SciEcon NFT Symposium

The Promise and Perils of NFT Marketplaces

SciEcon NFT Research Lab

2021 Fall

Overview

Symposium Background

This seminar is hosted by SciEcon NFT research lab, supervised by professor Luyao Zhang and proposed by the lab leader Zichao Chen and co-leader Yufan Zhang. Xinyu Tian and Tianyu Wu served as commissioners for the NFT labs. This workshop aims to present the current research achievements and progress of the NFT lab and discuss cooperation opportunities for further research in the NFT field.

As the youngest lab in SciEcon, the NFT lab looks forward to sharing our current research with you. Since September 2021, our lab has snowballed, and we currently have nine members with four articles published on SciEcon Research and two articles in progress. We will present our project deliverables at this symposium. We also invited earlier contributors who are pioneers on NFT related topics as distinguished panelists. We expect engaging panel discussions for further collaborations.

NFT Background

After many years of rapid growth in the blockchain industry, NFTs rose rapidly at the beginning of this year. The whole NFT market achieved more than $2 billion in transactions in the first quarter of 2021—which is 2000 percent higher than the fourth quarter of 2020 [1]. Facing the rapid development of NFT and the Metaverse, we hope to share relevant knowledge in this symposium.

Lab Project Overview

The research scope of our laboratory includes NFT Marketplace, Metaverse, GameFi, NFT Legal perspective, and NFT Investment. We have carried out exploratory research and published medium articles on SciEcon-Research. For the next milestone, our lab plans to move forward for more original research and innovation.

Symposium Sketch

The symposium comprises online presentations for five articles, ranging from the NFT marketplace to GameFi, the legal perspective in the NFT world, and the Metaverse. Each presentation lasts 6 minutes, followed by a 30 minutes session of panel discussions.

Watch SciEcon NFT Symposium on SciEcon YouTube channel.

Symposium Agenda

12/3/2021 China Standard Time (GMT+8)

Co-Hosts: Zichao Chen, Yufan Zhang, Prof. Luyao Zhang

NFT marketplace: Introduction to NFT and NFT marketplace’s mechanism

Author: Zichao Chen (presenter) and Yufan Zhang

Medium Article Publication: NFT Marketplace: Introduction to NFT and NFT marketplace’s mechanism

Abstract: Our project topic is the NFT marketplace. We have included two articles in this series that introduce the NFT market from shallow to deep. The first article is devoted to introducing and analyzing NFT and the mechanism of the NFT market. We introduced the key idea about NFT and analyzed why NFT can have such high prices. Then we also discussed NFT’s technical standards and its trading marketplace. Finally, we argued the advantages of each auction mechanism. In general, this article will give you a preliminary introduction to the NFT Marketplace.

NFT Marketplace: How to Choose the Right NFT Marketplace for Artists and Collectors

Author: Yufan Zhang (presenter) and Zichao Chen

Medium Article Publication: NFT Marketplace: How to Choose the Right NFT Marketplace for Artists and Collectors

Abstract: The article is written to give the guideline to choose the best NFT marketplace for artists and collectors. Many of the current marketplaces are built for certain targeted users with specific purposes such as buying NFT collectives of highlight reels, while some serve a larger group of NFT creators and collectors. Therefore, this article helps people to choose the best NFT marketplace that suits their needs, depending on what the one’s position is in this boom of NFT.

A Glance into the Metaverse: the importance of decentralization

Author: Xinyu Tian and Zesen Zhuang

Medium Article Publication: A Glance into the Metaverse: the importance of decentralization

Abstract: The concept of Metaverse has absorbed people’s attention for a long time. The current picture of the Metaverse was mostly created by the leading centralized enterprises, like Facebook, Microsoft, and Google, with high-tech products in game design, wearable devices, and social media platforms. However, considering the public trust issues and potential collapse in centralized institutions, we argue that only with decentralization can the Metaverse be brought to reality. In this article, we firstly analyze the current architecture of Metaverse in the centralized world and then discuss the importance of decentralization, with the problems we find in reality. We use a case study at the end of this article to demonstrate how its functionality fits the idea of Metaverse and how it can be improved with decentralized systems.

Explore the sea of NFT - A US-Legal Perspective

Author: Tianyu Wu and Jerry Zhang

Medium Article Publication: Explore the sea of NFT - A US-Legal Perspective

Abstract: The article is written to offer a landscape of what legal problems the Non-fungible Token (NFT) market now encountered under the US Law. With specific examples, we clarify the differences between ownership and other underlying intellectual property rights in NFT. Based on the clarification of these legal terms, we cover the potential copyfraud and infringement problem in the NFT market, and talk about the legitimacy of NFT assets transfer. To connect the NFT market with other traditional legitimate intellectual properties, we discuss the applicability of including the royalties and use qualitative methods to identify whether it would further incentivize artists’ creation and increase the liquidity of the whole NFT market. Last but not least, we design a case study to discuss how value or the function would differ when we have different types of products in the NFT market, in terms of privacy, copyright, and ownership?

Will the NFT surge maintain its popularity in the long run?

Author: Derrick Adam (presenter) and Lorne Zhang

Abstract: The applications and use cases of blockchain technology continue to spread into the different areas of our lives. A blockchain is a distributed public ledger that records transactions. From currency to exchanges, a majority of blockchain technology has focused solely on financial use cases. With NFTs, the use cases for blockchain are set to expand beyond that. With the advent of ERC-721, the Non-Fungible Token (NFT) Standard, that describes how to build unique tokens on the Ethereum blockchain, wide-ranging fields, such as art, music royalties, and collectables, can be introduced to the NFT ecosystem. In this article we introduce some current use cases for NFTs, such as art, collectibles, luxury goods, gaming, and gambling.

Financial service and investment in the NFT marketplace

Author: Rixin Wang

Abstract: As a developing marketplace and a vital part of decentralized finance. What kinds of financial service is offered in the NFT marketplace? And how can investors possibly earn profit through investing in the NFT marketplace? In the article, I focus on three essential and popular aspects of NFT finance: NFT collateralized loans (NFTfi), NFT collective investment schemes and NFT insurance. In addition to data and introduction, there is a considerable amount of first hand experience provided, and I write more as an investor than a researcher. After reading this article, you will be able to form a basic idea of how NFT finance functions and get to know the basic characteristics of it.

Presenters

Zichao Chen

[LinkedIn]

zichao

Zichao Chen is the leader of SciEcon research lab. He is a junior student at Duke Kunshan University majoring in data science, dedicated to the research of Fintech and blockchain technology and applications. Before joining SciEcon, he had working experience as an Data Engineer intern in the Internet industry and Business Analyst in the Finance industry. He also has experience in several investment markets and holds a professional qualification certificate issued by the Securities Industry Association of China.

Yufan Zhang

[LinkedIn]

yufan

Yufan Zhang is the co-Chair of SciEcon NFT research lab, as well as a Junior student at Duke Kunshan University, majoring in Data Science. He has great enthusiasm for disciplines ranging from Data Science, Computer Science, and Finance. Yufan has a solid knowledge foundation of machine learning, graphic design, and programming. He has participated in several interdisciplinary research including Summer Research in Computer Vision at the Institute of Software, the Chinese Academy of Sciences, and the AlphaFold research team under the advisor, Prof Huansheng Cao. Yufan is a powerful force in the workplace and research teams using his positive attitude and tireless energy to encourage others to work hard and succeed.

Xinyu Tian

[LinkedIn]

xinyu

Xinyu Tian is an active member in SciEcon NFT research lab, and a junior student at Duke Kunshan University with her major in Data Science. She is a full admission scholarship recipient and was supported by the 2021 Summer Research Scholarship. She is an interdisciplinary researcher with her passion and research experiences in Machine Learning, Big Data, FinTech, DeFi, and Game Theory. She is also the Chair of Communication in SciEcon CIC, supporting the pioneering SciEcon publications and assisting the SciEcon AMA program.

Zesen Zhuang

[LinkedIn]

zesen

Zesen Zhuang is one of the active members in SciEcon NFT research lab, as well as a junior student at Duke Kunshan University majoring in Data Science. He has a solid foundation in Computer Science and excels in Data Science courses. His areas of interest include reinforcement learning, algorithmic trading, and decentralized application. He is working under the guidance of Prof. Luyao Zhang on the combined application of algorithmic trading and reinforcement learning. He is also involved in several projects at SciEcon CIC, for which he provides core technical support. He is the Chair of Technology Development at SciEcon CIC, working on exploring the possibilities of decentralized networks.

Tianyu Wu

[LinkedIn]

tianyu

Tianyu Wu is one active member in SciEcon NFT research lab, as well as a junior student at Duke Kunshan University, majoring in Applied Mathematics. He has a solid foundation in Mathematics and excels in disciplinary courses. His areas of interest include quantitative analysis in the financial market, blockchain and cryptocurrency, and game theory. He is also one of the E-Board members of SciEcon CIC, leading the development of the HR management system in the era of transformation.

Jerry Zhang

[LinkedIn]

jerry

Jerry Zhang is a member of SciEcon NFT Lab and a junior at NYU CAS, majoring in Economics and Psychology. He will graduate from the undergraduate program in Fall 2023. His interests include but are not limited to the legal framework of blockchain, economic law, behavioral economics, and international macroeconomics. His research interest is on economic cause and impact of the specific legal regulations and broader legal system.

Derrick Adam

[LinkedIn]

derrick

Derrick Adam is pursuing a Master’s in Economics and Computer at Duke University and will graduate in May 2022. He is a member of the SciEcon NFT Lab and is involved with investing in biotech, fintech, and sustainability. His research interest is on applying blockchain technology to medicine and health care.

Lorne Zhang

[LinkedIn]

lorne

Lorne Zhang is a senior student from Duke University, majoring in Computer Science. He is a member of SciEcon NFT Lab. Full stack developer specializing in backend web and infrastructure development. Passionate about Fintech and Blockchain/Crypto technologies.

Rixin Wang

[LinkedIn]

rixin

Rixin Wang is a newcomer of the SciEcon Lab and takes an active part in the NFT research lab. He is currently a sophomore at Duke Kunshan University and intends to major in economics. He has experience of centralized investment of cryptocurrency and stocks and has advantages of researching on behalf of investors and analyzing the market in practical ways. His research interest is on Defi markets, investment possibilities and social effect.