Thread by @TheHypeMan2019

1/ NFT discussion series by @paji_a #10: "Should startups tackle NFTs now?" #NFT #NFTcommunity #anime #japan #pajiEnglish

2/ Today I'm going to hit the ground running with "Should startups tackle NFT now?" in the DeFi context. Conclusion: It depends on the goal of the company, just as the i-mode economy has produced many publicly listed companies.

3/ NFT and the DeFi that will bring its true value to the market is still a rough technology. Even though NFT and existing businesses seem to be a good match, it is unlikely that they will reach the general public in 1-2 years from now. Most companies would be safer not to.

4/ On the other hand, the case where it is better to work on NFT now is when the true vision of the startup is several years ahead. We believe that decision-making is very risky.

5/ Currently, it is similar to how many domestic listed companies were produced in the i-mode economy. Even back then, it was predicted that the Internet would dominate the world in the future.

6/ However, by developing "Internet-like businesses" in the "closed world" before the Internet took over, and by playing a role in advancing the hands of the clock, they were able to play an important role in the future. It was a bridge to the Internet society.

7/ "We will make appropriate decisions on how to tackle NFT, taking into account the goals and environment in which our company is currently placed, with a high-resolution view of the world that will come in 10 years' time."

8/ This is the ideal state for a startup. This section introduces events, centering on NFTxDeFi, that give a glimpse of the world that will come 10 years from now. We hope you can get a sense of the possibilities.

9/ To view the NFT as just a way to buy and sell data on works at OpenSea and elsewhere is to misjudge the future potential of the NFT.

10/ There are many ways to buy and sell data in the "open world. The data can be transferred over the Internet, so it can be financialized, globalized, indexed together, or even divided.

11/ Suppose there are 10,000 different collectible NFT "A". When a user deposits one NFT "A" to the service called "NFTX", he/she receives one "A-coin" (ERC20).

12/ This "A-coin" can then be exchanged for another "A" when used at "NFTX". This is one of the ways to convert NFTs into crypto assets (ERC20 format) to have financial functions.

13/ Once NFTs are in ERC20 format, they can be bought and sold as crypto assets by anyone in the world on Uniswap or other DEXes.

14/ Even if you are not that interested in each individual piece of collectible NFTs, you may want to support the project as a whole, or simply attract investment money that will likely have a high return if it grows in the future.

15/ When many ERC20 tokens are created for each of these NFTs, it becomes difficult for supporters and investors to select stocks. This is where the "SET" service comes in.

16/ Users can spontaneously create an S&P 500-like INDEX of crypto assets. DPI created by this service is popular as an INDEX to invest in crypto assets in the entire DeFi area.

17/ "SET" allows users to INDEX art-based and meme-based products on their own and support/invest in NFT in the form of ERC20 on a thematic basis, making capital movements more global and smooth.

18/ The data, which were originally NFT works, can be linked to finance by taking advantage of the value transfer feature of the Internet, thereby increasing the "liquidity of capital".

19/ These are phenomena that have not and will not occur in the existing "closed world". Only a few highly literate people are able to handle the NFTxDeFi domain because it is still

20/ a niche world complicated to understand, the GAS fee is high, and the UI&UX is very difficult to handle NFT and DeFi in the first place.

21/ However, these issues are on their way to being solved when they are recognized as challenges; if they are mostly solved in 10 years, they will cross the chasm and spread to the general population.

22/ At that time, the risk of data not being NFTed is going to be immense. And that data is not limited to works, but all kinds of data, including rights and logs.

23/ "Closed world" data is consumption, whereas "open world" NFT is an asset-bearing investment. This is not just for investors. Because, for example, when you pay 300 yen for a LINE stamp,

24/ instead of consuming all 300 yen, if the data has an asset value of 300 yen, it means that the economy will turn around three times the amount to 900 yen.

25/ When a company's business is not "consumption" only, but rather an investment with an asset nature, sales will increase by a multiple of the true consumption amount minus the investment.

26/ This is one of the revolutions that will occur when all data is converted to NFT. Depending on the area of business, if it is accompanied by an asset nature that can exceed the principal, the sales will be sky high.

27/ The "Realms" staking NFTs can officially deposit 8,000 Loot-type map NFTs and be rewarded with $LORDS, an ERC20 token, for their contribution, since the selling pressure is reduced during that time. Hashmasks' NCT is similarly designed from a financial perspective.

28/ Full on-chain NFT on a well-decentralized public blockchain can ensure data persistence and allow the data to function as one part of a robust Lego build. The blockchain allows us to establish immutable laws "at the level of the laws of physics" in an open world.

29/ Suppose you are in the "bungee jumping" business using Earth's gravity. Earth's gravity is constant because it is determined by the laws of physics.

30/ However, in a "closed world," it is unstable and difficult to do business because one company can double the "gravity" for its own convenience. This can be called the Web2 world.

31/ Because data on the blockchain and programs called smart contracts, once established, ensure the law of immutability "at the level of the laws of physics", companies can

32/ make large investments like "bungee jumping" devices because the earth's gravity does not change, and economic development will be accelerated by NFTxDeFi services.

33/ It is like the overseas logistics business that is possible because of the real world airline industry: the more robust the underlying data and infrastructure, the larger the companies and capital that can be leveraged on it.

34/ This is in contrast to a "closed world" in which the companies that build the world are no larger than the companies that build the world. The Power of Protocol

35/ Although we talked a lot about DeFi = financial systems this time to convey the economic potential of NFT, (1) data persistence, (2) interoperability across platforms (composability),

36/ (3) automated execution of programs that cannot be tampered with (smart contracts), and (4) de-centralization of value transfer (DAO) to make the world run smoothly.

37/ (5) No ID/password required when using services, (6) No need to input payment information, (7) Seamless value exchange around the world,

38/ (8) Return of royalties through sales transparency, etc. There are still many functions that only NFT can provide. We hope this will be a reference for startups to work on NFT now.

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