The topic of 2021: NFTs. Usability and trends
The importance of NFTs and an overview of our SDK
In 2020, the popularity around NFT has been increasing incrementally. From various trends to usability. The community has been very creative in delivering a wide spectrum of NFTs and working for making them a more approachable topic for newcomers into the Blockchain space. However, to this day, a few statistics show that amongst crypto users, only 47% of users had heard of NFTs and 57% had never used NFTs. The most used NFTs were for collectibles (47%) and gaming (33%), these percentages were surveyed over close to 30k people from a surveyed research on NFTs.
What do these stats tell us? That not a lot of people yet are comfortable interacting with NFTs and the common knowledge around them remains restricted. If more industries in the space were to utilise them, it would definitely help their adoptions and usability. The goal remains to bring more people into the space for a better understanding and greater, faster development of Blockchain.
We must stay curious and try projects, that is the way we will help the space grow and understand all functionality and better develop our products for our users.
A little about about NFTs
These are the most common properties of NFTs, it is good to have them fresh in our minds in order to grasps what we can do with them and how they function:
Unique — each NFT has different properties that are usually stored in the token’s metadata.
Provably Scarce — there is usually a limited number of NFTs with an extreme example of having only 1 copy, the number of tokens can be verified on the blockchain, hence it’s provability.
Indivisible — most NFTs cannot be split into smaller denominations, so you cannot buy or transfer a fraction of your NFT.
Similarly to fungible tokens, NFTs also guarantee the ownership of the asset, are easily transferable and are fraud-proof (ref: https://finematics.com/what-are-nfts-and-how-can-they-be-used-in-defi/).
Lately the growth of the topic around NFTs has been thanks to the popularity of DeFi.
How can NFTs be used in DeFi ?
NFTs are being promoted as the next big thing in the Decentralised Finance world. NFTs attractive trait is that they can be used as collateral, NFTs may represent other type of financial products such as insurance, bonds or options. A DeFi lending and borrowing platform requires collaterals, this is were NFTs come in and solve that issue. Yinsure utilises NFTs in the insurance space, each contract is represented as an NFT which can then be traded on another marketplace (e.g. Rarible).
Another DeFi trend we have seen utilising NFTs is the issuance of governance tokens. Many platforms and NFT marketplaces have started issuing and distributing their governance tokens.
Talking about development, we wanted to refresh your mind on our SDK (software development kit), its features and what you can use it for.
Hoard’s SDK Features
- Access Hoard contracts (registered Games and GameTokens) on Ethereum network
- Access Token properties from IPFS or other databases
- Transfer functionality for GameTokens on Ethereum
- Wallet/account management with HD wallets support (Trezor and Ledger)