Numbers Protocol
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Numbers Protocol

Numbers Dev Update: Metaverse NFTs Explained

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Two months into 2022 and the biggest talking point in technology has been the Metaverse. With reports from Bloomberg projecting the Metaverse to be a $800 Billion Market, many are predictably making moves to capitalize on this emerging market.

As a decentralized photo network for Web3.0, Numbers Protocol views the Metaverse as an extension and validation of our current work building integrity in digital content, something we have been pursuing since our inception in early 2019, and as such, as long as the Metaverse is relevant, it will firmly be a part of our project’s future.

Numbers Approach to the Metaverse

It is important to us at Numbers that we uphold our values and pursues endeavors that align with what we were founded upon. This approach has allowed us to not be swayed by the inevitable changing tides in technology and get caught up in hype trains. During the peak of the 2021 NFT boom, we correctly identified that ownership and blockchain was not enough to ensure the authenticity of digital assets.

Instead of pursuing early profits, we prioritized the purity of digital content and fine-tuned our protocol to include the latest metadata standards, and created products such as NFT Search Engine that support maintaining the digital content integrity. The result is a growing Numbers Ecosystem and Numbers community that align with our efforts to maintain the purity of digital content.

We take the same approach with the Metaverse. The idea of the Metaverse is not new. In fact, Virtual Reality was a burgeoning industry in 2016 with companies like Google and Facebook heavily invested in the space before falling into irrelevance just a few years later. One of the primary reasons the Metaverse has come back with more excitement is due in part because of NFTs and the possibility of having a real stake in the digital world due to the ownership dynamic. With NFTs being the essential building blocks of the Metaverse, the future adoption and relevance of this digital world will be tied to the trustworthiness of these NFTs. After all, how valuable is a world filled with copies and fakes?

Luckily, building integrity in digital content is what we at Numbers have been doing since our creation!

Metaverse NFT Discussion

There are two sides to the NFT discussion when it comes to the Metaverse. The first is digital content integrity and the second is the digital content value. As alluded to earlier, if the building blocks of the new digital world are full of counterfeits, it devalues “ownership” and cheapens our stake in the digital world. The issues surrounding the authenticity of NFTs are well-publicized and the issue is not a simple fix. Though counterfeiting behaviors will always exist there are processes and tools that can be employed to provide more transparency and possibly permissioned usage.

This is what we have achieved with the Numbers network. Our Capture, Seal, Trace protocol employs context collection at creation, digital signatures, blockchain registration, metadata injections, decentralized asset registration, and NFT token minting to establish a means of verifying digital content. We have created ecosystem tools such as NFT Search Engine to perform integrity scans (Similar Image, On-Chain Scan, Community Reporting) and provide potential NFT owners with transparent records of their digital assets.

The second, more interesting aspect of the NFT discussion is value. If we consider the Metaverse as a digital world that exists in parallel with our physical world, then digital products need to have stable values in order to avoid constantly living in a bubble. The digital asset economy needs to be less speculative and subjective. Despite the early 2021 success, the volatility of the NFT market and the high volume of unacquired NFTs sitting in marketplaces point to a larger problem concerning the actual value of NFTs.

The value of NFTs is defined by the method they are listed in marketplaces. Currently there are two main methods for NFT listing: straight sale and auction. Straight sale NFT have their value defined by the lister, often an arbitrary value. Auction NFT have their value defined by bidders, who manipulate the price according to demand. In either situation, the price of the NFT and whether or not they are acquired is based on speculation and marketing. This speculation is what creates the NFT bubble and contributes to most NFTs remaining untouched and unacquired.

To create more consistency around NFTs it would be beneficial to define a baseline value for digital assets. To better illustrate consider the following example:

A diamond ring from Tiffany’s consists of raw materials such as the gold that makes up the band and the actual diamond itself. When I purchase rings from Tiffanys, the price I pay for is typically more than the combined value of the raw materials. This is due to the seller considering brand, design, etc in the final price. If I decide to sell this ring, at the very least the TRUE evaluation of the ring is equivalent to its raw materials. This is what is missing for NFTs. Acquired NFTs can often feel like dead weight investments. Since the value is subjective, it is difficult to resell due to digital assets having no TRUE evaluation.

Defining TRUE NFT value with Burnable NFT

Burnable NFTs are our solution to achieving less speculative and subjective NFTs. As the name suggests, Burnable NFTs are NFTs that can be burned in exchange for a baseline value of tokens.

Normally, when listing an NFT into a marketplace, the lister chooses the price and pays the necessary gas fees to create the NFT. Burnable NFTs will operate differently. In order to create a Burnable NFT, the creator will also need to bind a certain amount of NUM to the NFT. This operation functions as defining the raw material value of the NFT. In the event of “burning”, this amount will be what the buyer will acquire.

NUM binding to Burnable NFTs will have additional benefits similar to staking. While it stays in the marketplace, the baseline value of NUM will increase over time (fixed rate growth) making the NFTs themselves more attractive as it sits in the marketplace.

In the early development stages of the Metaverse, it is important to consider these factors in order to build a world with a solid footing. Burnable NFTs represents one small step towards building a substantive stable Metaverse and we at Numbers Protocol plan on being key contributors to the space!

To learn more about Burnable NFT specifications, see here.

About Numbers Protocol

Numbers is building a decentralized photo network for creating community, value, and trust in digital media. Its Numbers Protocol redefines digital visual media as assets and is the backbone of a suite of tools for registering and retrieving images and videos in the Numbers network.

These include:

  • Capture App: The first blockchain camera in the world that users can easily register photos and use Web 3.0 applications.
  • Seal API: Developers and enterprises can implement Numbers API to register photos and access their Web3.0 addresses and certificates.
  • Certificates: content authenticity certificates with on-chain provenance
  • CaptureClub marketplace: Native NFT marketplace which allows photo generators to sell and stake their creations.
  • NFT Search Engine: The first Web 3.0 NFT search engine that helps users verify the history of NFTs and prevent potential NFT fraud.

Numbers champion the purity of digital media and enable people to think more critically about the interactions between our images and the world around us. The goal of Numbers is to tokenize authentic photos (including images and videos) to create a decentralized photo network in Web 3.0.

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Numbers

Numbers

https://numbersprotocol.io ;Decentralized Photo Network for Web 3.0 For creating community, value, and trust in digital media.