In a previous article, we have mentioned the importance of tokenization and how HDAO will utilize tokenization to transform real world assets into digital assets and place them on chain. However, HDAO differs from many other projects in the sense that HDAO uses tokenization to transform these real world assets into NFTs (Non-Fungible Tokens)
Today, let’s tackle NFTs and see how they are changing the crypto world and how NFTs have affected the asset ownership of people.
The Evolution of NFTs
Similar to Bitcoin, NFTs have actually existed for quite some time, as early as the year 2012 in the form of Colored Coins. Though not as sophisticated as it is now, it did serve as the basic foundation of NFTs. From then on, NFTs have evolved over the years, taking over many forms such as games like Spells of Genesis and Force of Will. Finally in October 2017, the famous Cryptokitties game was born. The arrival of Crpytokitties has alerted the world to the existence of NFTs and have boosted NFT’s value and recognition substantially. Ever since then, NFTs have been growing rapidly and more projects have been utilizing NFTs to grow their platforms. As of September 2020, there were 9,353 sales total and $988,649 in NFT trade volume, with top players in the NFT realm including Sorare, Cryptopunks and Superrare.
NFTs (Non-Fungible Tokens), as opposed to FTs (Fungible tokens)are a special type of token that represents unique assets, meaning their value are one of a kind and cannot be replicated. The most common types of NFTs include gaming items, collectibles, and special vouchers. However, as NFTs are brought into life, the industry is undergoing an unprecedented transformation with many benefits from NFTs such as increased movement and asset tradability, and helping to protect the value of tokenized assets. But what’s next for NFTs? How exactly will it bring about a revolutionary change in the crypto world?
The Next Step
As NFTs have been gaining popularity in the crypto and broader tech industries, they have started to attract investors and spawned projects in other spaces like retail, sports and even politics.
With the world becoming more and more digital, NFTs present a very viable solution for tokenizing ownership and property. These tokens allow for real-world assets to be properly digitized and stored while simultaneously keeping them secure, ultimately revolutionizing the compensation, storage, legality and the security of property.
However, HyperDAO wishes to take it a step further by integrating real-world assets with the blockchain. What if you could mint an NFT for your rare Richard Mille watch, put it as a collateral on the blockchain, and borrow some stablecoins against it for trading and investing purposes? HyperDAO thinks that this is the next step in the evolution of decentralized finance.
With NFTs, HyperDAO wishes to introduce a few different services which brings out NFT’s full potential. These services include an NFT Minting System, Fractional Investing as well as other application scenarios brought about by tokenizing assets into NFTs such as rental income sharing, REITs, and an NFT Marketplace.
HyperDAO will go into detail how each of these work in separate articles to fully and clearly explain the mechanics behind these services and how they may bring NFTs to the next step. Be sure to follow up on HyperDAO for more news and updates.