Thread by @Mable_Jiang

0/ In the past I wrote a few thoughts about the NFT space. Over time my thoughts evolved. Compared to 6 months ago, I had developed some new understanding about NFT as a new form of value storage and transmission.

Here's a thread 👇:

1/ Instead of being defined as a general category, NFT should be discussed in relation to a specific medium.

2/ In the near term, we shall see (and have seen) NFT marketplaces evolve from the generalized purpose platforms that offer everything from in-game assets to arts, into the more focused platforms that offer NFTs in a specific type of medium (image / video, music, text, etc.,).

3/ It is easier for the real world IPs to gain traction for their NFTs (i.e. better product market fit now), because they can skip the process of forming new *consensus*.

Tokenizing existing IPs is a crucial step in driving mainstream NFT adoption from the non-crypto world

4/ In the long run, NFT will become an important form of value storage that hosts *multidimensional* information that can hardly be monetized today. Before that, we may go through a phase where the value of the communities and real world social relationships get on chain

5/ I'd like to unpack this a little more.

I formed this thought when I had my podcast with @MapleLeafCap a few days ago. We talked about the concept of “valuenet” in his Web 3.0 paper:

https://twitter.com/MapleLeafCap/status/1339346115322376192

6/ We can basically say that the amount of information that can be transferred at the same cost keeps going up, and the friction of granularizing / cutting information into smaller pieces of units keeps going down.

7/ In other words, as people can cut information into smaller and smaller particles with lower costs, they can freely bundle and unbundle these small units of information with all kinds of combination and permutation.

8/ We've already seen quite a bit of early examples for this idea: either the different features that @CryptoKitties carry in different breeds, or the programmable art that @AsyncArt proposed.

9/ The core value here is the interoperability. h/t @VincentNiu222 the information is all permissionless and public, and one asset / piece of information can be reused anywhere else on the same blockchain (and potentially on another blockchain in the future).

10/ Blockchain interoperability creates the on-chain liquidity premium.

All these, together with DeFi, is pointing to a future of metaverse.

11/ During my recent conversation with @kankanivishal, he suggested and I agreed that if we say a fungible token contains one scalar quantity, then an NFT can contains N scalar quantities. In the world of blockchain each of these scalar quantities can be striped and rebundled.

12/ We are in the early days of NFT's development. Similar to how people designed light bulbs in the shape of candles, or how in the 1990s yellow pages looked like magazines, the NFTs we see today are likely going to be massively different from how they look like in 5 years

13/ Just like we don't know 10 yrs ago that Tiktokers can sell goods in streaming via links to marketplaces, we don't know what exact new human economic behaviors will be. But conceptually, NFT will be the container of the layers of information generated from various streams

14/ With all the assumptions above, it seems that infrastructure in the NFT space is much needed. It could be a platform that helps people organize and bundle their pieces of information into an NFT and present to the public, or it could be as simple as a fractionalization layer.

15/ This is the end of this tweet storm. Thank you for reading through this point.

Here are some of my past tweets on NFT and related:

https://twitter.com/ChainNewscom/status/1272384132832780288

https://twitter.com/Mable_Jiang/status/1308382316075524096

https://twitter.com/Mable_Jiang/status/1366310948856680448