NFTs: The Bridge Between Web2 and Web3

NFTs: The Bridge Between Web2 and Web3

Mention the word NFT and the first thing that comes to mind are “PFPs” (Profile Pics) and “trading”. It certainly comes as no surprise, considering the fact that a majority of NFT markets function on these premises.

Yet, to simply relegate NFTs to these two areas would be scratching the surface — NFTs represent so much more, with vast potential waiting to be unlocked. This was the topic of the panel discussion at the FIL-Summit ’22 as part of Asia Crypto Week. Hosted on Sep 26, 2022 at Marina Bay Sands, our NFT Marketplace Business Development Lead, Jenny Zheng, took the stage with four other panelists as they engaged in a fireside chat about NFTs as the bridge between Web2 and Web3.

 

NFT Utility

The utility of NFTs is one of the biggest debates between NFT proponents and skeptics — the latter arguing that NFTs are mere digital assets used for speculation, with limited real-world functionality. Many, if not most NFTs, started out that way. But just as beauty is in the eye of the beholder, “NFT utility depends on how it’s being used and positioned from the creator’s perspective”.

 

“Many of us would look at NFTs from an art perspective, but there are so many other possibilities for them to evolve into.”

 

“In the near future, NFTs and the underlying blockchain technology can be used as identification in passports or even for event ticketing,” said Anndy Lian, Zero to Hero Creator and Chief Digital Advisor.

Guangmian Kung, Integrations and Partnerships Lead at Kleros echoed his sentiments.

“We often look at NFTs as items to sell, but what about non-transferable NFTs like Soulbound Tokens — a new identity verification system that represents who you are and what you’ve achieved. This opens up a whole new system of reputation authentication that can build trust in society.”

 

NFTs in the Bear Market

NFT Summer catapulted NFTs into mainstream consciousness, with the likes of celebrities and influencers driving mass adoption. In 2021, NFT trading volume reached an all-time high of $23 billion. Unfortunately, that all changed in 2022, when crypto winter hit. FUD was abound, causing a sharp dip in floor prices and NFT sales. Yet, through it all, the adoption rate still remained healthy.

Zheng explained how the bear market is the best time to build products.

“Even though Bybit NFT Marketplace started later compared to other players, we’re still growing very fast with a community of more than 600,000 users,” said Zheng.

 

Our key to success was reducing technical barriers, making it simple for users to buy and sell NFTs. For those who are adventurous and bold, there’s still a lot of room for growth.”

 

Adding on to Zheng’s statement, Lian talked about another important value of NFTs — community building.

“The value of NFTs is in its community,” explained Lian. “That social aspect is something that’s so much more valuable than the price. Prices may be sensitive in a bear market, but it’s a good time to build a community.”

 

NFTs and Security

Security was also a major topic, as NFT thefts and hacks continue to make headlines. Naturally, this begs the question of the safety standards in the industry and what regulations can be implemented to prevent fraud.

“Changes and improvements need to be applied to the underlying infrastructure to prevent secondary market sales of unethically acquired NFTs,” said Kung.

 

“I hope that the market will start to take these into consideration and come to a universal solution.”

Adding to that, Zheng pointed out a possible solution that centralized exchanges can provide:

 

“There are many debates between centralized versus decentralized exchanges, but for certain, centralized NFT exchanges provide a higher degree of security”.

 

“For Bybit NFT Marketplace, we carefully curate and evaluate all our projects to prevent any intellectual property issues,” explained Zheng. “We also audit contracts to ensure that they are safe and reliable for our users.”

The Road Ahead for NFTs

More and more brands are adopting NFTs as part of their marketing strategy. From Nike’s Cryptokicks NFT Sneakers to Oracle Red Bull Racing’s Full Charge: Factory Passthese serve to build rapport with their community by giving them exclusive perks and/or access to events.

As promising as it sounds, there’s a caveat — the technical challenges mainstream marketers face when trying to enter the NFT space.

“It’s difficult for these project owners if they lack the know-how and the expertise,” explained Zheng. “As a centralized exchange, we provide the tools — merging, airdrops, and whitelisting — to reduce the barriers to entry, making it easier for brands to kick-start their Web3 journey.”

Lian concurred, adding that “centralized exchanges do have a role to play.”

“Currently, everyone has a wait and see attitude. Brands need to dive deeper into the Web3 environment as it’s currently very scattered,” he said. “I hope that institutions and brands can find a common ground where they can learn, understand and educate, so that everyone can grow together.”

 

Source: https://blog.bybit.com/en-us/post/nfts-the-bridge-between-web2-and-web3-bltbe72f3340cd9342d/

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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FIL-Singapore Summit 2022: NFTs, The Bridge between Web 2.0 and Web 3.0

FIL-Singapore Summit 2022: NFTs, The Bridge between Web 2.0 and Web 3.0

Filecoin is making the web more secure and efficient with a decentralized data storage marketplace, protocol, and cryptocurrency. They are here in Singapore during the Token 2049 week to bring more Web 3.0 people together at their flagship event FIL-Singapore Summit.

It’s the perfect opportunity to connect with developers, storage providers, ecosystem partners, investors, and clients across the entire Filecoin ecosystem.

At one of the panel discussions, experts discussed the topic- NFTs, The Bridge between Web 2.0 and Web 3.0. The panellists lineup includes YC (Business Development Manager, Moledao), Anndy Lian (Author, NFT: from Zero to Hero), Jenny Zheng (BD Lead, BYBIT NFT), Guangmian (Integrations and Partnerships Lead, Kleros and Faye (Founder, Unschul).

They looked into topics such:

The fundamentals of NFTs
– As the interest in NFTs drops significantly with the bear market, how do you think we move forward from here?
– What are the existing utility of NFTs and how are they valuable?

“For corporations who are entering into the NFT space. They do not have the right tools and people. There are a lot of things that need to be done. If you are going to a decentralised marketplace, no one can also help you. If you come to a centralized marketplace like Bybit, we have tools that can help you make your NFTs happen.” Jenny Zheng commented.

Brands and Corporations Entering the NFT space
– Why do you think large brands such as Marvel, Disney, Adidas, Pepsi, LV and celebrities such as Snoop Dogg, Eminem and Jimmy Fallon are getting involved with NFTs?
– How does the use of NFTs as a technology disrupt existing institutional systems and applications?

“Brands can use NFT to build their relationship with their users.” YC mentioned.

Future outlook of NFTs as we move from Web 2.0 to Web 3.0
– NFTs have received a lot of resistance in terms of acceptance. Why do you think that is happening, and what will it take for mass adoption of NFTs?
– What do you think about some of the ways that liquidity can be added to NFTs, whether in terms of NFT collateralised loans, AMMs, or derivatives like futures on NFTs?
– What do you think will be the next big trend in NFTs?

“I really hope to see more AAA games entering the NFT market. I think the driving force for the next wave will be led by NFT.” Anndy Lian added too.

FIL-Singapore is a collaborative four-day event hosted by the Filecoin community in Asia. There will be a Filecoin Summit and many independently hosted events including meetups, workshops, a hackathon and happy hours throughout the week.

 

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

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Why Competition Between NFT Marketplaces Is Good News

Why Competition Between NFT Marketplaces Is Good News

While crypto is in a bear market the one sector that has weathered the storm relatively well is NFTs. A new report estimates the global NFT market will be worth $231 billion by 2030, growing at a compounded growth rate of 33.7% over the next eight years. However, this quarter the NFT market has been on somewhat of a roller-coaster ride, though in terms of trading volume and sales compared to Q2 of 2021 they are up by 533% and 59% respectively. In addition, metaverse NFTs also had a good quarter, with the trading volume for ETH-based collections has increased by 101%, while Polygon collections have unfortunately declined by 26%. Overall, it has been a growth of 96%, according to DappRadar.

If that positive trend whets your appetite to get involved in NFTs trading, then you’re not alone. The recent crypto bull market was like an electromagnet for investors who flocked to NFTs. Either to try to get in early by getting whitelisted on a project and then sell once the particular project went live, or purchasing them from another user before selling them on one of the growing number of marketplaces. As reported in late 2021 by leading crypto analytics firm Chainalysis, “NFTs are far from a surefire investment” however: “Transaction data from the OpenSea marketplace shows that just 28.5% of NFTs purchased during minting and then sold on the platform result in a profit. Buying NFTs on the secondary market from other users and flipping them, however, leads to profit 65.1%of the time.” In plain English what this means is that your average NFT buyer is likely to be out of luck when it comes to turning a profit on a newly minted or a secondary market NFT trade.

If those headline figures haven’t put you off, what can help you can see the wood for the trees when it comes to trading NFTs? A little context might help for starters; namely the commercial pressure from the bear market and the competition between NFT marketplaces mean this could be a good time to up your NFT trading game.

NFTs are traded in NFT marketplaces, which are well-organized platforms for selling digital collectibles. As a rule of thumb NFTs are sold at a fixed price, while others are auctioned off. Opensea is by far the largest NFT marketplace, with a 90% market share by dollar trading volume across multiple marketplaces in 2021. But what’s changed in the last few months is that OpenSea’s market share has started to diminish. In response OpenSea has improved its service with the launch of Seaport, an open-source trading protocol which enables trading multiple NFTs at a time. And with OpenSea’s purchase of NFT market aggregator Gem, its likely they will go up against Uniswap, which recently acquired NFT aggregator platform Genie. Finally, despite the failure of Coinbase’s NFT offering, eBay has both purchased marketplace KnownOrigin and in partnership with OneOf, recently announced its first foray into the NFT space with the launch of a series of sports themed, featuring iconic athletes.

What hasn’t changed is the fact that most NFTs are released in collections. A collection is a group of NFTs that are all different but share some characteristics. Bored Ape, the most popular NFT collection, has a total sales value of approximately $2.5 billion. While the top ten NFT collections had over $15 billion in trading value in 2021, accounting for roughly 60% of the total NFT market. The fact that a few collections dominated a large portion of the market is most likely due to NFT investors’ preference to trade within collections. They do this because it is easier to value an NFT in a collection when there are “similar” NFTs to compare it to. Experienced investors know where the money is, therefore, they trade NFTs within those collections.

These NFT traders speculate and identify a specific collection with liquidity, trade, and keep flipping until they make a profit. The truth is that most speculative traders do not profit from trading NFTs. Information is key, and traders who have information on the collection with liquidity are more likely to make a profit. Instant tradability of non-fungible tokens will lead to higher liquidity. NFT marketplaces can cater to a variety of audiences—from hardcore traders to more novice players—allowing for greater exposure of the assets to a wider pool of buyers. In the same way that the ICO boom of 2017 gave birth to a new asset class driven by instantly liquid tokens, NFTs expand the market for unique digital assets.

Another factor we must consider is fraud in the NFT sector. We’ve seen a lot of bad actors sell and trade NFTs they don’t own or have access to. I believe that it is critical for every NFT trader to conduct their own research to determine the best collection to trade. In simple terms the NFT sector is still growing, and there are still certain gaps to fill.

Market liquidity is still concentrated in a few NFT collections, and a trader must be able to identify those collections where the demand is to make a profit. I am also about to publish an in-depth guide to NFTs in a new book, said I believe the NFT market was only going to get stronger in 2022. “The growth of NFTs on rival platforms to Ethereum such as Solana , and the competition with OpenSea from players ranging from DEX leader Uniswap to e-commerce king eBay, shows how dynamic this sector is. Despite the collapse of the wider crypto market with the Luna Terra collapse, the demand for NFTs shows no stopping. I was struck also by how GameStop’s new marketplace launched just a couple of days ago is already doing well, with ETH in trading volume too.”

 

Original Source: https://www.benzinga.com/22/08/28375889/why-competition-between-nft-marketplaces-is-good-news

Anndy Lian is an early blockchain adopter and experienced serial entrepreneur who is known for his work in the government sector. He is a best selling book author “Blockchain Revolution 2030”.

Currently, he is appointed as the Chief Digital Advisor at Mongolia Productivity Organization, championing national digitization. Prior to his current appointments, he was the Chairman of BigONE Exchange, a global top 30 ranked crypto spot exchange and was also the Advisory Board Member for Hyundai DAC, the blockchain arm of South Korea’s largest car manufacturer Hyundai Motor Group. Lian played a pivotal role as the Blockchain Advisor for Asian Productivity Organisation (APO), an intergovernmental organization committed to improving productivity in the Asia-Pacific region.

An avid supporter of incubating start-ups, Anndy has also been a private investor for the past eight years. With a growth investment mindset, Anndy strategically demonstrates this in the companies he chooses to be involved with. He believes that what he is doing through blockchain technology currently will revolutionise and redefine traditional businesses. He also believes that the blockchain industry has to be “redecentralised”.

j j j