Non-fungible tokens have taken the crypto markets by storm over the past year and they are progressively gaining acceptance as a promising asset class in the space. Sparking the interest of celebrities, athletes, world class artists and institutional investors alike, NFTs are considered by many to be the ultimate gateway to mainstream adoption of cryptocurrency, and quite rightfully so.
These unique digital assets provide owners with proof of authenticity relating to pretty much anything one can think of. Be it digital art, music, real estate or precious metals, non-fungible tokens allow anyone to immortalise an asset on the blockchain thanks to its decentralised ledger system.
Furthermore, the ability to store valuables on-chain as non-fungible tokens is proving particularly beneficial for artists and collectors as it creates a new, permissionless, disintermediated environment for them to buy and sell their art pieces.
The financial potential of a decentralised art and collectibles market is obviously immense and, consequently, it was only a matter of time before people caught up with the value proposition of trading these digital assets on-chain. Thus, NFT-centric marketplaces were a natural progression.
As it stands, there are currently several NFT marketplaces in the space and the most notable ones include OpenSea, Ethernity Chain, SuperRare, GhostMarket and Rarible, among many others. In this piece, however, we will discuss the entry of cryptocurrency giant Binance into the world of non-fungible tokens and the launch of its highly anticipated Binance NFT platform.
Introducing Binance NFT
In April of 2021, the well-established crypto exchange Binance announced that it would be launching its own NFT platform, known as Binance NFT, and according to the Binance Blog this is now ready for deployment on June 24th 2021.
Binance NFT aims to become the world’s leading NFT marketplace and trading platform and aspires to unite crypto enthusiasts, digital art creators, collectors, musicians and sporting icons from all over the globe.
Interestingly, the launch of Binance NFT comes at a time in which the market is somewhat stagnant and competition in the NFT space is incredibly high. However, Binance NFT is actually quite the game-changer for not only Binance itself but for the world of NFTs as a whole. In fact, the value proposition that comes with a Binance-native NFT platform is indeed a compelling one, as it will furnish the NFT ecosystem with some of the best liquidity in the crypto industry and will allow Binance to reach greater audiences of NFT aficionados by leveraging its extensive user base and powerful network effect.
Thanks to Binance’s prominent status in the crypto space, its native NFT platform seeks to bring additional liquidity to the NFT ecosystem as well as emphasise the power of non-fungible tokens in the collectibles and digital art spheres. Furthermore, by displaying a selection of one-of-a-kind NFT offerings, premier exhibitions and collaborations, Binance NFT aspires to firstly rejuvenate the NFT environment through its innovative marketplace and, secondly, it looks to reinforce the role of artists and creators in the crypto industry.
In addition to this, Binance NFT will guarantee minimal fees for its users which in turn will lower the barrier of entry for creators and collectors to trade NFT art pieces on its marketplace and will consequently create a fairer, more democratic non-fungible token ecosystem.
Binance serves millions of users around the world, many of whom will now be able to access the booming NFT space. In line with our commitment to the freedom of money globally and building an inclusive ecosystem, the Binance NFT marketplace will also support small value creators by providing the highest liquidity and cheapest fees for users.” – Changpeng “CZ” Zhao, CEO of Binance.
That being said, before diving into the platform’s architecture, collections and exclusive artist lineups, it is constructive to briefly discuss the incentive for industry giant Binance to launch its NFT marketplace and contextualise the value of non-fungible tokens, and NFT artists alike, in the new digital domains that they are spearheading.
NFTs And The New Digital Normal
In the past year, NFTs have completely captivated the imagination of the crypto space and the word ‘NFT’ has become firmly ingrained in the vernacular of crypto popular culture. This is because non-fungible tokens are ultimately reshaping the concept of value and are deeply transforming the way we perceive art, culture and creativity.
While data analytics suggest that the NFT mania phase may have peaked in May of 2021, the interest and appetite for the non-fungible tokens actually seems to be at an all-time-high. Indeed, there appears to be an insatiable desire from artists, musicians, athletes and crypto veterans to be a part of the new, virtual domain that non-fungible tokens are synthesising as well as an inherent aspiration to participate in the new, unprecedented value propositions that the NFT ecosystem is pioneering.
Given the world-scale events of 2020 and 2021, people have grown increasingly comfortable with the idea of socialising in virtual contexts, expressing their creativity in digital format and engaging in everyday commercial activities through online mediums.
‘In 2020, billings and sales of digital goods and services facilitated by the App Store ecosystem increased by more than 40%.’ – A Global Perspective on the Apple App Store Ecosystem
Therefore, it should come as no surprise that NFTs have enjoyed such incredible success over the past year. This is essentially due to the fact that NFTs have the ability to create new social, economic and artistic experiences for pretty much anyone who has access to an internet connection and are spearheading new technological horizons in not only the crypto sphere but in our everyday lives.
It therefore should also come as no surprise that industry heavyweights such as Binance have tapped into NFT technology and it has decided to launch its own native NFT marketplace which, once again, just proves that NFTs are not going anywhere any time soon.
Binance NFT Architecture
The Binance NFT marketplace proposes a rather cutting-edge design and will primarily focus on displaying curated NFTs in the visual arts, sports, music and gaming verticals.
With regards to its architecture, Binance NFT will operate as a dual chain system, meaning that it will integrate both the Binance Smart Chain (BSC) and the Ethereum Network within its infrastructure. While it is programmed to mainly run on the Binance Smart Chain (BSC) due to the exceptionally low gas fees when compared to the ETH Network, this dual chain architecture will enable users to view Ethereum-based NFTs in their Binance wallets.
Moreover, the Binance NFT marketplace will share the same account system as Binance.com which will allow participants to interact with the NFT platform alongside the other offerings in the Binance ecosystem.
Binance NFT will be split into two main components: Trading Market and Premium Events. Trading Market will allow users to display their own NFTs for a processing fee of 1% and will receive 1% royalty from the proceeds. Premium Events, on the other hand, will feature a selection of curated NFTs and exclusive exhibitions for which Binance NFT will charge a 10% fee and reward creators with 90% of the proceeds.
The architectural features mentioned above will accompany Binance NFT on its quest of redesigning the non-fungible token market and, with time, will facilitate the process of becoming a world class NFT hub and trailblazer in the space.
Binance NFT Premium Events
On June 24th, Binance NFT will launch its premier marketplace for NFTs and digital collectibles and will be offering the first lineup of ‘Premium Event’ creator NFTs to its audience. The Binance NFT marketplace will connect one of the largest crypto communities on the globe with its curated, unique NFT exhibitions by allowing users to access the NFT platform through their existing Binance wallets without any further set-up required.
Premium Events will feature content and boutique NFT exhibitions from the world’s top artists, musicians, celebrities and athletes and will showcase the dedication of the Binance-native platform to creating valuable partnerships with only the highest quality individuals and the most avant-garde brands.
In late May 2021, Binance NFT announced the first slate of Premium NFT creators whose work will be available at launch. The first Premium Event will star two-time BRIT Award winner Lewis Capaldi, visual artist Trevor Jones, ESports team eStarPro and footballing legends Michael Owen and Alphonso Davies.
Lewis Capaldi’s NFT collection will be made available through Bondly on Binance NFT, whereas the Michael Owen NFTs will be made available through TopGoal and eStarPro ESports NFTs through NFKings Productions.
On June 1st, Binance NFT announced its second slate Premium NFT creators featuring musician Kyle and Lil Yachty, Spanish football idol José María Gutiérrez Hernándes, iconic painter Frank Holliday and ‘Nyammy Treats: The Nyam Sum Cards’ collectibles by Mighty Jaxx.
The Lil Yachty and Kyle NFT collections will be available through Opulous on Binance NFT, the Gutiérrez collection through TopGoal, Frank Holliday and Mighty Jaxx NFTs through NFKings Productions.
Binance NFT’s Trading Market: ‘100 Creators’
On June 9th, Binance NFT announced the ‘100 Creators’ event as part of the platform’s ‘Trading Market’. The purpose of this event is to showcase innovative regional talent and diverse artworks from around the world. Collections from the ‘100 Creators’ event will debut alongside Premium Event NFTs at launch and will mainly star everyday digital artists.
“The 100 Creators campaign was created to empower innovative but regional creators and introduce them to NFT collectors and enthusiasts around the world. We are very excited to work with these creators and hope to bring them to the mainstream of the industry.” Helen Hai, Head of Binance NFT
NFT Innovative Creators Program
During the first month of launch, Binance NFT will allow crypto artists to list their NFTs on its marketplace and monetise their work. The NFT Innovative Creators Program is part of Binance NFT’s Trading Market and will give artists 99% of the proceeds from the sale of their NFTs in addition to 1% royalty payment from subsequent NFT trades. The timeline for this event is 1 month and spaces are limited.
All selected artworks will be listed on the NFT marketplace and will be shared on Binance’s social media platforms, allowing NFT art pieces to be eyeballed by one of the largest crypto communities in the world.
Play To Earn With Binance NFT
Big Time Studios, a company focused on bringing crypto-oriented gaming to mainstream audiences, has announced its plan to sell NFTs via the Binance NFT marketplace. The company is developing its own ‘play to earn’ concept that will give gamers an opportunity to generate revenue by playing crypto-enabled video games.
According to Big Time’s CEO Ari Meilich, there’s a strong value proposition and growing demand for in-game assets and non-fungible tokens in virtual worlds. With its global reach and network effect, Binance NFT could potentially initiate an unprecedented ‘play to earn’ NFT-based trend and it thus stands a good chance to completely revolutionise the gaming industry.
Every gaming company that I speak with now is researching NFTs. They are all figuring out how this is going to disrupt their industry.” Ari Meilich on CoinDesk
Featured By Binance: A Decentralised NFT Platform
On June 17th, a new non-custodial NFT marketplace went live on Binance Chain. Called ‘Featured By Binance’, this is an NFT platform that, unlike Binance NFT, is decentralised and completely non-custodial.
Featured By Binance can in fact be viewed as the decentralised version of the Binance NFT marketplace and, like its centralised other, it seeks to partner with high quality creators and forward thinking brands. In addition, Featured By Binance will provide its users with creator toolkits to mint and trade NFTs on its fully decentralised, permissionless platform.
As its first offering, Featured By Binance will host Hollywood star Dylan Cole’s NFT Drop and offer a collection of his 60+ iconic in-film moments to its platform users on June 21st.
Many digital asset enthusiasts have come to perceive centralisation as a major inhibition in the crypto industry and, because of this, Binance has designed two specific NFT marketplaces that cater to the needs of all of its users, with Binance NFT as the centralised ecosystem and Featured By Binance as its non-custodial, decentralised variant.
With the Binance NFT marketplace launching on June 24th, industry heavyweight Binance is finally tapping into the technology of NFTs and it aims to become the leading marketplace in the non-fungible token ecosystem. With its dual chain architecture, Binance NFT looks to bring additional liquidity to the world of non-fungible tokens and expand the reach of both regional and well-established artists through its network effect and massive user base.
Binance NFT will use the same network as Binance.com and users will be able to interact with the Binance NFT marketplace through their Binance wallet account, without any additional set-ups, and will be able to view Ethereum-based NFTs on the Binance NFT marketplace.
This represents quite an interesting development in both the crypto and NFT space as it bridges the gap between two entirely separate chains with the goal of maximising NFT utility and use case, while prioritising the value of creators in the digital asset ecosystem.
Binance NFT seeks to partner with high quality individuals and the most avant-garde brands to rejuvenate the somewhat stagnant NFT market and redesign the world of digital art and collectibles through its NFT 2.0 marketplace.