The Benefit of Blockchain for Digital Collectibles
Before the creation of distributed ledger technologies, it was impossible to own or verify the ownership of digital media. Now, however, we are able to create and distribute new digital assets for the first time, with verifiable proof of authenticity and ownership. With this in mind, it’s important to understand how this operates, and what it means for the future of digital collectibles with ECOMI Collect.
Before getting too far, it’s important to understand that blockchain, otherwise known as distributed ledger technology (DLT), has created a means of creating and transferring digital assets. This is done by creating the digital asset/file as a ‘token,’ which allows us to trace the sale and ownership of this digital asset on an immutable record (ledger).
The types of tokens generally fall under one of the following categories:
- Fungible- interchangeable with other tokens of equal value. For example, 1 Bitcoin = 1 Bitcoin, in the same way that $1 USD= $1USD
- Non-Fungible- Verifiably unique tokens, which represent one whole unit in its entirety (cannot be divided into smaller units).
- Securities- tokens backed by real-world assets.
Non-fungible tokens (NFTs) allow for an entirely new world of digital asset creation and ownership, and the digital collectibles offered on ECOMI Collect are non-fungible tokens.
The NFT standard allows for verifiable digital scarcity with a proven authenticity and an immutable proof of ownership.
This means that the token (or digital collectible) is unique, own-able and saleable. It also means that through the use of DLT we can verify it’s creation and movement across the world! Not to mention being able to design and incorporate new digital experiences and information directly into the asset itself, including:
- Information about the digital collectible such as it’s date of creation, brand, series, rarity and the number available.
- Digital interactions such as augmented reality, as well as additional scenes and virtual goods.
Why Is Blockchain so Important for Digital Collectibles?
It’s important to remember that the digitisation of collectibles has never happened before, and until the invention of blockchain/DLT was not actually possible. So when moving the generally illiquid collectibles market from physical to digital assets, it is important to maintain those characteristics which make collectibles, and collecting, unique.
Whilst there are many types of collectibles, e.g. action figures, comic books, trading cards, cars, art to name a few, there are a few characteristics upon which we all collect:
- Intrinsic value
Blockchain allows for these values to be maintained when distributing digital collectibles as NFTs. It also means digital collectables can be identified as unique, limited editions, rare or otherwise, linked to physical products, and hold their own inherit value that can be transferred peer-to-peer.
Moreover, blockchain allows for verifiable and traceable ownership of the collectible (token), returning property rights to the digital world whilst simultaneously providing a new platform for owners of intellectual property/intangible assets to market their products.
I’m going to use ECOMI Collect as an example moving forward, as one of the worlds first and most prolific platforms offering premium licensed digital collectibles to the world.
ECOMI Collect- the Home of Premium Licensed Digital Collectibles
I don’t want to go too in-depth on ECOMI Collect in this article, and you can obtain all the technical details in the ECOMI whitepaper upon its release. However, I do want to make a point about how ECOMI is using DLT to maintain the inherent characteristics of collecting, for the new world of digital collectibles.
This network currently allows for 1300 transactions per second, and are on track to reach 13,000 Tx/second by Q2 2019. Not only does this offer the scalability and speed required by ECOMI Collect, but it also ensures the safety and security of your digital collectibles across a quicker and more distributed network.
So how will ECOMI utilise Blockchain to transition from physical to digital collectibles?
1. Rarity and Scarcity
ECOMI Collect digital collectibles are released in a limited number of batches, called ‘Series’. A Series may, for example, have ten thousand digital collectibles and within this Series the digital collectibles are divided across five rarity categories, ranging from ‘Common’, (representing 62% of the total) through to ‘Secret-Rare’ (representing 1%).
The Blockchain and NFT standard is used to generate these limited number of digital assets.
2. Counterfeit Protection
A key advantage of using the Blockchain for digital collectibles is that each collectible is a uniquely generated asset that cannot be duplicated. Each digital collectible is recorded in the Blockchain and ties ownership directly to the verified owner, protecting the IP creators, owners and purchasers.
3. Peer-to-Peer Transfer
To facilitate effortless buying, selling and trading of digital collectibles amongst users within the app, ECOMI Collect leverages blockchain for the trustless transfer of digital assets between users. When a transfer happens, ownership is immediately transferred to the new owner and the previous owner will no longer have access to the digital collectible.
4. Product Distribution and Environmental Impact
Distribution of collectibles is now possible, instantly, and on a global scale, to anyone with a smart phone. A feature that has not been possible until now. It also offers a new platform for licensors to distribute their products/collectibles at significantly lower costs.
As a physical product is no longer required to provide the same inherit value, creators and licensors of collectibles are able to increase their brand awareness on a grander scale, with less outlay.
We hope that these examples help you to understand the importance of blockchain for digital collectibles. To sum it up succinctly, non-fungible tokens were not possible before Blockchain was created. As such, DLT is imperative to the creation, sale and management of digital collectibles, as well as the transition from physical collectibles to their digital counterparts.
For more information please visit ecomicollect.com
ECOMI is a technology company based in Singapore and is leading the way in the emerging digital collectibles space. ECOMI offers a one-stop-shop for digital collectibles through the ECOMI Collect app bringing pop culture and entertainment into the 21st century.
The Collect app allows users to experience true ownership of premium digital collectibles. Through the app marketplace, users can obtain common, rare, or one-of-a-kind digital collectibles, share these across the social network service, and exchange them with the Collect community, all from the palm of their hand.
ECOMI sees digital collectibles as a new asset class which offers intellectual property owners the opportunity for new revenue streams in the digital landscape. Digital streaming, gaming, and in-app purchasing have become a multibillion-dollar market and the next to join this digital trend is the pop culture and collectibles industry.