*Let’s see how LINE moves into the NFT market and how its beta service launch mean to them.
*An interview by Yoneyama Yusuke, the head of the Blockchain Business Department, and Tanaka Ryo, the Manager of the NFT Market.
Why not use LINE? LINE moves into the NFT Market
Hello, this is Moe from the marketing team.
On June 30, 2021, we launched the NFT Market Beta Service on LINE BITMAX Wallet. To gain more insight into why we introduced this Beta service and what it means to you, our users, we talked to Yoneyama Yusuke (“Yone”), the head of the Blockchain Business Department, and Tanaka Ryo (“Ryo”), the manager of the NFT Market.
An introduction to LINE Blockchain
I’m really looking forward to this chat. Please give us a quick backgrounder about LINE Blockchain and what makes it different!
In general, when it comes to crypto assets and blockchain, users have had to create and set up their own wallets somewhere and manage their private keys on their own. This is a big barrier for most users, and I think that’s a factor in why blockchains haven’t been more widely accepted.
This is why LINE Blockchain developed the LINE BITMAX Wallet, so anyone can use blockchain right from their smartphone. From there, we used our slogans “LINE Blockchain Designed for Everyone / LINE Blockchain in Your Life,” in how we approached our big picture view of the token economy and NFTs. I think this can only be realized in LINE, which is used by the entire nation.
What I think important is that, even if users change their device, their LINE account still stays the same. There’s nothing new to create or subscribe to on a new device. As the wallet is linked to the LINE account, it’s very unlikely people will encounter problems like losing the NFT (user asset) or not being able to access it. Moe–san, have you ever used another blockchain Wallet?
Yes, I have! I used it to study about blockchains, but I forgot all my private keys after not using it for a while…
Right… It’s painful because, if you don’t manage everything yourself, you can’t access those accounts.
How can LINE Blockchain solve this problem?
I also once lost my private keys for my wallet, and I recently found out that there’s a pretty large amount in my balance. But what could I do? I couldn’t restore my account. Haha…
Digital assets or NFTs have the advantage that third parties cannot intervene or control those assets, but that means individuals have to be very responsible.
Some people want to take care of their accounts themselves, but others want to leave it to someone else. For example, in the case of legal tender, you leave it to the bank because you can’t manage it alone. From this point of view, it is difficult to use blockchains, which is why LINE provides a wallet solution that is linked to the LINE Messenger account. That way, you don’t have to manage your private key yourself!
If you want to have NFT in Ethereum, you have to sign up for something like MetaMask, but that’s not easy without some expertise. So, LINE solved this problem.
What does the NFT Market Launch mean to LINE?
LINE Blockchain has focused on developing user-friendly services, so what does the NFT market beta launch mean for us?
The most important things in building a so-called “Token Economy” are the currency in circulation (LINK), the bank role (LINE BITMAX Wallet), and the store-concept dApp that forms a store.
The next thing you need is a feature that allows you to buy and sell things in stores and trade between users in the free market (NFT Market).
Since the fundamental elements needed to realize the token economy have been implemented, what you really need is an actionable market. Just like Nobunaga Oda created Rakuichi Rakuz. For the growth and development of the market, it is important for us to create that ourselves, and we’re at that stage.
Why did LINE jump into the NFT market? Because it’s inevitable in forming a token economy. It’s only a matter of time before a NFT market is created, so how can we make the ecosystem bigger?
The biggest drawback of the token economy is that it takes a lot of elements and objects to move there. It’s not easy to establish. However, it’s been about three years since the LINE Blockchain’s Token Economy was established, and it’s only a matter of time. I think the next step is to scale up what we’ve created so far and make it easier for us to do our job, step by step.
Launching the NFT market is essential to the token economy after all. Then, what is the role of the NFT market in all this?
NFT Market is also a flea market. There are two main categories: one, the transactions of users in dApps, and, two, the transactions between users. In a bigger sense, I think it’s the NFT market’s role to facilitate transactions through P2P (peer to peer) interaction.
NFT is a substance, but data at the same time
Physical objects ultimately degenerate. However, NFT does not degrade as a digital element. This means that, unlike physical distribution, you don’t have to be tied to the primary distribution where the secondary distribution becomes more important. Does NFT only apply to primary distribution? Absolutely not.
That’s a very interesting point. It’s probably the same as the difference between data and conventional material.
These days, we can define non-replicable data on the blockchain. Which means we’re materializing data and treating it like material. It’s a non-degradable substance. Isn’t it fun?
Eventually, because of blockchain technology, data will be able to be materialized and never disappear. It’s our job to provide and optimize something digital with a different nature to the market.
There is one interesting trait: If it’s digital, it’s easy to see and list your own records. If you look around your room now, you will think that you have a lot of belongings that you paid for. In the token economy world, you can see when, where, and how much you paid for, and how much you can be paid back. I think I’m kind of in the middle of a minimalist. Isn’t it interesting?
It’s obvious that all of your belongings are assets, but it’s a special difference that they can be visible as the value of the asset’s liquidity and traceability become available. For example, how do you interact when you hand over a game item to someone else now?
Selling a game account??
Yes. I will buy and sell my account. There are other hidden ways of doing business, but basically, the original owner of the account ends the game and gives up the entire account.
However, when game items are managed on blockchain, they can be sold to third parties through the NFT market or purchased through another asset created on the blockchain. What’s interesting here is that users can do business freely and play at any time without having to end the game or give up halfway.
It’s a big attraction to be able to exchange game items more simply. Of course, we need a market where such exchanges can be smooth. The larger the market, the quicker the seller can sell and the sooner the buyer finds what he or she wants. It seems significant that this view of the world will allow all assets to be visualized and value-listed.
I think the impact and influence of gaming will be great as the user’s experience increases just by having a market to buy and sell through.
The following depends on how big this market is growing, but the important thing is that transactions in the second-hand trading market has already reached 800 billion yen a year on the nation’s largest platform, and assets on the blockchain are worth as much as real material. I think NFT will grow on the same scale as real matter in real life.
LINE aims to provide a preferred marketplace for efficient trading, with a view to the distant future. Is it possible to create a stress-free market?
Yeah, it hasn’t been clear until now how digital things will hold value, but I think real-world values will change too if we can exchange digital things in real life.
Everyone values things differently. We haven’t leaped the chasm yet, but it seems that digital things are already worth it.
But even the innovators and early adopters are still interested in the value of digital things, so I think that’s another expectation of the NFT world. If it’s LINE, I think we can do it in the Japanese market and I hope we can make it together! That’s why we’re still creating a structure that allows us to discuss and collaborate with various dApp partners.
So, the reason why many dApps want to adopt LINE Blockchain is that they believe that they will build this digital world because of its convenient application, usage, and of course, it’s LINE.
Yes, it is. As Yone first said, the key is to provide a user-friendly wallet that everyone can easily manage. LINE has been working on solutions for the past three years, and will be creating a market.
LINE’s own digital asset, LINK
As stated in the white paper, it is also important that LINK can be used to allocate (user) contributions. When operating a token economy, it doesn’t work well without a good cogwheel.
If you ask why BTC and ETH are not good enough to run the service, you need a “trigger” for the user to use, and they don’t have it. But, LINE Blockchain uses “LINK Rewards” as a trigger. If the user makes more transactions through LINK Rewards, the cogwheel will work better. It’s not easy to operate unless it’s a self-issued digital asset like LINK.
Until now, LINE has been the only place in Japan that has its own digital crypto. I don’t know if there will be more places like us in the future, but we already entered this market years ago.
I’m repeating what I already said, but the need for knowledge and skills in managing blockchain wallets is a common challenge for the blockchain industry, and very few people know the answer.
Of course, there’s an argument that holding a public blockchain is different from holding a private one, but either can be preferred or activated if it still remains hard for the users to use. While there are users who want to take care of the blockchain themselves, some want to leave that to a third party. That’s why it’s important for many businesses to create a variety of solutions that can give users options to choose.
Just as LINE puts forward the slogan “CLOSING THE DISTANCE” to create a comfortable relationship between people and people around the world and people and information services, LINE Blockchain also takes the same idea to the root.
That’s why LINE can deliver to the last mile, which was difficult for other blockchains to deliver, and it has been highly evaluated by dApps, which is considering its introduction.
These are the biggest strengths in entering the NFT market, and I think they are what users are looking for.
In the first place, blockchain is a common rule that makes it easy to connect with other blockchains. Therefore, it is technically possible to connect blockchains to each other. I would like to continue working to expand the gates of LINE Blockchain.
Future STEPs in the NFT Market
Lastly, please let me know your future opinions about the NFT market.
The characteristic of NFT is that it does not deteriorate, so the thickness will increase as you cross the hands of people. First of all, this function that allows you to trade between users is the most important, so we will work on it here.
On top of that, NEXT STEP will be to develop tools that support various dApps so that they can make the first part of putting products on the market even easier.
LINE Blockchain is currently climbing the first mountain in the blockchain’s founding period, and the goal of that mountain is gradually becoming apparent.
We are now in the phase of seeking ways to make it easier for users and dApps to use. It will be a better service, so please look forward to it in the future.