In recent times, it is quite obvious that NFTs have been taking the crypto space by storm. As the evolution of blockchain technology and innovative applications keep accelerating, the NFT space is growing extensively. Both the secondary market and professional investment institutions are frequently deploying and joining popular tracks such as NFT. The question now is, what is the future development potential of NFT? How can UENC take maximum advantage of this fantastic opportunity?
According to data from 2020, the NFT market will reach 338 million U.S. dollars, and as of the third quarter of 2021, this figure has become 1.9 billion U.S. dollars. CoinGecko data shows that the current market size of NFT has exceeded 20 billion US dollars, about 130 billion yuan.
All these figures justify the fact that NFT will be the next hot spot in the market. NFT solves the problem of creating non-replication in the network world where everything can be replicated, enriching the types of virtual assets, and let people see that NFT, as an asset mapping method, is expected to become a bridge between off-chain assets and access to the chain. . At the same time, in the face of Ethereum’s low throughput, high gas fees, and network congestion, how to build a better infrastructure? How will UENC empower the NFT sector as a whole?
Some Challenges of NFT With Solutions from UENC
The current NFT track has huge potential, and the NFT landscape has just begun to be pieced together. How to evaluate the industrial value chain from the casting of NFT to the circulation is a problem that needs to be solved urgently. The layering logic of the NFT industry value chain is as follows: from bottom to top, it is the infrastructure layer, the protocol layer, and the application layer.
1. The Infrastructure Layer
This covers the underlying public chain, side chain/Layer2, development tools, token standards, storage, and wallets. This layer of capture value is based on the casting of NFTs. For example, the underlying public chain and sidechain/Layer 2 capture the gas fee generated by the casting. The greater the number of NFTs, the greater the value of this layer of capture.
The multi-language smart contract WASM supported by UENC allows participants to enter NFT applications more quickly. UENC will use cross-chain technology to allow more high-energy-consuming encrypted assets to circulate quickly on the chain at a lower cost through the UENC network. It is also easier for companies or individuals to use encrypted tokens to complete the development of DAOs under smart contracts.
2. The Protocol Layer
This layer essentially includes
1. Liquidity agreements are mainly used for the value discovery of NFTs. This type of agreement does not cast NFTs but uses various methods to price NFTs. The value capture in the future is likely to be similar to DEX and oracles, based on the provision of liquidity-based financial services.
2. DeFi+NFT, mainly NFT forged by DeFi activities, is different from other casting protocols and mainly captures value through casting activities.
As a hot project in the industry, UENC uses a virtual machine (Virtue Machine), which is realized through smart contract + DAO.
UENC introduces a fair value system. The virtual opportunity determines the fair value of the NFT based on the authenticity of the asset, the price trend of the same type of asset, and the relationship between supply and demand. The initial price plus the fair value given by the node forms a price range for market reference. Early participating nodes will be rewarded by UENC, and the income obtained in NFT will be distributed to ecological nodes according to certain rules.
In terms of casting protocol, through the NFT interface established by the UENC ecosystem, the NFT ecological development, and trading platform can use the content addressing feature of UENC to carry out many “unique” non-homogeneous NFT works data, and pass the data inspection possessed by UENC. With the nuclear mechanism, UENC can make the storage and transaction of the NFT ecosystem more open, safe, and effective.
Also, UENC developed a trusted network that helped build a basic cross-link interface and an SDK and finally built a global trusted value network.
3. The Application Layer
It is mainly composed of applications derived from tokens generated based on the protocol layer. For example, the NFT traded in the pan-secondary market project is mainly composed of various casting protocol platforms at the protocol layer. Value capture at this level is mainly based on traffic and demand realization, such as social interaction and curation. How to gather traffic and realize the value is the core value point.
With the increase of assets on the chain, especially the development of NFT projects, UENC has the opportunity to provide transaction services for more assets, thereby expanding its transaction scale. NFT can convert real-world assets into digital assets. NFT represents the ownership of assets in the digital world, and it is evaluated or traded in the blockchain network in the form of UENC.
From the perspective of transaction efficiency, UENC’s computing power requirements are extremely low, and one-core CPU can participate in UENC mining. Considering the low energy consumption of physical equipment, UENC has more advantages in transaction speed and transaction fees. UENC has an earlier layout in the blockchain industry and has now begun to take shape. Compared with other projects, UENC is more friendly and open, so it naturally becomes a better investment choice.