NFT, aka Non Fungible Token, has been a hot topic in the markets recently.
An NFT provides 1) proof that a digital item is unique 2) a chain of ownership. There are a lot of resources about NFT and how they work. I won’t go into the details. Here’s a story from The New York Times about Beeple selling a piece for $69M.
Like most things in Crypto NFTs are not well understood. The hype gets ahead of the reality.
Here’s a simple real world use case for NFTs and how they can facilitate transactions in billion dollar industries.
Respawn Entertainment, owned by Electronic Arts, has made $1B on a game called Apex Legends that is 100% free to download and play. Respawn’s revenue originates from an in game market where players can buy unique items for their characters: cosmetic weapons and outfits. Example below:
Another example of in game cosmetics that creates revenue for developers is the quest for Hats in Team Fortress.
Each of these in-game cosmetic items could be an NFT. That NFT could then be traded between players in the store via auction or via set prices with Respawn taking a cut of each resale. Some of these cosmetics were time limited meaning they can no longer be obtained unless purchased from another player. Respawn currently has no way for users to trade cosmetics. An NFT based user to user store is instant additional revenue for Respawn.
Notice in the screen shot the items are priced in a currency called “Apex tokens”. Here’s the alternative:
.@Respawn made $1B from the free to play Apex Legends by selling collectible in game items.
Respawn could implement user to user reselling of these collectibles via Duro and make hundreds of millions more.https://t.co/fRribodMDj
— Coinspeak (@coinspeak_io) March 31, 2021
What is a Duro you may ask? It’s simply a denomination of 500 Satoshis of BSV. It creates a new Unit of Account for Bitcoin SV that can facilitate transactions. Best of all it’s not a second layer on top of BSV or a new token. A Duro is purely a Unit of Account.
Why would using Duros or BSV appeal to Electronic Arts from a business standpoint? A store based on NFTs and a set in stone protocol like BSV is a build once and replicate many times scenario. BSV is simply a protocol for exchange of value that has nearly zero fees, unsurpassed reliability, instant transactions and unbounded scale. Any gaming company that incorporates BSV as a platform for their in game stores leverages a battle worn protocol they can use across all platforms and all games.
There is a game in beta that will be using BSV exclusively. It’s called CryptoFights. The website is awful, which is a shame, but the idea is groundbreaking and something to watch.
So why not use Ethereum? Two words: Crypto Kitties. In 2017 a project called Crypto Kitties was launched on Ethereum and the traffic clogged the ETH network and spiked fees. Four years later and Ethereum fees are near $30. ETH does not scale.
As I wrote back in August of 2020: BSV Scales or It Dies. No coin is going to be usable on a global scale without scaling with low fees. BSV is the only coin that scales with fees under 1 cent.
I find it incredible that the market continues to miss the big picture. I consider this an opportunity for those who can see what’s important and invest accordingly. Can you see the Forest through the Trees?
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Thanks for the write up. Ethereum fees are way too high but it seems like the chosen network, for whatever reason. And anyone taking NFTs seriously is doing business on ether. What makes folks do the Myspace/Instagram switch? People think Ada Lovelace network can scale just as you think BSV can. I agree with your write up, I am only seeking markers for knowing when/how/and to where the big switchover will be made.
Heck there’s even another ethereum right? Trying to solve these scale problems?