Why It’s Time for the Decentralized Exchange for Utility NFTs
As we progress into 2021, the beat of the drum of cryptocurrency and the broader digital asset industry continues. It all started in 2008 when the pseudonymous Satoshi Nakamoto published a white paper outlining a digital currency, Bitcoin, underpinned by a new technology called blockchain. Now with over a decade’s development, blockchain seems to be near the dawn of widespread acceptance and adoption. Deloitte’s 2020 Global Blockchain Survey showed that people’s attitudes toward blockchain have obviously and measurably shifted in a positive way. Real-world blockchain solutions have been adopted and implemented across a variety of businesses and sectors. The hottest blockchain application scenario in recent months is the art auction sector with numerous record-breaking artworks and collectibles NFTs (Non-Fungible Token) sales. NFT might be the key to blockchain’s mass adoption.
An NFT is a digital asset that exists on a blockchain. The blockchain serves as a public ledger, allowing anyone to verify the asset’s authenticity and ownership. Therefore, unlike most digital items which can be endlessly reproduced, each NFT is one of a kind. Much of the hype around NFTs centers around the creation of a digital certificate of ownership for unique pieces of art. The founder of Chair.Finance, Adriel, has been engaged in the blockchain industry for over a decade. He is also an avid art collector in his personal life. He sees NFT ‘s potential to bring unimaginable transformation to the entire world of art. Moreover, Adriel believes that NFT’s potential is by no means limited to art only. Any digital asset that the creators want to make unique can be tokenized into an NFT. At their core, NFTs act as a non-duplicatable, one-of-its-kind, digital certificate of ownership for any assigned digital asset. This means you can use NFTs to tokenize just about anything. It can be a drawing, a song, or an article. It could even be admittance to an exclusive event, non-physical product or service, or various intangible benefits. That’s why Adriel created the Chair.Finance platform so that more people can enjoy the benefit of NFTs.
Thomas Jefferson penned the famous quote from the U.S. Declaration of Independence in 1776, ‘all men are created equal’. Chair.Finance believes that each of us is unique, each one of us has our own qualities, instincts, creations, and desire for recognition. Therefore, Chair.Finance is determined to help every individual achieve their unique value. Everyone can create personalized NFT on Chair.Finance and enjoy the rights and benefits generated by the NFT’s future popularity. The possibility is limitless.
Chair.Finance is constructed with a strong team of blockchain technologists. The transfer or sale of NFT is governed by smart contracts which are built to automatically execute transactions without human interference if certain conditions are met. The smart contract will also define what an NFT can do. Unlike with traditional one-off sales, the original owner of an NFT can choose to program certain limitations into the NFTs code. Take artworks for an example, the original author of an artwork NFT can choose to program in royalties, meaning every time the artwork NFT is resold, the original author gets paid again. All these processes would not require a third party, making the process completely decentralized and completely transparent. These smart contracts could revolutionize the way we complete transactions, share data, and trade assets. A massive intersection between the worlds of art and blockchain is redefining the concept of ownership in the digital age.
The concept of ownership is attached with ownership rights and benefits. The Stanford Encyclopedia of Philosophy defines rights as the entitlements to perform certain actions. Rights are often considered fundamental to any civilization, for they are regarded as established pillars of society and culture. To transfer a set of rights is to approve a distribution of freedom and authority. The Oxford English dictionary delineates benefits as an advantage or a profit gained from something. Therefore, benefit trading is the action of distributing a portion of one’s advantages or profits to others. The Property Rights Theory from the New Institutional Economics attempts to answer in which way rights should be distributed to maximize efficiency. Three key criteria were identified. The first principle is universality. All scarce resources should belong to someone. This right must be clarified unambiguously and guaranteed by a tamper-proof system. The second principle is exclusivity. That is to say, all property rights should be allocated exclusively, this increases the interest for sustainable development. The third principle is transferability. Property rights should be transferable. Thereby the rights could go to those who need it the most, all owners will have a stronger incentive for the efficient use of their resources.
NFT’s unique qualities make it an ideal candidate to enforce the maximum efficiency principles of the Property Rights Theory from the New Institutional Economics. Chair.Finance is one of the first decentralized platforms built for the creation and transaction of utility NFTs. With the Chair platform, anyone can easily tokenize their personal rights and benefits into NFTs and sell or auction it. Chair.Finance is designed to promote the exchange of rights and benefits, encourage high-quality original content creation, and facilitate the promulgation of valuable ideas, products, or services. With the help of NFT, assets will have better protection from enforced property rights. Users will become less likely to exploit resources unsustainably or inefficiently as the property is protected. The price mechanism will become more effective at finding the true market equilibrium and protect the owners of the good from opportunism pirating. Efficient circulation of property rights will also lower transaction costs by providing an efficient resolution for conflicts over scarce resources. NFT provide secure property rights and equality of opportunity, this will only lead to economic prosperity. With the NFT service provided by Chair.Finance, we endeavor to revitalize the digital ownership system. Just like the way the printing press once facilitates the European Renaissance and permanently altered the structure of human society.
NFT is also revolutionizing the financial landscape. Ever since the first debit card hit the market back in the 1960s, with more and more digital payment options over the decades, we have been slowly moving towards a cashless society. The future of money will be paperless and coinless. Central banks all around the world are experimenting with ‘central bank digital currencies’, or CBDC. The blockchain technology and its byproducts, cryptocurrency and NFT, could form a sweeping change in the international financial system. NFT could become the new trading consensus of the world. This is exactly what Chair.Finance is committed to achieving. The way we trade with each other is about to fundamentally change with the arrival of tokenization.
The blockchain technology removes the intermediaries in asset rights transfers, lowers asset transaction costs, and grants everyone equal rights to access the wider global markets. NFTs will play an increasingly important role in ushering in the next era of the digital economy. The NFT economy has the power to change the world in profound ways. The creative possibilities are endless. Cryptocurrency has allowed us to re-imagine payments in a paperless world. With the innovative utility NFT trading platform built by Chair, let us re-imagine our rights and benefits in the digital world. For more information, please join the community at https://t.me/CHAIR_Chat and https://www.youtube.com/channel/UCt_wP3vWYt7ocRdrhfVzRUA