By combining its core network technology with Filecoin IPFS (InterPlanetary File System), VideoCoin aims to build a next-generation video NFT trading platform.
If you’re a follower of the crypto/blockchain world, there’s a good chance that you might have heard of NTFs (non-fungible tokens) by now. Though once an ambiguous part of blockchain technology, NFTs are now taking on the digital art and gaming world by storm. Musicians are selling snippets of their songs as NFTs, NBA is selling video highlights as NFTs, artists are selling their digital art as NFTs, and in a rather surprising way, Twitter CEO is selling his tweets as NFTs. The best part is that all of them are making millions in revenue.
It is safe to say now, that NFTs are a booming market and have a lot of potential. To cater to the needs of this booming market, decentralized video processing platform VideoCoin has joined forces with Filecoin to build the world’s first platform for buying, selling, and trading Video NFTs.
But, what exactly are NFTs, and how will this new platform benefit the creators and buyers of video NFTs?
What Are NFTs?
NFT stands for non-fungible token. You can think of it as a digital collectible.
In economics, a fungible asset is something that can be exchanged for another asset of equivalent value. The best example of a fungible asset is currency. Currency notes can easily be exchanged. On the other hand, a non-fungible asset is a unique, standalone asset that cannot be exchanged.
Now, NFT is actually a small unit of data on a blockchain network that represents a digital item like art or audio. Since each of these digital items is unique and has a value of its own, they cannot be exchanged for one another.
NFTs can be made for artwork, audio clippings, and even items in a video game. However, video NFTs are particularly popular because they create scarcity for the asset, which increases its value and in turn creates a revenue stream for the original owner of the video. This is exactly how NBA’s Top Shot managed to raise $230M by trading game highlights as NFTs.
Why Do We Need a New NFT Trading Platform?
There is a problem with the present-day trading of NFTs. Most of them are created and stored on the Ethereum blockchain. This process is complex, time-consuming, and expensive. Instead, a platform that is dedicated to the storing and trading of video NFTs can make the process a whole lot easier. This is exactly what VideoCoin aims to achieve.
VideoCoin’s Core Technology
VideoCoin is a decentralized video storing, processing, and distributing platform powered by blockchain technology. On this platform, miners are incentivized for providing storage space and computing infrastructure for these services and clients pay a fee to benefit from these services.
Traditional video processing or streaming platforms do not have the necessary processing power or storage space to encode and store high-quality video files. VideoCoin overcomes this problem by creating a distributed encoding, storage, and content delivery network. Here, the tasks are divided into several subtasks and processed parallely to produce much higher frame rates than traditional networks. Videos of 4K and 1080p resolutions can also be easily processed in a network like this.
VideoCoin can also be used by developers to create next-generation video streaming apps. With all this cutting-edge underlying technology, VideoCoin is already emerging as a pioneer in the video streaming and processing space.
NFT Trading Platform by VideoCoin
By combining its core network technology with Filecoin IPFS (InterPlanetary File System), VideoCoin aims to build a next-generation video NFT trading platform. Now, Filecoin is the world’s largest decentralized storage network that has more than 2.5 billion GB of storage space on its distributed network.
This platform created by VideoCoin will let users create, store and trade video-based NFTs without the shortcomings of the Ethereum blockchain.
The platform also aims to solve a major problem in the NFT marketplace – authenticity. It creates a proof-of-ownership alongside the actual video NFT to identify the original creator of the asset.
In the words of Filecoin’s Ecosystem lead, “VideoCoin’s integration of IPFS & Filecoin is a new technology stack that could power the creation of permanent digital memories and collectibles.”
The launch date and features of this new platform are yet to be released. But, we can be assured that once successfully launched and implemented, this platform could be a game-changer in the NFT landscape, opening doors to a whole new class of applications for buyers and sellers of NFTs.
Having obtained a diploma in Intercultural Communication, Julia continued her studies taking a Master’s degree in Economics and Management. Becoming captured by innovative technologies, Julia turned passionate about exploring emerging techs believing in their ability to transform all spheres of our life.