Tag Archives: nfts

Revitalizing NFTs: The Influence of ERC-6551

Revitalizing NFTs: The Influence of ERC-6551

The NFT market is experiencing a resurgence in 2023 after a period of decline and stagnation in late 2022. I see a bounce back right now as we speak. Most of us will think that Ethereum dominates the NFT space. But according to various online platforms, the last 24 hour NFT sale volume leader is Bitcoin. Bitcoin has the most amount of sales at $33,269,180, and Ethereum is second at $8,701,553. At the same time, the recently hyped Solana is not in the third place with $2,699,854.

What is driving this renewed interest and activity in the NFT space? And what are the next trends and innovations that will shape the future of NFTs and Web3?

One of the main factors behind the re-rising of the NFT market is the introduction of a new token standard for NFTs: ERC-6551. This standard, proposed by Future Primitive, a team of experienced NFT developers and enthusiasts, aims to enhance the functionality and value of NFTs by giving them smart contract capabilities. ERC-6551 tokens, also known as token-bound accounts (TBAs), function as smart contract wallets that can hold tokens and other NFTs, as well as interact with other smart contracts and applications. Each TBA is permanently bound to a single ERC-721 NFT, and the control of the TBA is granted to the holder of that NFT. This means that every NFT can have its own on-chain identity and agency without requiring any changes to existing NFT smart contracts or infrastructure.

ERC-6551 opens up a whole new world of possibilities for NFTs, as they can now evolve and change over time based on external factors or user inputs. For example, an NFT representing a character in a role-playing game can accumulate assets and abilities based on their actions, or an NFT representing a piece of art can generate royalties for the artist or the collector. It also enables new use cases and business models for NFTs, such as:

  • Composability: TBAs can own and compose other TBAs, creating complex and dynamic NFTs that can represent real-world assets or concepts. For instance, an NFT representing a car can own and compose other NFTs representing its parts, such as the engine, the tires, or the paint. This way, you can easily check where the car came from and who owned it before, as well as change or improve it as you wish. Or, a TBA that looks like a portfolio can have other TBAs inside it that look like different investments, such as stocks, bonds, or cryptocurrencies. This way, you can easily manage and diversify your money, as well as adjust or sell it as you need. TBAs are not just simple pictures or videos but complex and dynamic NFTs that can represent real-world assets or concepts.

  • Identity: TBAs can act as verifiable and portable identities for their owners, as they can sign messages and verify signatures on behalf of the NFT. This allows for seamless and secure access to various Web3 applications and services, such as decentralized exchanges, social networks, or gaming platforms. For example, an NFT representing a membership card can grant access to an exclusive club or community and record a history of past interactions. Similarly, an NFT representing a diploma or a certificate can prove the credentials and achievements of the owner, as well as provide feedback or endorsements.

  • Provenance: TBAs can track and record the history and ownership of the NFT, as well as the interactions and transactions that have occurred with it. This allows for increased transparency and trust in the NFT market, as well as the possibility of creating value-added features or services for the NFT. For example, an NFT representing a rare collectible can show the origin and rarity of the item, as well as the previous owners and prices. An NFT representing a digital artwork can show the creation and modification process of the artist, as well as the appreciation and criticism of the audience.

  • Dependency: Think about how you can create and collect digital items that are not only unique and valuable but also connected and responsive. These items are called TBAs, and they are a new kind of NFTs that can do amazing things on the blockchain. For instance, a TBA that looks like a plant can have a relationship with other TBAs that look like the soil, the water, or the sunlight. This way, you can see and feel how the plant grows and changes and take care of or use it. Or, a TBA that looks like a social movement can have a relationship with other TBAs that look like the supporters, the opponents, or the media. This way, you can understand and experience what the movement is about, as well as join or change it. TBAs are not just static pictures or videos but interrelated and interactive NFTs that can represent dynamic and emergent phenomena or systems.

These use cases and business models are just some of the examples of how ERC-6551 can revolutionize the NFT space and Web3. However, ERC-6551 is not without its challenges and limitations. Some of the potential issues and risks that need to be addressed are:

  • Fraud Prevention: TBAs can be used to create fake or fraudulent NFTs, as they can mimic or impersonate other NFTs or TBAs. This can lead to confusion and deception in the NFT market, as well as the possibility of losing money or reputation. For example, a TBA representing a fake artwork can copy or modify the metadata or the image of a genuine artwork and try to sell it as the original. Likewise, a TBA representing a fake identity can copy or modify the signature or the message of a genuine identity and try to access or use its privileges or resources.

  • Ownership Cycles: TBAs can create ownership cycles, where an NFT owns itself or another NFT that owns it. This can lead to paradoxes and inconsistencies in the NFT market, as well as the possibility of losing control or access to the NFT. For illustration, a TBA representing a self-owning NFT can transfer itself to another owner and then transfer itself back to itself. In the same way, a TBA representing an NFT that owns another NFT that holds it can transfer the other NFT to another owner and then lose its ownership.

These challenges and limitations are not insurmountable and can be mitigated or solved by various methods and techniques, such as:

  • Verification: TBAs can be verified by checking the source and the authenticity of the NFT and the TBA, as well as the validity and the integrity of the metadata and the image. This can be done by using various tools and services, such as NFT scanners, NFT validators, or NFT oracles. Again, citing an example, a TBA representing a genuine artwork can be verified by scanning the NFT and the TBA, and comparing them with the original artwork and the artist. A TBA representing a genuine identity can be verified by validating the NFT and the TBA, and checking them with the credentials and the achievements of the owner.

  • Governance: TBAs can be governed by setting and enforcing rules and policies for the creation and management of the NFT and the TBA, as well as the interactions and transactions that can occur with them. This can be done by using various mechanisms and protocols, such as NFT standards, NFT registries, or NFT DAOs. For example, a TBA representing a self-owning NFT can be governed by following the ERC-6551 standard and registering the NFT and the TBA in the ERC-6551 registry. Similarly, a TBA representing an NFT that owns another NFT that owns it can be governed by joining an NFT DAO and following its rules and policies.

In conclusion, ERC-6551 is a new token standard for NFTs that gives them smart contract capabilities, allowing them to own assets and interact with applications without requiring changes to existing smart contracts or infrastructure. This enables new use cases and business models for NFTs, such as composability, identity, provenance, and dependency.

Yet, the horizon of ERC-6551 is not bereft of challenges and limitations. Issues surrounding fraud prevention and ownership cycles within TBAs pose intricate obstacles to address and overcome. Fraudulent activities leveraging TBAs to mimic genuine NFTs or generate ownership paradoxes in cycles necessitate thorough solutions. These hurdles aren’t insurmountable. Verification mechanisms and governance protocols stand as potential solutions, verifying TBAs’ authenticity and setting robust governance rules to navigate and resolve these complexities.

In the ever-evolving landscape of NFTs and Web3, ERC-6551 beckons us to a frontier where digital assets transcend static representations to become vibrant, interactive entities. It prompts us to question traditional paradigms and heralds a new era where ownership, identity, and interaction with digital assets metamorphose into fluid, dynamic experiences.

As we journey further into this transformative realm, may we embark with a curious mind, exploring the uncharted territories of ERC-6551’s impact, unraveling the mysteries, and shaping a thought-provoking future for NFTs and Web3.

 

 

 

Source: https://hackernoon.com/revitalizing-nfts-the-influence-of-erc-6551

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- “NFT: From Zero to Hero” and “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”.

www.anndy.com
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Why Are BRC-20 NFTs Suddenly Soaring in Value?

Why Are BRC-20 NFTs Suddenly Soaring in Value?

Non-fungible tokens (NFTs) are unique digital assets that represent various forms of art, collectibles, games, music, and more, and have been one of the hottest trends in the crypto space in 2023, attracting millions of dollars in sales and generating a lot of buzz and excitement among creators and collectors.

However, not all NFTs are created equal. There are different standards and platforms that enable the creation and trading of NFTs, each with its own advantages and disadvantages. One of the most popular and widely used standards is ERC-20, based on the Ethereum blockchain. ERC-20 NFTs have been dominating the market for a long time, thanks to the network effects, liquidity, and diversity of the Ethereum ecosystem.

But there is a new challenger in town: BRC-20. BRC-20 is an experimental token standard that enables the minting and transferring of fungible tokens via the Ordinals protocol on the Bitcoin (BTC) blockchain. Taking a cue from Ethereum’s ERC-20 tokens, BRC-20 tokens feature different mechanisms and functions, such as proof-of-history, proof-of-stake, and optional royalty. BRC-20 tokens are also compatible with the Bitcoin network, which means they can leverage the security, decentralization, and immutability of the most established and valuable cryptocurrency.

BRC-20 NFTs have been gaining a lot of traction and popularity in 2023, especially among Bitcoin enthusiasts and supporters. According to Coingecko, the TRAC (Ordinals) market cap has soared by around 230% over the last seven days to a $67 million market cap.

BRC-20s Beginning to Outpace Ethereum NFTs

BRC-20 NFTs have also surpassed Ethereum NFTs in terms of sales volume, with $35,563,933 worth of transactions in the past 24 hours, compared to $12,142,132 for Ethereum NFTs. Solana, another contender in the NFT space, is lagging with only $1,990,810 in sales volume.

Compared to when I first talked about it last year, and again this year, the difference is huge. So, what is driving this surge in BRC-20 NFTs? Several factors contribute to this phenomenon, such as:

  • Innovation and experimentation: BRC-20 NFTs are pushing the boundaries of what is possible with NFTs, introducing new features and functionalities that appeal to both creators and collectors. For example, they can have optional royalty, which means that the original creator can receive a percentage of the future sales of their NFTs, creating a passive income stream and incentivizing quality and originality. They can also have stake-weighted transaction processing, which means that the more stake a user has in the network, the faster and cheaper their transactions will be, creating a more efficient and fair system.BRC-20 NFTs can also have fee-based execution priority, meaning users can pay higher fees to confirm their transactions faster, creating a more flexible and dynamic market.
  • Scalability and performance: BRC-20 NFTs are designed to overcome the scalability and performance issues that plague Ethereum NFTs, such as high gas fees, slow transaction speed, and network congestion. Their NFTs use the proof-of-history mechanism, which allows the network to achieve a high throughput of transactions without compromising security or decentralization. Proof-of-history encodes time as data on the blockchain, creating a verifiable and chronological record of events. This eliminates the need for complex and costly consensus algorithms, such as proof-of-work or proof-of-stake, and enables the network to process thousands of transactions per second with low latency and low cost.
  • Diversity and creativity: BRC-20 NFTs are attracting a diverse and creative community of artists, developers, and collectors who are exploring new possibilities and opportunities with NFTs. They are not limited to digital art but can also represent various forms of media, such as music, videos, podcasts, games, and more. They can also be integrated with other platforms and applications, such as social media, e-commerce, gaming, and more, creating new use cases and experiences for NFTs. BRC-20 NFTs can also be combined with other NFTs, creating complex and rich digital assets with multiple layers and dimensions.
  • Strong community and builders: The Bitcoin community and builders are very strong and dedicated to improving the network and creating more user value. BRC-20 NFTs are one of the results of their hard work and vision. They have been working on the Ordinals protocol and the BRC-20 token standard for years before they launched them in early 2023. Since then, they have been attracting more and more creators and collectors to join the BRC-20 NFT space, creating a vibrant and diverse ecosystem.BRC-20 NFTs are not only a way of expressing and owning digital art but also a way of supporting and participating in the Bitcoin network and are a testament to the innovation and creativity of the Bitcoin community and builders.

Some of the most popular and successful BRC-20 NFT projects in 2023 include:

  • ORDI: ORDI is a collection of 20,000 unique and generative NFTs representing the ordinal numbers from 1 to 20,000. ORDI is a minimalist and elegant project that celebrates the beauty and simplicity of numbers. ORDI also has a social and charitable aspect, where each NFT holder can choose a social media handle to display on their NFT, and a portion of the sales proceeds are donated to various charities. ORDI is currently the largest BRC-20 NFT project by total sales, with over $208 million and over 2,440 transactions.
  • $RATS: RATS is a collection of 461,194 unique and generative NFTs representing different types of rats. They are one of the most popular and successful BRC-20 NFT projects in 2023. $RATS BRC-20 NFTs are not only collectibles but also playable characters in a metaverse game that is being developed by the team. The NFTs have different attributes, such as color, size, fur, eyes, ears, tail, and accessories, affecting their game performance and value. They also have a royalty system, creating a passive income stream and incentivizing quality and originality.

 

The Bottom Line

BRC-20 NFTs are soaring because they offer a new and exciting way of creating and collecting digital assets on the Bitcoin blockchain. They are innovative, scalable, diverse, and creative, with a loyal and passionate community behind them.

BRC-20 NFTs are not a fad but a force to be reckoned with in the NFT space — and they are only just getting started.

 

 

 

Source: https://www.techopedia.com/why-are-brc-20-nfts-suddenly-soaring-in-value

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- “NFT: From Zero to Hero” and “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”.

www.anndy.com
j j j

ByBit’s Head of Partnerships Asserts NFTs are Alive and Kicking

ByBit’s Head of Partnerships Asserts NFTs are Alive and Kicking

Bybit‘s Head of Partnerships, Anndy Lian, has set the record straight in a recent article published on the pioneering crypto exchange’s blog, defending that NFTs are alive following recent industry-damaging claims of being dead by Rolling Stone and beyond. 

Within his insightful blog post, Lian covers the outstanding growth of NFTs — which, at its peak, hit an astonishing $10.7 billion in total market capitalization — and its downturn. His insights reveal that while the NFT market commonly experiences fluctuations, it’s still in the public eye.

Regardless of the market facing a dip in performance this year compared to its 2021 and 2022 highs, Lian covers a plethora of positive industry signs. He defends the credibility and potential of NFTs through intriguing examples, championing these collectibles as a motivating factor behind creativity, financial opportunity, and virtual cultural revolution.

Shining NFT Examples 

Lian mentions the success of Bybit’s very own NFT collectibles, ‘The Velocity Pass’, consisting of 1,000 digital assets inspired by the iconic Formula One World Championship and Oracle Bull Racing’s RB19 race car. Holders gain access to exclusive offerings, entry into raffles for tangible prizes, and complimentary NFTs from collaborating artists, capturing excitement in tandem with the race season — all made possible through the power of NFTs. 

Further illustrating the potential of such digital assets, Lian touches base on intriguing trends that have emerged in recent months. One shining example, in particular, includes Art Blocks generative artwork, innovatively created through a computer program algorithm from inputs by artists or collectors.

Moreover, he highlights industry giants optimistically embracing the NFT revolution in distinct ways, with Visa acquiring a $150,000 CryptoPunk, Cola-Cola auctioning four NFTs to charitable endeavors, and Marvel stepping into the NFT realm with a dedicated marketplace for comic book lovers being remarkable cases. 

Lian also unveils the benefits of fractionalizing digital collectibles, enabling art collectors to access and invest in top-tier NFTs more affordably, like DAO Records’ Wu-Tang Clan’s ‘Once Upon a Time in Shaolin’ album.

The Broader Perspective 

Lian’s ‘No, NFTs Are Not Dead’ article is a must-read for anyone seeking a deeper understanding of NFTs’ transformative potential and their significant impact on the online landscape. Not only does he underscore the evolving nature of such digital collectibles, but he forefronts how these digital collectibles transform ownership and property rights, removing legal conflicts and offering restored hope and faith to enthusiasts, investors, and creators alike.

By highlighting real-world examples of the benefits of NFTs in recent days, he paints a picture of an NFT landscape that continues to evolve, thrive, and inspire, acting as a beacon of optimism for all involved and interested. NFTs are alive, after all.

Read the full article >>> Here

 

Source: https://nftplazas.com/bybit-nfts-are-alive/

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- “NFT: From Zero to Hero” and “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”.

www.anndy.com
j j j