in GameFi, Metaverse, Decentralized Autonomous Organization (DAO), and other Web 3 fields.

NFT has strong scalability and plasticity, so it is expected that usage cases will surely spread in the future with the development of Web3. When the development inside and outside NFT reaches a certain level, the time will come when a new explosion will come as expected.

Relation:Web3 creates an active “expressor economy” | Contribution to Ontology

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