Sismo Protocol, NFT Bridging, and More Marketplaces

Top of Mind

• Three NFT subsectors with promise beyond basic JPEGs are credentials, NFT bridges, and NFT perpetuals.
• On-chain credentials enable on-chain identity systems, which in turn enables greater capital efficiency in DeFi, identity portability between web2 and web3, and more. Sismo, an emerging protocol, enables on-chain identity while maintaining on-chain privacy.
• The act of bridging NFTs has little precedent. That’s changing. Solana's biggest collection, DeGods, announced their migration from Solana to Polygon and Ethereum after Polygon awarded a $3 million grant to finance the transition. If successful, the transition would set the precedent for non-Ethereum collections to adopt the premium enjoyed by Ethereum-based NFT collections without being native to the ecosystem.
• Leverage-wise, new perpetual futures trading platform nftperp is showing early signs of growth during its private beta. The introduction of perps to crypto by Bitmex in 2016 amplified volatility (to the up and downside) in crypto markets. The introduction of perps to NFT markets may do the same for NFTs.

Sismo Protocol – ZK Credentialing System

Reliable on-chain credentialing – that also maintains privacy –- doesn’t exist in crypto. Users regularly take steps to hide their on-chain identity to maintain the private nature of their positions. However, users obfuscating on-chain identity lose the benefits of identity such as reputation-based access and proving financial status or ownership.