Beeple’s digital visual work “Everydays: The First 5000 Days” was sold at Christie’s for $69.35 million in NFT mode, making NFT completely popular. What exactly is NFT? Why can a digital work be sold at such a high price? In the 48th issue of the online open class of Wanxiang Blockchain Honeycomb Academy, Dashuo, the chief researcher of DAOSquare, was invited to the live broadcast room to “decrypt” NFTs and games in the encrypted world.
The following is the full text shared by Dashuo:
Thank you for your participation today. The topic I want to share today is related to NFT. Recently, NFT has become more popular, and it has really entered everyone’s field of vision. It has really brought hope to make the whole industry more sustainable. We have Something to expect. Today’s sub-theme is “From fragmented time to fragmented value”.
The mobile Internet started in 2010. After the mobile Internet iPhone came out, we experienced the changes in the mobile era, a state of fragmented time. Reading, knowledge acquisition, games, entertainment, videos, etc. can be used to obtain information and experience through mobile phones anytime and anywhere. If we go back 20 or 30 years, we will think that this is the state of science fiction. This era allows us to connect to some information anytime and anywhere, but large giant companies have captured value. Many applications like Facebook, WeChat, Twitter, etc., pay attention Focusing on the above has produced tremendous value, but also created a situation of “data islands”. In different applications, it is difficult to combine to create things.
Blockchain and Web3.0 bring fragmented value, which is mainly reflected in the NFT, and of course it will also be reflected in the Token, making it easier for us to capture the subtle value. Homogeneous Token allows us to capture the smallest value unit of 0.000. NFT is just the opposite. When a value is fixed, an NFT is an NFT, which is the only scarce and independent. How do you think about scarcity? This is a subjective matter.
The Internet age has brought a wealth of network resources, allowing us to see a large number of texts, pictures, sounds, videos, and games. These things constitute the so-called media. The media can make us feel an unprecedented experience and make us feel alive. In the digital age and digital space.
But the biggest change in the blockchain is to confirm the rights of these things. After the rights are confirmed, they become assets. Once it becomes an asset, there will be automatic value capture after it becomes an NFT.
From fragmented time to fragmented value, it has completely changed the profit model of the Internet. Instead of relying solely on advertising, let some agents and large technology companies help us sell attention and value on behalf of us, and we have the opportunity and own The property rights of digital assets can be realized directly without relying on the platform.
At the same time, the community can be involved in the process to share a part of the value, and the community can also be involved in the creation, making things more valuable, and allowing the community and content creators to have a richer experience. The more important thing is to achieve creativity. Any economy from trough to peak is driven by innovation. Now we are in an era of economic recession and we need something new.
The United States has needed new technology for decades to promote this matter. At this point in time, the integration of blockchain and Web3.0 constitutes the early stage of a new creative explosion. At this stage, a lot of infrastructure services need to be created. Because of these, the next 20 to 30 years will focus on this theme for greater value prosperity.
NFT is actually “Media Lego”. This is the view I got from other people, which is very enlightening. NFTs can be regarded as pictures, sounds, and videos. These are the key elements that constitute the media. These are combined into articles and things like tangrams. For example, when you see a lot of pictures, sounds, and code written by programmers in the game, what you put together is the complete experience of the game.
The Internet provides a “information doll”, which puts a lot of information on it, but blockchain and NFT appear without any change, which can turn the page without any change into a carrier that can transmit value. After becoming a “NFT doll”, magical changes will occur, and magical changes will generate more value.
The founder of Twitter, Jack, sent a Weibo when he first created Twitter, which may be generated when it is cast into NFT through the tools of Web3.0. In the era of the information Internet, this passage has produced value out of thin air. A simple expression that occupies dozens of bytes, the information Internet can only reach this point.
In 2018, I talked about the Internet of Value, and everyone was touting the concept, but in fact these were not realized. Today, these things are really reflected in the form of NFT. You do see someone taking pictures. For what purpose, let’s not talk about it. But someone is indeed bidding for this thing. The moment he clicks the “Confirm” button, he will After receiving the money, the things belonged to another person, and this magical event happened.
This form allows us to see the value of community evaluation. Who is the community? The community is Jack’s fans. All those who know him constitute his community. It is fairer and more transparent for them to evaluate the value. Why do they take part in the filming? You can get value through things, whether he wants to collect or create something through it, he used to do marketing through news events, creating conditions invisibly. You can think of Jack as an ordinary content creator. The value of this tweet is composed of historical factors and subjectivity.
Media with independent property rights can match the above matters. If there is no independent property rights, the Twitter account may have some problems at any time. It may be blocked or in various situations, or may be lost, and it will be gone after 20 years. Media with independent property rights may achieve long-term storage of more value.
Recently, a lot of people in the application circle are more excited, it is Mirror.xyz, Mirror is for content, also called “mirror”. Why do people like to use mirrors? It is because we have upgraded to a new dimension, but this dimension has not changed the essence. The content is still content, pictures or pictures, but it is indeed because of the existence of NFT and value network, because of the confirmation of the storage and confirmation of the foundation of the blockchain. Can make something truly valuable.
This website is stored on the decentralized storage project permanently stored by ARWEAVE, but the rights are confirmed through the Ethereum wallet address to ensure that this article is published by me. This has introduced the concept of DID, where decentralized identities are represented by Ethereum addresses, and digital signatures can be generated.
In the end, it is hoped that a large amount of NFT, a large amount of content, a large amount of Token, etc. form a composable network. The composability of NFT is because the rights are confirmed and there is ownership. Jesse posted a tweet which is very interesting and inspiring to me. He thinks that NFT is a new file format, but it cannot be copied or pasted. Isn’t it just a picture? You can copy and paste at will, but you can’t actually do it. You copy and paste the picture, but you still don’t have the ownership. When this picture generates value, when it is combined by others, you do not have this right.
We need illustrations to write an article. It is very important that you quote other people’s pirated pictures and genuine pictures. It may increase your weight. When your content is shown to others, more people may see that you use pirated pictures. , Then your reputation will be affected, and the details will restrict us in the new copyright era after the confirmation of the rights.
Unlock unlocking agreement, you need to look at the content of the paywall, and the publisher wants you to pay and then watch it, you need to use the Unlock agreement. The agreement is very simple, to provide you with NFT.
Previously, the online version of “Forbes” magazine did a cooperation. You can buy a one-week subscription at least. After you buy a subscription, you can get the NFT. You can see the full version at any time when you open the website with the NFT, and there will be no pop-up ads. Ads removed.
When I experienced it last year, I was taken aback. I didn’t even register, and I didn’t even log in. I just installed the Metamask little fox wallet on the browser, and it accomplished one thing. This thing is great, I hope it’s better. See more applications without me registering an account. Because I already have the key, my key is an Ethereum account or another blockchain account. The private key has proved that I am me, and my NFT is put in the wallet to prove that I bought it. This thing is very magical. .
In the future, NFT will bring us such a situation, we have the universe in our wallet. I think there will be thousands or tens of thousands of NFTs in the wallet. Everything you have done may be cast into NFTs. In the future, Ethereum will not be as congested as it is now.
I bought a one-week subscription to “Fox” magazine before. Some wallets will show it, and some wallets will not show it. Why? Because it has expired, the wallet will no longer be displayed after it expires. There are also other subscriptions generated by the Unlock protocol. These subscriptions are in the wallet and will not disappear in the wallet. They are only displayed or not displayed, but historical things constitute my identity.
Other things like ENS and Ethereum domain names have also been made into NFTs. I can transfer the NFT to others at will, which is equivalent to transferring the ownership. The right to use is separated, and the right to use can be leased to others. This form makes us feel a very combinable state. There is also the CryptoKitties encrypted cat, which was held before, and then disappeared without holding it.
When talking about NFT, I draw some artworks in my mind, because the topics discussed recently are basically artworks, game characters and props. But when talking about copyright, it is easier to think of the copyright of an artwork or a picture. Copyright issues are divided into ownership and use rights, which is the ENS domain name just mentioned.
I want to talk about another problem. When we make something as an orphan product owned by the community, for example, we build a community, like Elon Musk issuing NFT or tokens, then the holders of the tokens will manage the copyright. The issue of infringement will help you manage this matter. If someone does infringement, he will influence it. If you make an NFT, others will know where to verify this, and there will be no copyright issues.
Membership allows us to have a closer relationship with the community. If you build a closer relationship with the community, you can share more interesting topics that are not suitable for sharing on a large scale. These are some of the features that content creators want to see, and YouTube There are also such functions on the Internet. There are communities and members to watch updated content or other things, which can make content creators realize.
Monetizing them can bring great benefits. It can allow the money originally circulating on the Internet to enter the Web3 field and the blockchain field, and it can allow us to see the real value generated from the foundation, demand, and supply side in the Web3 field. .
You can distribute souvenirs to the community, such as T-shirts and other peripherals, which can be used by content creators. Although it can be achieved through the Internet now, I think that things can be made better through blockchain, Web3, and NFT without being charged such high taxes.
Speaking of NFT, I also want to talk about something that already exists on the Internet—community collaborative creation (distributed creation). SCP is a big event in IP creation that belongs to subculture. After more than ten years of development, the community has developed more than 5,000 A story, more than 5000 virtual characters, virtual characters have stories, and some will be accompanied by pictures. Heroes like Marvel are large-scale IPs that are very valuable. Movies made every year generate billions of dollars in revenue. However, in the future, I hope that the community will create more IPs so that more small IPs will generate value in the long tail market. Pictures can be made into NFT, stories can also be made into NFT, big things can generate value through NFT, so that the entire community can participate in the creation, and participation can be more clearly determined.
It turns out that after a period of time in distributed collaboration, there is no way to confirm the ownership of things, but the blockchain will not. The blockchain has memory. Some people have said that the Internet has memories, but in fact there is no memory, and anything may be lost at any time. The blockchain has memories and will never be lost.
The Internet of Information cannot make IP assets directly monetized. It always finds partners or other things, but the Internet of Value can make things monetize directly. If you like the author of online novels, you can pay directly to him without using a platform. He can transfer money, and the blockchain network will not restrict you from any operations. If there are many people who can paint and like online novels, they can also paint some paintings and participate in community contributions.
Two forms have emerged in the NFT field:
(1) Native. Native has no elements before, but it appears in the blockchain field. CryptoPunks is the earliest native collection, which is in line with the preferences of investors and participants in the blockchain field. Many of their idols are technology enthusiasts and believers of CypherPunks. They will definitely like CryptoPunks elements and get very much recognition.
(2) Non-native, that is, the popular NBA TOP SHOT, which is very out of the circle and has already made many basketball fans particularly excited. Sports events are to excite you, let you release pressure, and let you participate in the event and the whole event wholeheartedly. Originally this thing would sell some peripherals, like basketballs, clothing and many other authorized things. Is there any problem with one more digital asset now? Many people will oppose this matter, but I think there is no problem at all. As long as the design is exquisite, it makes you happy, and makes you feel that getting a good experience must be valuable.
At the same time, a kind of artificial scarcity can be created, and the process of competition is also an experience. You will see many such things in the digital world and the digital age. In many cases, there will be some prejudices, thinking that the physical things will have collection value, but the virtual things are not. In fact, there is no essential difference between virtual things and real things. They are all experience-based things.
NFT allows us to truly participate in these things. For example, now some football clubs have also issued tokens. At the same time, some people in the community are doing something like this, putting the club’s cards into it and making an NFT. Even the packaging is very interesting, simulating the collection of cards in reality.
I saw a lot of kids playing some Ultraman cards and blind boxes, because we hadn’t fully accepted the pure virtual ones at an earlier stage. They could be designed to be very similar to the original ones, with outer packaging, and very 3D rendering. Exquisite and very real, I can hardly feel that this thing is virtual. It seems to be a golden card when formed in my mind. It seems that there is no essential difference. You will gradually feel that this thing really has no essential difference. These things may be an experience. , Experience is that you are expressing love and enthusiasm. When you express enthusiasm, it can release pressure and make you happy.
Today, I will talk about which things will be more recognized. It may be some of the more critical elements. Elements can bring us a great impact and make it easier for us to think of. For example, what do you think is valuable? You must be the first to think of which of the series of CryptoPunks will impress you, and you might like to collect it. For example, holding a pipe, wearing sunglasses, taking a cigarette, and wearing some weird various hats, some weird hairstyles, there will be key elements (accessories), and the story will reflect different values.
Historical status and time cannot be copied. When you were born, these things will give you something unique.
CryptoKitties is known to all participants in the industry. It brought the earliest congestion to Ethereum, and it brought the congestion at the application level. Then it was DeFi, and the first congestion was CryptoKitties. Every congestion is the future, and every congestion may represent some very valuable points in the future.
At present, there are still very few that can truly be called encrypted artworks. Beeple’s works are generally recognized as good. Indeed, the auction prices in the secondary market and primary market are also very high. The average price of each of his works is more than 100,000 US dollars, and it has recently increased because he is very Scarce.
The Internet has brought you very bad things. The giants only have the first place, no second, no third, and the second place will basically not be paid attention to. We have indeed seen many oligarchs exist, in every field. Many oligarchs, in the end, other entrepreneurs can no longer survive because of this incident.
Encrypted artworks and artworks must be terrible in the Internet age, so many artists on Twitter are opposed to this. On the one hand, they feel that it does not respect art. On the other hand, everyone still feels this kind of crisis subconsciously. Why do we need second if we have the first? Many ordinary people say that as long as the first is good, if it is good, buy it, and buy the best.
In fact, everyone does not have a particularly deep pattern and accomplishments in artworks. Many people, including myself, do not understand many artworks. But I think these of Beeple are okay. At least it gives you a grand world view and gives you imagination, and it does cater to the preferences of all participants in the blockchain industry, may like technology, may like space, May like many things.
Let’s talk about a surrounding NFT project. It’s more fun. It will be the concept of a flea market. At the beginning, there are 1000 card slots, and you can put anything in it. When you take it out, you take out 1 Token, and it’s empty at the beginning. If you don’t have 1,000 pictures when you put it in, you will get a voucher (1 Token) when you put it in, and you can take out the consumption slip when you want to take it out. In this way, it is equivalent to constantly shopping for things from the agreement and public goods, because it is optional, and you can find out whichever you like. But which of these is a work of art? I don’t know who the author is, and I don’t know whether this thing is valuable. I can only rely on my own preferences. It is difficult to answer which is a work of art.
One of Beeple’s paintings was called a work of art, and it sold for $6.6 million at a very high price. Is it a work of art? It depends on a lot of subjective factors. To authoritatively decide this matter, it is a work of art. Beeple caters to the culture of the blockchain industry. Beeple caters to everyone’s preferences in mocking Trump. His supporters also expressed enthusiasm, which can be seen from the price.
What’s more interesting is the multi-level dynamic art project, which will change the painting, and even sell some physical frames. A beautiful frame on a screen can be placed at home, and some styles will be changed regularly. This can also encourage creators to collaborate, because this painting was created by many people. There is a main image and other layers, allowing artists to collaborate in creation. I remember that this is a painting completed by more than a dozen artists. It was difficult to complete before. Even after the completion, it was difficult for the artists to negotiate the release of the work. Traditional picture albums are also difficult to collaborate. When picture albums are printed and printed, whose copyright income is? How to jointly manage this copyright income? Because it may be a long-term sale for decades, how to coordinate the long-term distribution? It’s the direct realization that I will talk about later.
In the blockchain field, the income stream can be channeled to different people for a long time through smart contracts, and this can be done through programmable smart contracts, which was impossible in the past.
The Metafactory project is very fun. It produces real things. Clothes, jackets, shoes, and shoes are also NFT. Nike seems to have done this, but they are outside the circle, and Metafactory is equivalent to the original, the original thing gives you a pair of shoes and also made a pair of shoes in the 3D game scene, equivalent to the concept of digital twins. The shoes sold are not cheap, much more expensive than ordinary shoes, but what you may get is a limited edition, NFT multiple experience, so people like to buy. Many things have been sold out, because few.
For niche items, UNISOCKS’s socks should also be mentioned. This pair of socks has been rising, reaching $160,000 at the highest point. I think it’s a bit like totem culture. Our love is manifested in other extended things. We don’t know if there is really value. One day there may be no value, or more value will be discovered in the future. This is The community’s love for this thing shows a kind of value. In fact, it is not an NFT, but everyone thinks it is an NFT because it was delivered one-to-one when the pair of socks was exchanged in history. You have to hold the Token to exchange it. a pair of socks.
NFT is not so limited as to whether it is the carrier of NFT.
Intellectual property rights, when it comes to IT, it is inevitable to encounter who owns the property rights of the pictures, and to whom the copyrights of some other audio and video belong, which involves intellectual property. If the ownership of an IP is community-based, it may need to be implemented using ERC20, and everyone will jointly own an IP and intellectual property rights. NFT721 or NFT1155 and other NFT standards should be used for the transfer of IP use rights. These two are not absolute, they will also be mixed, and ownership will become the only NFT, but this is not conducive to its circulation. Eventually, the NFT can be converted into ERC20, which is convenient for the community to jointly own a picture or other unique asset. , Call it split, cut, shareholding, and shareholding.
With these things, after there are a large number of NFTs on the chain, it is convenient for secondary creation. It is expected that everyone will have thousands of NFTs, which constitute the digital you, your personal preferences and honors.
There is also a topic about games. NFT and games are the most related. We are not familiar with many artworks, but we are very familiar with the equipment and props in many games. The changes to the entire industry will be very big. Now many games can no longer be developed, and they are all remakes.
It is said that a game developed with a centralized development method—Cyberpunk 2077—is not a remake. After it was developed, everyone was very excited and the whole community was very excited, but there were many bugs that made the whole community very annoyed. Compared with Cryptopunks, it is very easy to deliver some of your paintings, but these paintings will continue to be developed in the next few decades, and new scenes will be developed. It is possible that after you use this, someone will take the initiative to help you draw a 3D character, the community Will continue to develop it, just such a pixel painting may continue to develop new things in the future, including the encryption kit mentioned before, we will soon see the 3D version of the encryption kit on Flow.
At the same time, the method of financing was changed. Originally, Kickstarter could only be used to raise funds. After financing, you may be given something to participate in, but you cannot obtain equity in the game. How can the game have equity? Game companies may have equity, but how can games have equity? NFT tokenization can make the game a decentralized thing.
The game change brought about by zero-knowledge proof. Zero-knowledge proof is a change in the rules of the game. You no longer need to rely on a special centralized server. You can do a lot of calculations locally, and then do the proof on the chain, so that we can The scale of the game has expanded. Now when playing any online game, there are only a few thousand or tens of thousands of people online. The only way for a single server. But in the future, we can see a new era of decentralized games where millions or even tens of millions of people are online, where a large number of NFTs will be generated, and a huge amount of value will be generated. The assets generated are what we really strive for and compete for. .
I would prefer a game with a grand world view, which allows you to avoid inflation as much as possible, allows your economy to expand continuously, and allows players to keep coming in, because players must have time to come in, some come in first, and some come in later. Yes, I don’t want a lot of people who come first to prevent those who come later from entering the game world.
To embrace robots, scientists have an absolute advantage in the DeFi world. To prevent scientists from being unable to do so, the tools must be opened to everyone and everyone can become scientists to solve problems.
Some people may want to develop some game scenarios for Cryptopunks. After you have NFT, you can get applications in countless games developed in the future. For example, the 3D version just mentioned, Cyberpunk 2077 will be developed in the future, which is a truly decentralized development method. , The cyberpunk space developed, allows you to really use Cyberpunk for decision-making.
Co-development and land development in DECENTRALAND involve many teams who are constantly building games. Of course, this game is not being played now. But I find some time to allow me to have more NFTs. When 3DNFT can be experienced in the game, there will be a lot of equipment, props, swords, and characters, which may re-exhibit the value in Genesis City.
What are the centralization advantages of centralization, such as high efficiency, but in fact decentralization is highly efficient. Everyone’s ideas can be valued through their own efforts and contributions, without the need for others.
What other value does NFT have? In a game, there are many small pets that can be rented. This pet is very expensive. It may cost several hundred dollars each. You need to get 3 such pets to participate in the game. Many people are unwilling to buy. He feels that it is not worth spending so much money to buy, or there is not so much money, but he wants to play this game. The game can also produce a lot of valuable things to sell, and can make money in the game. And this project is to encourage you to make money in the game and get SLP in the scene of production and battle in the game.
If you want to lease your role, you can get 25% of the income, as if you are renting a house, the monthly rent is 25%, as long as you produce SLP, you can get 25%. This model gave me new hope. The ownership of assets can be leased, which can be regarded as having some leaseable assets on the block, and the assets themselves generate value. Whether it is land, game characters or even equipment, we understand the value of game equipment very well, which can make your game experience better and allow you to show equipment to get some different experiences.
Inheriting consensus and continuing value is reflected in the fact that some people develop Cryptopunks, and some people really play these things with hobbies. But it has a big advantage. After you do NFT, others can provide you with a lot of value, and you don’t need to spend money or do anything. As long as your own work is recognized by everyone, you can. Get such benefits.
To talk about combination and openness, many game companies are not right now and still want to sell props, but in fact, this form is what they benefit the most. Some small studios and organizations develop such games, and many players will because He cites these characters, these characters come to play, no need to promote the game, and no need to use other methods to promote the game, as long as you combine the existing NFT and let its players come and participate, you can actively attract him. .
This is the general content I shared today, thank you everyone!
Author/ Translator: Jamie Kim
Bio: Jamie Kim is a technology journalist. Raised in Hong Kong and always vocal at heart. She aims to share her expertise with the readers at blockreview.net. Kim is a Bitcoin maximalist who believes with unwavering conviction that Bitcoin is the only cryptocurrency – in fact, currency – worth caring about.