NFT will usher in the 2.0 era: what features does it have?

The development of technology is intermittent. For a while, it surfaced, and then everyone seemed to be talking about it. The same goes for NFTs. The mainstream media didn't know about it for years. Then starting in 2021, NFTs start to gain traction. Blockchain and cryptocurrencies are complex for the masses. However, when it comes to NFTs, there is an inherent familiarity.

We are now on the threshold of NFT 2.0. First we need to understand what NFT 1.0 means to us.

Properties of NFT 1.0

NFT 1.0 is a test market reaction to the concept of digital asset ownership. Some notable projects include CryptoPunks and Bored Ape Yacht Club. These NFT projects focus on creating unique digital characters that are stored on the blockchain. Buyers of these NFTs are happy to pay for the novelty of owning digital assets. They can be images, videos or text. NFT 1.0 introduced us to the following properties.

Immutability: Once an NFT is generated, it cannot change itself. All NFT transactions are linked to each other like a continuous history. Anyone can know who owns how much digital assets.
True Ownership: Blockchain can verify the ownership status of any digital asset. Unlike the real physical world, there is no room for controversy or falsification.
Conditionality: Smart contracts can ensure automatic payments based on certain conditions. For example, NFT artists are able to earn a percentage from future sales.
A true creator economy: NFTs are dedicated to decentralized technology. This means creators can independently make their own creative or financial decisions. They do not need to rely on a centralized platform.
What is NFT 2.0?

NFT 2.0 is the next development direction of NFT technology.

Any NFT beyond the capabilities of NFT 1.0 is called NFT 2.0. The sole purpose of NFT 1.0 is to sit on the blockchain and enjoy collectibles. This was enough to start a storm of NFT adoption in the first place. But this is just the beginning. NFTs are not just sitting on the chain. Let's look at the properties of NFT 2.0.

Scalability - An NFT must be scalable to be considered a 2.0 variant, which means it must be able to connect to other NFTs or projects in a meaningful/helpful way. therefore,

One NFT can be linked to another NFT and vice versa.
NFTs can "hold" fungible tokens.
NFTs can connect to any other dataset.
The number of ownership layers is unlimited, meaning creators can create as many nested layers as they want.

Upgradability - This feature ensures that NFTs can be modified in the future. Artwork, metadata, and other resources (which make sense in the abilities section) are all examples of changes.

Dynamism - it enables NFTs to do more things than they currently do. They can send commands, equip other NFTs, modify their appearance, and more, according to the creator or owner's preferences.

When these three characteristics are combined, you create far more than any NFT you've ever seen. Let's take a look at the world's most advanced NFT 2.0 technology implementation to understand it better.

Unique Features of NFT 2.0 Development

Nested NFTs
Due to their nested functionality, NFTs can own and be owned by other NFTs. While the concept may seem simple on the surface, the new options it offers designers will surprise you (both artistically and technically). The chain of ownership can continue indefinitely as RMRKs are nested, so one NFT can own other NFTs, own other NFTs, own other NFTs, and so on, indefinitely. Games, art, metaverses, exhibitions, and more can all benefit from it.

NFT with multiple resources
NFTs can now convert between various resources. The image, video, or other media that makes up an NFT is a resource. Therefore, an NFT can have two images instead of one, and the holder can choose which one to display. However, this is not the only use for this feature. A book NFT can have three different types of resources: pdf, audiobook, and jpeg cover.

These resources can be configured to load only when the user interacts with the NFT on the relevant platform. If you're using a book reader, you'll see the pdf; if you're using an audio player, you'll hear it.

Reactive or reactive NFTs
Conditional rendering enables reactive NFTs. This means that the NFT adjusts its resource allocation based on the implementation of a specific standard. For example, when it's night, the NFT shows the night form, and when it's daytime, it shows the daytime change. To do this, NFTs require two resources (in this case, photos) and criteria for prioritization.

DAO based on NFT 2.0
Using this capability, an NFT can be decomposed into a DAO. Since some NFTs are too costly for a single collector, the DAO feature allows multiple collectors to pool funds to purchase NFTs. Once completed, NFTs can link tokens, which will be distributed to collectors based on the size of their investment. When a choice is required, collectors can use their tokens to vote on what to do with the NFT.

Let’s explore some use cases here to encourage NFT 2.0 development:

Powerful NFT Storage

By using the multi-resource feature, the storage of NFTs can be made more powerful. Most NFTs are now kept on IPFS (Interplanetary File System). This means that the NFT has a connection to a resource hosted by IPFS. But the problem with IPFS is that you have to pay to pin your material to a node unless it is constantly interacting with it.

Charity with multiple owners via NFT 2.0:

With NFT 2.0, multiple owners may come for a noble cause and provide charity for an event. Imagine multiple generous donors coming to a platform, jointly owning an NFT foundation, and collectively donating to a group of orphanages. It could be a breakthrough in public funding, and investors can get a token of his generosity.