The largest NFT platform OVO in Japan has successfully listed on the Flow chain. Will “Flow×OVO” bring a new power to the NFT marketplace?
According to the official announcement, Japan’s largest NFT platform, OVO (The Only Value Observation) was officially deployed on the Flow Chain on October 16, becoming an important component in the Flow ecosystem.
Flow Chain tends to be a fast, decentralized, and developer-friendly public chain, which aims to energize the digital assets foundation for a new generation of games and entertainment applications. Flow is the unique Layer-1 blockchain team that provides excellent experience to users from start to the end. The Dapps are created by those famous teams including CryptoKitties, Dapper Wallets, NBA Top shots, etc. Moreover, Dapper Labs cooperated with the NBA, UFC, Warner Music Group, Dr. Seuss, and the Ball League Players Association to create a new application. There is no doubt that Flow Chain is the most authoritative public chain project in the fields of NFT, games, and entertainment applications.
The initial version of OVO platform was built on the BSC chain, and nowadays the deployment of the Flow chain has been completed, which can be applied across chains. OVO is a global digital copyrights platform, which mainly focuses on digital copyright distribution, digital copyright trading, digital copyright derivative finance, and digital art exhibition. It is the largest NFT platform in Japan currently.
1.NFT market brief
According to the sales data of Axie Infinity in 2021, the entire NFT market has shown its popularity and hot marketing again. Additionally, more capital investments in the first half-year has promoted the further development of NFT once again. However, from the second half of the year’s data, its transaction volume fell by nearly 90% compared with the high record in May, and this figure fell to $19.4 million in August. In contrast, according to data from Protos, the sales of metaverse NFT products reached $3.3 million in the past week, while the sales of encrypted artworks were only $3 million.
In the blockchain industry, well-known companies have begun to deploy Metaverse and NFT. On the one hand, some companies focus on the layout of Metaverse, including NVIDIA, Roblox, Facebook, Tencent, etc. On the other hand, many companies that focus on NFT deployment include Flow, Polygon, Dapper Labs, etc. In terms of capital, the scale of investment in the NFT field has shown explosive growth. In the first half year of 2021, there were 12 investments and financing events in the NFT industry with a single investment amount exceeding $10 million.
From the current status of the NFT market, the market has shown a sharp downward trend, but the capital investments of NFTs in the blockchain industry has shown an explosive growth trend on the other hand. In other words, most of the well-known companies have gradually begun to build ecosystems, preparing for the next outbreak.
However, the NFT industry still has not solved these problems at present:
First, the lack of value support, and liquidity illusions and pseudo-demand in the current NFT virtual assets have led to serious bubbles.
In 2021, the main factors which drive the NFT market are the wealth creation effect and market speculation. Buying NFTs for most users is not for value investment, but for short-term NFT arbitrage. Many users would like to focus more on NFT mining, rather than the artistic value or assets themselves. Nowadays, a large number of low-quality NFT artworks have appeared in the market, which also means that this type of NFT is more eye-catching than the value of the artwork itself.
The data of OpenSea shows that there were only 5 transactions on September 9, with an average transaction price of 104.52 ETH. Compared with the peak amount of 354 on August 23th, the decrease is 98.5%. From the perspective of turnover, compared with the historical peak turnover of 43871 ETH on August 28, it has shrunk by 98.8%, which can be described as a cliff-like decline. It is not difficult to understand that the value of NFT will eventually return to the original value. Once the market is relatively low, the current asset value of many NFTs will also largely depreciate, or even zero.
Second, in the laws of various countries, the transfer of NFT assets can’t equal the transfer of copyright or ownership.
For example, on August 5, 2015, the Tokyo Regional Court of Japan clearly stated that NFTs do not have the attribute of ownership, which means that the transaction of NFT assets does not equal the transfer of ownership at the level of Japanese law. Although the NFT owner will have copyright. It doesn’t mean NFT exchange can represent the ownership and authorization of copyrights. It still requires both traders to write a legal agreement to prove.
Including OpenSea, the biggest NFT trading platform clearly states that “NFT transactions do not equal the transfer of ownership of copyrights.” The gimmicks of all relatively major projects state “NFT transaction = transfer of artwork ownership.” Most users start to doubt after they are misled to this “ownership fantasy”: If NFT transactions can’t equal the transfer of copyrights ownership, what is the meaning of NFT transactions? This is also a kind of “taboo” in the NFT industry, a flaw that everyone knows but no one cares about.
Third, NFT is an asset with relatively low liquidity, and its application scenarios are scarce.
The liquidity of NFT assets is low and its application scenarios are immature. Up to now, the application scenarios of NFTs mainly present as roughly pledged mining, merge, enhancement, exchange of designated physical goods or services (similar to exchange coupons), etc. Most functions are basically used for the deflation mechanism as traditional games. Although it adds a lot of fun to NFT assets, it is still unable to achieve the feature of “entertainment”. The more important issue is that if you want to achieve both “wealth effect” and “entertainment” meanwhile, gambling is probably the best ideal application scenario. But in most cases, gambling will strike legal issues. For example, there is a “gambling law” in Japan to restrict gambling features in the NFT marketplace. Nowadays, most NFT projects are exploring how to empower NFT, which also means that the NFT market is still in the dumps.
2. OVO (The Only Value Observation), a service platform based on global digital copyright.
OVO（ The Only Value Observation） is a digital copyright global service platform that focuses on digital copyright issuance, digital copyright trading, digital copyright derivative finance and digital art exhibition. Provide users with a one-stop management solution for global digital copyright applications, realizing the layout of the entire industrial supply chain from copyright issuance, trading,auction and circulation, helping traditional copyrights get on the chain, and expanding the potential dividend value of copyright application channels.
The biggest feature of the OVO platform is that it develops NFT applications based on the Japanese traditional two-dimensional IP industry and helps the traditional IP industry increase profits. OVO plays the role of “blockchain publisher” in Japan and will become the main carrier of the fan economy in the future.
First of all, OVO has huge Japanese heavyweight IP resources and high-quality creators. As we all know, the audience of Japanese ACGN culture covers the whole world, and its overseas animation market has reached 589.8 billion U.S. dollars, and it is expected to reach 744.8 billion U.S. dollars in 2022. Moreover, the famous Japanese animation IP has a huge audience. The OVO (The Only Value Observation) digital copyright global certification service platform is closely integrated with the Japanese animation IP industry, which naturally forms a unique “regional advantage”. Under normal circumstances, it is very difficult to obtain a Japanese animation IP authorization because the Japanese copyright industry is relatively conservative and all copyright resources are monopolized by a private organization. However, the OVO team has various channels to obtain the IP copyright of Japanese animation.
On August 28 this year, the heavy Japanese anime character NyatheesNuko launched the NFT mystery box on OVO. Unlike previous NFT collections, Nyathees already has a wide number of users, and paid emoji packs on LINE have been downloaded more than 4 million times. Nyathees has formed a certain scale of “character industry” in Japan, including emoticons for social platforms, games, comics, toys, etc. On July 6, the NFT collection on the OVO platform was finally successfully auctioned for 200,000 RMB. Japanese fans called it “the best emoji character in history”.
Second, the OVO platform realizes the legality of NFT asset transactions based on its own “DCIM: Dual Copyright Inspection Mechanism” and “third-party copyright advisory group mechanism”. “Dual Copyright Inspection Mechanism” is composed of two parts, “Copyright NFT” and “NFT Assets”. “Copyright NFT” is an NFT issued based on the authorization cooperation agreement signed by the IP copyright authorizer and the authorized party, and based on the “Copyright NFT”, the “NFT Asset” that anchors works of art is issued. Therefore, all users can view information related to the IP authorization protocol on the OVO platform, and all related information cannot be tampered with.
Through the “Dual Copyright Inspection Mechanism (DCIM)”, not only can the rights of IP copyright authorizers and authorized parties be protected, but also the consistency of the creator and the work can be ensured. In addition, the OVO platform also carries many first-line brand cooperation strategies and famous artist alliances, as well as a powerful copyright advisory group mechanism to build the authority of the authorization cooperation agreement. Based on the dual copyright inspection mechanism and integrated into the laws and regulations of various countries, OVO will gradually realize the real “digital copyright transaction” and “digital copyright ownership transfer” in the future.
Third, OVO and Jigen Toys strategically cooperate to issue AR NFT assets on the Flow chain. It is currently under development and is expected to be launched at the end of October. NyatheesNuko’s four-star card assets will show AR effects. And this technology will gradually cover more NFT works on the OVO platform. OVO will become the first 3D+AR technology-enabled NFT trading platform on the Flow chain. Not only that, but also features such as AI will be added to OVO’s NFT assets to give more value to the NFT assets themselves.
Fourth, the OVO platform has a distinctive ecological layout and unique application scenarios. All the ecological branches of OVO are based on the core “Dual Copyright Inspection Mechanism (DCIM)”, and each ecological branch is formed through the OVO platform currency to provide liquidity. The various ecological modules of OVO will eventually be docked and compatible with all Metaverses through the Hermes cross-chain.
The OVO platform is divided into: dual copyright inspection and authorization section, NFT mining section, OVO Token application section, OVO meta-universe section, Hermes cross-chain section, and NFT trading market section.
NFT trade market — — The NFT trading market of the OVO platform is divided into a primary market (auction, blind closing, pre-sale, etc.) and a secondary trading market. Users can purchase NFT assets through the primary market, and can conduct inter-user transactions in the secondary market. NFT asset transactions will be carried out through OVO tokens, and OVO tokens can be exchanged through decentralized SWAP and the stable currency FUSD of the Flow public chain.
NFT mining — — The traditional IP industry issues NFT assets based on OVO’s dual copyright inspection mechanism. After users directly purchase NFT assets through auctions, mystery box, pre-sales, etc., they can mine OVO tokens through the DeFi function. Moreover, users can achieve advanced upgrades of NFT computing power through the merge function. The higher the hash value, the stronger the ability to obtain tokens.
OVO token application — — OVO tokens obtained through mining or in the secondary trading market can be used in the OVO application ecosystem. Including: deduction of NFT transaction fees, synthetic asset mortgage, mortgage lending, casting NFT assets, DAO governance voting, general game currency for blockchain games, equity coupons (electronic tickets, exchange coupons, etc.), and the purchase of various NFT derivatives , Purchase Metaverse (metaverse) basic equipment, pay for Hermes cross-chain permissions, and so on. According to the development of the OVO platform, there will be more application modules in the future.
OVO Metaverse — — Based on the basic functions of the OVO platform, we will build virtual spaces based on VR technology such as the modern art gallery (Metaartia), the cheese cat (Nyathees) metaverse, the gravure idol metaverse, and the virtual library. For example, users can use OVO tokens to buy tickets for the Museum of Modern Art (Metaartia), appreciate works of art in a virtual space, or meet with gravure idols in the meta-universe, and so on. In the future, OVO will launch an online VR museum to provide artists and creators with a more free platform to exhibit and sell their works. Combining physical venues and holding art exhibitions in the form of VR will bring a brand new experience to creators and participants, and at the same time build a bridge that combines traditional and digital.
Hermes cross-chain — — Hermes cross-chain includes NFT asset cross-chain and meta-universe cross-chain. NFT asset cross-chain is equivalent to virtual currency cross-chain, and NFT assets can be transferred between different platforms. The cross-chain for Metaverse requires VR technical assistance from a third-party technical team. For example, the NFT virtual identity purchased by the user is transplanted to the third-party metaverse platform by the third-party technical team for 3D modeling of the virtual space.
3. Reasons for deploying the OVO platform to the Flow chain
At present, most NFT projects are still running on the Ethereum network, but the high gas costs and network incapacity problems have not been fully solved.
The deployment of the OVO platform to the Flow Chain is based on the following reasons:
User experience — — The most important reason for joining the Flow Chain is to consider users’ experience issues. Flow has a high TPS and relatively fast speed. In order to improve the users’ experience, the OVO platform chose the Flow chain to deploy.
Market strategy — — The OVO platform not only provides services to users in blockchain, but also attracts more real-world users. The threshold of the NFT market is still relatively high nowadays, it is difficult for ordinary users to participate including the inconvenience of payment. The Flow chain has a Flat currency payment system, which is considered as the OVO marketing strategy.
Finally, the better idea of Flow’s development company, Dapper Labs, rather than other blockchain is that they believe that “Fun makes it popular”.
That’s why OVO, the largest Japanese NFT platform, was deployed on the Flow Chain because of this idea of “Fun stuff”, which is a common concept of gameplay. More importantly, the OVO platform, as a part of the Flow ecosystem, will guide more users in the Japanese market to the Flow chain.
In the future, only those platforms which get a deep understanding on “entertainment” can create NFT artworks and ecology that users really love. That’s the reason why the OVO platform has gained much attention.
It is important to note that the deployment of the OVO platform to the Flow chain does not mean that the assets on the BSC chain disappear. Users can freely choose whether to exchange their assets on the Flow chain. At this stage, the OVO platform is a mode where BSC and Flow coexist. In the future, OVO will build a cross-chain between BSC and Flow chains and gradually expand to other public chains, which will further strengthen the free circulation of NFT assets.This demonstrates the technical strength of the OVO platform.
【OVO official website】：https://www.ovo.space
【OVO official Discord】：https://discord.gg/AYVkjX5s3d
【OVO official Twitter】：https://twitter.com/ovo__official
【OVO official Telegram(EN)】：https://t.me/OVO_Official
【OVO official Telegram(CN)】： https://t.me/OVOChineseOfficial1
【OVO official Line group(JP)】：https://bit.ly/2XjJ9jB
【OVO official Medium】：https://medium.com/@ovonft」
