The NFTY News tracks the ever-evolving narrative of digital goods and native-crypto consumer applications. In each edition I explore non-fungible tokens, dApps, and the ecosystem affecting consumer blockchain adoption.
I started covering non-fungible tokens originally because I didn’t see much utility in fungible tokens. Everyone talked about price & white papers — and this caused a distraction to the real building and adoption in the space. It’s been a hell of a ride in 2018 for this newsletter and the consumer blockchain ecosystem, and can’t wait to see what’s in store next. The question remains… what consumer blockchain application will bring users into crypto other than price action?
What’s going on this week:
As announced last week, NFT.NYC will be taking place February 20th at the Playstation Theatre in NYC. You can buy tickets through OpenSea in their storefront. Tickets are able to be transferred, bundled, re-sold, biddable, and interoperable, something that the ticketing industry couldn’t do in the past. It’s a great time for games to experiment with using these tickets as part of a cross-promotional advertising strategy.
Wrote an article on CoinDesk last week talking about the different stories & trends that advanced the space in 2018. The major trends that were covered include: scalability, standards, marketplaces, interoperability, IP, and infrastructure.
A fair criticism against non-fungible tokens from Mark Beylin and why they may be overhyped. I answered some of the criticisms in this thread below.
1/ Blockchains are made up of standards. Even for mappings, we need ERC721s with non-transferability to be interoperable with the rest of the ecosystem. For example, @sendwyre uses ERC721 for their compliance reputation token because DeFi *standards*.
Mark Beylin@MarkBeylinAs building blocks of reputation systems, NFTS ARE A NO GO. If your reputation system allows for the sale or transferability of rep, it is functionally useless as a signalling mechanism. Full stop. NFTs without transferability are fine but that’s just a mapping.
Here are ten use cases of NFTs that were used this year outside of gaming & art.
CryptoCup —Had brackets as NFTs for the 2018 World Cup. As the games went on, some brackets gained and lost value and were traded the entirety of World Cup. This enables something in the world of sports betting that hasn’t been done before: 24/7 trading of sports predictions.
Wyre — After you complete your KYC on http://sendwyre.com , you’re awarded an ERC721 representing completion. Wyre is a good example using blockchain standards to enable on-chain compliance, compatible and interoperable with the rest of the decentralized financial ecosystem.
FOAM — You can stake tokens in a given area on the FOAM map representing a demand for cryptographers. After you stake tokens, you’re minted a NFT. The best experiment involving fungible tokens acting as a representation of unique collective value within a network.
Marble Cards — Tokenized URLs. Users can “marble” any URL including memes, articles, twitter pages, and more. Another interesting use case is if users can earn affiliate revenue through links on OpenSea, users can then also marble affiliate revenue links to be tradeable as an NFT.
Zastrin Courses as NFTs — Zastrin teaches you blockchain through real-world projects. They’ve recently been exploring NFTs — and even made their courses into NFTs! Instead of using referral codes, you can earn affiliate revenue by sending someone to your link on OpenSea to purchase Zastrin courses.
Ethmoji — My favorite project from the entire year. Ethmojis are composable gravitars for your ETH address made up of components. Components are body parts of Ethmojis that are unique and owned by one address, giving ETH every time that component is used in a Ethmoji composition. Has the potential to be the first web3-based identity system for Ethereum.
FlowerTokens — The best experiment for the combination of digital + physical assets. Users own buy a tokenized Dahlia, and can track the growth of their physical flower through their portal. Panda Earth also tokenized real endangered pandas this year and had users donate by buying Panda NFTs.
Gitcoin Kudos — Kudos rewards freelancers and open source (both artists + developers) in the same token. Artists can design trophies or badges to be used as a gift. Users who create a bounty can buy and attach a kudos to the bounty to tie in intrinsic motivation to the existing financial incentives. Artists receive ETH when the Kudos is purchased.
CryptoAgainstHumanity — Combination of all the primitives — bonding curves + TCR + NFTs. Users submit black cards and create white cards /buy into white cards that pertain to the matching black card (similar to Cards Against Humanity).
ENSNifty — We need simpler ways to trade & activate ENS names. ENSNifty is a band-aid solution that currently works better than the 5 step process of the original ENS auction, but doesn’t help with the adoption of ENS names. Radical Adresses is also attempting to solve ENS adoption by enabling users to acquire an ENS name in a single transaction.
If you are working on creative use cases, or working on trying to get more people into crypto and reaching end users using non-fungible tokens, I would love to talk about how I can help. Reach out to me on twitter @flynnjamm, my DMs are always open.