The NFT Ecosystem on the Dvision Network
What are NFTs and why are they so popular?
The Dvision Network is a new VR content ecosystem that utilizes blockchain technology. It aspires to provide the best user experience by utilizing the advantageous features of Blockchain and VR technologies, and by creating an unprecedented and inclusive virtual ecosystem for businesses and designers.
Welcome to the Dvision Network! If you are new to blockchain and you don’t really understand what all the fuss around DeFi, NFTs, or yield-farming is about, don’t freak out. The Dvision Network is here to explain it all to you! Along with our introductory posts about the platform, we are also launching a series of blockchain-related posts to help our users better understand the technology incorporated in our ecosystem. This first article will cover the most relevant topic in our domain, which is Non-Fungible-Tokens or simply NFTs.
P.S We have finally launched our English community channel on telegram! Come ask all your questions and chat with other members. Join us!
Non-Fungible-Tokens
The term “fungible” makes NFTs seem very complicated— but in fact, it’s really a very simple concept! “Fungible” just means, “ able to replace or be replaced by another identical item.” This can apply to real-world assets as well as digital ones. The fiat money in your purse or the Bitcoin in your crypto wallet is a prime example of a “fungible asset” because it can be easily replaced by something that is (for all intents and purposes) identical. Let’s say you decide to lend $10 to your friend. You wouldn’t actually demand he return the exact same banknote to you, because any other $10 banknote is equally valuable to the one that you lent.
However, unlike fiat money, Bitcoin, or any other cryptocurrency, NFTs have individual characteristics that make them non-fungible, thus they cannot be replaced. Let’s assume that you decided to lend a very rare baseball card to your friend. Now imagine that when it came time to pay you back, he simply gave you a common card. You would probably be baffled and upset. First of all, while both may be baseball cards, the player, team, and many other details would be different. Most importantly, they would not have the same value. This is an example of a non-fungible asset because you cannot replace one baseball card with another. In a nutshell, the primary characteristics of NFT items are as follows:
→ Unique: Deep inside a non‑fungible token, metadata describes what makes this asset different from all the rest. This is a permanent, unalterable record that describes what the NFT represents — almost like the certificate of authenticity that you’d get with a rare painting.
→ Indivisible: For the most part, NFTs cannot be split into smaller denominations — they can only be bought, sold, or held whole. Remember the rules of non‑fungibility: you cannot purchase 10% of a plane ticket, or collect 50% of a baseball card.
→ Rare: Scarcity is an important ingredient in the recipe that makes NFTs so valuable. While developers have the freedom to generate an infinite supply of certain assets, they also have the power to limit the number of rare and desirable items that exist.
The NFT Trend in Numbers
According to News.Bitcoin.com, during the first week of September NFT sales shot up and showed a positive growth trend. NFTs reached a million dollars in turnover volume and Sorare recorded USD 221,000 in sales during that period. If you add up the all-time volume for the leading projects in the NFT Market (including Decentraland and Cryptokitties), you can determine that they totaled approximately USD 60 million collectively. While this is impressive, by early July 2020, the total overall sales recorded by NFT items amounted to more than USD 100 million. It is predicted that this is just the start of another trendy, fun, yet sustainable sector of the blockchain.
In order to address the rising demand, plenty of gaming companies are trying to stay up to date with the emerging NFT market, which has captivated the attention of both private and institutional investors. This is basically why it didn’t take long for the NFT market to reach USD 100 million in sales volume, and it will only grow exponentially as time goes on.
How does the NFT ecosystem help the Dvision Network?
First and foremost, the NFT ecosystem in the Dvision Network guarantees the authenticity of user-generated digital ownership and equips them with copyright protection. The ERC-721/1155 smart contracts that are utilized in order to assetize unique items also provide security and immutability. This provides further trading options for users and establishes interoperability with other platforms. This means that NFT items created within the Dvision Network can be transferred to secondary marketplaces! In fact, our beloved users will be allowed to create and trade their unique items or spaces within Dvision’s metaverse upon the release of the final product.
Overall, if you establish a booth with certain customizations or create a personalized avatar within the Meta-Space, you will be able to assetize them with the usage of ERC-721/1155 smart contracts. Later, you can trade them either directly in the NFT Market or at secondary marketplaces that will be available in later stages. It is worth mentioning that most blockchain-based gaming platforms encounter high gas fees when carrying out transactions. In order to address that omnipresent issue, the Dvision Network collaborates with Matic to introduce Layer 2 solutions to provide a better UI/UX experience and low-cost, near-instant transactions for users.
