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Written in front:
This is the 100th original article of NFT Labs, thanks for the love, I am very grateful (bow). It is also commemorative to issue it on the day of ETH Merge. We firmly believe that the blockchain will have a bright future, just as we also believe that in the future NFT will not be just a collection of small pictures. The road to Web3 is bumpy, but there will be light; the ETH team has honed their swords for eight years, and Merge has undoubtedly accelerated the process of Web3~ Congratulations to everyone who has witnessed history, and its significance may be even greater than imagined. I hope that NFT Labs can continue to explore and grow together with everyone in the community in the days to come~
Since September 2020, the number of NFT sales has increased significantly and has maintained a high level of growth. A novelty item is slowly making its way into a few people's social media. From February 2021, NFT began to grow explosively, with a weekly trading volume of more than 2 million US dollars, and within a few months, the total market value of large NFT projects increased by as much as 2000%.
Naturally, since the market for NFTs is growing rapidly and can be a fairly lucrative source of income, many investors seek to cash in on this craze. It's also an alternative investment for many, with many different programs to choose from. The rules of the game are very different from the traditional way of doing things.
According to DappRadar, NFT sales will total $24.9 billion in 2021, compared to just $94.9 million the previous year. Especially in the second half of last year, the transaction volume of the NFT market ushered in a big explosion.
But less than 150 days later, most users just figured out what "non-homogeneous tokens" are and what PFP is, and when they shouted "Everything can be NFT" and prepared to show their talents, the liquidity crisis It has quietly penetrated into every corner of the market. The small picture in the hand has become a collectible, and no one cares about it. The double drop in the price of ETH and NFT has made holders feel like a "leverage" roller coaster.
Some people jokingly say that NFT is a display of digital art. Why are you still unhappy when you have already bought your favorite artwork? Looking back now, we can clearly see that digital art is just an opportunity for it to enter people's cognition. NFT started with cultural creation and digital art, but this will not be its final form. Although it is not "everything can be NFT", it is indeed an integral part of many Web3 applications (gamefi, pass cards, domain names, etc.), and perhaps it is more appropriate for us to regard it as a Web3 entrance now.
NFT is also experiencing its first bear market. After the emotions cool down, it is easier to seriously think about a question-in which field will NFT explode in the next stage?
When everyone is aiming and rushing towards a certain field, the short-term increase is the bubble instead of the support, which is easy to be punctured. This is one of the reasons why the Freemint project came and went quickly. And basically every new hot spot comes from new demand solutions or innovations, rather than imitation of previous cases; just like after DeFI became popular once, many people want to imitate the Defi 2.0 combined gameplay based on the NFT field , there will actually be many problems (such as: Benddao); because they may not be fully adapted, NFT will have its own outbreak nodes and fields.
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1. Gamefi with better gameplay
GameFi is one of the easiest areas for NFTs to manifest. Everyone's attention to Gamefi lies in the income and economic model, and few people are for playing games. But I think that Gamefi is a game first and then Fi, just like the online game "Fantasy Westward Journey", etc., they also have a relatively complete (props) economic model designed by themselves, but in essence they have better gameplay to have long-term stable development possible. Some people can strengthen themselves by spending money, and some people can realize the real 0 cost "Play to Earn". Only with good gameplay can more and more people play it, otherwise it will only become a tool for paper hand, studio arbitrage, or a tool for project parties to harvest, or the popularity will become drums and flowers in the past.
At present, the chain is still a chain, and the game is still a game. At the end of last year, the popularity of chain games soared. Rough modeling, nesting doll game mode, and an unclear economic model can be Gamefi. Although I am also playing for the income, but apart from staring at the daily income data, there is really no Gamefi that can make me want to open and "play".
Like blockchain, Gamefi currently has an impossible triangle.
for:
1. Highly playable and easy-to-learn games with poor profitability;
2. Games that are easy to use and highly profitable, but poor in playability;
3. Games with strong profitability and high playability are not easy to learn.
These are currently difficult to completely solve, but some basic optimizations such as modeling and graphics are not an easy task for projects that are eager to spread the market. At present, when basically all Gamefi are moving towards the spiral, perhaps it will have stronger vitality if it is designed and precipitated from the traditional gameplay; and NFT has already verified its important attributes in the game, no matter how to design it Will be active in the game market in the future.
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2. X to earn with a better business model
X to earn will still be something that all project parties will try to do, Run to earn, Write to earn, Read to earn, this field is too easy to develop, find and even solve the needs of specified groups of people, but the difficulty lies in how to obtain Long-lasting vitality.
Unlike Gamefi, the essence of X to earn is still earn, not X. The vision at the beginning of the project may be good, but the economic model cannot be a perpetual motion machine; once it cannot be optimized to the ideal state for a long time, the funds may fall if they cannot keep up. The biggest reason for the death of most applications is that the inflow of new funds has slowed down, and the difficulty of attracting new capital inflows to maintain the returns of old users has increased exponentially, and end users cannot make ends meet.
This is a problem that many X to earn currently have. After all, it is impossible to have a perpetual motion machine. Just as 0 royalties sparked discussions on the PFP-like NFT business model, perhaps X to earn should look for new gameplay and business models. Financing is one type, advertising revenue is also one type, and cooperation with giants in Web2-related fields is also a type (at the current stage, the amount of funds of most Web2 brands is much larger than that of Web3). But how to do it and how to change it is a difficult problem that the project party needs to stand at the top and consider.
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3、DID(Decentralized Identity)
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Source: Amber Group
If NFT is the entrance of Web3 applications, then DID is the entrance of Web3 users. DID is still relatively early, and it can extend countless subdivision tracks, such as on-chain digital identity aggregation, off-chain identity binding, asset verification, zero-knowledge proof, decentralized social interaction, credit credentials (scoring), etc., basically It can cover everything that the Internet giants want to monopolize now. Now DID should still be in an era of "chaos". Most tracks have a lot of competition, and I'm afraid there are many games in it.
DID can be said to be one of the most difficult mountains to climb in the entire Web3; because DID is based on the foundation of many factors such as infrastructure and cognition. The current infrastructure is not perfect, and the binding with Web2 has just begun; although there are many demands, there is no application that can integrate multiple roles to completely solve it.
For each subdivision track, or a certain subdivision track that everyone is optimistic about, you only need to pay attention to one or two head applications that you recognize. DID It is obvious that compared with the above two tracks, there will be a longer investment cycle. If you want to make a layout, you must stretch your investment front.
And finally, let’s talk about domain names. Domain names are like an entry point for digital identities. .bnb has exploded recently, and .bit has also made a good improvement. The domain name has reached a state of blooming (currently it is also extremely Fomo).
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4. Metaverse
As Facebook, Microsoft, Nvidia, BATJ and other large and small companies and multinational giants began to publicly announce the layout of the metaverse, the popularity of NFT and the metaverse has reached a climax. In the long run, the metaverse will be the result of the continuous integration of many independent tools, platforms, and worlds supported by shared infrastructure, standards, and protocols; and NFT, as an important element of it, is not only an extension of real assets, but also a native virtual world The starting point of assets will become a certificate representing identity, assets, rights and interests, and various attributes.
The metaverse is currently discussing some potential business applications. Participants in every field have business opportunities associated with the metaverse, from consumer-driven industries, such as retail, to manufacturing, construction, and even other industries . Ultimately, consumers will get the most out of the metaverse with enhanced information, products, entertainment, and social experiences. Hardware technology companies and software development companies will dominate the technology market. The need to provide hardware and software for the Metaverse will increase dramatically. Businesses will have the opportunity to carve out their place in the Metaverse. Brands and celebrities will have more opportunities to reach a larger audience. Provide consumers with a richer and more targeted marketing experience.
From a technical point of view, the four tracks of the Metaverse are: VR/AR and other hardware devices, games, 3D rendering and other technologies, and virtual humans; from the perspective of users' ease of participation, Token and Land should be the easiest At the same time, the current demand for "Metaverse Builders" is relatively large. They focus on helping project parties carry out customized construction in the Metaverse (such as: The Sandbox).
Metaverse has said too much before, for details, you can check the Metaverse chapter of "From 0 to 1: Mastering NFT" (https://www.yuque.com/nftlabs/ibrmrq/zgpyuq), tens of thousands of words of content for everyone The worlds of the Metaverse are depicted in detail.
The metaverse will definitely be a trend, and Otherside has already sat on the head throne that originally belonged to The Sandbox; in addition to maintaining attention to Otherside (Otherdeed), look for some metaverse projects that you are optimistic about and relatively not so well-known , maybe there will be a more attractive return on investment ratio - of course, its investment cycle may be longer than DID.
The days of PFP classes may be over. Most of the works of art are rare, and most PFP NFTs currently do not have a sharing scene, and are more like works with social and consensus attributes rather than works of art (of course, many Freemint cattle, horses and earth dogs in the bear market are not even considered works), pure Consensus alone for PFP projects may not be able to support high prices, and the consensus may also cause psychological fatigue after a long time.
NFT Labs provides relevant information only and does not constitute any investment advice.
NFT Labs provides relevant information only and does not constitute any investment advice.
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