DEMOCRATIZING KNOWLEDGE
ONEOONE
TOKENIZING THE WORLD
When we talk about the potential utility and applicability of Smart Contracts, AKA Non-Fungible
Tokens (NFTs), for tokenizing any real-world or digital assets (ideas & creativity/Intelectual
property), it's essential to focus on understanding the user experience we intent to offer and the
asset's metadata malleability required to ensure long-term success and scalability.
Ideas & Creativity: “ Products, Services, Goods and Commodities".
In order to fully grasp the potential of this software (NFTs) and what their underlying technology
has to offer (Blockchain & Smart contracts), it is essential for creators & developers to know the
differences between static and dynamic metadata, as well as being able to assess and select the
appropriate type of “NFT” to meet the specific needs of a given project.
SBT (Soul Bounded Token)
Static NFT
Dynamic NFT
This will enable a deeper understanding of the capabilities and limitations of NFTs, and how they
can be effectively utilised to achieve desired outcomes.
WHAT IS METADATA?
Metadata refers to the type of information that is recorded, stored and provided by various
entities on the Web3, such as:
Blockchain & other DLTs.
Smart Contracts
NFTs
DApps & third-party services.
Metadata contains information that describes other data, but it is not the data itself.
This information is used to offer prominence to all the participants involved by organising,
sorting, searching, and making data more discoverable, improving accesibility & traceability
equals more scalability.
The data is obtained from Oracles which provide external information from data sources,
such as Internet of Things (IoT) data and web application programming interfaces (APIs).
STATIC METADATA VS DYNAMIC METADATA
Static metadata: refers to information that is recorded on the blockchain and is not expected to
change over time. This type of metadata is permanent and cannot be altered once it is recorded on
the blockchain.
Example: in the case of an NFT, static metadata can be the date of creation, the creator's identity,
the work´s title and the token's name & ID number.
This information is added to the blockchain and cannot be altered, providing a permanent and
tamper-proof record of the NFT's origin, Identity and ownership.
Dynamic metadata: refers to information that can and will potentially change over time. This type of
metadata can be updated or modified as needed, depending on the context or the state of the NFT
(Asset/community).
Example: in the case of an NFT, dynamic metadata can be the current owner of the artwork, the
current market value of the artwork, the number of times it has been resold, the current location of
the NFT, or the current status of the NFT (for sale or not).
This information can change over time and is not permanent, providing a flexible record of the
NFT's history, performance, ownership and value over time.
THE EVOLUTION OF THE WEB
To understand Web 3.0 better, let's examine its development over the past twoo decades,
the web has undergone significant changes:
WEB 1.0
Web 1.0 refers to the early days of the Internet and was coined for first time in 1999 by Darci DiNucci.
During this time, websites were basic and consisted of static HTML pages that only displayed information.
There was no way for users to interact with the data or upload their own content, and social interactions were limited to
simple chat messengers and forums.
WEB 2.0
Web 2.0 appear for first time in the late 1990s, shifting the web towards a more interactive user experience with.
This era saw the introduction of dynamic databases, server-side processing, forms, and social media that allowed users to
interact with websites.
This transformed the web from a static to a dynamic experience and placed a greater emphasis on user-generated
content and interoperability between different sites and applications.
By the mid-2000s, most websites had transitioned to Web 2.0, and big tech companies began to build social networks
and cloud-based services.
WEB 3.0
Web 3.0 is the next step in the evolution of the web and is characterized by a semantically intelligent web that leverages
technologies such as machine learning, blockchain, open-source software, AI, VR & AR, Narrow band IOT Internet of
Things, NFTs and more.
The aim is to make the Internet more open, decentralized, and personal while empowering users.
In the current framework, users rely on network and cellular providers to access their personal data and information, but
with the advent of distributed ledger technologies (DLT), users may soon be able to take back ownership of their data.
Algorithms will use all the data to improve the user experience and make the web more familiar.
MAIN DIFFERENCES BETWEEN WEB 1.0, 2.0, AND 3.0
WEB 1.0 WEB 2.0 WEB 3.0
COMMUNITY
PASSIVE INTERACTION PLATFORMS AND USER-OWNERSHIP FOR
CONTENT
FOR THE USER USER-GENERATED CONTENT CREATORS
CONTENT
DYNAMIC HTML, BLOCKCHAIN, AI, NFTS,
TECHNOLOGY STATIC HTML
JAVASCRIPT MACHINE LEARNING
VIRTUAL SOME BASIC 3D, VR, AR
NONE
ENVIRONMENTS 3D USE METAVERSE
TARGETED BASED
OBTRUSIVE
ADVERTISING INTERACTIVE ON USER
(BANNERS, ETC.
BEHAVIOR
STORED ON OWNED BY
LARGE TECH DISTRIBUTED
DATA STORAGE INDIVIDUAL WEBSITES’
GIANTS ACROSS USERS
SERVERS
SPECIFIC INTERCONNECTED USERS
INDIVIDUAL
AUDIENCE COMMUNITIES ACROSS MULTIPLE
USERS
OF USERS PLATFORMS AND DEVICES
WHAT IS A NON-FUNGIBLE TOKEN (NFT)
A non-fungible token (NFT) is a type of non interchangeable one to one cryptographic token that
represents the tokenization of a unique digital or real-world asset. They offer prominence by
functioning as verifiable proofs of authenticity and ownership rights within a blockchain network
and introduce scarcity to the digital world.
NFTs are changing the way we communicate, share and trade our ideas and creativity, they are
access keys & certificates of autenticity and ownership shield by a Smart Contract and recorded on
the blockchain for everyone to see, that can be used as a POW (Prove of Work) and POP (Prove of
Participation).
THE "BUILDING BLOCKS" OF THE INTERNET OF THE FUTURE.
NFTs are a type of software that, unlike traditional forms of digital rights management, are native to
the internet, born from and for the internet, therefore they can be utilised for a wide range of
purposes, "common examples" including but not limited to:
Providing a digital membership ID
Access key to private meetings, events, or exclusive merchandise
Offering airdrops or other incentives
Acting as event tickets and granting VIP access
Representing digital collectibles, such as artwork, gaming items, and other unique assets
While others more complex and ambitious like for example democratising "Assets" (ideas and
creativity) that lives and breathes of a community, by implementing a token-based voting system,
that provides a means for community members to collectively make consensual decisions that
impact the future integrity and sustainability of the community and "asset" as a whole.
other example could be using NFTs to do Fund raising, empowering and directly supporting
Startups,
building inside/ fan base economies.
We could actually take them a bit further and democratise our actual political and banking system
to bring clarity and transparency to some obscure areas of our system, where malicious players are
free to be held accountable for their damaging actions.
THE EARLY DAYS.
Static NFTs have a fixed set of metadata that cannot be modified over time, while these types of
NFTs were prevalent in the early days, they are now rapitly becoming more and more obsolete as the
NFT space keeps on evolving.
As we see the NFT space continues to grow and evolve, new developers and creators are joining the
field and bringing fresh perspectives and new ideas to the table. This is leading to a greater and
deeper understanding of the technology and its potential uses, resulting in a better user experience
for NFT developers, creators, collectors, and investors.
One way that NFTs are being used to improve the user experience is through increased and
enhanced engagement. NFTs can be used to create interactive and immersive experiences that allow
users to interact with real world & digital assets in new and exciting ways. This can include things like
Gaming, VR/AR experiences.
NFT 2.0
Dynamic NFTs on the contrary to Static NFTs, are capable of adapting and evolving by allowing their
metadata to be modified, which means that the NFT can be repeatedly enhanced to meet the
changing needs that a “community/asset” will experience over time.
One of the key benefits of dynamic NFTs is that they can offer a better user experience for
collectors, investors, holders and community members. Example:
Updating them with new features such as quality layers that will grant access to all kinds of perks
that can only be unlocked by engaging and participating within the community and holding or
owning the NFT.
DYNAMIC NFT APPLICATIONS
IDENTITY
If blockchain-based identity becomes a reality, dynamic NFTs may actually be used to represent
digital identity cards or passports around the world. The flexibility of these NFTs would allow changes
to be updated automatically without digital identity documents needing replacement. This can include
details like place of residence, marital status, and contact details.
GAMING
The ERC-1155 token standard is used mainly in NFT gaming, so it’s no surprise that dynamic NFTs are
most commonly found in Blockchain Games. Players can level up their avatars using dynamic NFTs to
represent their in-game characters, thereby enhancing the gaming experience. As a player gains more
experience, their characters’ growth could be reflected in their NFT avatars’ changing appearances or
stats.
The concept of progress in games is essential in game design in order to engage players, and dynamic
NFTs make this possible. Dynamic NFTs could also facilitate choose-your-own-ending games and other
participatory experiences that require external data to work.
VIRTUAL REAL ESTATE
While real estate tokenization has been around for some time, static NFTs are unable to reflect
changing factors, like property prices, age, and ownership.
Dynamic NFTs, on the other hand, can capture the finer details of real estate and possess the
flexibility needed for specific information updates.
ART
As exemplified by the traditional Japanese aesthetic art form wabi-sabi, which focuses on transience
instead of permanence, art that is fleeting and transitory is widely appreciated worldwide. Thanks to
dynamic NFTs, Digital Arts can use real-time data to encode changes in their artwork to convey this
impermanence, making their art pieces more unique. For instance, there are dynamic NFT artworks
whose appearances change based on the current weather or season.
NFT art can also be elevated by mimicking real-world art installations that require audience
participation to be appreciated. In this instance, a dynamic NFT could change depending on the token
holder’s interaction with their asset and in doing so, advance engagement at digital art exhibitions.
QUALITY LAYERS
Adding "Quality layers" to a NFT is a way to enhance the value and utility offered by the NFT over
time.
These quality layers provide rewards to holders and community members for their engagement,
participation and support over time by granting access to various perks, such as exclusive content,
special features, or unique experiences.
L0 - NFT (COLLECTABLE ITEM)
L1 - 1 ON 1 SESSION/MENTORING & CONSULTING (1 TIME USE)
L2 - MEMBERSHIP ID - ACESS KEY
FOR EXAMPLE L3 - AIRDROPS
L4 - MERCHANDISING
L5 - LAUNCHING PLATFORM FOR COMMUNITY STARTUPS
L6 - TREASURY (TO FINANCE FUTURE PROJECTS & INITIATIVES)
HOLDERS AND COMMUNITY MEMBERS
The longer you hold, the more you gain: Quality layers can help to create scarcity and increase the
value of a NFT and its community over time by providing incentives for those who hold the NFT for
extended periods.
This will encourage long-term holding and engagement with the NFT and its community, ultimately
contributing to a more valuable and liquid NFT.
The more you do the more you gain: In this case quality layers will increase engagement and
participation within the community by offering exclusive perks that can only be unlocked through
participation in certain activities or events.
This, in turn, can lead to a stronger and more vibrant community.
By encouraging participation and engagement, the community and the NFT can strengthen and
grow together, leading to a more valuable and useful NFT.
CLOSING THOUGHTS
Dynamic NFTs are a “smarter” class of NFTs than their static counterparts, as they can adapt to and
reflect information from the outside world in real time. And dynamic NFTs empowered by quality
layers will offer a better and more customizable UX (user experience) to holders and community
members for their engagement and participation over time, while scaling the value and utility of the
corresponding NFT.
NFTs are the "building blocks" of the internet of the future.
But now, how will this "internet of the future" based on blockchain, web 3.0 and NFT tech look like?
1) An internet where economic/data control rest in the hands of creators, not platforms.
2) An internet where our ideas and creativity can be directly supported.
3) An internet where informacion can be free, but where we get paid for the work we do with our
minds. "THE INTERNET OF VALUE."
In addition to the applications mentioned in this article, there are countless use cases for web3,
blockchain and NFTs, now it is on you to "DYOR" and come up with your own innovateive
approach/idea.
Kind regards, WAGMI.
