Possible implementations of Envelop
Considering the market as a whole, the following interactions are worth highlighting for the protocol part of Envelop (NIFTSY) to be implemented first (MVP - March-April 2021, Alfa - May-July 2021).
Marketplaces (OpenSea, Rarible, NFT stars and others):
On one side, marketplaces are the implementation points of the Protocol. On the other side, marketplaces are the B2B buyers of wrapped and other complex NFT products. That means, for the Project and the Protocol, the marketplaces are the points of retail sale of NFT created with the Protocol;
There are several possible cases here. For example, the one of these cases. The holder of an NFT pledges a digital asset inside a newly created NFT of the second order which serves as a guaranteed unburnable value of the NFT for any other holder of that asset. So, Floor Price, a secured balance at a price, is created;
The presence of a guaranteed base value defined as Floor Price increases buyer interest in the asset because of anything can fall to 0, but if the asset contains minimal backing. It is much better than an asset with no backing. In addition, in the second stage, there is the Oracle which gives an independent valuation of assets of any complexity already in the first stage, WUM;
The author/owner/other person at the time of NFT circulation lays down the mechanics of increasing the base value of the NFT at certain events (transactions, drops, etc.) to increase the attractiveness of trading their NFT, and here the Protocol works together with the utilitarian functionality of the NIFTSY Token.
Protocols (NFTX, NFT20, NFT, DODO NFT, etc.):
Firstly, the services used in the oracle part of the Project, i.e. the data providers for the Protocol, are just different protocols, blockchain solutions, oracles of particular types, etc;
Second, embedded elements of next-level protocols within the Project, i.e. the Protocol is built at the L1 level, but it is possible to extend its functionality by the L2 level, for example, through Polygon implementation.
NFT creation platforms, including lower level (L0/L1):
First of all, NFT providers for collateral;
Second, there are Asset Consumers for whom the Protocol is a zero-check on pledged NFTs of any order of crypto-assets;
Thus, the Protocol serves as one way not just to create NFTs, but also to verify automatically at the expense of the presence/absence of the pledged portion at the same time.
NFT Launchpads:
The Protocol can be used to drop tokens of any format, as long as they have an NFT wrapper;
IDO Algorithm via NFT:
A startup (DAO) issues a set of different types of NFTs;
After that, it stacks its project ERC/BEP-20/etc. tokens into the NFT format (example: 100/500/1000/5000 etc. tokens);
Next, defining the cost for the NFT;
Finally, describing the NFT rollout conditions. Let's say, it could be by time: after 1 week / after and/or by a certain Ethereum/Bitcoin/BSC/etc. block height. In addition, the conditions can be not only in the time range, but also in any quantitative or event range.
Once NFT is deployed, the counterparty (IDO participant) receives the amount of its ERC-20 and/or other interchangeable tokens into a wallet (account).
NFT valuation markets, analytical services:
The protocol (coupled with Oracle and Index) allows to bring the determination of the exact value of NFT based on complex analytical tools to the desired accuracy, as:
there is an initial value of the underlying intrinsic value;
a coefficient / multiplier of the underlying value of any order can also be introduced;
hence, it is not difficult to determine the value of a token, which in turn can be supported by a liquidity pool and/or other Floor Price parameters;
finally, when Oracle is connected, we also get algorithms for estimating the market value of NFT outside of the subjects that require trust.
DeFi:
Of course, nowadays there are cases of using NFT as a trading object, collateral, deposit, etc. But the transfer of liquidity through the NFT segment has recently become possible;
In fact, it means that in the next 1-3 years we will get a new type of asset DeFi where NFT already contains collateral, while the collateral itself could be as complex as desired, meaning a high entry threshold. At the same time, the Protocol makes entry into the market generally available.
Online gaming (primarily P2P):
The 1155 and 998 token formats were originally created for the gaming industry;
The collateral value of gaming assets is a subject of constant debate, and the Protocol can address this issue in two ways:
through Oracle (see below);
directly, by providing a lower threshold price.
It is also possible to create a multi-collateral drive (Multi-collateral) within the initial NFT where each asset would be allocated to the part of the drive corresponding to a particular game (series of games).
Metaverses:
This category is not just something between augmented (augmented/mixed) reality, but it's all about online worlds within games, VR spaces, etc.
Example: if you have land, water, and the right seeds, you can grow a tree from which you can further harvest digital assets, etc. But if that tree is only available within one world, the value of its seeds will be low while the difficulty of accessibility from different worlds, on the contrary, will make that VR/AR/MR-object with increased value.
Again, it is the Multi-collateral Protocol that is an important property here.
The E-Sports market:
It is one of the possible contenders for the trillion-dollar markets.
Already are already valuable in it, for example, the conditional "weapon" increases the power with increasing of the intrinsic basic value due to long storage times, number of buying and selling transactions, developed trades, etc.
From other side, the issue of fan-tokens is also possible where a mixture of virtual worlds and actual reality happens again.
A separate item of the Protocol’s possible application is wrapping through NFT where WUM could be applied to prizes, cups and other bonuses. Let’s say, further development is possible through adding economic properties by multiplying the value of the event.
Of course, event tickets and gift vouchers which value is increasing by the date of the event, and much more are also marketable via the protocol.
Classic Sports Marketplace:
Playing cards for favourite players. At the moment, the football industry is famous for these cards, but the time when all sports will be digitized to some degree and NFT will clearly play a role here is not far off.
Decentralized sports betting is another big area of discussion.
The augmented (AR) and virtual (VR) reality market itself, as well as new species (XR/MR) and the acquisition of digital assets as a result of certain acts within the virtual space
Perhaps, the most important and at the same time obvious example is the programmable reward stash. This is partly illustrated by "Ready player one" movie: in fact, the Project is Oasis from this point of view.
Quests: the keys and clues hidden in the room, and anything that can be wrapped up in digital entities are also easily implemented using the Protocol.
Puzzles: the correct answers release pieces of internal collateral to the player’s benefit and/or those they play for. Thus, the Protocol is the first part of the games industry integration into everyday life.
Music marketplace:
Actually, NFT music: songs/tunes/beats with time of release and customizable terms of authorship. With planned collaboration with such projects as SharpShark, the Project can participate in the development of the copyright and related rights industry at any level.
The process of storing and accessing mp3/wav and other files, as well as sharing ownership of those files, is automated.
Music NFT in meta-universes is used while monetizing each component.
Real estate market:
Unlocking the original NFT (ownership) upon reaching a certain underlying collateral value is an excellent substitute for mortgage lending and simultaneously the genesis for a new market for real estate acquisition outside the banking environment.
Lease via smart keys, where each access is NFT, limited in time/number of uses, as well as extension of easement rights.
Classic finance market:
Bonds as NFTs with pledged collateral.
Insurance: NFT as insurance contract/digital policy and any other contract. Again: minimum collateral must be from the first insurance premium.
Portfolio/index transactions: inclusion in NFT of an assets’ number that move through wallets, according to programmed conditions, but in a fully open and decentralized way (legal issues are a separate discussion point).
Digital gift cards: with increasing time deposits as a basis for new loyalty program mechanics.
Dynamically changeable NFT, linked to a goal. Example: a black and white picture of a car which becomes coloured as the required amount on the balance approaches accumulation, let's say by accumulation on a deposit, a single team/family/other group liquidity pool.
Automatic access to digital vaults via NFT as a key, etc. At the same time, due to the transactional reputation generated, the vault itself can become collateral.
NFT lottery market:
If the lottery budget is placed inside Multi-collateral, the following algorithm begins to work:
A crypto-asset such as DAI is deposited inside the NFT Collateral. Within this NFT, there are many other NFTs that participate in the draw of this pool. When an event occurs, funds from the Collateral are distributed to the holder's account. At the same time, the tickets themselves are created as NFTs, making the lotteries completely transparent. An important issue here is the mechanics of determining random numbers, but the issue is beyond the scope of WP.
If the budget of the lottery is outside the Pledge:
A promotional pool is created from ETH, BNB, ERC/BEP-20 (project tokens, stablecoins, LP tokens) and/or others;
Only the NIFTSY smart contract has access to the pool, which, upon the occurrence of an event (for example, a specific date of the draw), selects a certain number of random NFTs and sends the content of the pool to the specified addresses.
Other markets.
There are other players and whole segments that can benefit from the Protocol, but the Protocol is a small part of the Project. So, let's try to describe it in full, revealing also the main aspects of Oracle and the Index, looking at the Cases and related Project's development prospects.
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