KuCoin Crypto Gem Observer:  Hyped By The Twitter CEO, What Is The Magic of NFT?

KuCoin Crypto Gem Observer:  Hyped By The Twitter CEO, What Is The Magic of NFT?


At the beginning of March, the NFTs sharply skyrocketed. The Google Trend of NFT surpassed DeFi, Blockchain and Cryptocurrency step by step. The explosion of NFT was very likely due to the Twitter CEO announcing that his first tweet was made into an NFT. He then auctioned it, with the current price exceeding $2.5 million. 

So, what exactly are NFTs?

What are the classifications of NFT?

And, what are the top NFT projects?

Today, this blog will take you on a deep dive into NFTs and its ecosystem.

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What is an NFT?

An NFT (Non-Fungible Token) is a very special asset on the blockchain. Unlike Bitcoin, which is a fungible token, an NFT has the characteristics of indivisibility and irreplaceability. In short, NFTs can represent any unique thing in the world, such as virtual collections, game assets, virtual assets, digital artwork, virtual real estate, etc.

 

What are the Classifications of NFT?

The NFT ecosystem can be subdivided into multiple sections, including public chains that provide an underlying technology environment, an exchange that provides liquidity, and an NFT platform that provides application scenarios like virtual games, fashion, collections and the more interesting NFT+DeFi, etc.

 

What are the Top NFT Projects?

Section 1: NFT Public Chain

A public chain that supports NFT assets’ issuance, circulation and exchange is the underlying basis of the NFT ecosystem, like Ethereum and Flow. Most of the current NFT projects are built on the Ethereum network, but there are two other public chains growing rapidly and will be competitors of Ethereum —— FLOW and ENJ.

Flow (FLOW) is a fast, decentralized, and developer-friendly blockchain, designed as the foundation for a new generation of games, apps, and the digital assets that power them. Flow is the only layer-one blockchain originally created by a team that has consistently delivered great consumer blockchain experiences: CryptoKitties, Dapper Wallet, NBA Top Shot.

Enjin (ENJ) is a blockchain game development platform. Its CTO developed the ERC-1155 token standard, which allows for more efficient trades and the bundling of transactions - thus saving costs. In the near future, ENJ will develop the interoperability bridge JumpNet and its public chain Efinity. The two products will empower the development of NFT and remove the gas fee on the ethereum network.

Section 2: NFT Trading Platform

As a liquidity provider for NFTs, trading platforms provide NFT asset exchange services. Especially with the growth and development of the NFT market, the demand for NFT asset trading is increasing. There are two top NFT trading platforms you should keep an eye on - Opensea and Rarible.

Opensea is the world’s largest digital marketplace for crypto collectibles and NFTs, including ERC721 and ERC1155 assets like Axies, ENS names, CryptoKitties, Decentraland, and more. In February, the monthly trading volume of Opensea exceeded $90 million, with over 50 thousand users.

Rarible is a creator-centric NFT marketplace and issuance platform that utilizes the RARI token to empower users who actively interact with the protocol. Users on the Rarible platform can easily create NFTs for unique digital items like artwork, game items and more. The platform offers users a fully-featured marketplace that is filtered and sorted using different categories to create a smooth and easy user experience. Anyone can create and post NFTs on the Rarible marketplace. The RARI token is a fundamental pillar of the platform as it is used to reward active users and for participating in the governance of the protocol.

Section 3: NFT Games and Virtual Reality Platform

Games and virtual reality are amongst the most dominant use cases for NFTs. There are over 20 NFT projects that are developing NFT games, like MANA and REVV.

Decentraland (MANA) defines itself as a virtual reality platform powered by the Ethereum blockchain that allows users to create, experience, and monetize content and applications. In this virtual world, users purchase plots of land that they can later navigate, build upon and monetize.

REVV (REVV) is the main utility token and in-game currency for branded motorsports blockchain game titles produced by Animoca Brands, such as the F1® Delta Time blockchain game platform, and a title based on the MotoGP™ motorsport intellectual property.

Section 4: Fashion And Collecting

NFTs also bring more innovation to traditional industries like fashion and collecting. This section is also regarded as the blue ocean of the NFT market. Driven by the digital revolution, more and more fashion items and collectibles will be created as NFTs, and the KuCoin Spotlight project LUSKO is already pioneering this.

LUKSO (LYXe) is a multiverse blockchain network where the worlds of fashion, gaming, design and social media intersect. LUSKO focuses on bringing blockchain to the masses, through its smart contract based blockchain, industry-involving standards processes and an innovative new direction for decentralized applications.

Section 5: NFT+DeFi

NFT+DeFi is the most interesting section of the NFT field, as it has the most potential. It not only has the characteristics of an NFT, but also integrates the capability of DeFi, like liquidity mining, staking, etc, which also brings greater opportunity to NFTs. DEGO is one of the most popular projects in the field.

Dego.finance (DEGO) is a cross-chain NFT+DeFi protocol & infrastructure, offering an open NFT ecosystem where anyone can mint NFTs, initiate NFT mining, auctions and trading on Ethereum and the Binance Smart Chain. DEGO offers a cross-chain infrastructure to enable blockchain projects to grow their user base, distribute tokens, and to develop more diverse NFT-powered applications. 

 

In Conclusion

As one of the earliest exchanges supporting the development of NFTs, KuCoin has listed a number of high-quality projects in the NFT field, including LYXe, REVV, and DEGO. Furthermore, KuCoin will launch an NFT exchange this year to bring efficiency and a low-cost NFT asset trading experience to users.

2021 is regarded as the "year of the NFT". There are a number of NFT projects emerging,  and the transaction volume of NFT assets has reached an all time high. According to CoinGecko, the market cap of the NFTs reached $91 billion, accounting for 0.5% of the total crypto market. With the further development of NFTs, more uses will emerge.

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