An index is a numerical and/or alphabetic indicator of something. ENVELOP (NIFTSY) creates indicators from Index.ENVELOP:
- 1."Purity" of the NFT market;
- 2.The congestion of this market at the moment;
The index has three main roles:
- 1.Objective quantification of the market;
- 2.A tool for following the market;
- 3.A trading tool.
In doing so, the Index could be the first full-fledged decentralised solution, because:
- 1.The data will be derived from different sources autonomously;
- 2.The final version of Oracle - will be fully open (Protocol - open immediately);
- 3.Due to the implementation approach via primitive models - the general Index can be simplified/complicated almost infinitely (taking into account the costs of scaling);
- 4.The data provider can be any service: centralized, decentralized, distributed;
- 5.The index is not a derivative, but a stand-alone assessment tool.
As the manipulative practice regarding Bitcoin has shown in relation to the allegedly non-environmental nature of the Network (see link for details) - the decentralised world is subject to the same information attacks as the centralised world, but unlike the latter, it has more tools to combat fake news, unfounded accusations and other manipulations. Including by creating tools that work in an untrusted environment of any level (order).
Precisely for this reason, one of the results of the development of NIFTSY is the creation of a fully decentralised index, which independently of any third party gives results about the NFT market by means of one measurable parameter: or, in a product deployment, several measurable parameters. This provides not only a quantitative but also a qualitative assessment of the correlation between: assets, traders, derivatives and other entities.
This index is formed at the initial stage in the same way as Oracle, i.e. through ZK-mechanics, which will then be opened to the community as both a common base and assembled evaluation algorithms.
Let us now try to consider the Project Architecture in its entirety and move on to the basic linking element of all three components, the Token.