The Non-Fungible Tokens (NFT) industry has recently attracted a lot of attention. But what is the purpose of this industry? For most of 2020, decentralized finance (DFA) has been the focus of public attention in the digital currency community. This has increased the likelihood of the start of a new season for Altcoins, and many believe that in the next 3 to 10 years, the Defy domain will be widely accepted. However, other areas have also been considered in the digital currency space.
One of the most prominent parts of the industry, which has recently gained considerable fame and popularity, is the part related to unparalleled tokens. A proxy token is a tokenized version of a digital or non-digital asset. In this article from “Digital Currency”, using an essay From the Quintel Telegraph website, we explore the industry of unique tokens and their impact on the future of digital assets.
Non-recurring tokens have the same function as stable coins, but instead of fiat currency, they represent non-recurring assets, such as works of art, real estate or collectibles.
A unique token, or NFT, is a rare and unique digital asset on the Blockchain. Computer game items, collectibles, digital artwork, tickets to various events, domain letters, a house that is a token and can be considered as a non-token.
One of the most popular uses of proverbial tokens is in virtual games, such as CryptoKitties and Decentraland.
This type of token and related projects have been steadily increasing and expanding this year, especially in recent months. According to the data platform NonFungible.com, in the first week of September (September 11 to 17), the sale of non-proxy tokens reached about one million dollars, and during the first week of October (October 10-16), the amount of non-proxy tokens traded up to $ 2 million. Development.
Following in the footsteps of Difai, projects in the world of non-recurring tokens have also started offering their Governance token; An action that could contribute to the industry’s reputation, as well as the impact it had on increasing defenses in terms of liquidity. Using surveillance tokens, token holders can play a key role in platform decisions by voting. Ilya Abugov, project manager at the DappRadar platform, said in an interview:
Nowadays, proverbial tokens are making a lot of noise. To some extent, it can be considered as a consequence of the excitement and madness of the field of defense. We have seen in Defai that if a process starts, it will continue to produce a snowball effect, that is, it will gradually grow and get bigger. In the field of defense, the compound platform first launched its surveillance token, which was one of the main drivers for the introduction of surveillance tokens by other projects. Rarible is now the first project to offer its surveillance token in the non-replica tokens market, and other projects may be eager to distribute their tokens.
How do proverbial tokens work?
In addition to the boom and bust of projects in the field, unparalleled tokens have been accompanied by record-breaking sales, including the sale of a $ 130,000 work of art depicting the Bitcoin code. These factors have led to the entry of celebrities into the realm of unparalleled tokens, which has attracted a lot of attention. For example, American model and actress Paris Hilton sold a digital painting of a cat for 40 ethers in August. At the time, that was $ 17,000. But what exactly are proverbial tokens and why are they so appealing?
As mentioned earlier, non-recurring tokens represent irreplaceable assets. In appearance, proverbial tokens are similar to other tokens. However, these tokens are indivisible unlike their counterparts, meaning that sending a fraction of a non-static token is not possible for non-static tokens as it is for digital currencies such as Bitcoin. You can send, for example, 0.001 bitcoins, but the token token is only transmitted as a whole unit. In addition, these tokens have unique features that distinguish them from other types of tokens and even from each other.
Unparalleled tokens can be used to represent a variety of assets, including virtual collectibles, video game items, digital artwork, event tickets, real estate and other tradable assets. This provides a wide range of possibilities for real and digital assets, including easy transfers and proof of ownership. In addition, proverbial tokens can help solve many common problems in different industries. Abugov stated:
Artwork and collectibles are the easiest to use for small users, and any area that has been newsworthy for a while will get more attention. If we see an exciting game launch and more artists enter the ecosystem, this trend could be more widely welcomed. However, proverbial tokens have more uses, from tokenizing assets to documenting.
Works of art in the form of unparalleled tokens
To date, proverbial tokens have had the most popular uses in the art world. The number of digital art auctions that are boosting the popularity of unique tokens technology is growing. The first record sales at the auction of the most valuable piece of art related to the Unparalleled Token occurred in July, when Picasso’s Bull was purchased for more than $ 55,000. After that, a bitcoin-based artwork called “Right Place & Right Time” sold for more than $ 100,000 through the Async Art platform. The record was subsequently broken on October 7, when a bitcoin-inspired collection called “Portraits of a Mind” sold for more than $ 130,000 at the Christie’s auction house. Christie’s) sold out.
In addition, proverbial tokens can help artists such as musicians and filmmakers to record their work and protect it from copyright infringement. These projects can even improve artists’ income and make it easier to earn by creating a direct connection between artists and customers through blockchain-based payment and exchange solutions. Vasja Veber is the co-founder and CEO of Viberate Business Development, a company that uses blockchain technology to help artists, including copyright holders. Weber stated in an interview:
Unparalleled tokens can calm and regulate this chaos. Currently, the most obvious use of these tokens is to pursue copyright. Music pieces generate several streams of income for the artist; Copyright, royalties, ancillary rights, synchronization revenue, sales, etc. For older artists, there are usually many intermediaries, each pursuing their own interests. Copyright protection is a complex process and at every stage a lot of money is spent that never reaches the original owner.
Games enter a new stage
Thanks to the unique tokens in the near future you can trade your clothes (weapons) and special weapons in exchange offices for real money.
Unparalleled tokens are also very popular in the gaming industry. By using this technology and tokenizing in-game items, the exchange and transfer of these items can be facilitated. For example, unique tokens can be used as in-game items as payment currencies and can be transferred or exchanged without the need to trust the seller / buyer or a third party. This technology can also be integrated with existing games or used to create completely new games.
Unparalleled tokens not only enhance the gaming experience and make it more tangible and engaging, but also create a new economic system in the gaming world that allows players to make real money from the time they spend playing. This feature also allows developers to create new incentive systems for their games.
Currently, there are several popular blockchain-based games. However, many projects use unique tokens to provide basic services to players, game developers, and other industry participants. This includes the Blockchain company Enjin, which recently partnered with the Coincheck exchange to import unparalleled tokens to some Minecraft video game servers. “Simon Kertonegoro, senior vice president of marketing at the engine company, explained in an interview:
We have recently seen the impact of Blockchain markets on games, and we expect more opportunities for unparalleled tokens to be provided so that game developers, publishers and players can create more value together. Placing assets on the Blockchaink, allowing players to trade assets, and being able to prove their scarcity is an efficient way to build a valuable large-scale economy.
The arrival of collectibles in the virtual world
Collectibles are currently the most popular use of non-recurring tokens in terms of sales volume, accounting for approximately 40% of September sales from collectible-related projects. In 2017, the game Cryptocurrency, whose users collected and raised digital cats, became one of the hottest topics in the digital currency industry, and the game is still one of the largest projects of unparalleled tokens in terms of sales volume.
Of course, the use of these tokens does not end there, because the technology of unique tokens can be used to create tokenized versions of athletes and celebrities, real estate and virtual fields, and more. In the first week of October (the second week of October), the Sorare fantasy football game sold more than $ 220,000. This decentralized app allows players to manage their team while also accumulating a “limited set of digital collectible assets.”
The popularity of unparalleled tokens in sports is growing every day, and this increase is not limited to online games. In February, some members of the NBA (National Basketball League) and NFL (US National Football League) spoke at the most important annual tokens event ever, NFT.NYC; Both sports leagues have expressed interest in cooperating with the technology of unparalleled tokens and exploring its benefits.
Alternative tokens can also be used to tokenize real and collectible assets such as cards, coins and stamps in order to record the immutable ownership of these objects. In this way, the storage and transfer of tokenized collection assets becomes safe and easy, and it is impossible to copy and copy fraudulently.
The future of unparalleled tokens
The above examples are some of the most popular applications for non-parable tokens, but the possibilities in this area can be considered almost endless. According to data from the Italian blockchain company LKS, unique tokens can be used to tokenize domain names and even to counter fake news.
Record-breaking sales of unique tokens have also helped advance the technology, especially since investment companies such as Morgan Creek entered the field. Similar to what happened in the defense section, new surveillance tokens can increase the interest and attention to the field of non-parable tokens.
However, the path may not be clear for projects involving proxy tokens. In the future, there is a possibility of legal obstacles and some problems, before the readiness to welcome the general audience and public acceptance. Abugov explained:
Although activity in this area has increased slightly, it is not yet ready for public acceptance in terms of experience and user interface (UX / UI). In addition, non-unique tokens inherit all the common problems of blockchain-based projects and some of the industry’s ongoing challenges. For example, the liquidity of the market for works of art and collectibles is not very high. After the yield farming subsides, digital currency industry artwork may face a similar challenge.