Wait, so it’s not just NFTs?
NFTs and growth
At the latter half of 2021 NFTs had a massive explosion of excitement and adoption that turned stale starting at the beginning of 2022 with only Solana maintaining NFT momentum currently. As web3 continues to grow and the use for the technology evolves another type of technology has sprung from what is already not fully understood by many.
NFTs have been out for a while , the mainstream attention they are getting now is fairly new and you would be hard-pressed to find someone on the streets to be able to fully explain to you what they are and why they exist. If your Uncle Larry doesn’t understand NFTs then he needs to take a seat and get a notebook because there is more – there is the xNFT.
Before you get your anti-NFT knickers in a knot let’s first try to understand the technology and see if it is something that can be considered an evolution and not just something some dudes in a single-bedroom apartment put together because one of their bros knows how to draw well.
Currently the NFT market is making a bit of a push back into its original state of being one of the favorite asset classes of investors. Companies such as Nike have shown how to successfully use and profit with the technology. NFTs have been faring far better than other crypto market sectors during this bear market as the market has still traded more than $8 billion worth of NFTs in Q1 2022.
Read Also: Reddit NFT making waves
The road for NFTs is promising as most of the technology is still very new and there are many new ways for it to be used to create,innovate, and grow. Solana has seen the most robust growth of the ecosystem. There has not yet been a “gold rush” on Solana but that all changed with the introduction of xNFTs.
Explain a xNFT
A xNFT is an executable code of a Web3 application that inherits the ownership qualities of an NFT, simply put you can think of a xNFT as an app you download onto your phone from the app store. The app store simplifies the process for accessing different applications thus improving the experience for the user, this is the same utility for a xNFT.
This all marks a new innovation or narrative for the culture of the Solana NFT community. xNFTs are powered by Solana and bring a new framework of building applications with NFTs at the center with an emphasis on experience and customizability for the user.
Utilizing protocol-agnostic frameworks allows xNFTs to create decentralized apps for the ecosystem that can all be used from a single interface. The interface can then be used to represent all of your crypto assets allowing you to perform any task necessary whether that is viewing the NFT, staking the NFT,or trading the NFT.
The operating system is being created by Coral, the same company responsible for the creation of xNFTs. The system will be called Backpack. Backpack will manage your private keys and open gateways to multiple dApps but the utility is much more than that of a web3 wallet.
Backpack can be used to enhance interoperability of protocols and the personal rights of users regarding their property, thus adding a touch of personality to your experience on web3. Imagine opening Magic Eden on your phone and it’s completely different from the Magic Eden of your coworker, friend, or classmate. That is because Backpack would allow for personalization of the platform tailored to your own likes and needs, Backpack is able to do this due to the permission less nature of the protocol.
To make things a bit clearer you can think of the whole process as allowing your art asset to have its own algorithm and thus gives you access to decentralized applications and other utilities. The underlying framework for this is Anchor which is a Solana-based framework containing developer tools for easy deployment of smart contracts.
The team behind xNFTs involves the FTX Head of Strategy known as Tristan ONE, and Armani ONE better known as Armani Ferrante the Founder of Coral. Both had a huge hand in creating Anchor Framework, Anchor Registry, and Coral. The team is supported by FTX, Solana, Serum, Jump Trading, Pyth, KS Global, Multicoin Capital, Anagram, and Wormhole. This all bodes very well for the technology and shows a potential for a new narrative in the NFT space.
Backpack and xNFTs are not fully released at the moment but the time is soon and we can all expect a lot of interest and hype to follow in this new evolution of web3 tech.