NNS: A Typical Case of Blockchain Value Application
Liu Yongxin
Looking for real investment logic
There are many false logics in investment. Due to the professionalness and complexity of the blockchain, the false logic of digital currency investment is pervasive. A typical one is that people write down doing a public blockchain for application layer projects in their roadmap, because the valuation for a public blockchain is higher. This kind of logic is obviously wrong. The most important thing in the public blockchain is to address the security of the blockchain, which requires a large number of distributed nodes, and the public blockchain must be supported by the ecosystem before it can finally develop. These are all problems that an application can hardly solve. False logic cannot be sustained, and time is the friend of truth. Today, I would like to use the NNS project( NEO name service ) as an example to introduce the general logic of blockchain application layer value analysis.
Five aspects of application layer value analysis
1. Whether it has use cases and end users?
End-users and use cases are the core value of an application project. Many blockchain applications do not address the pain points in the use cases and have very few real users. They only issue a coin, and speculators simply speculate. Such a project cannot be sustained. For NNS, what it addresses is that the blockchain address is too long to remember, so it is necessary to improve the usability of the blockchain. NNS has its practical use cases and end users. It should be noted that in Ethereum, ENS(Ethereum Domain Service) is the most used smart contract except for the EtherDelta Exchange.
2. Whether it can form its own eco-system
Blockchain is an open platform for collaboration. A blockchain application should not work alone. It should make full use of the open characteristics of the blockchain and collaborate with other services to form an ecosystem of benefit sharing. For the domain name, it is necessary to cooperate with various wallet clients to be in support of the basic application of token transfer via domain names, and also to cooperate with the domain name exchange to provide a trading place for the domain name. The blockchain domain name itself is extensible and can support a variety of use cases. Domain name services can easily form an eco-system around the use and the trading of domain names.
3. Whether participants can make profits from it
The reason why the concept of blockchain is so hot is precisely the attention brought about by the skyrocketing prices of digital assets. Every participant wants to obtain economic returns. For the domain name in the NNS, it is a scarce asset, and it is a scarce asset with useful value. With the gradual development of the NEO ecosystem, the value of the NEO domain name will gradually increase, so the NNS domain name also has investment value, early participants may have a good return in the future.
4. Whether it can be sustained
Sustainability is very important. Some projects are very popular in the short term. Asset prices have skyrocketed, but are difficult to sustain. They will be gradually forgotten by users. For example, for the phenomenal CryptoKitties on Ethereum, gamers will always be bored with it one day, while the sustainability of domain names is very good, and the user number of blockchains will increase. Transfers of tokens will be more frequent, and the eco-system of blockchains will become more and more refined. The demand for blockchain domain names will only become more apparent. Time will only make the domain name more valuable.
5. Whether it is imaginative
In fact, due to its flexible and rich use cases, the domain name has been very valuable, but investors are always looking forward to whether there are something cooler. People in some projects say they will make an underlying public blockchain. But NNS does not need it. At present, we believe that the most imaginative thing is to connect the blockchain .neo domain name with the DNS .neo domain name. This requires a lot of things to do, including technical and financial support.
Risk
For the application layer project, the biggest risk is that its underlying blockchain lags behind or even its disappears in terms of eco-system, especially for projects such as NNS. It is deeply bound to the NEO platform eco-system. Therefore, When we assess of the value of the NNS project, we need to take the future development of the NEO platform into consideration. The NEO is currently one of the leaders in terms of the public blockchain performance. In the future, it will further enhance its performance. After years of development, NEO has formed two major developer communities: overseas COZ and NEL in China. As the second basic blockchain that supports the smart contract, dozens of projects have been implemented on NEO. Therefore, the risk for the NEO underlying blockchain platform is quite low.
The above is the basic idea of a blockchain application layer value analysis.
To learn more, please follow NNS website: https://neons.name/index_En.html
and join our NNS Telegram: https://t.me/joinchat/IESfVEkjE8iSVKfBnaOhTQ
