It is amazing how ahead of the curve some things can be.
Hive is already changing the non-fungible token (NFT) game and the capability within the ecosystem still isn't really possible. When the infrastructure is in place, we will see a massive shift in how NFTs are viewed.
The best way to think about this is as digital real estate. Obviously, this is something we discussed regularly regarding the network. This can also be looked in the same light with each token representing a part of the whole. It is a simple framework from which to view things.
When we look at a network like Hive, what it is? The answer to this lies in the fact it is a public, decentralized database. That said, when it comes to feeding value, there is a lot more to it. After all, Amazon and Facebook also have databases yet the market capitalization of those companies is based upon the services they are offering along with other factors.
The same holds true for all networks. However, we do have to remember, in the digital world, databases are behind all that we do.
Web3: Changing Things Completely
For those who are inclined to think about innovation, it is easy to conclude how Web3 is going to change everything. The idea of ownership is being forever altered. This not only applies to networks, but also the data contained therein.
Which brings us back to the data that is resident in a database. What value does it bring and who is monetizing that?
On Web 2.0, we know the answer to this. Centralized corporations such as Google or Apple control what is within their ecosystem. All aspects of financial benefit are fed to those companies and, in turn, their shareholders. The users are not part of the equation in this regard.
When it comes to Web3, we see a different structure. Here is where the stake in the digital real estate is spread to the token holders. On Hive, one has the option of buying in like with most other networks. However, there is also the opportunity to be rewarded, essentially being paid in the digital real estate.
This, on its own, is a massive shift. Nevertheless, what Hive is about to do is going to blow people away.
Data Ownership
The digital real estate concept can be taken a step further. When one considers real estate, we get a mental framework that most can associate with.
One of the keys for real estate is the commercial activity that is created. Even with residential real estate we see this.
Someone owns a piece of property. It generates cash flow via rents, providing the owner with an asset of value. Depending upon the income produced along with equity value, this person has something that can be sold into the market.
Why can't the same thing be done with digital real estate? Actually, it can. Hence, if we consider data to be similar to a house or office building, we can establish the same premise.
Here is where NFTs enter. Unlike the base layer coins which are the same (fungible), here we are dealing with a token tied to something specific. It is similar to the deed to a house. In a particular are, they are all the same. The difference is the property each individual deed is associated with. This makes each one unique.
A token is a representation of something else. Here we see how it can apply to a piece of data. However, when that is placed on a public blockchain, nobody owns it. Therefore, we are not really dealing with the data per se but the revenue tied to it.
In other words, this is what pushes value towards this piece of digital real estate.
Changing The NFT Game
We know there was a lot of monkey business tied to NFTs. It had a massive bubble that burst. Celebrities were out there selling them with people buying them up believing they would moon. The reality is most of these are worthless because they are tied to nothing.
Hive can change that by tying the NFT to data. Where Hive differs is in the ability to place data on-chain. With something like Ethereum, there is a transaction fee each time someone wants to write to it. The same goes for most other blockchains. Here is the hindrance to building a database.
This means limitation in regards to how quickly the database can grow. With Hive, for the most part, that does not exist.
now we stumble upon where things change completely. By filling the database with something that has value, this can be tokenized. Once it is, we have an asset that is effectively digital real estate. It operates in the same way as the physical counterpart. As the market develops, it could be used as collateral, sold, swapped, or anything else people can think of.
Also, unlike the NFTs of the past which were not tied to anything, this is interconnected to something of value. Basically we are talking about the capture of the monetization of data. The major technology companies do this in aggregate as do other networks. However, we are drilling even further down and monetizing on another level.
What gets really mind blowing is this becomes a rinse and repeat situation. As mentioned, the data is not owned by anyone. Whatever is posted on the blockchain is open to any application. The data can be used once or 1,000 times.
Do you see where it is going? If we have NFTs tied to what is generated off that data, we now have an asset that is not based upon vaporware. The entire JPEG discussion does not apply. Instead, we are treating data as digital real estate, generating value in a similar fashion to its physical counterpart.
Hence, the solution for something like Hive is simply to fill the database. As it expands, is connected, and monetized, we can see the asset representing it growing in value.
Digital Real Estate on Steroids
Ultimately, this changes the potential of data completely. We, naturally, are still left with the fact that much of what is generated has little worth long term. This is mostly due to the fact that the majority of information is time sensitive and has little value the further away we move from it. The closing price of the stock market 6 months ago really doesn't mean a whole lot.
That said, we do have data that is extremely valuable, used repeatedly, and generates a ton of traffic. What we are essentially doing is moving the network effect from the platform level and associating it with each piece of data created. This is what is captured by the NFT, hence incorporating all the benefits of said data on that particular platform.
Suddenly, owning 1,000 NFTs could mean something. Instead of JPEGs that are not really associated with anything, we are tying these tokens to the real world operation of data.
Due to the constraints on many networks (read fees), this is not something that is going to be built there. On Hive, anyone with stake has the ability to write to the database.
Hence why Hive will completely change the game. We are simply waiting on the infrastructure to be built and then we will have the ability to develop this. In the mean time, build those databases.
By the way, this also solves the Wiki problem.
For those connecting the dots, this is a major wake up call.