The BDT Vision
Blockchain technologies are now experiencing a Cambrian Explosion, with crypto-currencies, token offerings, DeFI forming a cascade of revolutions that add together into a tsunami of change. And now NFTs – non-fungible tokens – have died out like a failed species during the original Cambrian Explosion. However, new forms are rapidly evolving and emerging. Our proposal is the BDT – the Blockchain Dynamic Token – which offers significantly more evolutionary advantages than the NFT.
NFT growth was driven by a hype engine, and now must be considered a dead market. However, an "NFT" was nothing more than a record in a blockchain database, and blockchains are not dying... so a new vision will emerge that extends the NFT into what's next. At FutureLab, we believe that functionality for identity, sensors, proximity networking, cyber/physical interop – the 5 W’s for BDTs. Here's what this comprehensive and cohesive vision entails:
- WHO - the first step is to standardize on identity, and we propose to use the Decentralized Identity and Verifiable Credentials W3C emerging standards
- WHAT - enabling BDTs for physical collectibles will drive adoption and value
- WHERE - location and proximity sensors enables other interesting capabilities. E.g., for Musician BDTs we can enable opt-in tracking of user’s attendance at concerts, to unlock value in the core BDT
- WHEN - trustable time servers for smarter BDTs
- WOW - our BDTs would enable next generation capabilites of basketization, securitization and eventually basket optimization... plus enable standardized legal policy servers, smart contract dispute resolution, digital compliance, open governance., and more.
The potential applications for BDTs are boundless. More importantly, what needs to be stressed is that the future of blockchains is much bigger and brighter than gaming and art. NFTs can go much farther than representing ownership... to managing licensing, providing social status, granting exclusive access and certifying authenticity. Thus, small and medium businesses need to keep an eye on what’s happening here… think coupons of transformative value, passes to both physical or virtual events, access to perks, subscriptions to spas. These are all digital assets that hold disruptive potential.
So what does the future hold? Well, first, there’s lots that still needs to be fixed. Account recovery is problematic. User experience sucks. Hackers and rugpullers are rampant. It’s the wild west out there, where you could suddenly strike it rich or just as easily get drygulched. Some centralized NFT marketplace will likely un-decentralize the fledgling industry by selling security and ease of use.
Here are a few predictions:
- Watch to see if gaming and porn emerge as killer apps for BDTs, as play-to-earn and earn-to-play demonstrate that it will be possible to earn money in the metaverse. Currently, in the online gaming world, value is held in virtual objects and avatars. But in the future, gaming NFTs will likely be used for identity, cross-chain reputation, and much more. As for the porn world, we’ll leave this as an exercise for the reader to figure out – think OnlyFans on steroids.
- BDTs will merge with DeFi to produce all sorts of revolutionary new investment vehicles and wealth-building opportunities. For example, one of our incubations – basketizer.io – is planning to enable basket trading for BDTs, essentially making non-fungible stuff fungible. Add some AI/optimization, and bob’s your uncle.
- Retail will drive mainstream adoption of BDTs, because an NFT can be the encapsulation of partnerships between major brands. These collaborations will span across both virtual and physical products. For example, clothing brands can offer their customers virtual wearables to be worn in the metaverse, and digital brands can offer physical goods as rewards for loyalty.
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