A blockchain network called Palette designed to issue, administer, and distribute digital goods. Furthermore, it is permissible for users to assign ownership of digital objects and use them in apps.
The global epidemic is causing lasting changes to the economic and social structure, leading to a “new normal,” even as the content business continues to grow. It is crucial to think about how the digitalization of the content sector should be handled. We think that with the evolving lifestyle, blockchain technology may play a significant role in highlighting the allure of content as digital goods.
In September 2017, a new technological standard emerged on the open-source Ethereum blockchain. Moreover, it enables digital data, previously easily replicable to have unique representation. Non-fungible tokens (NFTs) are digital assets issued under this standard.
The Significance of NFT in Palette
Palette ‘s worldview is to express the different values. They emerge every day as economically valuable assets by circulating on the blockchain and leveraging the power of NFTs to represent those values
Since the invention of the Internet, real-world information has extensively shared and reproduced in the digital sphere. Palette focuses on content fields including sports, music, manga, and manga that are shared online. We think we can convey the economic worth of digital data, which has been hard to perceive, in a new way and discover new markets by distributing and circulating these contents as NFTs on the blockchain.
Additionally, we think that NFTs will be crucial to the growth of virtual reality and other digital places. People now spend a significant amount of time online due to the current infectious disease outbreak. It makes it harder to distinguish between the actual and digital worlds.
The blockchain’s ability to issue information as an unreplicable “actual thing” will make the digital realm feel more like the physical world. Actually, the two will eventually cohabit as one.
Challenges in the NFT Space
Besides, several challenges within the NFT sector, particularly when using Ethereum, are these:
- Gas fee instability: The high demand on Ethereum’s network causes fluctuating and often high gas fees.
- User experience issues: High gas fees and the need for cryptocurrency to engage with NFTs can deter users.
- Cross-chain limitations: NFTs often cannot move between different blockchains.
- Governance issues: Updating blockchain specifications on general platforms like Ethereum can be complex due to diverse stakeholders.
Palette ‘s Solutions
To address these issues, Palette proposes a consortium-based private blockchain, called Palette Chain, optimized for the entertainment field. This private chain offers:
- Stable gas fees, as it’s not affected by high-demand applications like DeFi.
- A gasless system for users, meaning NFT transfers are free of charge for users.
- Cross-chain capability, allowing NFTs to move across multiple blockchains, including Ethereum.
- Governance by a consortium, enabling Palette to make decisions specific to NFTs and entertainment.
Technical Features and Token Economy
In summary, The Palette Token (PLT) is a cryptocurrency that ensures the decentralized operation of Palette. PLT can be used for governance, purchasing NFTs, and paying for gas fees on the Palette Chain. The project’s token economy also includes incentive mechanisms for node operators and users, and the chain uses Proof of Authority (PoA) for consensus.