On September 28, Conflux and Odaily held an offline event "When Thinker Meets Artist", hoping to connect the artist market with the mainstream market through this event, and jointly explore the combination of art and innovation.

At the event, Foresight Ventures Partner WhiteForest said in a keynote speech that NFT can extend the life cycle of games wirelessly. If the developer's income cannot sustain the cost of the game, or the number of users is too small and the traffic is too low, it will definitely be shut down. But if games are made based on NFT and blockchain, the game will exist forever, and its value can also be precipitated. Because NFT and the data on the chain can live forever.

The following is the content of the speech, enjoy~

Thank you, everyone, and the organizers. I'm Partner WhiteForest from Foresight Ventures. We are a comprehensive investment institution. In fact, our organization is very involved in NFT, and I have also participated in several galleries in China. We think this is a long-term investment.

NFT Summer has a lot of highlights this year. A large number of NFT avatars have been sold at high prices, refreshing our understanding. Our Chinese gallery also participated and took high-quality works. I personally came to Shanghai from Beijing, and now I am in Chengdu. The culture of Chengdu is down-to-earth. I believe many young people will like NFT.

With the popularity of NFT, Opensea is the largest exchange from an investment perspective. From less than 1 million US dollars to 34 million US dollars last month. In addition, the fiery transactions of NFT on the chain have driven a large amount of consumption of Ethereum, making it a deflationary model.

Let’s look at the following pictures. At first glance, they are not eye-catching, but they have been charged with extremely high prices, which even makes us feel unimaginable. Below I will give you a specific interpretation.

This is a change in the industry. The consensus on NFT is gradually increasing. Many companies and celebrities come to buy NFT and even invest in NFT. For example, Visa also got involved and raised the price. This is very good, because no large financial institution allocates this as a financial asset. The upper right corner is Budweiser, which makes beer. Because the account number is public, you can find out which NFTs such a company owns on the chain, so it’s interesting to see its NFTs. There are all kinds of things, domain names, and Weird things, and the Ethereum logo, which is fun for collectors. Curry also bought a lot of monkey NFTs, and also bought NFTs of Chinese characters, which probably cost hundreds of thousands of RMB. In fact, there are many examples, not listed one by one.

This is the NFT game Axie Infinity, which also exploded in June this year. Its NFT transaction exceeded hundreds of millions of dollars in seven days. We can see that the second place is 50 million dollars.

The capitalization of game props was actually difficult to achieve before, because various factors and uncertainties would interfere with it, which did not conform to financial attributes. Because the property of finance is inviolable to property, and NFT endows property property, the props of the game will not be recycled for any reason.

So NFT turns the game into a means of production. For example, if you buy three axie elves, you can PK, and you can do some tasks every day. The game will send you some income. You earn money while playing the game. Money, in fact, the rate of return is relatively high. Everyone knows about BTC or Ethereum mining. In fact, this kind of NFT is the same as a mining machine. If you own an NFT, you can generate interest and have a certain amount of income.

The Sandbox platform, a piece of virtual land sold for 900,000 US dollars this year, sounds very expensive, but it is actually a remote delivery business. In fact, they want to make this a circus in the metaverse and sell it to Cirque du Soleil boss. The picture on the lower right is the style street they made.

NFT can extend the life cycle of the game indefinitely. In traditional games, if the developer’s income cannot maintain the cost of the game, or the number of users is too small and the traffic is too low, it will definitely be shut down. But if games are made based on NFT and blockchain, the game will exist forever, and its value can also be precipitated. Because NFT and the data on the chain can live forever.

Let’s talk about the price of NFT later. There must be many unreasonable places. Where is it unreasonable to sell a picture for several million dollars? It must be inseparable from the hype, or they are left-handed and right-handed, or retail investors, like programmatically generated artworks, the cost is actually very low, and people may not understand it when they sell for hundreds of thousands of dollars. From another perspective, where is its rationality? In fact, since the time of tribes, people are social animals. How they express their status must be to collect some things to express their status. In fact, human beings have a collection habit. Maybe you also collect a lot of things, and I will also buy some strange things to keep at home.

If it is placed in a social scene, it is not just a picture, it may be a symbol of a picture. In this world, there may be 1 billion people who own smartphones, and there may be only tens of millions of people who own VR. NFT is hundreds of thousands of people. With the level of human development, the higher the degree of virtuality, the higher your social level, so buying this is equivalent to buying a Hermes, or a luxury car club member. From the perspective of these wealthy collectors, he does not need to prove how much money he has, but to prove that he is a person with status, and of course this status is not just a status of being rich. For example, I am a person who likes rock, and I collect some rock NFTs to express my identity.

Then there is scarcity. The total amount of an NFT may be several thousand, so it is a scarce one. Of course, you can also copy it casually, or imitate a similar thing. The original real thing is still irreplaceable. You can make a fake one, but it is a copycat.

The picture below is a qualitative and quantitative look at NFT. Let’s explain several attributes of NFT and the first story-like communication. The second is collectibility. Russia’s Orient Palace Museum will soon auction NFTs of works by masters such as Picasso and Da Vinci. Then there's the sociability, the usability.

The following promises benefits, like collectibles, which have no function and can only be viewed at home. If it is a game asset, it can be used to play anyway, but it is actually useful. I once bought an NFT rabbit, and the project party promised to make themed music, games, and physical dolls for this rabbit. This thing is equivalent to the project party giving me a promise, and its value will be fulfilled as the promise is fulfilled. will grow slowly. Promising benefits like this seems to be a relatively good thing, but it also has disadvantages, that is, if it is anchored, the price will rise very high. If there is no commitment, the price of pictures with no special meaning at all may rise faster. This makes the difference whether there is a commitment effect or not.

loot is a TXT NFT. I am not suggesting that you invest in this thing. I just use it as an example to describe some attributes of NFT. NFT is the presentation of a minimal game. In fact, what is the presentation of the smallest form? There is nothing, and the community needs to create it.

How to communityize, for example, there is no visual graphics, because it is just text, we can develop tools for it to visualize it, and if there is no scarcity, we can develop tools to explain it. Then the release process is completely free, giving up the benefits of copyright freedom, and it is completely left to the community to create it, and there is no preset game mechanism. For example, it is possible for the community to make various games with its characters, and it is completely open. However, games are highly industrialized. I am not optimistic about community-based development in the short term. In fact, community-based development is still difficult.

These are the superficial things of loot. From the perspective of investment, we don’t look at the superficial things. For example, he said that the issuance process is free to claim, not to subscribe. He also said that it is free to trade, but in fact It is impossible in the actual market. The first time we saw its price was 0.0, and the second time we saw it was 7 Ethereum. Such a rapid rise must be operated by someone behind.

Finally, let’s talk about the future of NFT. The first one is that everything can be NFT. We can use ID cards and real estate certificates as NFT. Everyone understands. So what is health treasure doing nft? After you scan it, it turns out that the person with the green code can also know where the other party has been. For example, some places I have been to and I don’t want everyone to know. We can use zero-knowledge proof. I didn’t give you anything, but I can To prove that I am healthy, it is realized through the algorithm of zero-knowledge proof cryptography, which is actually very interesting. The current NFTs are mainly pictures. In fact, NFTs can be turned into music. We have recently invested in music NFTs. Music NFTs will capture a value every time you listen to it, and it will be more high-frequency. And it's traceable. For example, if I sell a record, I buy it and sell it to another person. However, in the traditional sales method, it is difficult for the creator to obtain income during the resale process. If it is an NFT, because everything is It is transferred on the chain. Every transaction will be recorded, and then every repurchase will be given to the first creator. Many things no longer need to be realized through legal and operational methods. We realize value through smart contracts. capture.

Everything can be NFT. In the future, many of our things can be uploaded to the chain and there will be some unimaginable technological revolutions.

Let’s talk about cross-border interoperability, because there are many chains, and your assets are equivalent to different banks. Each chain is like a bank. You need to transfer money from this bank to that bank. This is unavoidable. Because this multi-chain situation has existed for a long time. Your assets want to be transferred. We just said that if you want to transfer NFT assets in different metaverses in the future, technology is very important.

How to transfer money across metaverse? There are three technical attributes below, the first being standards compliance. First of all, NFT must be compatible with different metaverses, and the second is interface adaptation. Metaverse must be compatible with different NFTs. The uniqueness of the mapping means that some elements are stored on the chain, such as this picture. In fact, these pictures are not stored on the chain, but are stored in distributed storage such as filecoin, and are linked through the index in the smart contract. . What if I want to transfer one of my NFT virtual cars to a different metaverse? Because the front-end display is different, how to transfer it? Actually this is very interesting. There is a recent movie "Runaway Player", which has such a cross-metaverse bridge. Although the images displayed by the front ends of each metaverse are different, the final stored metadata mapping is unique.

The next trend is the NFT-based social network, which may be the version of social network 3.0. If everyone has the experience of living in the countryside, how do you socialize in the countryside? Everyone is from the same family, and they all have the same surname. I call out and you buy something for me, and a relationship is established through such trust between people. Later, we had a modern industrial city. At this time, because of different occupations, there may be a postman. The job of the postman is to deliver letters for me. The trust relationship has become restricted by the division of labor in industrialized cities. Then there were the big social networks, then there was the Facebook or LinkedIn social network, and then I just proved who I was by uploading all kinds of my life on it. We predict that the next generation of social networks may not be based on platforms, but on NFTs, which is the other way around. I first have NFTs and then I will find various social scenarios.

Another thing is that the meaning of blockchain is very important in social networking. The most popular track in the primary market recently is social networking, and both Softbank and Twitter are doing it. In the past, we relied on people's trust to entrust others to do things. Later, we relied on legal constraints and platform constraints to trust, and in the future we relied on smart contracts instead of physical things. In the future, our entire society may They are all built on the blockchain, or called a token society.

Finally, let’s talk about the token standard of NFT. The main standard of Ethereum is ERC20, and the main standard of NFT is ERC721. An NFT represents one thing, which is independent and non-homogeneous. There are two new token standards here, one is ERC1155 and the other is ERC3664, which were proposed this year. I use this image as an example. ERC721 is a gun, and ERC1155 is a shuttle bullet. I call this a shuttle bullet Put it in the gun, that is, combine ERC1155 and ERC721, then this can be realized with ERC3664. ERC3664 is suitable for writing in games, especially game currency. You cannot do it with NFT standards, because it is all homogeneous. ERC1155 is between homogenization and non-homogeneity, and ERC3664 is a combination of homogeneity and non-notification. All recent applications are based on technology. You have 3G to have WeChat, and 4G to have Douyin. In the future, if you have things like AR, VR, and XR, you can build an NFT thing. Today, Facebook will release a $50 million fund to invest in the XR industry.

Thank you all for sharing with us!