Gulden is going to develop an NFT. In the short term -see also the timeline further on in this article-. But first a short explanation of what an NFT is by using the Smurfs example, familiar to Gulden holders.
What is an NFT
NFT is an abbreviation and stands for Non Fungible Token. A token, in other words. So far, Gulden was developed as a payment system, and therefore also as a store of value, as explained in our article with the famous Smurfs (Dutch only). In recent years, however, Gulden has been further developed to become not only a means of payment, but also a basis for other applications. There was already a desire to develop a DEX on the Gulden blockchain and this now seems to go hand in hand with the development of an NFT.
Suppose you collect Smurfs and a limited Smurf comes out, 10 pieces. Very exclusive. With this Smurf comes a certificate. On the certificate it says which one of the 10 you have. You buy no. 2 of 10. Other people would also like to have this one, so they offer you money for it. Very clear. In fact, this is already an NFT in the base.
Again. You collect Smurfs. This time however digital Smurfs, or avatars, or graphic art etc.. A digital Smurf comes to market, this time with an unlimited number. Everyone can view/save/share the Smurf. There will be 10 digital certificates released in addition to this digital Smurf. The certificate contains a reference to the digital Smurf, a link for example. On the certificate you can also see which one of the 10 you have. You buy no. 2 of 10.
With A. the value is based on how many Smurfs there are. With B. the value is based on how many certificates there are. That is of course very strange… although. Why is that certificate worth so much then, if it’s not about the item the certificate refers to. The item is not scarce. Anyone can have/share the digital Smurf. Therefore we must look at where the certificate comes from… namely from the publisher of the digital Smurf. The source. Suppose a digital Smurf is released and a random person attaches a digital certificate to it. There will be nobody who wants to pay for that. However, if the publisher of the digital Smurf issues the certificate himself, people will want to pay for it. Suppose you issue a digital certificate of a tweet posted by the founder of Twitter… Would anyone be willing to pay for it? Probably not. However that changes when the founder of Twitter issues a digital certificate for a tweet posted by him…What is the difference?
Simple, the value is created at the source. The only thing relevant is who issues the certificate.
Another example: You buy a book, one that anyone can buy. It is published without restriction. But now the writer gives a book presentation. Afterwards, there is a queue, people have the book in their hands and want something from the writer. What do they want? A signature in the book… And now, suddenly, your book is limited. The author has put his signature in the book. Is the book different now? Is the content different? No, it is not. It’s the same book that everyone has, but yours has a signature in it. It is similar to what an NFT is, but with an NFT the author puts the signature on a separate sheet of paper, not even in your book. So your book remains the same book that all other people have. But you have the separate sheet with the signature. And why is that sheet worth something? Because it’s the author’s signature. And you can sell that sheet of paper. Without the book. This is the essence of an NFT.
What is Gulden going to do?
Gulden harks back to the basics of NFT, making it easy to understand for everyone and especially easy to use. Both creating and trading the NFT. It will be applied in a way that is unique, but at the same time incredibly logical. The power lies in its simplicity. In addition, this step on the roadmap was chosen because it contains a very large marketing component. In recent years, Gulden has worked hard on the technology and it is now time for marketing. This project touches both areas. Not even so much because of the “NFT hype”, but because the promotion component is already automatically included. Of course, this will become a lot clearer as soon as more is known about this application. Gulden has been developed over the years with this in mind, see also the explanation of transaction types in our article about the technology. Under the bonnet it is transactions, it is blockchain. This means that Gulden is absolutely perfect for this, and an NFT can be implemented in the typical Gulden way: efficiently and extremely user-friendly.
Phase 1 – Duration: 2 months
Developments on the Gulden Core.
Phase 2 – Duration: 1.5 months (starts simultaneously with Core development)
The UI (user interface) part of the Gulden app. The “NFT” functionality will be introduced in the Gulden LITE app as well as in a new dedicated application. This application will put Gulden in the background and the “NFT” functionality in the foreground.
Phase 3 – Duration 3 months (start simultaneously with Core development)
Development of the decentralised trading market for the Gulden “NFTs”. Similar to a DEX, but more efficient and specifically aimed at trading “NFTs” in the apps. This trading market will be decentralised where necessary and centralised where it can provide efficiency. A hybrid form, in other words.
Development will start after Witness Sync (testing for this will start soon) and will therefore take about 3 months in total. As soon as Phase 1 and 2 are ready, large-scale testing can begin. In consultation with the GAB(Gulden Advisory Board), it has been decided that this project will be given the highest priority after Witness Sync because of the developments in the market and the strength of the concept. That is also the reason why the details of the product are not yet fully released. This will of course happen at a later stage in the development process.