In mid-July, Fred Wang introduced Element for the first time, saying that “we have actually designed a three-in-one NFTs platform”, which is an important infrastructure for the application layer.
Co-founded by serial entrepreneur Fred Wang who is chairman of Linekong (HK. 8267), founder of Mars Finance and the founding partner of Geek Founders, and his long-time technology partner Zhang Hongliang. In addition, Element closed an $11.5 million seed round led by SIG and Dragonfly Capital in May this year.
As an emerging NFT trading marketplace favored by capital, Element was designed from three perspectives, including creators, users and community, in order to help a large number of users enter NFTs market and promote the integration between traditional market and crypto economy.
In terms of platform functionality, Element has three main features, namely: Create, Discover and Exchange.
Create means mint.
This is similar to the asset issuance that many trading platforms do in ERC20 transactions. NFT is a programmable asset that is based on smart contract design. That is to say, your NFTs can be used on any of the platforms, including the trading platforms, metaverse games and DeFi extension applications.
Discover means search.
Element provides data-based services such as asset classification, search, ranking, transaction history, etc. In this sense, Element is an NFT pro browser tool that processes data in Ethereum network, allowing users to search including wallet addresses, transaction volumes, and account addresses.
Exchange is the core of Element.
In terms of trading models, Element currently supports different trading services such as English Auction and Dutch Auction, and will innovate more ways to play at a later stage, such as the blind box system that the team is developing.
In terms of product design, Element thinks about all aspects of uploading, storing as well as trading to provide a friendly market environment for art creators, Element also has eight features.
(1) Support for zero-cost NFT mint
Element has designed a ‘delayed onchain’ mechanism to support creators to mint their own NFTs in one click without paying Gas fee. This means that creators can access the NFT trading market at virtually no cost.
(2) Support for 4 mainstream decentralised storage
Some NFTs marketplace currently use centralised storage solutions, which results in the user’s metadata being stored in a centralised network, and this may lead to the loss of the creator’s work.
Based on this, Element has decided from the beginning of its design to support four decentralised storage solutions such as IPFS, Filecoin, Arweave and Swarm to protect creators and buyers from losing their NFT products and reduce the risk of participating in the market.
(3) Support for NFT file sizes
In addition to considering storage issues, Element has also conceptualised the NFT work itself by expanding the size of NFT files. Data shows that platforms such as Opensea and Rarible currently only support creators to post works of 40M and 100M in size. In contrast, Element allows creators to publish works of 120M size, and supporting Ultra HD video files.
(4) Protecting creators’ rights and prohibiting malicious bot bidding
The current NFT marketplace is similar to an e-commerce platform and is prone to malicious bidding for rankings. In order to improve the ranking of NFTs and increase exposure, some users may use bots to place malicious orders to improve their ranking.
In response to these situations, Element limits the minimum order amount and the number of orders per account per day to prevent bots from placing malicious orders at prices that are completely unlikely to result in a transaction, ultimately protecting the rights of creators.
From the user’s perspective, Element is designed to improve the user experience in terms of product search, transaction costs and transaction medium.
(5) Two language version, optimization of NFTs search
In order to improve the user experience and facilitate better use of Element by users, Element will launch two versions of the product in Chinese and English. At the same time, Element will also re-categorise all on-chain NFT works on Ethereum and present the categories to users in a visual way so that they can easily and quickly find the NFTs.
(6) English Auction Gas Fee Subsidy
Between August last year and the present, congestion on the ethereum network has increased and Gas fees have risen significantly due to the two boom waves, DeFi and NFT, which have discouraged smaller investors looking to enter the new market.
As a result, Element has launched a subsidised Gas fee scheme to lower the barrier for investors. In the English auction, Element allows creators to set the minimum reserve price for bidding at 0.3 ETH (three times lower than Opensea), lowering the barrier for buyers to bid. It will also pay a Gas fee for buyers who win a piece in the English auction. This means that users can bid on NFT works of interest in the English auction without paying a Gas fee.
(7) Lowest transaction fees
In addition to subsidising the Gas fee, Element has also introduced the lowest transaction fees across whole industry to further reduce the cost for users to participate in the NFT market. When users bought NFT works, Element only charges a 2% transaction fee, which is one times lower than the level of Rarible charges.
(8) Cross-chain interoperability
Currently Element is built on Ethereum, in the future it will access many different chains such as Polygen, BSC and Near, enabling multi-chain minting, searching and trading, ultimately supporting users to access the NFT market place with lower Gas fee and faster speed.
In the overall platform development direction, Element is committed to realizing true decentralization and plans to promote platform governance by gradually introducing the DAO community. Currently, Element platform has started to form Element DAO, the first step into the decentralisation phase, and plans to launch a series of NFT works customized by a team of well-known designers through mechanisms such as community rewards.
In terms of Element’s positioning, as its founder Fred Wang says, “in product functionally, Crypto Element is an auction protocol marketplace at its core, but fundamentally it should be a crypto-enabled social networking platform. Creators and fans can create more stable value connections and even become a DAO like our world.”