HDAO + NFT, the New Driving Force of the Next Decade’s Digital Economy
The year 2020 is coming to an end. Along with the rising tide of Bitcoin, NFT’s popularity is set to take over the DeFi industry. As of October 17 2020, the total number of transactions in the NFT market has exceeded $136 million, and 5 million copies of NFTs have been sold with an average price of approximately $27.3. The data collected shows a clear and positive growth.
As a non-fungible token, NFT can cover a variety of valuable objects such as real estate, artwork, games, creative works, etc. By bridging together the virtual and real world, NFTs will be able mortgage valuable real goods on the chain, further contributing to the popularity of NFTs.
However, in order for NFTs to reach their true own potential and seize the trillion-dollar market, it also needs to solve several persisting problems such as third-party authoritative identification, technology, and user habits.
As an open, fair and interconnected decentralized governance protocol, HDAO hopes to progress forward by integrating real-world assets with the blockchain. HDAO believes that NFT will be the next stop in the development of DeFi.
“HDAO + NFT (Non-Fungible Token)”
NFT is not a cryptocurrency. Instead, it is a digital item that is owned by someone and cannot be modified. The full name for the abbreviation of NFT is “Non-Fungible Token”. The term NFT means that the value of each token is different because each token signature is unique and hard-coded to In the blockchain, therefore the tokens cannot be copied; The opposite case of NFTs are standard ERC-20 tokens, whereby 1 USDT is equivalent to 1 USD, while 10 USDT is equivalent to 10 USD. Since each NFT value is unique, that means that there is only one symbolic representative of each token.
Most cryptocurrency enthusiasts are familiar with the current concept and use digital assets as collateral to borrow and generate stable currency. In recent years, this model has gained a lot of attention because it effectively allows passive assets to function instead of leaving them idling in the wallet, thereby greatly increasing the liquidity of assets. But what if you could do more than just use ETH as collateral? What if you can easily use other real-world assets such as watches or even houses as collateral, and then borrow money against it?
HDAO makes this concept a reality by minting NFT tokens. NFT is a special encrypted token that has a unique value and cannot be replaced by other tokens. Imagine how convenient it would be if you can mint an NFT for your “Aston Martin” as a collateral and borrow some stable coins for other purposes. Contradictory to the high transaction costs of real-world assets, the on-chain asset confirmation, collateral, liquidation and transaction costs for NFT will be greatly reduced.
As more and more users come to realize the revolutionary impact NFTs can have on the digital economy, the ecology of NFTs will also begin to grow rapidly. Countless developers based on the HDAO platform will also continue to create innovative uses for NFT, while interoperable projects will completely change the rules of the industry.
NFTs have become a hot spot in the encryption field, as they are not only creating scarce encrypted assets, but also innovating interactive experiences. HDAO and NFT will work together to lay out a solid foundation for the next decade of human digital economy.