The real implementation of encryption in the world is not much. At present, there are mainly bitcoin, stable currency supported by legal currency and Dao of Ethereum (mainly defi). There will be more breakthroughs and exploration in the future. However, from the exploration in the past period of time, DAPP has not found a fit between the product and the market, and more exploration is needed.
In addition to bitcoin, stable coin and defi, NFT is one of the possible breakthroughs in the encryption world. At present, there are not many that fit the blockchain, and NFT is one of them. For what is NFT, please refer to the article “what is non homogeneous token?” before the blue fox notes. NFT is a non-homogeneous token, which means non interchangeable token. One of the goals pursued by ordinary cryptocurrencies is interchangeability, such as bitcoin. Interchangeability is an important attribute of currency. Without this, a commodity will not become currency. Although NFT is nominally called a token, it is not a currency in essence, but a unique asset expressed in tokens. The reason why it is expressed in tokens is to take advantage of the unique attributes of blockchain.
Why does NFT have the opportunity to make a breakthrough in the encryption world? From three aspects, first of all, the attributes of NFT itself are very consistent with the encryption world, and there is an opportunity to achieve the combination of products and markets by combining with applications. Secondly, the overall development of encryption game provides the underlying foundation for it. Third, the rise of NFT trading also provides power for NFT breakthrough.
NFT is naturally suitable for encryption applications, especially encryption games
·Uniqueness of NFT
NFT is a non interchangeable asset with unique attributes. This means that if the NFT asset itself is scarce, it will also carry its value and cannot be tampered with, copied or replaced.
·Permanence of NFT
NFT is generally issued based on the public chain, such as Ethereum. The common NFT on Ethereum includes erc-721 token. Erc-721 is data stored on the blockchain, such as items in the game. It no longer belongs to the game operator. Even if the game stops running, the props in the game can still be saved in the Ethereum wallet, that is, NFT can exist forever.
·Ownership of NFT
At present, most game items are associated with the user’s game account, and all the data in the account is stored on the server of the game company. In other words, the items you fight hard or the equipment you buy don’t really belong to you. Once the account is blocked, the game assets are gone. There is no such problem with NFT assets. They are stored on the blockchain, and the game company cannot control them. As long as you have the private key, you can access and transfer them.
·Cross game properties of NFT
NFT game assets can run across games. NFT assets are assets on the chain. They do not belong to games, but to users. It can support the seamless transfer and use of in-game props among multiple games. This is a new game experience for users. Currently, enjinverse is trying to provide users with a cross game experience of in-game items. Because these NFT game props are not completely bound to the game, for example, kittyrace encrypted games can use encrypted cats from cryptokitties to compete.
The above attributes of NFT can help applications in games and other fields to achieve the fit between products and the market, so as to achieve a breakthrough. However, its final outbreak needs to rely on the overall development of fields such as encryption games.
The value support of NFT and the overall development of encryption games
At present, NFT is mainly in the field of games. The value of NFT mainly comes from the value of the game itself. It depends on the design of the game, the number of participants and the depth of participation. In other words, the value of NFT comes from the value of game interaction. The more people participate in the game, the deeper the degree of participation, and the greater the value of the game itself, the greater the value of NFT is likely to be. The foundation of NFT outbreak stems from the overall development of encryption games. The overall development of encryption games depends on giving full play to the characteristics of NFT.
The core of encryption game is still fun. Without fun, encryption game is meaningless. Encryption games are first games, not blockchains. At present, the biggest difference between encrypted games and ordinary Games lies in their NFT assets. The expansion of encryption game comes from the fun of the game itself, and makes full use of NFT characteristics on this basis. This is the basis for its future development.
Current development of some encryption games NFT:
·Encryption game status
At present, encryption games are still in the early stage. From the number of daily live users, the number of top game DAPP users is mostly 2000-3000. The higher 24-hour transaction volume can reach hundreds of thousands of yuan, but it is generally tens of thousands of yuan. This shows that no matter the number of users or transaction volume, the encryption game as a whole has not made breakthrough progress in the past year. However, more new games will be launched in 2020. If we can fully combine the characteristics of NFT, we have the opportunity to make a breakthrough.
Not only the increase of game products, but also the financing and talent participation of encrypted games have promoted the development of exploration. For example, immutable, the company that developed the gods unchained, obtained a financing of US $15 million in September 2019. Through these funds, it introduced talents in the field of traditional games, such as riot, EA, Ubisoft, etc. The introduction of these talents is the hope of encryption games, because encryption games should be fun first. These talents bring more possibilities to the innovation of encryption games. At the same time, the influx of funds has led to acquisitions. For example, it is said that God unchained has acquired other card games, such as artifact, faeria and kards.
In addition, Enjin cooperates with unity game engine. Cocos also has more than 1 million game developers who can use its engine. Its infrastructure for publishing blockchain games also has the opportunity to bring more blockchain game developers. Loom is also trying to provide games that can operate across chains, trying to attract more developers and users.
·Game NFT profitability
So far, more than 6.3 million cards have been sold by the God unchained game alone. The revenue of the God unchained game for more than a year has exceeded US $4.5 million. This revenue is realized in the scale of only 13000 users. Assuming that it is expanded to 1.3 million users and the revenue increases year-on-year, the revenue can reach US $450 million, even half of it, It can also reach a scale of US $225 million. Of course, the specific evolution is not clear. If a single encryption game can exceed 1 million users, this is the “Netscape moment” of the encryption game.
According to the statistics of Market Research Institute newzoo, the global game market reached US $137 billion in 2018 and is expected to grow to US $180 billion in 2021. Not to mention how much share encryption games can obtain, there is enough space for innovators to gallop.
NFT outside the game
The NFT of art collections is also an important type of NFT, such as the knownorigin exchange. So far, there are 6341 NFT works of art and 186 artists have settled in. These 6341 works of art are erc-721 tokens, with prices ranging from 0.001eth to 150000eth, and there are more than 20 types of NFT works of art.
The rise of NFT Trading
With the rise of various encryption games, assuming that players play strange games in the game and accidentally get a rare item, TA can collect and use it by themselves, or sell it in the NFT trading market. It can be converted into legal currencies such as US dollars, Eth and other encrypted currencies. Users can use the exchanged eth to buy their favorite props in the encryption game.
As long as the encryption game exists, the transaction needs between different items exist. Through the combination of crypto games, NFT and cryptocurrency, a crypto economy is created. Through cryptocurrency, promote the rapid circulation of NFT items in different crypto games. This circulation has global characteristics and can go beyond regional limitations.
The God unchained card game once sold cards of up to US $62000, which is one of the most expensive cards in the world, while cryptokitties sold cryptocats of US $170000 that year. So far, erc-721 tokens alone have been traded more than 23 million times, and the total number of contracts on erc-721 has exceeded 3000.
Some exchanges specializing in NFT trading have also sprung up, such as opensea, emoon, rarebits, auctionity, etc. Opensea has been established for two years and its trading volume exceeds US $7 million, but most of the trading volume occurs in 2019 and tends to increase gradually. There are more than 200 kinds of NFT tokens traded on opensea, of which the largest NFT token assets are God unchained and cryptokitties, with more than 6.8 million NFT and more than 1.7 million NFT respectively; According to the 7-day trading volume, the largest trading volume is gos unchained and decentraland, with the trading volume of 528.97 Eth and 359.73 eth respectively. At present, the trading volume is not large. Judging from the total market value of its overall NFT (number of tokens * average sales price in the past week), decentraland and God unchained reached US $1.08 million and US $310000 respectively.
As can be seen from an NFT exchange in opensea, although there is still a huge gap between its trading volume and the overall trading volume of cryptocurrency, it has made a good start as an asset category of NFT.
If NFT can be well combined with the field of encrypted games and develop fun games, it is possible to achieve the fit between products and the market. In turn, the overall development of encryption games will eventually promote the development of NFT market.
Responsible editor: CT