DREP NFT Application: Beyond the Hype and Into Reality
NFT(Non-fungible token) has undoubtedly become the hottest trend right now. For the past few months, the NFT craze has swept over the Internet, and attracted a great many joiners even beyond the crypto world, such as Taco Bell, who has just issued an NFT for four digital art collectibles — a powerful sign showing NFTs are going mainstream. With the hype is in full swing, even the co-founder of Twitter has personally joined the NFT hype bandwagon. Last Friday, Jack Dorsey, the Twitter CEO and co-founder, exploded the internet by sharing a link to the NFT trading platform Valuables, where his March 21, 2006 tweet “just setting up my twttr” was up for bidding. The highest offer for this tweet so far is as high as 2.5 million USD, which according to Dorsey, would all be going to charity after the deal. It seems like the whole tech world is in thrall to NFTs.
So, what is the NFT craze all about? As a special type of crypto token that non-interoperable, indivisible, indestructible, and verifiable, NFTs creates a certification of authenticity that can’t be altered or erased once sold in a transaction. It has solved the genuine problem of how to compensate creators for digital content, mainly limited to the field of artwork at present. A classic example is the selling of the wildly popular Nyan Cat meme NFT by artist Chris Torres last month, which was sold for 300 ETH (roughly 561000 USD). With its unique features and powerful endorsements by numerous celebrities, NFTs have recently become an investing phenomenon.
Unquestionably there’s considerable hype around NFTs. Some even criticized it to be overhyped. But when the dust settles, there will be valuable applications that remain.
This is what the DREP team has been working on. We believe that NFTs will not merely be an Art-market bubble, but instead, a breaking opportunity for many fields in the future, such as asset and identity management. As a matter of fact, DREP has started its exploration into the innovative application of NFT long before today’s trends. Early in 2019, the DREP gamification tool based on DREP SDK has been developed as part of the DREP Gaming Ecosystem. It was designed as a gaming finance toolkit that includes personalized in-game finance modules, flexible economic models, multi-currency payment SDK, and other features that enable customizable game elements. In this attempt, we have explored the possibilities of transforming various types of in-game assets such as player levels, game points, equipments, etc, into NFTs that serve as the evaluation dimensions to the user’s personal credit. By exploring these GameFi Credit solutions, we have proved the significance of NFT in data asset management and opened up more possibilities for NFT applications beyond its utilities as art work collectibles.
Now, what DREP 2.0 hopes to further achieve is to fully capture the value of NFT through the capitalization of credit data. 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. The collection of those sources might also cover the credit data of DeFi users in non-DeFi scenarios, such as mainstream Internet applications and even traditional financial fields. By turning those credit data assets into NFTs, we will change the single method of DeFi credit enhancement of over-collateralization, and enhance the multidimensional credit evaluation of DeFi user portraits.
While a lot of lending protocols are exploring lower-risk and lower-collateralization lending models, 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. Upon the introduction of DREP 2.0, we’ll keep working on developing the DREP credit NFT assets delegation and transfer system, to provide more trusting and convenient DeFi solutions for our community.
In addition to NFT applications, DREP 2.0 will be providing a suite of exciting DeFi Credit layer 2 solutions, including the Credit Oracle & Explorer, the Credit DID for cross-protocol Credit Granting & Transfer, the verifiable white list, and more. Read our detailed upgrade plan here: https://drep-foundation.medium.com/introducing-drep-2-0-upgrade-plan-de643e4d789d.
Instead of questioning the NFT craze, we believe there is huge potential and value behind the NFT applications that haven’t been fully utilized. While there are so many voices questioning its safety and practicality, DREP are confident to put NFTs to good use in our DeFi Credit Ecosystem and seek a balance between all the hypes and providing solid solutions to the problems of many DeFi users and platforms.
DREP Website : https://www.drep.org
DREP Telegram Global: https://t.me/drep_foundation
DREP Twitter Global : https://twitter.com/DrepOfficial
DREP Naver Blog Korea: https://blog.naver.com/drepkorea
