ABS Summit founder releases "Smart Collectibles Whitepaper": Digital art is just the tip of the iceberg for NFTs

Andrew Fai, co-founder of the Asia Blockchain Summit, started his NFT project DeStation in December 2020. Recently, he also published a whitepaper discussing more possibilities of NFTs.

Andrew Fai: Digital Art is Just the Tip of the Iceberg for NFT

The white paper, titled "Smart Collectibles: Unlocking The Value of Non-Fungible Tokens NFTs", introduces the concept of "Smart Collectibles," stating:

Digital art is just the tip of the iceberg. The same technology can be used to acquire any "uniqueness" of physical or digital resources, including products, services, and event passes.

Andrew Fai refers to NFTs that can acquire and determine ownership of resources on the blockchain as "Smart Collectibles." These can range from digital games, media, to finance and assets.

Comparing Smart Collectibles with Physical Keys and Digital Passwords

Andrew Fai mentions that Smart Collectibles can optimize through their unique tokenID, where each NFT has a unique identifier pointing to specific resources.

He also compares Smart Collectibles with physical keys and digital passwords in terms of optimization:

Diverse and Unique Use Cases of NFTs: Continuable Added Value

Andrew Fai consolidates various ways NFTs can be applied: tickets, digital contracts, governance, games and digital collectibles, finance, credit and identity, virtual assets, media ownership, physical resources, fashion, and more.

For example, in the case of event tickets, concert tickets can be issued using Smart Collectibles, where attendees can receive NFT tickets on their phones, avoiding theft or loss. A more interesting aspect is the continuable added value; as the concert NFT tickets themselves also serve as a form of digital collectible, they can be easily and securely resold on the open market. Additionally, issuers can set "profit-sharing conditions" at the initial sale, allowing a portion of the proceeds to go directly to the issuer. It's worth mentioning that a similar mechanism appears in Binance's NFT auction platform, offering a "loyalty payment" feature that enables original creators to share profits when their work changes hands.

Furthermore, event organizers can enhance the value of these NFT tickets after the event, such as allowing holders to view exclusive event footage, receive product discounts, and more.

Andrew Fai emphasizes that not all NFTs can be called Smart Collectibles, but all NFTs have the potential to become Smart Collectibles. The distinction lies in whether the NFT owner is willing to assign it more value.

Rediscovering the Value of NFTs Triggered by Digital Art

The vision of widespread applications for NFTs has always existed. During the ICO boom period, many cryptocurrency projects proposed concepts like "concert tickets" and "real estate certificates," but these ideas were not widely accepted.

After the DeFi craze in 2020, digital collectibles like NFTs gained broader recognition due to popular platforms such as NBA Top Shot, high-priced auctions by Beeple, and the integration of liquidity mining. Additionally, numerous companies, celebrities, and exchanges like Binance, FTX, Crypto.com have entered the auction and issuance platforms, sparking discussions on the application value of NFTs. In Taiwan, there is also an NFT issuance platform Oursong, which issues NFT tickets for concerts by bands like Sunset Rollercoaster and Fire EX.

After being combined with DeFi, we have seen many innovations, such as Uniswap v3's liquidity certificates using NFTs, Aave's support for NFT collateralized lending, Maker's use of Centrifuge's real estate certificate NFTs as collateral for loans, and even NFT collateralized lending platforms.

It is worth noting that whether the combination of NFTs with physical resources can bypass third-party certification organizations, such as real estate certificates, and whether NFT certificates have legal validity, and how disputes should be resolved, are still subject to further development.