The utility and future prospects of NFTs in the eyes of Silicon Valley technology product managers

Original link: https://www.hellobtc.com/kp/du/06/3963.html

Author: azf.eth | Compiled by Fire / Source: Vernacular Blockchain

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This is the 1673rd original issue of the vernacular blockchain

Author|azf.eth

Produced | Vernacular Blockchain (ID: helloBTC)

What will NFT develop into in the future? As an IRL Silicon Valley technology product manager, I’ve been watching trends and evaluating relevant data. Today I am going to share with you some of my recent research findings.

In the past year, I have found that the focus of NFT/Defi is mainly on the following points:

  • Price speculation based on fomo (Fear of Missing Out, meaning fear of missing out) , fud (Fear, Uncertainty, Doubt, fear, uncertainty, doubt) , attention and influencers

  • Memes + CC0 (trend culture + secondary creation without authorization)

    Note: meme can also be translated as a mystery, which means trend culture, gimmicks, and imitation factors. “CC” is short for “creative commons” and is used to designate a set of rights related to this work. CC0 means “no rights reserved”, the work is placed in the public domain by the creator without reservation, and everyone is free to copy, disseminate and recreate.

  • Existing shortcomings of technical infrastructure

  • Products that do not need to rely on web3 technology

01

price speculation

The price speculation mechanism is in contrast to fiat currencies backed by governments or stocks backed by some commercial operations, as the crypto industry and NFTs are completely dependent on market sentiment. This is why crypto is one of the most volatile assets in the world.

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Especially in the NFT space, OpenSea and LooksRare (both decentralized NFT marketplaces) have turned into digital casinos, giving us a tempting message that we can also create 10x in a week Or 100 times the deal to turn our salted fish over. Therefore, some KOL tweets on Twitter (whether they are real or not) can immediately increase the value of NFTs by 2-3 times, which is obviously speculative.

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NFTs are also an attention economy, with a handful of “influencers” wielding staggering amounts of influence , as each of their tweets gets tens of thousands of views. Some of them use their influence sparingly, while others don’t.

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Some DeFi teams try various novel token economics in order to maintain the stable price trend of their tokens. But without exception, at the end of the development, the Token will either shrink and be held by a small number of people, or just expand with a “high yield” in the short term.

For example, $OHM encouraged its community of diamond players to use the “(3,3)” strategy on Twitter, but it still failed.

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02

Memes + CC0

MEMES + CC0 is a typical example of imitation creation without authorization. This is an invisible, but well-understood thing by the public, and it is very suitable for NFTs to grow and develop . At the peak of the development of Kevin meme, this mf, which is not very good-looking to ordinary people, was bought at a price of 8.8ETH, or $264,000. Imitation creation will continue to exist, but the individual’s ability to imitate creation is limited.

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Most meme projects are CC0, ranging from cryptoadz (animals on the Uniswamp platform) and mfers ( a PFP avatar project hand-painted by art creator sartoshi, whose style is a minimalist stickman image) to goblins (with brother Brin-themed PFP avatar class NFT). Its value lies in its cultural genes that can easily resonate with people. You don’t even need to take ownership of the artwork to recreate it. On the other hand, if the core team members leave the project with the quick money, it is easy to cause bad consequences, that is, the market attention shifts, and then its price falls.

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Meme, which is a trendy plaything of NFT, will probably not disappear. In the beginning, you can benefit from a trendy plaything that you can understand. In fact, Meme has been monetized before its popularity. Here, it is deeply involved in the essential attribute of NFT – collectability. The ownership of NFT can prove that you own and participate in an important event.

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03

Existing shortcomings of technical infrastructure

In the first half of this year, a lot of big events happened : Terra “stable coin” was decoupled from $1, Solana went down 7 times, Ethereum burned more than $100 million in one day, about L1/L2 merger or multi-chain parallelism The development is hotly contested, a large number of NFTs have been stolen, and so on.

These events show that there is a big gap between technical ideals and practical applications. But when it comes to giving up using this technology, it’s like a debate between UDP and TCP (UDP is a connectionless protocol and TCP is a connection-oriented protocol), or it’s like using SQL or not for SQL databases Which is better? That’s not the point, in web2 we focus on actual products built on the internet that happen to require data storage technology.

Just as the internet speed of our mobile phones in our pockets today evolves from 56k to 5G, technology will get better and better and the blockchain scale will get bigger and bigger. Gas fees will also be lower and lower, and fraudsters will be more difficult to succeed. We’ll also talk more about products than technology.

About the product, I will describe it in detail in the use case column below.

04

Products that do not need to rely on web3 technology

Products that don’t require a Web3 platform This is probably the most controversial point. Many NFT projects would be better off with an “alpha” email list or paid subscription service. Just like most P2E games should focus on game development first, not NFT distribution.

If technology is a priority, these projects are highly dependent on royalties and commercial hype to succeed. However, after most of them have obtained tens of thousands to hundreds of thousands of income in this way, they have to face a difficult situation, that is, how to fulfill the initial planning commitment to the public with very little capital.

Many NFT projects claim they will “build the next Disney,” but they ignore the fact that it took Disney decades and more than 200,000 employees to get to where it is today. It is good to have a vision, but there must be a clear plan and execution from A to Z, and each milestone in the middle needs to be achieved step by step.

Many NFT projects are actually equivalent to starting a business. You have to have a target customer base, a marketing channel, a product to sell, and you have to make money. So NFT can only be an accelerator for your growth, not your only business model. So some projects really do not need to develop to Web3.

05

What is the future of NFTs?

Now that you understand the current state of NFTs… what will NFT utilities look like in the future? Let’s focus on the following three points:

  • Intellectual Property License

  • Community/Membership

  • Facilitate the rapid growth of good products

Next, look at the specific details.

1. Intellectual Property License

When you buy an NFT that gives you full commercial use rights, especially an explosive game, it means that you are buying IP to create various goods (game notes: such as coffee beans, wine, hats, desktops games, etc.) and work with existing communities that are interested in your IP.

Here, you no longer pin all your hopes on the price of NFTs, but use NFTs like a piece of commercial real estate to develop your business. This is an opportunity to “invest in yourself”, and you will need to adjust at any time to achieve the expected return on your NFT investment.

Brand agencies for new market segments will also emerge. Advertising agencies have the skills and networks to build the necessary brand story around the NFT IP. Holders of a large number of NFT assets, aka investors, can earn passive income on their intellectual property simply by signing up online.

2. Community/Membership

“It’s better not to have differences within the community.” We have seen examples of NFTs with community exclusivity in many exclusive communities in different industries before.

It’s like Ferrari only allows current Ferrari owners to buy their next series model. What if this becomes a transferable NFT? Members of Disney’s Club 33 have access to fine dining restaurants and free entry to many parks. If these membership cards can be rented out in the form of NFT?

Membership, also known as coinage, allows the team to bring a variety of useful features to members. With a well-curated community, the web is invaluable.

This also goes beyond the previous “business network” development model. Create a community of consensus through charitable fundraising events minted by NFTs. For example, the NFT of HS club membership will help to verify the college enrollment rate. There are many interesting cases like this.

3. Help the rapid growth of good products

Today, many NFT issuances are launched alongside actual software or merchandise. But issued NFTs can (and should) also be used for pre-existing products. For example, some existing projects gain access or use rights to advanced functions by launching NFTs, which helps to find major customers of the project and raise funds.

It can also be said that NFT is a tool that integrates user feedback, capital and marketing. For example, Netflix could sell 100 lifetime tickets to raise extra money, generate marketing spurs, and figure out what power users want.

If IMO (IMO: Initial Miner Offerings, Initial Miner Offerings, which refers to the first issuance of Tokens by selling hardware/mining machines) in this way, NFTs will sacrifice long-term profits in exchange for short-term marketing incentives and capital raising. Because a player who pays $X for your NFT needs to get more than $X worth. Otherwise, why would they buy your NFT?

All in all, what we’re ultimately trying to figure out is “issue an NFT, what exactly am I selling and buying?” Sellers create NFTs to create buzz, raise money, and curate a community that cares about their product. Buyers buy NFTs to access an exclusive network + utility usage rights for premium products.

I know people have mentioned real estate NFTization and soul-bound tokens by now, and IMO it will take a while.

What do you think about the short- and medium-term utility of NFTs?


Original title: What will NFT utility look like in the next 6 months?

Original link: https://twitter.com/azfnft/status/1536149094216761344

Author: azf.eth

Compilation: Fire

This article is reprinted from: https://www.hellobtc.com/kp/du/06/3963.html
This site is for inclusion only, and the copyright belongs to the original author.

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