Helping Retailers Unlock the Power of Crypto + Smart Contracts By Implementing NFTs on the Dynamo Blockchain
NFT’s (non fungible tokens) have recently gained popularity as an alternative asset class, particularly among the art world. What seems to be currently lacking is a coherent NFT technology platform which allows for on-chain storage of artwork files and a consolidated, simple interface for market participants to meet and exchange NFTs in a truly decentralized way. Most solutions involve storing files off-chain and most markets are centralized commercial entities. Finally, I was unable to find any blockchain technology which allows for NFTs to natively participate in smart contract functionality on chain.
This article proposes to solve these issues by incorporating native support for NFT files on chain and making the Dynamo virtual machine NFT aware through extended opcodes. I will publish a subsequent article on the technical implementation of this once further discussion on the details has occurred.
This section focuses on artwork use cases which are generally either image files, short movie clips or audio files for music. This assumes the maximum file size will be less than the maximum block size in Dynamo — 10mb.
Creating an asset class — this is the action of creating a master asset and assigning its properties — name and number of tokens. An example asset could be “Diamond Sparkle Dog” with 10 tokens. Each Diamond Sparkle Dog in the series could be a unique image by the author put up for auction (for example). NFTs will not need to have associated files, such as if a company wanted to track licenses on chain. They could issue 1,000,000 NFTs with sequential or random license numbers to be distributed to users upon purchase.
Creating an individual asset — this is the action of minting a specific asset within the asset class — Diamond Sparkle Dog #6, for example. The asset can include metadata, such as the specific name, a URL, arbitrary text and a file. The asset will also be assigned an owner, which will initially be the creator. The owner will be recorded at the time of mining the block that creates the asset and will be saved as the bech32 public key address of the user. As noted above, the total size of all NFT data will be limited by the Dynamo block size of 10mb.
Transferring an asset — this is the action of sending a specific NFT from one user to another. The ownership metadata is changed at the time of mining the block that includes the asset transfer command.
Integration with virtual machine — this will allow for powerful peer to peer, anonymous interaction with NFTs on chain. As described below this will create very unique new business possibilities enabling individuals to profit from their own creations directly with no intermediary.
The above functions should all be implemented in a wallet. The wallet should allow for creation of the asset class, creation of individual assets and addition of metadata, asset files and asset transfer.
Each of the above actions will incur on on-chain gas fee which will be shared by the miners and stakers. Because the addition of NFTs could dramatically increase the size of the blockchain, it may be necessary to create an additional incentive for full nodes to store the NFT database. This could be done as an additional, separate, staking reward based on time online, amount of database stored, etc. The theoretical limit of the database size increase is 53GB per day, although if this technology becomes widely adopted, it’s likely that the price (in $USD) to mint many large assets would be prohibitive and blockchain abuse will be mitigated by market forces.
Note that there is no specific “fee” for creating an asset class, creating an individual asset or transferring ownership. The cost for these activities is the native chain gas fee which is measured in DYN per kb and is set by market forces.
Business Use Cases
The true power of blockchain technology is the facilitation of peer to peer, anonymous, trustless transactions. By combining on chain assets, NFT on chain tracking and a native NFT aware virtual machine, this vision can be realized in practice.
Use Case #1 — Online auction. The creator of Diamond Sparkle Dog can create a smart contract which accepts bids for a certain duration and then automatically transfers a specific asset to the winner at the end of the auction. Bidders send bids to the contract which are stored for the duration of the auction. The winning bid is automatically transferred to the creator and the remaining losing bids are sent back to the bidders (less gas fees). This allows for a completely anonymous, trustless and intermediary free art auction that solely benefits the creator.
Use Case #2 — Online raffle. The Diamond Sparkle Dog raffle contract could sell a large number of small value raffle tickets and then randomly select a winner at the end of the raffle. The winner would receive the NFT ownership and the raffle proceeds would be sent to the creator. This is again totally anonymous and trustless.
Use Case #3 — Software license tracking. A software company could create NFT licenses and issue them to users which could be unlocked using the user’s private key. This would require integration with a blockchain and a light wallet to receive the keys, however it would be a convenient, trustless and anonymous way to secure software licenses. Licenses could be autonomously purchased from a contract and automatically generated and sent to purchasers. They could also be transferred among users or resold autonomously through other smart contracts.
Use Case #4 — Coupons. A promotional company could create a coupon smart contract which sends free coupons to token holders, via website request, airdrop, etc. The redemption of the coupon could be integrated into the wallet to verify the owner and then burned to ensure non-reuse.
Use Case #5 — Tickets. Similar to coupons, a venue operator can issue tickets for sale via a smart contract which users are then able to redeem using their private keys, or resell on a secondary market. This eliminates any possibility of fraud or ticket re-use and provides for anonymous, trustless sales.
I have presented a framework for integrating NFT support on chain natively and developing an NFT aware virtual machine that will facilitate the creation of NFT based smart contracts which will open many new possibilities for NFT usage not currently possible today.
I will shortly publish a technical implementation document detailing how this will be accomplished on the Dynamo blockchain.
Dynamo Coin And Qbuster Technologies NFTs Prepare To Change The Retail Industry
Blockchain moving into Retail Industry
Qbuster Technologies announced a strategic partnership with the Dynamo Foundation, to bring innovative technology that supports NFTs on Dynamo’s smart contracts to the retail Industry.
“Blockchain technology and NFTs will soon be mainstream in the retail industry” says Keith Carpentier of Qbuster Tecnologies.
The Dynamo foundation (DYNAMO) and Qbuster Technologies plan to change the way the retail game is played. Bllockchain technology has the potential to replace SKUs, store coupons, receipts, and ticket sales, giving the vendor a lifetime of data points across a product’s lifetime.
How blockchain is going to change the retail industry
Blockchain technology has taken the world by storm and has become a prominent term in the retail industry. With some experts predicting it will revolutionize every industry out there, it’s not hard to see why blockchain can be so game-changing. But what does this mean for the retail industry?
Consumers buy physical goods in an ideal store (optimized for maximum efficiency and without any human interaction), and vendors track these sales through a blockchain ledger. The items sold at that point no longer have barcodes or product SKUs, but instead are transacted using encrypted security keys/numbers. Consumers then go online or visit another brick-and-mortar location with a traditional storefront, where they can re-purchase products using their new security key instead of a barcode or SKU.
The Non-fungible tokens (NFTs) enable lifetime product data tracking and the ability to streamline digital sales in all areas of retail commerce. This gives vendors and customers a first-time ability to track products, entire supply chains, and transaction histories.
“This is a game-changer in the world of retail. Combining on-chain assets, NFT on-chain tracking and a native NFT aware virtual machine, this vision can be realized in practice”.
“Blockchain and NFT technology will revolutionize mainstream commerce.” The former Merrill Lynch executive Shaun Neal goes on to explain. “Digital assets provide owners with certificates of authenticity for any product or service. This can be implemented in every facet of the retail business.” Shaun Neal, Founder of Dynamo foundation,
“Mass adoption of NFT technology in the retail world will be fast.” Keith Carpentier, Managing Partner of Qbuster goes on to explain.
The NFT market has grown at a staggering 1700% since the beginning of 2021 for a reason. The technology at its core is what the retail business is all about and has many retail use cases, including asset protection, fraud prevention, couponing, ticketing and more.”
How Blockchain will Change the Consumer Experience.
Blockchain, first off, makes tracking inventory super easy. On any given product page, you can see exactly how many of that item are left in stock. You also have a profile for each item where you can add information about what that item means to you and how it fits into your life—which is like a social network for your items!
When items move from one place to another, they register on the blockchain so everyone has access to an up-to-date digital inventory list. Plus, all of these transactions are transparent and available on a public ledger that anyone can look at or download from anywhere—which helps avoid fraudIn-store shoppers will have access to apps and tags that help them find products on the shelves, and even locate a manager or sales associate for further assistance.
A customer’s data history will be collected at checkout and automatically shared with vendors and advertisers, eliminating today’s need for customers to create an account before making a purchase.