07. NFT-compatible re-trading

Definition and importance of NFT-compatible re-trading

Although, In 2022, the total transaction volume of NFTs worldwide reached approximately 60 billion USD, low NFT transaction compatibility is still not improving (Low NFT tranaction compatibility is one of the main causes to decrease the total NFT trading volume since it not only reduce the frequency of NFT re-transactions, but also negatively affect the participation in the minting event considered the primary transaction of NFTs). In fact, in order to overcome the recent stagnation of the NFT market, which has decreased by more than 90% in terms of transaction volume, NFT migration cases that change the NFT mainnet to change the NFT trading platform are rapidly increasing. However, NFT migration, which has not fundamentally addressed causes such as the absence of NFT trading technology for various mainnets and standards, is only a temporary measure. If the low compatibility of NFTs is not fundamentally addressed, the spread of uncertainty about the possibility of NFT re-trade will undermine the level of participation in the NFT minting event, which is considered the primary transaction of NFTs. This factor can play as a role to accelerate the vicious cycle of reducing the overall NFT transaction volume.

Figure 9 shows a comparison between the concept of existing NFT re-trade and the picture of NFT-compatible re-trade (NCR). As shown in Figure 9, the existing NFT re-trade only supports re-trade of NFTs issued by the platform or registered on the platform due to the low compatibility of NFTs. As a result, there are restrictions that images are not visible or transactions are not possible for transactions on external NFTs. However, the proposed NFT compatible re-trade by EGGVERS allows re-trade for NFTs, which are not issued or not registered collection on EGGVERSE. Conversely, EGGVERSE's NFT also provides the technology to trade on other external platforms such as Opensea.

Meanwhile, although the total NFT transaction volume is decreasing, the number of NFTs issued by individual creators, writers, large corporations, and government offices is increasing exponentially. Recently, it is a trend that its use is gradually expanding beyond games and artworks to entertainment, finance, and fashion. Therefore, it can be expected that the need for NCR technology will continue to increase as an alternative to compatible technology for various NFTs that overcome NFT re-transaction restrictions and are rapidly increasing.