Introduction

Vision and Mission

The NFT (non-fungible token) infrastructure holds the key to disrupting the world economy similarly to how cryptocurrencies and blockchain transformed technology. Our vision is to remodel a range of industries by advancing the existing NFT standard with embedded license rights, extending metadata per industry vertical and creating a new liquidity protocol. Our goal is to enable a perpetual trade of NFTs, giving them continuous liquidity through a new type of AMM liquidity pool.
By launching an infrastructure which enables proper rights management and constant liquidity for non-fungible tokens, we aim to empower creators, users, collectors, and investors to enter the new age of metaverses and generate, utilize and trade NFTs inside this new space.

Overview

The Problem

It is no secret that the current NFT infrastructure is built around ownership of a digital token, which we agreed represents a digital item. However, what are you actually buying when you buy an NFT? A hash value, metadata—or a real-world item, a work of art itself? Copyright and other associated rights were never a design feature of NFTs. An emerging number of projects is challenging this concept, making it harder for the market to adopt a new tech stack as a proper solution for a longstanding problem.
Taking the traditional art market as an example, looking at the art market as a whole, there is one crucial aspect to consider. Most of the high-value art in the world is hidden behind closed doors. In the Art & Finance Report 2019 by Deloitte and ArtTactic, it is estimated that the wealth associated with art and collectibles is worth over US$1.5 trillion, but most of that art is stored away in freeports. In order to unlock this value, we need to find ways to “NFT-ize” the market and bring it out in the open.
While blue-chip art is inaccessible to small collectors, there is also a significant barrier to entry for new collectors within the blockchain space due to the inoperability of current platforms. In this process we need to take into consideration the needs of traditional markets for ownership verification, and proper handling of NFT metadata standards.
The DeFi movement crafted a new playground for innovative projects but failed to include the NFT concept into its ecosystem due to the tokens’ non-fungible characteristics. Many stakeholders are waiting for a proper solution to transform the market.

The solution

The new infrastructure must be substantially better to transform the status quo and move markets forward, into the expanding metaverse space.
NFTs must become a liquid asset class. Transactions must be fast and cheap. Energy consumption must be minimal. Registered NFTs on the blockchain must be compatible with established regulations and copyright law. Collectors must be able to benefit from purchased NFTs beyond speculative trading. Art on the blockchain must follow international standards for provenance documentation and verification.
Taking only art as an example, when the proper protocols are in place, we have a base for unlocking almost US$2 trillion in art value stored behind closed doors. For this to happen, collectors must have confidence in the underlying technology, and there must be a proven track record and widespread institutional adoption.
The music industry, one more great example, is waiting for proper license rights management solutions utilizing NFTs, so it can start the move into NFTs. Museums don’t yet know the power of NFTs to raise funding for further management of their institutions. The movie industry hasn't tapped into NFTs yet, waiting for the right set of tools and protocols to enable proper utilization of their value. Brands are only starting to explore the avenues of the NFT world and how this digital transformation will affect their businesses.
Once transaction fees are lowered, a proper solution for license rights is introduced, there are immediate benefits to collecting and utilizing those rights, incentivizing more people to enter the NFT space. This mechanism will create a positive adoption loop, where more and more industries will realize the benefits of bringing items to the blockchain. In a way, this process is already taking place.
Taking art and culture as an example, the new market dynamics could stimulate prominent collectors to reveal their holdings and bring valuable art into the open. An abundance of priceless art with significant historical value is hidden away and only accessible to a few people, but if those artworks and artifacts were shared with a wider audience, it could create an unprecedented cultural shift that would benefit the global civilization.
Last modified 3d ago