How to break the development limitations of the NFT market?
NFT has achieved explosive growth in 2021, and even the mainstream market has begun to embrace the NFT boom. However, the application scenarios of NFT are mainly limited to a few vertical fields such as digital art, collectibles, and games. There are no large-scale NFT use cases in the real economy, resulting in the vast majority of NFT being in low-frequency, high-value transactions. As time goes by, the limitations of the NFT market are gradually exposed, which are mainly reflected in three aspects: depreciation, low liquidity, and narrow scope for obtaining copyright fees.
In order to solve the problems existing in the current NFT market, such as the cross-chain NFT platform ENVELOP, etc., through the use of flexible cross-chain tool collections, various NFTs can be easily converted into pledged tokens wNFT, allowing NFTs to have more functions and It can be integrated into more application scenarios, thus having more value. These functions include: economic value setting, copyright fee on the chain, leasing mechanism, time/value/event lock, depreciation protection and anti-fraud system, etc., enabling NFT to be used in more fields, including NFT market, DeFi market, sports and Digital sports market, metaverse and game market, AR and VR market, music market, real estate market, and financial market.
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How to promote a virtuous circle of NFT ecology?
Although the value of NFT has been continuously excavated in the process of breaking the niche circle, problems such as low liquidity and a sharp drop in prices after the hype have made it difficult for the NFT ecology to continue to develop.
In this regard, ENVELOP realizes the value-added of NFT by using four elements: protocol (Protocol), oracle (Oracle), index (Index), and token (Token). With the help of ENVELOP's protocol (Protocol), users can create and configure their own unique NFTs on the platform, such as adding some cryptocurrencies, establishing a liquid asset pool, and adding a certain percentage of royalties, and then all of these can be packaged into one NFT , and then converted into platform tokens (Token); if you don’t know how to set the price, the oracle machine (Oracle) will help users set the correct current price for NFT; the platform also provides an index (Index) as a reference, which is monitored from different sources Market activities provide real-time objective information about the market.
That is, the Protocol (Protocol) partly protects users who buy NFTs from the full depreciation of assets by creating a collateral storage facility. However, that portion of the protocol only applies to on-chain activity.
The oracle machine (Oracle) creates a map of the origin, movement, freezing and various transactions of the asset, and protects users by analyzing the on-chain and off-chain dynamics of assets in NFT. In addition, the oracle machine also includes major players related to NFT into the investigation, such as: issuers (publishers), distributors (platforms, etc.), buyers, etc. In addition, the oracle also includes a scoring system for evaluating assets, as well as an anti-fraud system. On the one hand, the system notifies holders of changes in asset data embedded in wNFT; The parties to the pledge transaction provided complete information.
Index (Index) aims to use wNFT to tokenize micro-indices such as any niche industry or market: the sum of wNFTs in niche markets is classified as industry data; the sum of data from sub-sectors is classified as market index. At the same time, the final index is not linked to any legal currency basket or encrypted assets, and it is an objective indicator in the NFT field. The index of the overall position of the NFT hedging market created by ENVELOP is one of the first real-time indexes for NFT and its related assets that integrate the decentralized market and the mortgage market.
Tokens can connect protocols, oracles, and indices together, and circulate through the micro-DAO structure. Everyone can use ENVELOP's token NIFTSY (NIFTSY will be ID0 in Scalesap on October 21) Come and stake (Staking 2.0) and become a member of such a DAO, distributing expenditures and possible revenues in proportion to contributions.
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Create a flexible cross-chain tool set to stimulate the new economic value of NFT
In addition to having the function of the original NFT, ENVELOP has the function of wNFT. Users are free to use any NFT on the market to convert it into the pledged token wNfT. After the conversion, the functions of the original NFT are not restricted, and the NFT converted into the pledged token can still complete the original NFT function in any service.
As a flexible cross-chain NFT platform, ENVELOP can provide NFT with a lot of new functions (economic start-up, on-chain copyright fees, leasing mechanism, time/value/event lock), depreciation protection and anti-fraud system. These tools can Easily used in fields such as GameFi, trading market, artwork, metaverse and non-collateralized NFT leasing.
ENVELOP creates a complete guarantee closed loop for all kinds of NFT users, including NFT leasing, transfer, collateral, direct purchase and sale, transaction, tokenization of guaranteed derivatives, etc. In this ecology, not only individuals and legal entities can become participants, but any active object can also become a participant, such as: scripts, neural networks, artificial intelligence and other NFT issuers.
Currently, ENVELOP mainly serves the development of the following carriers:
Tokenization of payment channels and consolidated transactions (protocols, oracles, indices);
Develop a wNFT format (protocol) for the secured derivatives market;
Development of rental design (protocol and oracle) for NFT characters in Gaming/GameFi segment;
Advertising market (index) in Metaverse;
Create a ZK mechanism (protocol) for storing assets in wNFT.
Another distinctive feature of ENVELOP is its unique cross-chain mechanism, which is an efficient form that includes three steps:
• Creation of a wNFT as collateral in Network #01 (say - Ether);
• Writing wNFTs into smart contracts on network #01;
• Send NFT key in network #02.
The figure below shows that ENVELOP provides internal value and liquidity for NFT through collateral value support and price discovery cross-chain agreement.
The protocol can tokenize any level of liquid assets, such as: assets that flow outside of payment channels, use converted LP tokens to create complex transactions, and more. ENVELOP is a DAO protocol, since DAO develops into a micro-DAO of service agreement, oracle and index, any project can use these functions for free.
It is worth mentioning that ENVELOP is one of the top 10 projects in the Binance Hackathon, and has received bonus support from Rarible and Polygon. It is currently in great demand in the market. At the same time, the team members have more than 8 years of experience in the encryption field, 15 years of experience in implementing IT product project management in financial technology, e-commerce, IT consulting and other fields, and have entrepreneurial experience in many successful high-tech projects. All are professionals with a background in blockchain, crypto trading and entrepreneurship.
In short, on ENVELOP, creators can formulate their own rules, including asset pools, collateral, and royalties, and holders can get certain asset value guarantees. At the same time, compared with other platforms, ENVELOP provides traders with relatively fast transaction speed. If you are a game developer, then this platform will also provide you with a good creative environment, and the platform itself will be able to help users estimate and set royalties. Of course, users can also create their own cases to further expand the metaverse, be able to collect royalties from tokenized NFTs, and sell NFTs at higher prices.
