Possible implementations of NIFTSY
Looking at the market as a whole, the following interaction segments are worth highlighting for the protocol part of ENVELOP (NIFTSY) to be implemented first (MVP - March-April 2021, Alfa - May-July 2021):
  1. 1.
    Marketplaces (OpenSea, Rarible, NFT stars and others):
    1. 1.
      On one side, the implementation points of the Protocol; on the other side, the b2b buyers of wrapped and other complex NFT products. That is, for the Project and the Protocol, the marketplaces are the points of retail sale of NFT created with the Protocol.
    2. 2.
      Several cases are possible. Here is one of them: 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 (this creates a secured balance at a price: Floor Price).
    3. 3.
      The presence of a guaranteed base value defined as Floor Price increases buyer interest in the asset: 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.
    4. 4.
      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.
  2. 2.
    Protocols (NFTx, NFT20, NFT, DoDoNFT, etc.):
    1. 1.
      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.;
    2. 2.
      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, e.g. through Polygon implementation.
  3. 3.
    NFT creation platforms, including - lower level (L0/L1):
    1. 1.
      First of all - NFT providers for collateral;
    2. 2.
      Asset Consumers, for whom the Protocol is a zero-check on pledged NFTs of any order of crypto-assets.
    3. 3.
      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.
  4. 4.
    NFT Launchpads:
    1. 1.
      The Protocol can be used to drop tokens of any format, as long as they have an NFT wrapper.
    2. 2.
      IDO Algorithm via NFT:
      1. 1.
        A startup (DAO) issues a set of different types of NFTs;
      2. 2.
        Stacks its project ERC/BEP-20/etc tokens into the NFT. (Example: 100/500/1000/5000 etc. tokens) format;
      3. 3.
        Next - defines the cost for the NFT;
      4. 4.
        Finally - describes 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.
      5. 5.
        Once NFT is deployed, the counterparty (IDO participant) receives the amount of its ERC-20 and/or other interchangeable tokens into a wallet (account).
  5. 5.
    NFT valuation markets, analytical services:
    1. 1.
      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:
      1. 1.
        there is an initial value of the underlying intrinsic value;
      2. 2.
        a coefficient / multiplier of the underlying value of any order can also be introduced;
      3. 3.
        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;
      4. 4.
        finally, when Oracle is connected, we also get algorithms for estimating the market value of NFT outside of the subjects that require trust;
  6. 6.
    DeFi:
    1. 1.
      Of course, there are already cases today of using NFT as a trading object, collateral, deposit, etc. But it is only recently that liquidity transfer through the NFT segment has become possible.
    2. 2.
      In fact, this 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 can be as complex as desired, which means a high entry threshold, whereas the Protocol makes entry into the market generally available.
  7. 7.
    Online gaming (p2p - primarily):
    1. 1.
      The 1155 and 998 token formats were originally created for the gaming industry.
    2. 2.
      The collateral value of gaming assets is a subject of constant debate and the Protocol can address this issue in two ways:
      1. 1.
        Through Oracle (see below);
      2. 2.
        Directly - by providing a lower threshold price.
    3. 3.
      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 that corresponds to a particular game (series of games).
  8. 8.
    Meta-universes:
    1. 1.
      This category is not just something between augmented (augmented/mixed) reality, but it's all about online worlds within games, VR spaces, etc.
    2. 2.
      Example: if you have land, water, and the right seeds, you can grow a tree from which you can then 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 will on the contrary make that VR/AR/MR-object with increased value.
    3. 3.
      Again, it is the Multi-collateral Protocol that is an important property here.
  9. 9.
    The E-Sports market:
    1. 1.
      One of the possible contenders for the trillion-dollar markets.
    2. 2.
      Already in it the artifacts are valuable: e.g. the conditional "weapon" increases the power with the increase of the intrinsic basic value due to long storage times, number of buying and selling transactions, developed trades, etc.
    3. 3.
      On the other hand the issue of fan-tokens is also possible, where again there is a mixture of virtual worlds and real reality.
    4. 4.
      A separate item of possible application of the Protocol is wrapping through NFT, where WUM could be applied to prizes, cups and other bonuses; further development is possible, say, through adding economic properties by multiplying the value of the event.
    5. 5.
      Of course, event tickets and gift vouchers that increase in value by the date of the event, and more, are also marketable via the protocol.
  10. 10.
    Classic Sports Marketplace:
    1. 1.
      Playing cards for favourite players: the football industry is famous for this at the moment, but the time is not far off when all sports will be digitised to some degree and NFT will clearly play a role here.
    2. 2.
      Decentralised sports betting is another and big area of discussion.
  11. 11.
    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:
    1. 1.
      Perhaps the most important and obvious example at the same time is the programmable reward stash. This is partly illustrated by "Ready player one" movie: in fact, the Project is Oasis in this perspective.
    2. 2.
      Quests: the keys and clues that are hidden in the room and anything that can be wrapped up in digital entities are also easily implemented using the Protocol.
    3. 3.
      Puzzles: the correct answers release pieces of internal collateral to the benefit of the player and/or those they play for. The Protocol is thus the first part of the integration of the games industry into everyday life.
  12. 12.
    Music marketplace:
    1. 1.
      Actually - NFT music: songs / tunes / beats with time of release and customizable terms of authorship. With planned collaboration with projects such as SharpShark, the Project can participate in the development of the copyright and related rights industry at any level.
    2. 2.
      Automating the process of storing and accessing mp3/wav and other files, as well as sharing ownership of those files.
    3. 3.
      Use of music NFT in meta-universes: while monetising each component.
  13. 13.
    Real estate market:
    1. 1.
      Unlocking the original NFT (ownership) when a certain underlying collateral value is reached - an excellent substitute for mortgage lending and simultaneously the genesis for a new market for real estate acquisition outside the banking environment.
    2. 2.
      Lease via smart keys, where each access is NFT, limited in time/number of uses, as well as extension of easement rights.
  14. 14.
    Classic finance market:
    1. 1.
      Bonds as NFTs with pledged collateral.
    2. 2.
      Insurance: NFT as insurance contract/digital policy and any other contract. Again: minimum collateral must be from the first insurance premium.
    3. 3.
      Portfolio/index transactions: inclusion in NFT of a number of assets that move through wallets according to programmed conditions, but in a fully open and decentralised way (legal issues are a separate discussion point).
    4. 4.
      Digital gift cards: with increasing time deposits as a basis for new loyalty programme mechanics.
    5. 5.
      Dynamically changeable NFT, linked to a goal. Example: a black and white picture of a car, which becomes coloured as the necessary amount on the balance approaches accumulation: let's say by accumulation on a deposit, a single team/family/other group liquidity pool.
    6. 6.
      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.
  15. 15.
    NFT lottery market:
    1. 1.
      If the lottery budget is placed inside Multi-collateral, the following algorithm begins to work:
      1. 1.
        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.
    2. 2.
      The budget of the lottery is outside the Pledge:
      1. 1.
        A promotional pool is created from ETH, BNB, ERC/BEP-20 (project tokens, stablecoins, LP tokens) and/or others;
      2. 2.
        Only the NIFTSY smart contract has access to the pool, which upon the occurrence of an event (e.g. a specific date of the draw): selects a certain number of random NFTs and sends the content of the pool to the specified addresses.
  16. 16.
    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 the Project's development prospects in relation to them.
Last modified 3mo ago
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