NFT
“NFT.” It was named ‘word of the year’ in 2021 by Collins Dictionary.
Many a watercooler conversation at the time centered on attempts to simplify the meaning of the new word in explain-if-I-am-five terms. Few succeeded.
And now things get a bit more complicated with the recent introduction of the xNFT. It probably won’t be the word of the year for 2023, but it could lead to some pretty interesting innovations in non-fungible tokens.
The ‘x’ stands for ‘executable’, which means that in addition to being a digital asset, an xNFT can also execute built-in code. The xNFT itself is an app that can be distributed on a decentralized marketplace.
On a recent 0xResearch podcast, Frictionless Capital co-founder Logan Jastremski spoke about the benefits of xNFTs in the Solana ecosystem.
“xNFTs are a really interesting idea,” says Jastremski, pointing to the recent successful launch of Solana MadLads as an early example.
A wallet that is an operating system
The technology is powered by Solana’s Backpack wallet, which allows xNFTs to operate in a fully integrated environment and function as an operating system for on-chain apps.
The creator of the backpack, Armani Ferrante, tweeted about the wallet’s potential utility: “It’s an open, programmable system built for Web3. And just like any other application operating system, it has a set of developer frameworks and APIs associated with it, allowing anyone to build their own xNFT apps for any protocol on any blockchain – without permission.
“It’s a pretty simple idea”—perhaps not for those in the crowd of ELI5 water coolers—”but I think all good ideas are kind of obvious in hindsight,” says Jastremski.
“And then you always ask, why hasn’t someone done this before?”
A seamless experience
An executable NFT, says Jastremski, is made possible by innovations in wallet technology, ranging from apps like MetaMask to Phantom, which “gave a much cleaner user experience” and allowed users to view NFTs directly in the app.
Backpack allows users to interact with applications natively, without having to leave the wallet environment to enjoy the full utility of the tokens, according to Jastremski.
He explains that xNFTs not only allow developers to break down barriers by distributing their wares directly into the wallet, but more importantly enable a more seamless experience. Users don’t have to jump to another platform to use the tokenized apps, avoiding an “orthogonal experience where you move from one thing to another.”
xNFTs, he says, are a “Trojan horse” for Solana, with MadLads the first product of its kind to infiltrate the NFT marketplace. Details of MadLads xNFT’s functionality have not yet been revealed, though Ferrante suggests some capabilities such as DeFi account management, staking, and viewing stock market listings natively in a single interface.
Read more: The Top 8 NFT Marketplaces — Where to Buy NFTs
“The Backpack team and what they’re building into the broader ecosystem there, I think, is really exciting. So we are certainly delighted to be working with them.”
