Limitations faced by NFT users
Greetings from HAVAH, the interchain NFT playground!
We’re excited to put up our first blog post through Medium.
We want to start by talking about the current state of the NFT market and the limitations imposed on NFT holders. These problems are what inspired our team to create HAVAH, which we’ll talk about in the next post.
Exponential growth in the NFT market
Since the introduction of Bitcoin by Satoshi Nakamoto, it has caused a great stir around the world. At the same time, Main Chains aiming for decentralization began to emerge. Bitcoin showed the potential of monetary function, and Ethereum created a basis for various blockchain services to actually work through Smart Contracts and DApps.
Among these services, NFT’s integration into Metaverse was the first to trigger a change in the virtual world, and now it is affecting the real world as well. Those who witnessed the change began to jump into NFT investment, and with this investment craze, the NFT market reached almost 14 billion USD in 2021 and is expected to reach over 80 billion USD by 2025.
Limitations faced by NFT users
However, NFT buyers and users tend to face limitations in terms of network and usability. This is because most NFT holders currently do not have many ways to use their NFTs after purchase until the next transaction. There may be several reasons for this, but the main reason the HAVAH team looked at was that ‘NFT is used only in each chain, so it suffers from limitations in scalability’.
For example, Yuga LABS’s BAYC can be issued and used only on the Ethereum chain, and Metakongz’s Metakongz can only be issued and used on the Klaytn chain.
Why is this the case?
It seems in most cases, users’ data and assets in the blockchain ecosystem are limited to each chain and do not interact with each other.
In response to this, new ideas such as the fusing of different NFT Projects have been recently proposed.
- For SANDBOX, both teams are trying to cooperate in the project unit while applying BAYC NFT to in-game Avatar,
- In the case of Gala Games, by placing VOX, a PFP NFT, in Townstar Game to receive more digital rewards, etc.
Like these examples, the HAVAH team is working to increase all services and the utilization of NFTs.
However, these types of solutions whereby NFT projects are linked together are…
- Not sustainable as a single agreement for each NFT project.
- Difficult to combine with other chains as it is a combination of NFT projects within each chain.
In the end, these solutions cannot fundamentally solve the problems of usability and scalability.
So, what can be done to overcome these limitations?
In the next article, we will introduce the HAVAH Project, which can utilize NFT in various ways without network restrictions.
HAVAH Team
Brand site : intro.havah.io
Twitter : twitter.com/HAVAHofficial
