FLOW coins (or tokens) enable coders to participate in, build the network, and experiment with their own NFTs. To effectively transact their NFTs, Dapper created its own blockchain network, FLOW, in 2020. Dapper needed a different solution before they launched the Top Shot product. Due to impending sharding and proof-of-work, Ethereum was insufficient to launch Dapper’s NFT’s. Sharding, however, hinders effective use of smart contact transactions on the Etherum blockchain, where a contract for the transaction is encoded into the NFT itself. Įthereum was on the verge of using sharding methods, which break the blockchain into smaller pieces, to increase speeds when Dapper began Top Shot on Flow. Dapper needs efficient transactions to meet massive demand for their data intensive NFT products. Proof-of-work is proven and secure, but does not scale well to efficiently process large transactions. Users expend massive amounts of time and energy to secure the blockchain. On the Ethereum network, multiple users controlled nodes must verify all aspects of a single transaction. The Ethereum blockchain uses a “proof-of-work” verification mechanism to secure its network. Ethereum had two features that made it incompatible with Dapper’s NFTs – a proof-of-work consensus mechanism and sharding. CryptoKitties launched on the Ethereum blockchain with such significant demand that the sale crashed the Ethereum Blockchain servers. CryptoKitties involved selling kitten video game NFTs, which were funded by $39 million in venture capital investments. Dapper’s history with a prior blockchain venture, CryptoKitties, led the company to run Top Shots on its current blockchain network it is on, FLOW. Transacting NFTs is essential for Dapper’s business, so finding the right blockchain network for the particular transactions is essential. Thus, Top Shot users benefit from the use of blockchain tech because they can prove ownership and transact very quickly and at low costs. No centralized authority is required to confirm ownership of assets on the network. Users confirm only legitimate transactions ensuring that all tokens built on the blockchain are accounted for and held by the true owner. Ĭontributors also play an essential role by verifying the execution of transactions on the network. Contributors also have assets on the blockchain – so they are incentivized to track and confirm ownership and secure the network so that their assets remain secure and retain their value. The blockchain network overall is comprised of many contributors, each with their own record of the data on the ledger. Moments, like other NFTs, are cryptographic tokens, a digital units of value with unique serial numbers built and stored on the blockchain. Users build blocks on the network that contain digital certificates (data) with features that, once approved by network users, cannot be changed. Blockchain is a distributed ledger that stores data. īlockchain technology allows for simple and secure verification of NFT ownership. The value of each Moment is driven by the fact that no two Moments could be exactly the same given its unique serial number. Unlike Bitcoin, Dapper creates Top Shot NFTs and imprints each with a unique serial number that is recorded on a blockchain and cannot be changed. If there is reason to prefer one bitcoin (as currency) over another bitcoin, these qualities vanish and Bitcoin (on the whole) can’t be used as currency. ![]() In comparison, Bitcoin is a cryptocurrency with features similar to money, which is fungible. Non-fungibility means that NFTs are unique assets – they are not interchangeable with one another. NFTs have three major identifying characteristics: they are nonfungible, ownership is verified through blockchain, and are transactable on the blockchain. ![]() ![]() NFTs are blocks of encrypted data that can represent anything from title to property to a video of a kitten. Coders use blockchain technology to create NFT assets in the digital space that represent physical assets. Top Shot Technology: NFTs and Blockchain Networksĭapper’s business is to sell, and provide a market for, the transaction of NFTs, including the digital Top Shot Moments NFTs via blockchain. This technology allows a fan to literally own, and even sell, the “Moment”. Accessible via the internet, the Moments are unique Non-Fungible Tokens (“NFTs”) that are written into code on a blockchain. This tagline may seem farfetched, but a tech company called Dapper Labs (“Dapper”) has partnered with the National Basketball Association (“NBA”) to sell “Moments”, that are essentially NBA short video clips, to fans. If you Google “NBA Top Shot” you will find the slogan “Own… the NBA’s best moments”. NBA Top Shot: A Deep Dive into NFT Technology and its Business Model
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