2.0 Industry Pain Points

Despite the gradually expanding scale of the NFT market, the existing NFT ecosystem still has significant problems in multiple aspects. The following are the main pain points in the industry:

2.1 Lack of Interactivity and Dynamism

Currently, most NFTs remain static artworks or collectibles, lacking interactivity and dynamic capabilities. The value and appeal of NFTs primarily depend on the scarcity of artwork and market demand, and these assets typically cannot evolve with user interactions, market changes, or the passage of time. NFT functionality is limited to collection and display, failing to meet user demands for personalization, interactivity, and long-term value appreciation.

2.2 Non-transparent Pricing Mechanisms

The current pricing mechanisms in the NFT market are relatively chaotic, lacking unified standards and transparent pricing methods. Price fluctuations are dramatic, with most NFT transactions in the market having prices determined solely by buyers and sellers, while the true value of NFTs and market supply-demand relationships cannot be accurately quantified. The lack of a transparent valuation system easily leads to market speculation, malicious manipulation, and significant investor risk.

2.3 Low Liquidity and Trading Barriers

Although the NFT market continues to expand, liquidity remains a key issue. Most NFT platforms have singular and inflexible trading models, with buying and selling processes often constrained by factors such as supply-demand imbalances and high transaction costs. Meanwhile, many NFT platforms are limited to a single blockchain ecosystem and cannot support cross-chain asset circulation, creating trading barriers that seriously affect the free flow of assets.

2.4 Copyright Protection and Asset Provenance Issues

Although NFTs symbolize ownership of digital assets, many problems still exist regarding copyright protection and asset provenance. Many platforms fail to effectively protect creators' copyrights, with piracy and counterfeit works occurring from time to time. The provenance issue of NFTs has not been adequately addressed, and users lack sufficient trust in the origins and authenticity of assets, which impacts the long-term development of the NFT market.

2.5 Insufficient User Engagement

Currently, user experience on most NFT platforms remains at the simple level of trading and collecting, lacking sufficient interactivity and participation. Although users can engage in transactions, they lack deep involvement with the platform and profound interaction with NFTs. This results in many platforms being unable to maintain long-term user stickiness and activity, making it difficult to form a healthy community ecosystem.