NFT 1.0 & NFT 2.0 — Optimize Your Investment
NFT 2.0 is rising as a big trend after the generation of NFT 1.0 with its various evolutions that can solve the problems of NFT 1.0. This post will analyze how NFT 2.0 can be formed by Social Power, Decentralized ID, and Intellectual Property in this fast-changing technology world.
NFT 2.0 Explanation
NFT 2.0 will gain new features such as:
NFT Interlinking: This functionality adds layers to the ownership idea. This indicates that an NFT can be connected to other NFTs, can hold ‘fungible’ tokens, and can also be linked to different data sets.
Upgradability: This feature allows NFTs to be changed in the future by adding metadata, changing the artwork with which they are related, and so on.
Dynamism: This characteristic enhances the power of NFTs by allowing them to issue commands and make changes to other NFTs in the network. It can even alter the appearance of the NFTs that are connected.
How These New Features Differentiate NFT 2.0 From NFT 1.0?
Nested NFTs: NFTs that are nested can own other NFTs so they can be developed for the use case In the metaverse, gaming, art, virtual exhibitions, etc.
Customized NFTs: Each token in NFT 2.0 can be tied to several designs and appear differently in a distinctive platform, unlike NFT 1.0 with only one same format shown to everyone.
Smart NFTs: If the owner of the NFT changes, the smart contract will immediately update the token’s ownership details and register it on the appropriate blockchain. Furthermore, the smart contract assures that the NFT’s developer receives a royalty each time the asset is traded.
Co-owned NFTs: NFT 1.0 permitted a single company to hold assets. NFT 2.0, on the other hand, allows several owners to participate and own a piece of the NFT. Having numerous owners increases the asset’s and its owner’s trustworthiness.
NFT Rental Model: NFT 2.0 expands on the concept of ownership by allowing collectors to lease the underlying asset to others using smart contracts. This concept promotes liquidity in an otherwise illiquid market since renting an item creates passive revenue for the owner.
How Does NFT 2.0 Change Users’ Behavior?
As stated the differences above, NFT 2.0 can surely bring new experiences for owners.
- The way NFT 2.0 gets connected can help the use case of them gain substantial development for example various NFTs will be displayed in a virtually artistic exhibition instead of the exhibition itself being one NFT solely. From this example, the creators in the digital world can generate numerous models that the connectedness of NFT 2.0 shall be made use of.
- The investors can divide their amount of money and become a co-owner of one NFT 2.0 with other people (to save money and reduce loss), which can gradually shift investors’ behavior from mutual funds to controlling their own money and minimizing the risks.
- The new function of being able to customize the NFT and commercialize it at a higher price will increase the dynamics of in-app activities as people will try to earn more accessories, clothes, etc, to touch up their NFTs at best (just like you have to play more to gain more SKINs in MMOs). This requires less effort of the uniqueness at first, you don’t have to try hard to create totally new NFT but can rely on the existing one to upgrade it.
All of those differences of NFT 2.0 enlarge the playground for more people to join in the blockchain technology world as it requires less effort, and less money, and enhances more opportunities for them to experience their NFT variously. Also, NFT 2.0 shall utilize users’ experience on mobile devices to maximize the benefits of the smartphone trend.
What Are The Problems Of NFT 1.0?
Indeed, NFT 1.0 is nothing beyond an artwork encoded in the blockchain. Though it could be a ticket to enter different digital worlds, it does not have much value itself. The immutability of the NFT 1.0 makes it unchangeable once it is generated. Certainly, the born of this technology has brought up the true ownership of digital assets, we still desire to utilize the NFT itself to enhance interactivity and composability.
NFT 2.0 can level up how we can make use of the availability of NFT. The new function of NFT 2.0 allows owners to connect with other NFTs, be owned by many people at a time, and upgrade the NFT itself to leverage the price later.
We can clearly see the new NFT 2.0 outweighed the basic first generation of NFT (1.0) but what big trends in the NFT 2.0 should be noticed before we decide to put our money to invest in this?
3 Fundamental Components Of An NFT 2.0
Social Power:
NFTs 2.0 signifies a paradigm shift in how people conceive digital assets and communities. They give creators a place to express themselves and share their thoughts with the rest of the world, as well as bring people together around shared interests and ideals. We’re only scratching the surface of what’s possible with NFTs, and it’ll be fascinating to see where the subculture goes next.
This revolutionary phase of NFT 2.0 will reflect exactly the influence one person has in real life. For instance, one KOL on Instagram can bring their social power into their own NFT 2.0 and represent their influence, brands have to pay for them to get promoted, and other people have to gain the privilege to be in the same bond with that influential NFT representation.
Decentralized ID (DID):
The idea of decentralized ID originated from the privacy innovation when our digital assets (private information) can be used for fraud, theft, and misuse in general. Our normal centralized information is collected by one firm whenever we log in to their platforms to verify ourselves as authentic individuals, which sounds cool until we know our data can be leaked if the central party stays non-transparent.
DID allows users to use an app called a “wallet” to store their credentials and personal information (name, age, credit card accounts, employment, education — any information you shall need to establish trust and prove eligibility). Passwords are no longer used; instead, un-phishable cryptographic keys are applied to authenticate users to businesses while also safeguarding their communication.
To guarantee its accuracy, this data is signed by numerous trusted authorities before being shared with businesses or other people. The user maintains complete control over what and with whom they transmit messages about themselves, this is why it’s known as “self-sovereign identity.”
Decentralized ID can also be linked to the term Decentralized Identifier which enables NFT authors to create their unique DID and use it to identify themselves in the Web3 realm. By tying this identifier to their social identities like their website or social media accounts, it becomes inextricably linked to that identity, a Web3 address as instantly recognizable as their name.
All in all, DID create opportunities for people to connect with authentic people rather than bots/clones and secure their private data at best. Also, this decentralized ID can be applied in the Metaverse for better verification and privacy once the users hop on the platforms. Especially, with the function of Decentralized Identifier, NFT creators can be guaranteed the authorship of their work.
Intellectual Property (IP):
In fact, an NFT can be distinct from the underlying asset when it solely represents a unique copy of the asset so acquiring one NFT does not equate to the total Intellectual Property right for the owner at that time. Especially, we cannot commercialize the edited version of owned NFT to others since it will infringe the copyright law. This leads to an intricate question who will recognize the IP right of the NFT 2.0 owner who customizes and upgrades their NFT after buying it from the other?
The term NFT License 2.0 was born as a legal document that is publicly accessible and outlines what NFT owners can and cannot do with the art linked with their NFTs. At this agreement, the owner can put on art and design associated with the NFT and commercialize it afterward. Overall:
- It facilitates digital mobility.
- It grants NFT owners the right to sell their digital assets’ artwork.
Generally speaking, the big trend of NFT 2.0 that can discard the unexciting idea of NFT 1.0, is expected to thrive with the social power, decentralized ID, and the new law of intellectual property. Whichever companies can reinforce these elements and optimize their NFT 2.0 on mobile devices can surely bring up the most promising NFTs for the market and even disrupt it!
UMBΛLΛ MΞTΛVΞRSΞ is launching the first NFTs collection called UMBΛLΛ NFTs that pledge to be the next bomb representing NFT 2.0 with all social power, DID, and IP rights, primarily focus on the mobile experience. The illustration of avatar NFT in UMBΛLΛ MΞTΛVΞRSΞ is presented in a meta-human version that can transcend the limitations imposed by the mind and open up a new state of awareness in which we have deliberate and practical access to peak experiences that can ultimately improve people’s lives. Hence, opting for NFT 2.0 would be a significant trending investment in the future for its utilities.
Stay updated with us! We surely will give you a breath-taking experience with this generation of NFT 2.0.
