A summary of decentralized NFT catalogs
The potential of nonfungible tokens has been the subject of speculation since last year’s mania. It generated unwarranted anticipation.
Venture capitalists have invested more than $4.6 billion in infrastructure and projects related to nonfungible tokens during the past year . This infrastructure currently requires users. People will adopt NFTs when they realize that they may be utilized not only for speculative purposes, but also to plan and organize their daily activities. For these, they do not require NFTs; rather, they must organize their life. And decentralized catalogs are available to assist them.
An NFT can be compared to a book, the ownership of which is documented on the blockchain. However, what we are missing is the library.
Not only a flower, but an entire garden
Multiple NFTs constituting a collection constitute a system. This system is structured by the standards it employs. If you’ve ever visited CryptoKitties, you’ve probably noticed the “catalog’s” museum-like organization of Kitties and their qualities.
Ultimately, each piece in the collection is meaningless without the collection as a whole. The CryptoKitty cannot be extracted from the original smart contract. If the derivative version of your CryptoKitty is not linked to the original collection, you will not be able to transfer its value. This indicates that the value of each NFT is not decided by a single item in the collection, but rather by the collection as a whole.
In other words, if we take a step back from each item in almost any NFT collection, we will find that the true value lies not in a single NFT but in a flawless system of several NFTs connected together by a smart contract. This allows us to stop looking at a single bloom and recognize that we are in a beautifully arranged garden.
When using all standardized procedures and properly arranging all the data, we create decentralized catalogs, which are systematic listings of goods publicly published on the blockchain.
How decentralized cataloging can bring value
Everyone is familiar with Guinness World Records, the Michelin Guide, and the IUCN Red List. Essentially, they are all exceptionally valuable catalogs. Behind each of them is a managing authority that spends its brand and skills to provide value to each new catalog version. This technique is sustainable even if the procedures for adding new items to centralized lists are not transparent or are even contested.
However, the greatest issue posed by these catalogs is the extraordinarily high entry barrier for fresh, worthwhile lists to enter the market. Nonetheless, by utilizing NFT infrastructure and a Web3 mentality, we can democratize the process of creating meaningful libraries. The difference between a standard list and a decentralized catalog is the value it has the ability to accrue.
When you own a CryptoPunk, you become a co-owner of the collection of CryptoPunks. Yes, that CryptoPunk may symbolize your inner self, but it’s only a JPEG on its own. As we’ve seen, the value is in the collection itself, and that value is provided not only by the talent that went into building the character generator, but also by the collection’s owners.
The library
Consider the most fundamental use case of decentralized cataloging. You possess a collection of books and wish to lend them to someone. You are aware that there is a high probability that folks to whom you lend your books will never return them. Such is life.
Consequently, you initiate a very simple procedure to create a record for each book you’re contributing to the decentralized catalog; however, each record is actually an NFT.
The person who takes the book decides to use it to add his own books to the catalog and share them with another person, who then gives it to a friend. In a few years, your book-sharing club will become a phenomenon on the internet, as more and more people add books to the catalog.
It is only a matter of time before major publications also join. Some publishers may begin uploading freshly published books to your catalog system in order to distribute them. Given what we know about NFT compatibility, it is certain that all the NFT marketplaces and infrastructure we have today will be transformed into convenient tools and interfaces that operate out of the box. No additional listing websites, central bookshops, or payment systems are required.
And it all began with your addition of the first book as an NFT to the shared library.
Cointelegraph’s Historical NFT Collection use the same methodology. It is a collection of news from the largest crypto media platform, with Cointelegraph readers deciding which stories should be included.
The actual future of the NFT standard is mundane, which is fantastic. Many everyday items were first pricey when they reached the market. However, as production and technology advanced, prices decreased, making them accessible to everyone.
The same will transpire with NFTs. Now, all we must do is stop looking at the tulips and begin building a garden.
The post A summary of decentralized NFT catalogs appeared first on NFT News Pro.
from NFT News Pro https://ift.tt/y7XMLVd
Comments
Post a Comment