How Medium Became a Leading Blogging Platform: Insights from NFTs and Blockchain Technology

How Medium Became a Leading Blogging Platform: Insights from NFTs and Blockchain Technology

In recent years, Medium has emerged as one of the leading platforms for bloggers and content creators. Its focus on the quality of information and ideas shared rather than the individual behind them has made it a trusted resource that ranks well in search results. This approach is similar to the clapping feature on Medium, where users can highlight and comment on specific parts of a text that they find particularly interesting or profound. These highlights and comments are then archived on the user's profile, allowing their followers to see the kind of content they find valuable.

But how does this relate to the world of non-fungible tokens (NFTs) and blockchain technology? Well, just as we had digital currencies before the emergence of cryptocurrencies, we've had non-fungible digital assets since the early days of the internet. Domain names, event tickets, in-game items, and even social media handles are all examples of non-fungible digital assets. However, the tradeability, liquidity, and interoperability of these assets vary.

The concept of digital ownership has always been somewhat elusive. Unlike physical assets, digital assets are often tied to specific contexts, making it difficult to move them around freely. This is where blockchain technology comes in. By representing non-fungible tokens on public blockchains, developers can create common, reusable standards for ownership, transfer, and access control. These standards provide a coordination layer for digital assets, giving users true ownership and management permission.

Standardization is one of the key benefits of blockchain technology for non-fungible assets. Developers can build on common, inheritable standards that apply to all non-fungible tokens. Additional specifications can be layered on top for rich display within applications. This is similar to how file formats like JPEG or PNG are used for images, HTTP for computer requests, and HTML/CSS for web content. Blockchains provide a new set of stateful primitives for developers to build applications on.

Interoperability is another important feature enabled by non-fungible token standards. These standards allow tokens to move easily across different ecosystems, thanks to clear and reliable APIs for reading and writing data. This means that users can trade their non-fungible tokens on open marketplaces, taking advantage of sophisticated trading capabilities like auctions, bidding, and the ability to sell in any currency.

The tradeability and liquidity of non-fungible tokens are greatly enhanced by blockchain technology. Developers no longer have to manage every aspect of their in-game economies, as users can freely trade items outside of their original environments. This opens up new possibilities for game developers and creates a more dynamic and engaging user experience.

Immutability and provable scarcity are also important properties of non-fungible tokens on the blockchain. Smart contracts can enforce hard caps on token supply and ensure that specific properties do not change over time. This is particularly valuable for art, where the provable scarcity of an original piece is highly valued.

Different standards have emerged for representing non-fungible digital assets on the blockchain. The ERC721 standard, pioneered by CryptoKitties, was the first of its kind and focused on individual ownership. The ERC1155 standard, introduced by the Enjin team, introduced the concept of semi-fungibility, allowing for more efficient transfers of multiple tokens. The ERC-998 standard brought the idea of composable tokens, where non-fungible tokens can own both non-fungible and fungible assets.

When it comes to storing metadata for non-fungible tokens, developers have the option to store it on-chain or off-chain. Storing metadata on-chain ensures that it persists alongside the token and can be accessed by on-chain logic. However, due to storage limitations, most projects opt to store metadata off-chain. This can be done on centralized servers or using decentralized file storage systems like IPFS.

The success of projects like CryptoKitties and CryptoCelebrities can be attributed to several factors. Speculative mechanics, such as breeding and trading, created opportunities for profit and drove interest in the projects. The viral nature of these projects, fueled by their fun and shareable nature, also contributed to their success. Additionally, the emergence of innovative layer two games built on top of these projects expanded their reach and popularity.

The NFT ecosystem has continued to evolve, with advancements in minting tools, gaming experiences, virtual worlds, and naming services. Mintbase, Mintable, Rarible, and Cargo are platforms that have made it easier for artists and creators to mint their NFTs without the need for programming skills. Japanese games like yCryptoHeroes have introduced more advanced gameplay, appealing to early adopters.

Virtual worlds like CryptoVoxels and Decentraland have provided a platform for showcasing NFTs. Collectible enthusiasts have created museums, art galleries, and in-world stores where wearable items can be purchased for avatars. Other virtual world projects like Somnium Space and High Fidelity have also entered the scene, offering unique experiences for users.

Naming services, similar to domain names, have also become a significant asset class in the NFT space. Projects like ENS (Ethereum Name Service) have gained traction and are used across various projects, demonstrating the interconnectedness of the NFT community.

While there was initially a belief that users would be drawn to NFTs solely because of their provable scarcity and blockchain technology, it turns out that demand is driven by more traditional factors like utility and provenance. Additionally, the assumption that assets on the blockchain would last forever overlooked the fact that there are still centralized portals for interacting with decentralized applications.

Projects that plug into the existing NFT ecosystem and prioritize interoperability tend to be more attractive to the current community of early adopters. The current market size for NFTs primarily revolves around trading with ETH on decentralized exchanges, with limited trading in stablecoins like DAI or USDC.

In conclusion, the rise of Medium as a leading blogging platform shares some commonalities with the world of non-fungible tokens and blockchain technology. Both prioritize the quality of information and ideas shared, and both rely on standardization, interoperability, and tradeability to create a vibrant ecosystem. As the NFT space continues to evolve, it is essential to consider the lessons learned from Medium and other successful platforms to drive further innovation and adoption.

Actionable Advice:

1. Embrace standardization: Whether you're a developer or content creator, embracing standards in the NFT space can greatly enhance interoperability and tradeability. By building on common, inheritable standards, you can reach a wider audience and create a more seamless user experience.

2. Explore virtual worlds: Virtual worlds like CryptoVoxels and Decentraland offer unique opportunities for showcasing your NFTs. Consider creating your own gallery, museum, or store within these virtual worlds to attract collectors and enthusiasts.

3. Prioritize utility and provenance: When creating or investing in NFTs, focus on their utility and provenance. Think about how the asset can be used or experienced and consider its history and authenticity. This will ensure that your NFTs hold long-term value and appeal to a wider audience.

Incorporating the lessons from Medium's success and the innovations in the NFT space, we can continue to push the boundaries of digital ownership and create new opportunities for creators and collectors alike.