OWNABLES: The Perfect Extension of Non-Fungible Tokens (NFTs)

Ownables • Published on: Jul 18, 2024 • Last updated: Jul 18, 2024

Non-Fungible Tokens (NFTs) have taken the world by storm, attracting the interest of major brands like Burberry, Ubisoft, and the NBA. OpenSea, a leading NFT marketplace, has processed billions in trading volume, highlighting the explosive growth and immense potential of this technology.

NFTs are versatile, finding applications in diverse sectors such as supply chain management, event ticketing, collectibles, digital art, and real-world assets (RWAs). This technology, coupled with blockchain's immutable ledger, unlocks unprecedented opportunities. However, despite their promising features, NFTs come with limitations. One significant drawback is the inability to modify content after minting without burning and reminting the NFT. This process can be inconvenient and costly, especially in industries like GameFi, finance, and event ticketing.

Introducing OWNABLES: Setting a new standard for flexibility and usability, OWNABLES offer developers and users full customization capabilities. Instead of replacing NFTs, OWNABLES represent the next frontier, enhancing and extending the utility of existing NFT technology.

The Genesis of OWNABLES
LTO Network's journey to creating OWNABLES stemmed from an understanding of the limitations of traditional NFTs. Despite their widespread adoption and versatility, NFTs lacked the flexibility required for more complex applications. Key pain points included the inability to modify NFTs post-minting, challenges with implementing royalties, and difficulties managing consumables.

Addressing the Lack of Flexibility
Traditional NFTs, while powerful, are static by nature. Once minted, they cannot be altered, which poses significant challenges for industries requiring dynamic content. For instance, in the gaming industry, in-game items often need to evolve along with a player's progress. Similarly, in event ticketing, the ability to update ticket information post-purchase can be crucial. The necessity to burn and remint NFTs for any modification added unnecessary complexity and cost.

Our NFT2.0 Litepaper which introduced Ownables.

Introducing Royalties and Consumables
Another significant limitation was the management of royalties. While NFTs could theoretically include royalty mechanisms, implementing and enforcing these royalties across different platforms proved challenging. OWNABLES address this by integrating a robust and transparent royalty system, ensuring creators are fairly compensated whenever their assets are traded.

Consumables, or assets that can be used up or altered through their lifecycle, posed another challenge. For example, a virtual item in a game that could be upgraded or combined with other items needed a more flexible solution than what traditional NFTs could offer. OWNABLES were designed to accommodate these changes seamlessly, allowing for a more interactive and evolving user experience.

Twin Technology
Each time an OWNABLE is minted, a corresponding NFT is also created. This dual approach allows users to bridge their OWNABLES to any Ethereum Virtual Machine (EVM) compliant chain via a bridge utilizing a mint-burn mechanism. When an OWNABLE is bridged to another chain, both the OWNABLE and NFT are burned on the origin chain, and a new NFT is created on the destination chain. This system ensures access to unlimited liquidity, resolving the issue of fragmented liquidity across chains. OWNABLE holders can tap into major NFT marketplaces such as OpenSea, LooksRare, and Blur, ensuring broad accessibility and market reach.

Applications in the Gaming Industry
OWNABLES offer game developers unprecedented flexibility in modifying and adding features to in-game items. Developers can enhance and evolve in-game items along the user's journey without requiring the user to burn and remint the assets. This seamless modification capability not only enhances the user experience but also reduces potential attack vectors, making games more secure and user-friendly.

Real World Assets (RWAs)

OWNABLES simplify the process of acquiring and managing tokenized real estate. Users can buy shares of a property and easily add more shares without the need to burn and remint or manage multiple NFTs. Instead, a single OWNABLE can represent all shares of a tokenized property, reducing confusion and streamlining asset management. This capability extends to other RWAs, making OWNABLES a versatile tool for real-world asset tokenization.

Conclusion
LTO Network's creation of OWNABLES represents a significant leap forward in digital asset technology. By addressing the limitations of traditional NFTs, such as flexibility, royalties, and consumables, OWNABLES provide a more versatile and powerful solution. OWNABLES opens up new possibilities across various industries, ensuring that digital assets can be as dynamic and interactive as the applications they serve.

Through OWNABLES, LTO Network is not just extending the capabilities of NFTs but setting a new standard for what digital assets can achieve. Whether it's in gaming, real-world assets, or any other sector, OWNABLES offer a robust, flexible, and future-proof solution that empowers both developers and users.

About LTO Network
LTO Network is a privacy-aware Layer-1 blockchain for Real World Assets, Data Security, and Identity Solutions.

Our platform is designed for business process efficiency and security. It combines a public layer for transparency and a private layer for data security, ensuring GDPR and MiCA compliance. This dual-layer approach makes it ideal for enterprises requiring data privacy and regulatory adherence.

LTO Network also offers tokenization of RWAs through their Ownables technology, enabling assets to be brought on-chain and allowing them to interact with the world of DeFi and Web3.

LTO Network's KYC services help maintain compliance with anti-money laundering laws and offer Proof-of-Humanity services to protect Web3 and DeFi platforms from bots.