AlchemyNFT: Rise of Remix NFTs

Bringing a new liquidity layer and unlimited utility to NFTs

Victor Zhang
Smart Token Labs

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We’re excited to announce the project we’ve been working on in stealth mode over the past 5 months: AlchemyNFT.

Alchemy was much more than just a delusional search for the Philosopher’s stone and immortality. It was also and especially the art of transmutating substances by binding and loosening.

AlchemyNFT embodies the philosophy behind the art: to transmute Non-Fungible Tokens (NFT) — Bind them — Loose them. Equip them with functions and features formerly unimaginable. With AlchemyNFT you could add a celebrity’s signature to an NFT, dress your CryptoPunk with fashionable items, or link specific transactional contracts.

AlchemyNFT is a new layer of liquidity for NFT owners, creators, and celebrities to co-create and monetize ‘remix NFTs’ and it contains a game-changing technology (TokenScript) that turns NFTs into usable Apps and Open APIs.

1. Why AlchemyNFT?

NFTs hold a lot of promise — but even more hype. Currently, NFTs have limited utility and are unable to deliver on the promised use cases. However, we’ve barely scratched on the surface of what NFTs might do for society. We believe that in the future NFTs would be as ubiquitous as smartphones, credit cards, or car keys. But without the addition of new utility, the NFT ecosystem will simply remain concentrated in speculative trading.

AlchemyNFT changes this, by making NFTs limitless.

AlchemyNFT addresses those missing components. We’re excited to announce a new liquidity layer to the NFT ecosystem, adding unlimited utility and rights to existing NFTs. AlchemyNFT allows NFT holders to deploy additional sets of use cases to the NFTs they hold.

The main concepts that AlchemyNFTs leverages are: “remix” and “ubiquitous”.

2. How does AlchemyNFT work?

Remix: recreate, synthetic, combine, mutate & transform NFTs

The AlchelmyNFT protocol (smart contracts) can serve as the backbone for attestation-based NFT issuing (gas-free minting), NFT remix, NFT trading, ID attestation, and much more.

The current NFT ecosystem, as promising as it may be, lacks a few components, which is why it concentrates on speculative trading of non-fungible assets. AlchemyNFT changes this by providing new avenues for using NFTs. It introduces brand new components which enable token owners to manipulate their assets; to recreate, remix, combine, attest NFTs, and to add new utility and rights.

Token owners can

  • collect digital signatures
  • add remix traits
  • bundle collections
  • collaborate with other artists to do recreation based on the existing NFT.

With AlchemyNFT the owners of NFTs create remixed NFTs — NFTs that inherit the traits from their original but accommodate new custom traits.

AutographNFT: The first product of AlchemyNFT

To demonstrate what AlchemyNFT is capable of, let us consider I own a Cryptopunk. This is a popular collectible on the ETH blockchain. I love my Cryptopunk and would like to add a few more remix traits to make the punk really ‘mine’.

One of the actions AlchemyNFT enables is to collect digital signatures. For example from my personal hero, Mark Cuban. To do this, I can use our first product of the AlchemyNFT suite called ‘AutographNFT’. With it, I can make an offer to Mark Cuban through his Twitter profile. Signing NFTs can become an additional source of income for celebrities (and charities).

If Mark accepts my offer, he completes the action with one click from any device by signing my offer with his Twitter ID attestation. Then the original Cryptopunk NFT is locked in the AlchemyNFT smart contract, which mints a new Cryptopunk NFT. This NFT is identical to the old punk, except that it includes an additional ‘remix’ trait of Mark’s Twitter ID attestation signature.

We call this process of minting a new remixed NFT ‘wrapping’. Every time a token is wrapped, new traits can be added to the token. There is no limit to the number of times it can be wrapped.

A celebrity’s signature was just an easy example to understand the concept. By no way is it all that can be done. Wrapping NFTs can become very useful in a lot of areas outside collectibles and trading. For example, if you have a token representing your car or your house, your insurance can wrap it to represent the insurance policy. With AlchemyNFT you can add new layers of content to your token. Imagine adding a soundtrack from your favourite DJ to your Beeple’s NFT! Or a branded accessory, say a Beats headphone or Gucci sunglasses, to your existing crypto punk. Or take items in video games that are upgraded by adding a rune stone.

The wrapped tokens can be unwrapped as well. The token owner still has full ownership of it. The unwrapping process will burn the remixed token and release the original token. Unwrapping doesn’t require a specific order; you can unwrap any unwanted traits. Hence through the process of unwrapping, all the remixed tokens can be converted back into their original form. One point to note is that unwrapping is non-reversible. It destroys the remixed tokens.

Trade: permissionless attestation-based trading mechanism

Another powerful unique feature of AlchemyNFT is its permissionless attestation-based trading mechanism, which enables a much-advanced blockchain marketplace, a new liquidity layer. I do not have to know Mark Cuban or ask for his permission to make him an offer to create a remixed asset. All I need to know is Mark’s verified social profile to send him my bid. The security of smart contracts guarantees that the underlying transactions contain no counterparty risk. Payment and minting of new assets are done atomically, establishing trust in the offers even when they are from people you may never know. This paves the way for new and interesting, formerly unimaginable opportunities for collaboration between people anywhere in the world.

The attestation-based trading mechanism can facilitate a wide scope of trades: 1 to 1 offers, 1 to multiple, multiple to 1, and even multiple to multiple offers. You can make offers to a person, a group of people, or open to anyone. It also allows setting any condition via attestation for each of your trades. You can make offers to things that already exist or things not yet exist.

Ubiquitous: bringing unlimited utility to NFTs

Beside the smart contracts, the other part of AlchelmyNFT is TokenScript which adds utility and rights to NFTs and enables NFTs to be used everywhere.

Currently, most of the NFTs are collectibles that represent tradable rights from different IPs. Intellectual Property (IP) is just one kind of product, no matter tokenizing tradable rights related to corporate IPs like the NBA or individual IPs like the digital artists. The bigger picture for NFTs is to tokenize more services and products. Tokenised services and products will connect providers with the advantages of Decentralised Finance applications (DeFi) and allow the NFTs to deeply integrate the web.

As mentioned earlier we have successfully implemented projects such as door access NFT and car ownership NFT. They are the starting points to create new completely decentralized organizations which can be the next generation of AirBnB or Uber. Once you have a car ownership token, we can create a car rental token that can be listed on a marketplace and be used by anyone for a preset fee and duration you define.

The same parallels can be applied to many different token types, unlocking democratization by decentralization. Centralized solutions may be more efficient today, but decentralized solutions are still in their infancy and will provide better efficiencies once the infrastructure, smart contracts, and application layers are mature. That’s the bigger picture for tokens.

The smart contract for tokenizing such tradable rights is simple. The difficult part is “redeeming or consuming” the token: to dissolve it into a service or product, which is what makes the token valuable in the first place. This is where TokenScript plays the key role.

TokenScript: add context, security, and cross-platform functionality to NFTs with a single file

The piece of technology that really helps us pursue our aspirations is TokenScript. It is an open-sourced technology framework the AlphaWallet team has been contributing to for a number of years. TokenScript enables token issuers to add context, security, and cross-platform functionality (iOS, Android and Web) to their tokens with a single file. It completes tokenization. Read more about why we need TokenScript.

For AlchemyNFT, TokenScript is important as an underlying framework. It allows creating of a secure and decentralized hinge between NFTs, wallets, websites, and third-party platforms by leveraging the security of the smart contract.

A major accomplishment of TokenScript is the introduction of attestations as part of its framework.

Attestation as part of TokenScript has many use cases.

In AlchemyNFT we introduce two of them:

  • Attestations that connect the verified social profiles(Web2 IDs) with blockchain(Web3). We use cryptographic attestations and Zero-knowledge proofs to create a blockchain attestation: A cryptographic proof which links any wallet to any verified identifier such as email, phone number, or social profiles as Google, Apple, Twitter ID, and so on. It allows you to use your social identity in smart contracts and other web services without compromising your privacy. At the same time, it preserves the Atomicity of TXs.

In addition to using ID attestations for AlchemyNFT, we are using the same technology to implement the attestation-based ticketing system for Devcon. We hope that the social identity solution can address the challenges of proving real-world identity and KYC onchain, accelerating the adoption of DeFi and blockchain to the mainstream.

  • Attestations that serve as conditions for blockchain transactions. eg. an artist sells NFTs which represent the ownership of his or her digital art pieces. Before the NFTs go into the secondary market, the first-hand buyers can simply hold the attestations. When the art requires a change of ownership, a trade transaction that uses the attestation as a condition will be submitted to the smart contracts. The NFT minting and trading will happen atomically. This achieves a gas-free primary market which we have already implemented during FIFA World Cup 2018 NFT tickets.

3. Why us?

While NFTs have exploded in the last 6 months, we had been immersed in NFTs for over the last 3.5 years, working on tokenization of digital and real assets.

We launched AlphaWallet, the first crypto wallet to natively support NFTs in 2018 right at the beginning of the CryptoKittie craze. Since then we’ve built and shipped countless NFTs to tokenize anything and everything from digital identity, music rights, physical products, door access, ebook, gift card, shop voucher, member card, and ticketing — from FIFA World Cup 2018 and UEFA EURO 2020 for football fans, to EDCON 2020 and DEVCON 2021 for hardcore crypto-engineers.

In 2019, we created the first NFT for car ownership in a Proof of Concept for Karma Automotive. In 2020, we made the NFT art for the crypto_manifold exhibition of Chronus Art Center (CAC) in Shanghai.

We consider NFTs to be an important part of the universal Token ecosystem and of tokenization. NFTs have a tremendous potential to tokenize services and products and to bridge that gap between “Tokens” to “traditional web” — but the future functionality must match the promised hype of NFTs as collectibles.

That’s why we want to advance NFTs, by building the future.

We’ve also got some major announcements coming up very soon, and we can’t wait to tell you 🔥 !

To try the first product built on AlchemyNFT, Join the AutographNFT whitelist & tweet for a surprise 🥰!

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