Author: Kim | Web3 Developer's Guide
Recently, the cryptocurrency trading platform FTX set off a Lehman storm in the blockchain industry. The cryptocurrency investment market was hit hard, triggering a series of market panic. lowest! It's time to rethink how to manage and operate our encrypted assets in a more secure way, and the same should be true for NFT assets. Today we will talk about the decentralized NFT order aggregation transaction protocol.
With the prosperity and development of the NFT field in the past two years, the NFT Marketplace has experienced explosive growth. Among them, the most influential one is Opensea, which once monopolized the market share of NFT transactions as high as 97%. Even though there are trading markets such as LooksRare and X2Y2 launched later, trying to effectively motivate users through transaction mining and pending order mining, the performance is average and sustainable development cannot be achieved. Because its incentive mechanism does not solve the problem of NFT liquidity in essence, it does not form effective competition for Opensea in the end.
According to the current infrastructure development, any NFT trading market is currently facing the following four problems:
1) The problem of the underlying NFT full data source.
This problem is the primary problem. Any developer team that wants to launch an NFT trading market must first solve the problem of NFT full data. Since NFT assets are non-homogeneous assets, there are a large number of asset contracts, and the amount of Metadata data is huge, resulting in a high threshold for developers to obtain NFT data. Opensea has accumulated a large amount of NFT data and analysis experience in the past few years of development, so it has the current high-resolution NFT full data.
2) Issues with the NFT transaction protocol.
At present, Opensea has launched its own Seaport transaction protocol, LooksRare and X2Y2 use their own transaction protocols, and Coinbase NFT marketplace uses the 0x protocol. From the perspective of satisfying the transaction function, developers are more inclined to develop transaction protocols by themselves, or to fork more mature transaction protocols already in the market. At the transaction function level, developers need to build and adopt a secure transaction protocol.
3) The problem of product interaction.
NFT trading market developers need to develop a set of logical closed-loop front-end interactive products to allow users to perform routine operations on NFT, including basic operations such as pending orders, purchases, and offers. The research on product interaction is a long-term thing, which requires continuous product polishing and innovative experiments, such as bulk purchase, bulk pending order, bulk offer and other functions.
4) The problem of obtaining NFT order flow.
After solving the above three problems, the NFT trading market also needs to solve the problem of NFT order data source, which is the core problem. Whether it is LooksRare or X2Y2, they have solved the problems of 1, 2, and 3 very well, but encountered difficulties in 4, so they launched an economic model, trying to obtain NFT orders through token incentives. But the effect is mediocre, a large number of knock-on transactions and invalid transactions have appeared, which has not fundamentally solved the problem of NFT order data.
NiftyConnect is an open source decentralized NFT aggregation transaction protocol. Its purpose is to solve the above-mentioned problems 2 and 4, and the core is to solve the problem 4. The NiftyConnect protocol performs on-chain operations for each NFT order on the basis of satisfying the regular transaction functions of NFT. Then open its own on-chain order data to the entire NFT market, and share it with all downstream developer groups who have access to the NiftyConnect protocol, so as to achieve the effect of co-building & sharing the NFT order market, and then form network effects and scale effects.
The NiftyConnect protocol essentially breaks the information island problem among multiple NFT trading markets, allows NFT order data to flow, and enables the entire market to jointly build & share NFT order data, thereby improving the matching efficiency of NFT transactions. The NiftyConnect protocol's real-time on-chain mechanism for NFT orders has realized a highly decentralized and open market price discovery mechanism, which is fully in line with the logic and spirit of the underlying operation of the blockchain.
The NiftyConnect protocol implemented a market strategy of zero NFT transaction fees at the beginning of its launch to meet the transaction needs of more high-quality NFT assets and reduce transaction friction costs. Of course, the transaction fee ratio can be adjusted later through community governance. The NiftyConnect protocol adopts a purer NFT transaction logic, which greatly reduces the gas fee consumed by users when placing orders and purchasing.
It is also worth mentioning that the NiftyConnect protocol has developed an on-chain distribution mechanism for transaction fees, which effectively solves the problem of commission distribution between the order maker and the matching party, and solves the problem that the traffic party or matching party cannot capture value in the NFT transaction link . At present, in the NiftyConnect agreement, the transaction fee distribution ratio between the order maker and the matching party is 8:2. In the future, this ratio can also be adjusted through community voting governance to effectively improve the generation relationship and effectively motivate all parties involved. Then improve the efficiency of NFT asset matching and create more market value.
In addition, the NiftyConnect protocol developer team attaches great importance to NFT Collection creators and issuers, and has a dedicated NFT Collection royalty setting mechanism to help upstream producers in the NFT field effectively capture the royalties they deserve.
To sum up, the NiftyConnect protocol has the following characteristics:
1) The code is open source and the protocol is completely decentralized;
2) All orders are uploaded to the chain, which is more secure and open;
3) There is a fair commission sharing mechanism on the chain for the order maker and matchmaker;
4) A unified royalty setting mechanism to protect the royalty income of NFT creators;
The following is a comparison chart of the performance and data of the NiftyConnect protocol and other NFT trading protocols:
The NiftyConnect protocol is a truly completely decentralized NFT order aggregation transaction protocol, which essentially solves the industry problem of NFT order data islands and effectively promotes the development of the NFT trading market. Currently, the v1 version supports Ethereum and is undergoing beta testing. It has entered the public beta stage. All users can place orders and trade NFTs on NiftyConnect to obtain NFTs from early supporters, corresponding to the airdrop rights of future currency issuance. At the same time, the v2 version is under development and will be launched in a few months.
In the future, developers of any Web3 products and protocols with traffic can easily access the NiftyConnect protocol to provide users with NFT transaction functions. Users can easily place NFT orders and purchases on any product that is connected to the NiftyConnect protocol. The NiftyConnect protocol has greatly improved the freedom and openness of NFT transactions, which will have a profound impact on the NFT field, let us wait and see!