There is no doubt that NFT has enabled ordinary users to discover the capabilities of the blockchain, and eventually popularized "Web3.0" and "Metaverse". However, we have only scratched the surface, NFTs are no longer just JPEGs, builders are creating new opportunities around it.
TL;DR
NFT is a mature vertical in the market, and people are starting to understand what it means. And in the NFT space, innovative protocols are on the rise, some of which are listed here.
Anyone in the digital world knows/hears about NFTs, one of the most searched terms in 2021.
NFTs are gaining traction because:
🔹Low barrier to entry (Jpegs)
🔹Creative Attractive (Jpegs)
🔹 Financially attractive (get rich quick on Jpegs).
People don't need a high IQ to participate in this high-risk, high-reward game.
As it matured, people started talking about what to do next:
"Ah, I see, NFTs are user-owned assets that are censorship resistant, verifiable and transparent because of the blockchain,"
Judging from the entry of the super BD team Polygon , many companies have already paid attention and participated in it as early as possible.
Why? Because existing NFT dApps need to iterate.
Innovative Dapp can lead to financial opportunities, security, and a better understanding of NFTs. Here are some categories that are evolving:
1. NFT authenticity solution
2. NFT Finance
3. NFT Fragmentation
4. Full chain NFT
5. NFT security
#1 Authenticity Solution
For users who do not understand blockchain explorers, it is difficult to identify whether an NFT is legitimate or not. Opensea has the blue tick for authenticity, but not all NFT items do, some just blatantly copy the entire item.
Existing projects like Autentica are working to improve authentication and protect users from these scams.
And even more interesting, how about combining it with AI? aiRight combines AI for NFT authenticity checking solutions, and they are powered by Oraichain to easily detect infringements on the chain.
#2 NFT Finance
Do more with your NFTs. NFT is still a unique on-chain token that represents some value determined by the market. Of course, you can trade in Opensea if you want - but trading isn't the only financial product available.
NFT lending protocols like NFTfi, Spice Finance, and BendDAO activate your NFT Liquidity.
🔹 Lend blue chip NFT (BAYC) in exchange for ETH
🔹 Provide ETH and earn income from loan interest
🔹 Buy NFTs at a discount in case of loan default.
Dave White of Paradigm came up with an idea in 2021 to use NFTs as collateral to establish contract positions:
Lock your NFT > mint perpetual contract NFT > trade through market makers, allowing you to hedge price fluctuations.
This novel mechanism has not gained attention. However, Nftperp has launched a perpetual futures DEX for NFTs, using ETH as a token for NFT, depositing ETH to open a position, and hyping the floor price of blue-chip NFT with up to 10 times leverage.
#3 NFT Fragmentation
BAYC too expensive? What if you could get 5% ownership of it? NFT fragmentation divides the ownership of NFT through Fungible tokens, realizes financial opportunities or becomes part of a group/DAO.
One benefit of fragmenting blue-chip NFTs (like BAYC) is to grow the grassroots community, thereby increasing the demand on the ecosystem ($ Ape).
#4 Full Chain NFT
This means that NFTs move on different chains. Owning NFTs on different chains enables holders to take full advantage of NFT Dapp(think ETH + SOL NFT Dapp).
After researching, I see that Kanpai Pandas is leading in this field. This full-chain NFT project has a tight-knit community with many developments and events planned for this year. The team remains active in the bear market and is poised to become a blue chip.
#5 NFT security
This also applies to the blockchain ecosystem. Approving transactions is very risky for non-dev users who don't understand tx info - this is where most personal hacks/exploits happen.
How to prevent phishing/malicious/wrong transactions?
Pocket universe does this really well, it adds another layer of protection for the user by presenting exactly what happened before the tx was approved (very nicely), and it's also open source.
epilogue
In the end, NFT is a young market, but it is an obvious driver of bringing ordinary people into the space. It is important for the NFT protocol to create innovative products while improving the user experience. Innovation in NFTs cannot and will not stop.
