Non-Fungible Tokens (NFT’s)

Non-fungible tokens (NFTs) enable individuals to participate in markets for a broad  spectrum of digital and digitized collectible items, from digital trading cards to online gaming or digital representation of real world items

What are NFTs?

Non-fungible tokens (NFTs) are unique blockchain-based digital assets that represent tangible and intangible items, ranging from virtual kittens and digital collectible cards to crypto art and in-game items

Non-fungible means that an asset cannot be readily interchanged for another – instead, each non-fungible token represents one unique digital asset

In contrast, fungible tokens are interchangeable for another token of the same type – Examples would be utility tokens, reward tokens, or digital currencies

Often referred to as nifties, an NFT is a blockchain-based token that represents an asset or commodity which is not interchangeable. Unlike digital assets like ether or bitcoin, NFTs are designed to be special or unique. First appearing on the market back in 2012, the most popular  use case emerged five years later with the launch of CryptoKitties, a blockchain-based game on the Ethereum network which allows players to buy, collect, breed and sell virtual cats

Since then, the number of use cases for NFTs has been rising steadily. However, mid-2020 witnessed a real break-through and now more and more new application are emerging everyday. These include crypto collectibles, digital artwork, tickets to events, in-game items, items in virtual worlds, and real-world assets, just to name a few

A Proprietary Crypto Solution for NFT Marketplaces

The LYNX payment infrastructure offers both a pure-play fiat on and off-ramp for crypto purchases, as well as the ability to settle directly into a native stablecoin account infrastructure

NFT marketplaces need to build a payments infrastructure that provides their customers with seamless, intuitive experience. This can be done by enabling customers to easily deposit funds into their account, which they can use to purchase NFTs without going through a series of unnecessary steps in the process. Ideally, they simply enter card details and then have money in their account at the NFT platform

LYNX offers a master wallet where funds aggregate on a commingled basis while also having the flexibility to leverage LYNX’s digital dollars accounts product

This allows as many wallets as one wants to manage a complete transactional infrastructure holding accounts on a 1:1 basis in stablecoin or so as to implement any type of accounting or any form of funds movement in any kind of form required whether fiat or crypto all on and within the LYNX infrastructure. This can be  done all in one place with the same partner with the same integration

LYNX CONVERGENCE: Offering Seamless NFT Transactions

An NFT provider that has comprehensively integrated crypto account features into its operations

LYNX has its own blockchain to manage its marketplace while using LYNX’s own fiat on and off-ramp capabilities to transfer money in and out of the platform

LYNX uses it’s own digital dollar accounts infrastructure to manage the accounting of funds on it’s own blockchain. This removes significant friction from the process of sending and settling, and reconciling funds on the company side but also on the customer side

Using LYNX’s own proprietary payments functionality enables leverage not only to on-ramp/off-ramp capabilities but also to create and improve stablecoin infrastructure and flow to liaise with back-end treasury operations

Historically, user accounts would be funded with other volatile tokens that would be acquired for the purpose of buying  NFTs. Besides being clunky from an end user perspective, with multiple platforms involved, among other issues, it also exposes users to  the volatility associated with unbacked cryptocurrencies

The LYNX CONVERGENCE solution integrates stablecoins in the payments infrastructure to abstract away cryptocurrency conversions so that purchase of NFT’s by way of credit or debit cards is all any client needs to know about the process

Payments Infrastructure for NFTs

Traditional payment processors typically won’t directly facilitate NFT transactions. As a result, providers of these tokens must look at other options to avoid inconveniencing their customers. If a customer can’t purchase NFTs with their credit or debit card, it can dissuade them from participating in this new market

Even in those cases where a payment processor will allow cryptocurrency purchases, the customer first has to purchase cryptocurrency, wait for that purchase to settle, then convert that crypto somehow to an NFT marketplace where they can finally buy NFTs

While the most dedicated purchasers may be willing to go through all these steps to buy NFTs, more casual customers may not be willing to do so. As a result, NFT marketplaces can better serve their customers by offering them crypto payment options that simplify the process of purchasing their products.

The Lynx Convergence crypto payment solution enables customers to transfer their funds to tokens and back out again at their choice. By smoothing these on and off-ramps between tokens and traditional payment systems, a solution of this type provides a seamless payments infrastructure that facilitates customer acquisition and loyalty

Stablecoins: The Base Currency of the  NFT Market

Enter Lynx Convergence

Full Service Payment Gateway

Stablecoins, have quickly become the preferred currency of NFT marketplaces and storefronts. These  price-stable digital currencies offer a convenient funding source for NFT customers

The growing popularity of stablecoins in recent years stems from the ability of these coins to provide an alternative to the volatility  associated with traditional cryptocurrencies. While that volatility has made such digital currencies attractive to speculators and investors, it  is less attractive to consumers looking to use digital currency to fund purchases of goods or services

The stability that has powered the rapid growth of digital dollar stablecoins has proved attractive in the NFT sector. As a result, some of the most popular NFT platforms use digital dollars to facilitate trading

NFT’s – the Transactional Flow

The rising popularity of NFTs offers opportunities for innovative token providers to grab a share of this rapidly growing market

The LYNX CONVERGENCE crypto driven payments solution enables the limitless processing of payments and the flexible account infrastructure to enable NFT users to seamlessly and securely buy, sell and trade NFTs

Using globally accepted stablecoins,  in conjunction with LYNX’s  platform allows for simple and streamlined transactions across fiat and token onramps/offramps

LYNX CONVERGENCE seamlessly routes funds from payments or payouts using stablecoins (USDC used for example purposes here). As the diagrams reveal, behind the scenes, incoming funds are converted to stablecoins, which are then transformed into NFTs in a user’s account

This entire process is abstracted for the user, who sees that funds they added to their account are now available to make purchases. What has occurred behind the scenes is that as users add funds into sub-wallets, the master wallet effectively locks the funds once they settle and then issue platform dollars on a 1:1 basis with USDC. The platform is basically buying USDC and then initiating an atomic swap between the NFT and those digital dollars and allocating those funds to the proper users, who can then use them to participate in an NFT storefront or marketplace

At the same time, the platform can maintain an accounting of all transactions using LYNX’s digital dollar accounts infrastructure

This example, displays the ability of LYNX CONVERGENCE to provide not only on and off-ramping capabilities but also the flexibility to provide accounting and natively embed stablecoins in it’s NFT platform

EXPANSIVE NFT SOLUTIONS

As NFTs (non-fungible tokens) explode in popularity, Lynx will lead the pack

A fully customizable, scalable, crypto directed payments and treasury infrastructure inimitably capable of facilitating the rapidly evolving requirements of NFT marketplaces, buyers, sellers and traders

Buying and selling NFTs is simplified with Lynx Convergence

The NFT economy is a vast ecosystem of different types of non-fungible tokens, ranging from the obscure and entertaining to sophisticated digitized versions of real-world assets – represented in this plethora of crypto collectibles:

Crypto Art

With provenance recorded on the blockchain, a new type of digital art has emerged in the form of tradable, non-fungible tokens

Trading Cards

While some of us once traded in physical baseball cards, the next generation now does that online in the form of digitized collectible cards that “live” on the blockchain

Gaming Collectibles

Blockchain gaming is a booming industry as more and more game developers recognize the benefits that DLT can bring to online gaming – the ability to create in-game items with verified ownership in the form of NFTs has been a driving factor

Virtual Assets

NFTs are also used to represent asset ownership in virtual worlds where you can own virtual land or other types of property

Sports Collectibles

Anyone with a passion for sports typically also collects items related to their favorite teams – it is now also possible in digital form thanks to NFTs representing sport collectible items in the form of a non-fungible token

“Digital assets are subject to a number of risks, including price volatility. Transacting in digital assets could result in significant losses and may not be suitable for some consumers. Digital asset markets and exchanges are not regulated with the same controls or customer protections available with other forms of financial products and are subject to an evolving regulatory environment. Digital assets do not typically have legal tender status and are not covered by deposit protection insurance. The past performance of a digital asset is not a guide to future performance, nor is it a reliable indicator of future results or performance.”