NFTY 21: Distribution 📫
NFT Distribution, Onboarding, and Wallet Wars
As mentioned on Twitter, NFTY is now a bi-weekly newsletter. My main reason for switching to bi-weekly is to ensure content quality while preserving the longevity of the newsletter.
That being said — this week’s newsletter is filled with all the latest updates and trends in the non-fungible token world. Enjoy!
1. The distribution of digital assets
We’ve seen the distribution of digital assets start with the traditional pre-sale model — but similarly to ICOs — it’s difficult to sustain users when digital assets with pre-sale mechanics. It’s even harder when users need to obtain a digital asset and fund their account before even playing a game that uses non-fungible tokens.
Transitioning to the free-to-play model: Airdropping
Platforms have been experimenting with the distribution of free digital assets to onboard customers. However, if platforms were to onboard hundreds of thousands of users onto a platform by issuing non-fungible tokens one at a time, the Ethereum network will clog and the gas costs would skyrocket.
This has led to several new proposals for cryptogoods recently:
- Enjin’s ERC-1155, the ability to mint non-fungible and fungible tokens within a single contract.
- MFT implementation from Horizon Games, allowing us to save on gas costs by making non-fungible tokens fungible while saving on gas costs by a magnitude of 10x
- ERC721x — proposed by Loom allows the batching of non-fungible and fungible tokens for a single transaction while preserving the ERC721 standard.
The other reason for batching non-fungible tokens into a single transaction is for composability— we need a way to select ERC721 tokens and send them to a cNFT in a single transaction. Right now, the
approve function must be called for every individual ERC721 token which makes batching super difficult.
2. USD is king
Over the past few months, we’ve seen platforms start to pivot from “being decentralized” and requiring MetaMask to just being able to buy cryptocollectibles with a credit card.
Here are a few examples of platforms that are obfuscating the blockchain:
- Hedgie — You can now buy a cryptocollectible with just a credit card. When players purchase a Hedgie, they’re buying an off-chain digital asset. But when users sync their MetaMask account on the Hedgie site — the tokens are minted.
- Hashletes — Buying athlete cards (ERC721s) with USD and being able to enter fantasy football games instantly without mentioning the word blockchain or crypto on their site. It seems like they use Chain Link to solve the oracle problem (source). According to their site, the first cards will be distributed on September 20th. Pretty interested to see how this one turns out.
3. Wallet Wars
Recently, we’ve seen the launch of several non-fungible token wallets.
Here are a few…
If you are working on creative use cases, or working on trying to get more people into crypto and reaching end users using non-fungible tokens, I would love to talk about how I can help. Reach out to me on twitter @flynnjamm, my DMs are always open.