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What is the difference between digital collections and NFT?


By BoopathiPublished 2 months ago 6 min read

NFT — — the abbreviation of non-fungible Token, which stands for non-homogeneous tokens, is a unique digital asset (artwork, music or game assets), you can think of it as an encrypted currency token.

The so-called non-homogeneous tokens are irreplaceable tokens, which record unique information in smart contracts. After being authenticated on the blockchain, each NFT is unique. NFT uses blockchain technology to mark the property rights of documents in the Internet. It is a product of web3.0 and is considered to be an important infrastructure for the future Metaverse. It is generally based on public chains and can be passed through encrypted currencies (Bitcoin, ETH) can be traded at will, which is easy to be hyped. The most famous trading platform is OpenSea, and currently the most popular projects include Bored Ape Yacht Club and Phanta Bear.

What is a digital collection

Digital collections can be understood as Chinese characteristics and are essentially regulated NFTs. They are specific digitized works, artworks and commodities that are uniquely identified using blockchain technology, such as digital paintings, pictures, music, videos, 3D models, etc. . Each digital collection is mapped to a unique sequence on a specific blockchain, which cannot be tampered with, indivisible, or substituted for each other.

Each digital collection represents a specific work, artwork, and commodity, or a single digital replica of it in limited release, recording its immutable on-chain rights. Therefore, digital collections are essentially different from homogeneous tokens such as virtual currencies. They are supported by the actual value of specific works, artworks, and commodities, and do not have any monetary attributes such as payment functions.

Let’s start with commonality:

(1) Uniqueness. Both have their own separate numbers.

(2) Scarcity. Both are limited editions.

(3) Ornamental. Whether it exists or not, at least sometimes it can be regarded as a kind of ornamental for some people.

(4) Traceability. Both are traceable to this issuer.

Here are the features:

(1) The most fatal essential difference is the blockchain. The works of NFT are all based on blockchain technology and Web3. The underlying construction of various domestic platforms is basically established under their respective alliance chains.

In layman’s terms, for example, the work released by Tencent Magic Core is based on Zhixin Chain. This work cannot be transferred to other platforms at present. That is to say, digital collections cast by different platforms cannot be transferred at present, and its value is If the platform says that your work is valuable, it is valuable, and if it is not valuable, it is worthless.

As for the NFT work, I can sell the work on any platform, and its value is determined by the market value. And this also forms the characteristics that NFT is easy to be hyped.

(2) Since NFT requires community consensus, everyone needs to feel the value of this work. As their publishers, they need to operate the works. The simple understanding of operation is hype.Nft Marketplace Only when there are more people who appreciate it, everyone thinks it is valuable. Based on its limited quantity, its value will be steadily increased, or skyrocketed.

However, digital collections are different. Under the current regulatory environment, digital collections themselves are prohibited from hype, and domestic digital collections more reflect the value of commodity rights.

(3) The definition of NFT is a non-homogeneous token, while domestic digital collections are not a token, which is an essential difference.

(4) Digital collections cannot be purchased through virtual currency, but can only be purchased in RMB or digital RMB, while NFT can be purchased through ETH, USDT, SOL, etc.

(5) Compared with foreign NFTs, digital collections cannot be freely circulated and traded in China for the time being, which can be said to be good or bad. After all, since NFT works do not have any legal and policy basis, and there is no market supervision, the platform works are mixed with good and bad, which is easy to cause various imitations and scams. However, domestic digital collections have strict restrictions on secondary market transactions, which can reduce the occurrence of speculation and hype.

(6) Another important point is ownership. When NFT buys a picture or work, the ownership belongs to you. You can conduct commercial activities on this NFT, for example, it can be printed on clothes, or in any environment. When buying digital collections, there is almost no right to use them in any commercial activities. Without copyright, it means that you will be held accountable for misusing them.

In general, digital collections are NFT localized and compliant application exploration and display models.

Digital collections empower industrial development and boost brand value

This year, domestic digital collection platforms have grown rapidly. According to incomplete statistics, there are more than 400 large and small digital collection platforms. The digital collections issued involve intangible cultural heritage culture, sports, film and television, aerospace, well-known artists and other industries and fields. . According to the data from Tianyancha, there are 53 companies related to digital collections, and more than 1.83 million companies related to the digital economy and technology layer. Among them, nearly 700,000 new registered companies will be added in 2021, with a growth rate of 68.48%.

As an innovative application of blockchain technology, Nft Marketplace Development digital collections are of positive significance to the dissemination of excellent culture. However, due to the short period of time in our country, the identification and supervision standards have not yet been established, resulting in chaos. In order to prevent the digital collection market from continuing to “run wild” with problems, sound supervision and industry regulation should be established in time to allow technology to better serve art.

The future direction of digital collections

After stripping off the financial attributes of digital collections, its value core is still evolving in the domestic market, and through the integration with different industries, it has developed richer connotations.

The combination of digital collections and art is changing the traditional concept and behavior of art collection. On the one hand, relying on the unique and non-tamperable characteristics of blockchain technology, to a certain extent, it solves the persistent problem of fakes in the traditional art collection market. On the other hand, the relatively cheap price of domestic digital collections makes it easier for art collections to enter the public’s field of vision, allowing more artworks and artists to establish connections with more audiences, thereby better promoting the development of the art collection industry. develop.

For brand marketing, digital collections provide a brand-new idea of ​​traffic acquisition. The IP attributes and social attributes of digital collections can quickly help brands build a fan base, which is conducive to maintaining the long-term relationship between brands and consumers. For example, in December last year, Nayuki’s tea created the metaverse IP image “NAYUKI” and launched a limited edition digital collection blind box, which won 200 million GMV in hours, which is a good attempt of the “digital collection +” marketing model.


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