What key information is revealed in the Visa NFT white paper?
In Visa’s eyes, the main application scenarios of NFT are collectibles, artworks, and games, and DeFi is not mentioned.
After Visa announced that it had purchased and collected the NFT digital artwork CryptoPunks, it also released their NFT white paper, which revealed a lot of their views on the cryptocurrency and NFT market. Looking at the entire NFT market from Visa’s perspective, it may be able to make up for the blind spots of practitioners in the cryptocurrency industry.
Visa’s core view on NFT is actually the name of the white paper “NFT-Let Today’s Fans Participate in Cryptocurrency and Business”. Therefore, they believe that the value of NFT can help brands, celebrities and fans establish connections, and it is a “medium” for interacting with fans.
In addition, Visa also believes that NFT can also play an important role in the fields of collectibles, art and games. For different fields, the NFT mechanism and distribution method need to be designed differently, because the needs are diversified.
Key words when Visa defined NFT: public chain, ownership, uniqueness, media assets
Visa has repeatedly described what NFT is in the white paper through multiple methods and multiple dimensions.
In their glossary, the definition of the term NFT (Non-Fungible Token) is very simple: a token that can represent or associate the ownership of media assets.
At the same time, they also gave the meaning of the terms Non-Fungible and Fungibility. Non-Fungible: Unique and irreplaceable things (such as signed items). Fungibility: Substitutable and exchangeable things (such as gold or silver).
In addition, Visa also mentioned the understanding of the term NFT many times in the main text, as a supplement to the meaning in the glossary, two paragraphs of which are more complete.
- NFT is the only tokenized representation of digital files, which can be exchanged on the public chain.
- Like cryptocurrencies, NFTs are issued on the blockchain to specify the ownership of specific assets. Each NFT is associated with some unique data, usually some kind of digital content file (or a reference to it), and is managed by a “smart contract”. The process of converting media files into NFTs is called “minting” NFTs, and just like cryptocurrency, the NFT is written into the applicable blockchain database.
The description in the second paragraph is relatively complete and is more suitable for defining NFT.
Three NFT application scenarios in the eyes of Visa, without mentioning DeFi
Visa believes that the current main application scenarios of NFT are mainly three areas: collectibles, art and games. It does not mention some current applications in the DeFi field, such as assets (physical assets on the chain), certificates (Uniswap V3 liquidity certificates) )Wait.
The scarcity realized by NFT is suitable for collectibles, and its value depends on the limited supply, such as the earliest CryptoKitties and CryptoPunks, and the more popular digital collectible card NBA Top Shot this year.
NFT allows artists to sell their work in digital form instead of physical prints. Unlike physical art, digital artists can earn income during secondary sales or auctions, ensuring that they can be recognized in subsequent transactions.
And because NFT introduces the concept of ownership, the assets in the game, such as skins or clothing, can truly belong to the user, rather than to the game publisher, which can also promote an open trading market.
Cryptocurrency and NFT agreements and projects mentioned by Visa
There is no doubt that Bitcoin, as the origin of blockchain and modern cryptocurrency, will definitely be introduced. However, for platforms that can circulate NFTs, Visa only introduced Ethereum and Flow. Ethereum is currently the public chain with the most circulated NFTs, and Flow is a relatively new type of public chain representative that focuses on NFT use cases. It is characterized by greater throughput and has released the mainstream brand’s NFT project NBA Top Shot.
When Visa introduced how NFT performs decentralized storage, they used Arweave, which provides permanent storage, as an example, and did not mention Filecoin and IPFS. Through decentralized storage, NFT-related digital files can be stored in a decentralized network to ensure the sustainable operation of these contents.
NFT trading platform: OpenSea, SuperRare, Nifty Gateway
NFT’s trading platform includes primary market transactions and secondary market transactions. OpenSea is currently the largest secondary market trading platform and has even become the infrastructure of NFT. Other well-known trading platforms are SuperRare mentioned by Visa and Nifty Gateway acquired by Gemini.
NFT projects: CryptoKitties, CryptoPunks, NBA Top Shot
In addition to the CryptoPunks purchased by Visa this time, the CryptoKitties they mentioned is the first game released by Flow’s development team Dapper Labs. It is also the proponent of the first NFT token standard ERC-721 on Ethereum. Launched its own public chain Flow and collectibles NBA Top Shot.
How does Visa embrace cryptocurrency?
Visa has launched a series of services and products related to cryptocurrency, covering multiple aspects such as payment, developer interface, and research department.
Payment is Visa’s professional field, so they are very open in supporting cryptocurrency payments and are cooperating with more than 50 cryptocurrency platforms. And it is still upgrading the system to support the settlement of the US dollar stable currency USDC, starting with the support of the Ethereum network.
In addition, Visa has also established a research team in the blockchain field to explore the fields of cryptocurrency and NFT from a commercial perspective. The white paper stated that Visa has been exploring blockchain technology for several years, such as offline digital currency transactions and new privacy-protecting cryptography technologies.
No Financial Advice
This report does not constitute financial advice or a recommendation to buy in any way. Always do your own research and never invest more than you can afford to lose. Investing in cryptocurrencies is high risk, and you could lose 100% of your investment.