Introducing an NFT Platform Like No Other
We’re always looking for new ways to further enhance Syscoin as the blockchain platform of choice for real money, crypto assets, and blazing-fast scalable token payments. The upcoming non-custodial Business Rulesets and Notary capabilities on their own make Syscoin 4.2 a significant value-add to the ecosystem and blockchain industry.
But there’s more …
Today we’re excited to announce that Syscoin 4.2 will support the creation of Non-fungible Tokens, bringing a new level of usability to Syscoin Platform. This blogpost will provide a high-level overview of NFTs, before outlining what makes our NFT platform unique and how all of this will contribute to the growing adoption of Syscoin.
Non-fungible Tokens and their Uses
NFTs are designed to represent a unique asset. Unlike fungible coins (e.g. SYS or BTC), NFTs are individually identifiable and not interchangeable. Here are some example uses:
Your unique character or rare in-game assets can be represented by NFTs, making them easily transferable.
Art owners can have proof of ownership that protects artists against copyright theft, and makes ownership easily transferable.
Real world assets
NFTs can be used to prove ownership of property or assets, like a plot of land or a specific gold bar.
As we’ve seen with CryptoKitties, NFTs can be used to create entirely new types of collectibles — it’s even possible to buy tokenized versions of your favorite celebrities, athletes, and music mega-stars such as rapper Soulja Boy, who recently expressed interest in issuing a token. These tokens are also bringing traditional collectors’ items, like baseball cards, coins and stamps, into the 21st century.
Nike, Samsung, Vodafone, NFL, NBA and many other large corporations are using NFTs for a range of purposes such as anti-counterfeiting, gaming, and collectibles. We are now beginning to see some smaller companies incorporating NFTs into their business models.
Syscoin NFTs are a game-changer. They are more capable than existing NFTs, and are able to serve broader uses spanning more industries.
Syscoin Does It Better: The Advantages of our NFTs
Scalable and More Capable
This type of digital asset isn’t new. CryptoKitties, introduced in 2017, are perhaps the most well-known example. The great popularity of these on-chain collectible cats brought traffic that impacted Ethereum’s usability, demonstrating that it was not ready for mass adoption. Fees exploded and the blockchain became almost impossible to use.
Issuing an NFT on Syscoin will solve this challenge (and more) by taking advantage of the platform’s distinct capabilities and features. These include scalability, compliance, low fees, decentralization, security, and eventual interoperability with Ethereum once Syscoin Bridge is expanded to include NFTs.
Demand for divisible NFTs has increased, and Syscoin is answering by becoming one of the earliest NFT platforms to provide this. Owners and issuers will be able to flexibly apportion a single unique asset among many owners. For example, you could digitally own exactly 3.518% of the mineral rights to a specific land deed, or 25.2% of an ultra-rare Honus Wagner baseball card.
We have created a sophisticated solution to the challenge of divisible ownership while remaining within the scope of Syscoin’s existing token model. No special exceptions, no new models, no added complexity ...
In short, an issuer can specify the precision of their NFT upon creation, from 1 satoshi (non-divisible), to whatever level of divisibility is needed.
Up to now, NFTs had a reputation for contributing to blockchain “bloat”, requiring significantly more data storage than regular fungible tokens. An NFT on Syscoin will be very light. A token’s identifier requires only 4 bytes on the Syscoin blockchain. compared to 32 bytes or more on other platforms.
NFTs with Notary or Z-DAG
Imagine users sending and receiving your decentralized NFT in real time. With Syscoin, the execution model, storage, and user experience of NFTs match those of fungible tokens. Every benefit and capability that Syscoin provides fungible tokens will also apply to your NFT.
Z-DAG is an example, giving owners the ability to send and receive near instantly at very low cost. If that isn’t enough, developers can use the notary capabilities to apply custom rulesets to transactions. For example, instant double-spend detection and reconciliation around the in-game point-of-transfer experience as it exists for gaming objects today. It will seamlessly integrate and eliminate any worries on settlement costs, transfer times, and potential double-spends.