What are NFTs and why ‘wrap’ them with Envelop?
Is it easy to plunge into crypto investing or trading without having enough information at hand? That proposition is definitely risky, but today, one can actually step into unchartered territories after getting proper insights into the workings of a crypto exchange.
NFTs, short for non-fungible tokens, or as the friendlier name they’ve been given, ‘Nifties’ — are tokenized collectibles on the blockchain (such as Ethereum, or an exciting new entrant, Flow, designed specifically for NFTs).
What are wrapped Tokens or Crypto?
Wrapped Crypto or tokens are cryptocurrencies pegged to the value of another original crypto or assets . Example Gold, stocks, shares and real estate and put it to work on the Defi platform. The Original asset is "wrapped" into a digital vault, and a newly minted token is created to transact on other platforms.
Wrapping a token allows a non-native assets to be used on any blockchain, build bridges between networks and implement interoperability in the cryptocurrency Ecosystem.
What does it mean to wrap a token??
Wrapping a token is exchanging one set of standards for token interaction with another set of standards.
Lets consider for an example, a "wrapped Bitcoin"
A wrapped Bitcoin (wBTC) protocol was intended to bring Bitcoin potential and liquidity to the Ethereum network along with the flexibility of an ERC-20 token. While the original BTC could not be used for decentralized finance (Defi) transactions, a wrapped Bitcoin could replace the original asset and transact within the Defi ecosystem or any other decentralized application with the ethereum network. While the value of the wBTC is the same as the original Bitcoin, the functional aspect is accrued enormously and increases the possibility of employing Bitcoin for other use cases like Defi.
About ENVELOP
ENVELOP is a cross-chain protocol that utilizes NFT as storage for cryptocurrencies or additional NFTs in a process called “wrapping.” Using the protocol, it’s possible to add any digital asset inside NFTs. The assets, also known as collateral, can range from static to dynamic, with custom programmable fees charged with every transaction and stored into a vault for later withdrawals.
The Envelop is a flexible cross-chain toolset that provides any NTF with new functionality (economic set-up, royalties on the chain, rental mechanism, time/value/event blocking), scoring and protecting system from fraud, refilling deep vaults with transaction fees, or adding temporary time locks to stored assets. Tokens Wrapped with Envelop allow unsupported assets like bitcoin and Ether to be traded, lent and borrowed on DeFi platforms.
By using the ENVELOP protocol, NFT assets holders will have more interaction with their NFTs.
Envelop integration presents many benefits for digital art lovers too. You will be able to transform your NFT into a wallet that stores multiple tokens. It’s a unique way to build up your portfolio and manage it easily:
You can aggregate liquidity within one NFTWhen you want to transfer or trade it, you can sell all the tokens simultaneously.
Instead of paying fees for trading them one at a time, you get the job done with one click.
Besides creating unique NFTs, users will have a tool at their disposal with which to set up royalties.
The Envelope can be easily implemented in GameFi, Marketplaces, Art, Metaverses and NFT-rentals. The goal is to achieve a cross-chain tokenization of payment channels (rollups, and to intensify unused liquidity. benefits for digital art lovers too.
rather than create another bridge or cross & multi-chain DRC, ENVELOP concentrates on developing high-level mechanisms for transferring liquidity, creating a market for secured derivatives, etc.
Find out more about ENVELOP :
Telegram https://t.me/envelop_en
Twitter https://twitter.com/Envelop_project
Medium https://envelop.medium.com/
LinkedIn https
Find out more about ENVELOP :
Telegram https://t.me/envelop_en
Twitter https://twitter.com/Envelop_project
Medium https://envelop.medium.com/
