Understanding the NFT CACAU Appraisal Standards: By Culture, Beauty, Community, Property and Performance

Collection Art Block, source : Sotheby's

2021 shows the rise of NFT. During these short years, we have witnessed an explosion of artistic creativity, technological innovation and an influx of capital.

It is gratifying to see so many designers, innovators and artists experimenting with this technology as a new medium for design. Any work that uses NFTs in a new way makes me happy.

A major factor contributing to the high growth rate is that NFTs help finance crops worldwide. Culture is the embodiment of our daily life. Unlike DeFi, which requires limited financial knowledge, NFTs have lower standards for public participation. Buying axes to play card battles like Pokemon is 100 times more realistic than buying USDC to create control tokens and put them in the Curve pool.

These models were faster than celebrities such as Jay-Z, Snoop Dogg, Stephen Curry, Paris Hilton and Steve Aoki adopted NFTs as digital numbers and are expected by millions of fans who follow them. ~

Steve Aoki aime les crypto-punks

Manie NFT

Over the past few months, we have seen a lot of speculation, with some NFT rates skyrocketing 10-100x and dropping 90% in just a few weeks.

The high volatility of NFT values ​​and the difficulty in measuring them are as follows:

The liquidity of NFTs is also low. Margin trading changes floor prices quickly.

Due to its limited historical value, it is in constant discovery of value.

Many essential elements of NFTs, such as culture, are inaccurate and difficult to quantify.

A similar test was not used.

NFTs are excellent descriptions. (The most important will be explained later)

The first NFT I will be in January 2021, a non-fungible red pixel art comparing several symbols to "red". I ran into an argument when they did their first stealth drop, but I had no idea what I was doing. As I looked at all the pictures on OpenSea, there was a desire to buy and write monkeys with features that rarely came to mind. The current price is 0. No customers. This president taught me a good lesson.

Evidence A: Donald Trump's non-fungible monkey, rare monkey worth 0.7E

Looking back, I had to think about it because the market still needs everything. The market has no history, anonymous artists who recently joined Twitter, small communities, no electricity, an artistic medium. Unable to create descriptions in any of the five NFT domains, which will be covered later.

However, the cost of other NFTs has risen sharply. Bought in 2017 for just $35, the cryptopunk is now worth $9.5 million.

Visit Board Ape Yacht Club, Fidenzas, XCOPY, Mystic Axis and more. What makes them valuable now and how do you find great NFT opportunities early on?

Isn't it natural for all of us to ask when the next Fidenza will be?

What makes NFTs different?

I was drawn to NFTs because of their ability to represent specific hardening processes not found in fungible tokens. This technique is both unproven (e.g. cultural) and tangible, which makes it intellectually useful.

At the highest level, NFTs exist and offer the same process as all other crypto applications: the blockchain infrastructure. Ethereum is the most used blockchain. This includes specialized Lisk and L2 solutions for NFT applications such as Flow and Immutable X.

The next layer, the platform layer, provides financial support for NFTs: exchange thinking, capacity building, loans, distribution, etc. They are platforms because they usually contain many different tokens rather than a single token.

Unlike fungible tokens, NFTs are another layer that separates the “application” contained within the token itself. The NFT model (usually ERC-721) allows connecting tokens on chains or exchanging metadata while managing the history, exchange and network security of the blockchain.

Let me simplify with Web2 for example.

(Qib 1) Basic Blockchain = Internet Telephony.

Examples: TCP/IP, iPhone. It is large and detailed

(Level 2) Application / Infrastructure = Internet Platform.

Example: Apple App Store

(Qib 3) NFT = Personal Mobile Application.

Exemple : application Facebook

The platform is very powerful and captures good value through its effects on the network and the industry as a whole. A good platform will spend a lot of time developing, modifying, and reaching the high level of adoption development. An app often represents the highest level of diversity, innovation and creative ideas. Because anyone with an idea can now easily create and get started with (native) mobile apps. The web3 equivalent here is NFT.

To learn more about this, let's take a look at Aave (platform) and CryptoPunks (NFT).

The cost of 1AAVE affects the completion of the entire Aave application/protocol. The total price of the lock usually includes other LP tokens, revenue generation, and user development. ~

1CryptoPunk's price is... how cool it is, how low it is, and how many people need it. It does not depend on external use.

A simple ontology framework for NFTs

So I started researching the basics of NFT thinking.

How do you identify NFTs with potential explanations?

How do you determine if an NFT is worthless or worthless?

It is not intended to verify the fair value of NFTs. There is no standard budget for NFTs. Instead, we've built a solid foundation to help NFT writers and NFT entrepreneurs make better decisions.

We took a closer look at the factors that add value to NFTs and broke them down into five key areas. This is different from the traditional distribution of NFTs that we are all familiar with: objects, graphics, virtual landscapes and games. The reason for this is that there is often a great overlap of these categories. Although their values ​​vary from project to project, these five areas apply to all NFTs.

NFTs have the culture and beauty of their competitors. From the intangible to the tangible, the five parts are:

cultural (invisible)

This is the highest quality and hardest quantity in NFTs. ~

Culture is broad and includes a nation's experiences, understandings and beliefs. ~

Cultural components include, but are not limited to:

type of load

historical significance

Follow Thoughts: We want others to want because we practice them.

Resilient Values: Am I teaching wealth, culture and class?

Aesthetics (tsis pom)

He talks about the beauty of NFT media (eg work, music).

Do you like How many people, especially fashionistas, like it?

Is there any proof that you have a good eye for beauty? ~

Lub zej zog (material - immaterial)

Represents the number of existing owners of the NFT domain.

As with most Web3s, community is everything.

Who is the owner of population, sanity, wealth and vision? Do they look like diamonds or paper nails? Are they loud or are they quiet and smart?

Measurable Measures: Are communities thriving, stable or declining? How many assistants?

siv tau (tangible)

Benefits such as team participation, early access to Mint, farm token, and physical gear were received directly from NFT members.

Game and NFT Metaverse Highlights: Includes: Axies, Sandbox Land, Star Atlas Spaceships, Ember Sword Badges. These can also be earned as in-game cash.

NFTfi (NFT DeFi) is very interesting.

Item type)

Represents any digital or physical device that may belong to the owner of the NFT, excluding the NFT itself.

Examples: project finance, other NFTs, intellectual property, real estate

In the next article, we'll look at each of these five in more detail with examples.

love love,NFT = Cultural Aesthetic Community Asset Utility

(NFT = Cultural Aesthetics Community Asset Utility, CACAU)

This is equivalent (), which means that every NFT project that seeks to be the most efficient and becomes the legacy must consider performance in all five areas. Although they can only focus on one of these places.

Example:

Generative artists with an innate creative ability to create amazing art that the world must also take notice:

How He Engages With Writers and Builds Great Communities Without Missing "Working for My Art"

How to benefit from membership by registering as a member and accessing new positions

Although beauty is the focus here. Beauty is hard to judge, but community and energy use are easier to measure.

Warning

Some blockchain details are not included in this framework, but can be attributed to the description and value of NFTs.

NFT base chain

Ethereum is now the network for NFTs, especially economic NFTs. This is part of the website security guarantee.

On-chain or cumulative L2 NFTs outside of Ethereum (such as Polygon, Solana, Avax, Arbitrum) are more expensive in stores today, if not in the future.

Persistence of the following documents

Arweave > IFPS > Centralized site

(Gen Art) on-chain vs off-chain

The entire channel archive seems to be better than the archive archive. Because blocking space is expensive, on-chain storage is often impractical.

Autoglyphs, for example, is the oldest generative art project in the chain.

Derivatives vs. Originals

Successful projects are duplicated and forked multiple times, and this is the law of encryption. As we have seen many times, the value of derivatives can increase due to short-term speculation, but in the long term they often return to their original value.

Pt Cryptopunk ← Punk, punk fast-food, punk Picasso, punk bâtard…

concludes

Why bother with that? Shouldn't NFT be easy? Do you want to buy as many as you want? if it works the same way.

We have provided these guidelines to help you better understand and identify the factors that can increase the cost of NFTs. And avoid FOMO on weak descriptions or ad hoc projects. I hope it will work for you too.

I believe that if NFTs are to become as big as real investing, they need to start thinking and talking the way people in the investment world have always done. The framework for non-crypto understands and still understands cryptographic technologies and concepts.

A similar way to "value for money" is:

What is the culture in the context of NFT?

How do you identify cultural descriptions that need attention?

Can the results be given to products from different cultures?

How do artists (writers, photographers, musicians, etc.) practice their profession?

CryptoPunks Vs. Red Shades: A Course.