NFT, DeFi, Filecoin who set off a bull market?

The currency circle never lacks hot spots, from DeFi to NFT, it is dizzying.

Speaking of this NFT's popularity, it was officially detonated by the pineapple MEME, just like Compound officially detonated DeFi.

However, Compound has become a dark horse in the DeFi field by virtue of the "liquidity mining" incentive mechanism. Since then, more and more projects have launched similar "liquid mining", and the total market value of DeFi has also broken through the 10.8 billion U.S. dollar mark. In mid-April this year, the total market value of DeFi was only $1 billion. How rapid the development of DeFi has been in more than a month.

The popularity of MEME is more like irony, and the origin is a joke.

In fact, MEME is to use air to dig air. The reason for its birth is that developer Jordan Lyle tweeted mocking those copycat DeFi, saying that they are DeFi meme projects that can be launched in 5 minutes (Meme means: Mimic viruses, emoticons).

However, this joking Weibo was actually made by someone with intentions, and it was really developed. Therefore, MEME is not a joke but a token, and UniSwap was launched, and it even skyrocketed 900 times on the day of launch.

So, what exactly is NFT?

NFT is the abbreviation of Non-Fungible Token, which means non-homogeneous token, which is mainly issued by the ERC-721 standard. NFT is a concept that exists relative to homogenized tokens. The tokens generated based on the ERC-20 standard are usually called Fungible Token, or NT for short, that is homogenized tokens, also known as interchangeable tokens. Its main feature is that there is no difference between tokens and can be free Exchange, and can be split and integrated. For example , cryptocurrencies such as BTC and ETH are homogenized tokens (NT), and each BTC is essentially indistinguishable and can be interchanged and divided.

The most important feature of NFT is uniqueness and indivisibility. Each non-homogeneous token is different, it is a separate and unique token, and cannot be replaced by each other. In addition, the smallest unit of NFT is 1, which cannot be split. This means that your NFT cannot be exchanged with someone else's NFT, nor can it be split into 0.1.

For the current blockchain industry, NFT is actually a very niche thing. The top exchanges only regard NFT as a possible future direction to deploy, and will not treat it as a popular DeFi investment.

The difficulty of NFT development is not in technology, but in market promotion. At present, it is no problem to realize NFT through technology. The key is that the market is too small and the competition is not fierce. Therefore, the difficulty in the development of NFT is actually ecological application. To make a good NFT application, the development cost must be relatively high. And because the NFT audience is too small, the benefits of the project cannot cover the development cost.

In general, the possibility of NFT detonating a new bull market is too small.

Even the explosive DeFi may not necessarily detonate the bull market and enter the public. Although DeFi is very popular, only a small group of people really use DeFi products. Only when they truly go to the public can they create more value. So DeFi is in urgent need to go to the public. The current DeFi threshold is too high. On the one hand, the DeFi product operation process is complicated, and the user experience it brings cannot be compared with Internet products. On the other hand, the DeFi market is flooded with all kinds of counterfeit currencies, gas fees remain high, and smart contracts have bugs.

Promoting the real coming of the bull market depends on the leading project in the field of distributed storage-Filecoin.

As a blockchain project based on the IPFS protocol, Filecoin was built by the protocol laboratory for more than three years, aiming to build a safer, more open, and more economical distributed storage network.

Filecoin's distributed storage network not only makes up for the deficiencies of centralized storage in terms of security and privacy. It has also played a vital role in promoting the development of the blockchain industry, providing a brand new solution for blockchain data storage. For example, traceability projects can store traceability data in the Filecoin network through smart contracts, and public chain projects can also complete interoperability with Filecoin network data through a cross-chain approach to promote commercial implementation.