As 2020 rolls along, trending themes have emerged in cryptocurrency markets. Two in particular are making waves: DeFi and NFTs.
DeFi was explained in our last feature article, discussing Elastos’ role in the REN Alliance and future possibilities within the sector.
As for NFTs (Non Fungible Tokens), the most well known is likely crypto kitties, one of which sold for $170,000 in September of 2018. Other collectables such as Crypto Punks and Axie Infinities have been sold for 10’s of thousands of dollars.
NFTs on Elastos
A marketplace is brewing, and Elastos plans to take a piece of the pie. WeFilmChain is constructing their dApp tailored for movie makers and musicians. OnSale is a marketplace developed by DMA where you can buy and sell CryptoNames, a domain name service. Step by step, Elastos is building an NFT ecosystem. We’ve summarized these mentioned NFT projects below:
Barrier of entry to crypto is a real problem that many projects are trying to solve. CryptoName, led by Elephant Wallet’s Sjun Song and Enter Elastos SN members Max and Big P, have introduced a service to purchase your own “Crypto name” and tie your ELA, BTC, and ETH receiving addresses to it on Elephant Wallet. elastOS wallet integration will be coming soon for CryptoName as well. How would this be used? Let’s say a person named John Doe purchased his name. Now John Doe’s friend needs to send him 5 ela for some pizza. All that John’s friend needs to do is enter “Johndoe” in the receiving address and it will autofill his relevant address. Now people don’t have to fetch their 18 character receiving address anymore and instead, only need to remember one word. Cryptonames are domain name NFTs as they can be bought and sold via the OnSale marketplace created by Elastos ecosystem partner DMA.
The success of CryptoName sparked the interest of DMA and they saw the value of secondhand transactions for domain name NFTs. “Due to the DMA team’s experience of NFT asset trading for years, OnSale dApp took only 5 days from concept design to development completion, from 7/9 to 7/13”. In record time, OnSale was born and several Cryptonames were immediately listed in the marketplace. “OnSale’s goal is to form a multi-terminal integrated digital asset trading platform… the ‘eBay of digital assets.’ This has important significance in the era of blockchain-driven asset digitization and data assetization, and it is also a tribute to the ecological development of Elastos.” Domain names are to be just scratching the surface of OnSales’ future traffic.
WeFilmChain is another project seeking to mint NFTs in the Elastos ecosystem via the ETH side chain. As of now, the team is testing on the Ethereum Rinkeby Testnet with their new MVP 2.0 coming in 6 to 7 weeks. WeFilm recently hosted a demo of their latest functionality on their test net. Garnet Campbell of WeFilm successfully uploaded a video, put in a limited quantity, left a description, and minted NFTs to a music video. In the future, movie creators and artists will be able to mint their films and music and sell it on the WeFilmChain platform. Fans will purchase the NFT that will act as the key to play them in their movie player. Artists will eventually be able to market and develop business plans via the Starwire dApp originally covered here. While NFTs have been seen as more of a collectible in these early days, bringing in artists and content creators gives WeFIlm a chance to become one of the first movers in the digital movies and music blockchain space.
The Future of NFTs on Elastos
Elastos VP of Development, Clarence Liu, has a different take on the NFT space. He sees NFTs as, “unique digital tokens well-suited to represent distinct objects in the real world.” For example, ViRL was a dApp on the WAX blockchain that links items like shoes to NFTs. These NFTS were bought and sold without the product needing to be moved. As described in this ViRL reddit post, “A vIRL (pronounced “viral”) is a virtual item tethered to real world merchandise like sneakers, apparel, and electronics. All vIRLs are guaranteed 100% authentic.”
Let’s say a shoe dealer wanted to invest in the new Lebron James basketball shoes coming out. NFTs can represent ownership of these new Lebron shoes, and they can easily be bought and sold without having to ship the physical product, giving buyers and sellers newfound flexibility.
Strategically, Clarence would like to target “software development firms with a project in mind that are looking for an appropriate blockchain to build on,” specifically, pre-funded projects and startups.
He explains the importance of Elastos Business Development (BD) teams in order to recruit projects. “[We need] regional BD teams with goals to find projects, market Elastos as a software solution, and incubate them. Most projects should be directed to CRC for funding but the BD team should be able to directly seed fund the best projects at a small rate per quarter. Marketing with a performance driven goal to increase brand awareness and generate inbound leads is the primary KPI. Generally, we should target startups and smaller firms with CRC as a potential source of funding. Going after enterprise projects would come later after we have improved our image.”
With an ETH side chain, minting, buying, and selling NFTs can be a fraction of the cost vs the Ethereum main chain. Gas fees are a major issue on the Ethereum network. Elastos ETH side chain solves the scalability issue and gives artists and collectors easier and cheaper access to coveted NFTs. While, according to Clarence, “There may be a concern of congestion on the existing Elastos ETH Sidechain, additional parallel Elastos ETH Sidechains may be a solution forward.” Plus, the Elastos ETH Sidechain also needs to transition its consensus mechanism from CRC Nodes to the DPoS active nodes to increase decentralization.
Stay tuned for more NFT integration within the Elastos ecosystem and remember to vote for CR Press Supernode to support the creation of articles like this. Donate Here.