NFT’s using scenarios and diversified assets
The “Broken Circle” of NFT and the Nature behind it
In recent years, with the increasing popularity of NFT, people’s minds keep blowing. Nowadays, NFT has realized its function of “breaking the circle across borders”, and can be applied to such scenarios as games, virtual assets, artworks, collectibles and identity authentication, and can be purchased, sold, leased and auctioned on some trading platforms. For the cryptocurrency market, NFT will undoubtedly bring us infinite opportunities and unknown risks.
From real assets to virtual assets
Since the incident of “burning paintings to make NFT, which was finally sold at a high price of $380,000”, not only did it not arouse any criticism, but it was sought after by more artists, and more and more NFT works of art appeared in the market. As an alternative digital asset, NFT can be understood as binding a real object to form a digital certificate, which is similar to forcibly adding a digital fingerprint to the object and directly declaring the owner of the asset.
The potential of NFT to be explored
The form of assets is constantly innovating
Under-chain assets become digital products through NFT, which is unique, transparent, unchangeable and permanent. Compared with real products, NFT neither need to be handed over to people in reality nor be preserved and restored in a special way, and holders don’t need to worry about losing value due to being destroyed and irrecoverable. More importantly, NFT can also eliminate distrust transference in the real world and reduce unnecessary transaction costs.
Inspire users’ enthusiasm of creation to expand the liquidity
Since people are increasingly eager to create some surreal asset tradings in the virtual world, they will innovate different forms of NFTs. Artists can also appreciate others’ works through a more convenient and low-cost channel, and even establish direct contact with buyers or their own fans. As the number of buyers and providers rises, different needs will be expected to be met. Once users inject value, the liquidity of NFT transactions will automatically expand.
How will DREP × NFT adapt the fluctuant NFT transactions ?
Meet the urgent needs by optimizing its products
- Perfect the pricing mechanism: Oracle
The DREP team will further promote the development of DREP Credit Data Oracle solutions and Credit Explorer in the 2.0 product line, thereby forming a credit price for the DeFi protocol. By doing this, users will be more clear about the valuation of their products, thus liquidity providers could make relevant adjustments to improve their competitiveness and liquidity demanders are able to make smarter choices in their investment.
- Raise the upper limit of liquidity pool
Designing to capture more value and promote the ecological exchange of NFT between chains, DREP’s Crossing is applicable for both ERC-1155 and ERC-721 NFT types. Therefore, token mapping is the best operable solution to enhance interoperability of NFTs. By mapping a new token as the alternative for the NFT asset through DREP Crossing, users will be able to flexibly swap and transfer their NFT upon approval.
- Upgrade the function of smart contract
By continuously upgrading the smart contract, the stability of asset storage in the chain is strengthened, and clearer rules are formulated to ensure the creators’ long-term income rights and ownership. The team will also ensure that the embedded wallet is highly secure to satisfy transactions based on different chains. In addition, we will continue to optimize the form of auction and distribution and sub-commission rules of the second sale of NFT, so that the fairness of each transaction is ensured.
Stand ready to handle future challenges
Before the market turmoil subsides in the future and before the deviation between the price and value of NFT narrows, investors will definitely prefer a safer market. Therefore, the DREP team is also making efforts in this area, such as developing the forward-looking DREP NFT Applications：
- DeFi credit protocol
In DREP 2.0’s DeFi credit protocol, we will transform users’ credit data accumulated through historical transactions into NFT assets, and integrate them with users’ DID. The data includes and is not limited to the users’ previous transaction amounts, default records, collateral values, risk preferences, and other relevant sources as the dimensionalities to measure the user’s credit level in various product types such as DEX, lending, Earn & Aggregators, insurance, derivatives, wallets, etc.
- NFT assets × Users’ DID
We believe that through the innovative application of NFTs, there will be more efficient approaches for building credit profiles based on DeFi DID without wasting credit rights and credit premiums accumulated through historical transactions. We will further explore the feasibility of granting credit from different addresses among different protocols, which will depend on whether the credit is in a fungible state after the capitalization of credit, the risk thresholds of different protocols, and the effectiveness of default risk management mechanisms.
DREP’s specific solutions in serving users.
Measures to encourage new or inexperienced users
- Improve user stickiness
The DREP team is working hard to upgrade the reward system and encourage more new users to participate in NFT transactions; In addition, we also concluded that，it is necessary to help users realize the profit space of NFT and to highlight the ownership of NFT assets to young people, emphasizing that they are the only owners. By creating new user groups, we will ensure more integration of NFT activities and ecology.
- Lower the threshold for participation
The team is seeking new ways to simplify the process of creating, using and trading NFT. In the future, the value application of NFT is likely to expand to digital finance, intelligent manufacturing, Internet of Things and other fields. Cultivating users’ sense of use in the early stage and helping users to reduce their burdens is the key to obtaining more users’ support.
DREP’s efforts to deal with the most concerned issues from users
NFT is digital and transparent, which means that anyone can copy an identical NFT, but whether the NFT is “true” can be confirmed by comparing the contract addresses. NFT provides a good idea for copyright protection of digital works. In order to prevent new forms of assets from becoming new forms of piracy, the team will strengthen the management of encryption keys to help users protect the security of assets.
Our team is committed towards combining NFT cross-chain circulation + multi-asset trading to simplify its transfer process, expand the current NFT market, accelerate NFT valuation/pricing by providing the trading board function, and provide more convenience to all NFT lovers.
In the future version of Crossing, the team will develop an NFT Trading Board that allows flexible trading between a variety of tokens and NFTs (token-token, NFT-NFT, token-NFT and vice versa). This function will greatly simplify the trading process, improve the speed of contract interaction and reduce the high gas fee.