LUKSO: NFT Chain
By Rayna Ishihara | Crescent City Capital Market Analyst Intern
What is LUKSO
As the digital revolution continues to unfold, there is a growing trend of creating fashion items and collectibles in the form of non-fungible tokens (NFTs). This shift has led to the fashion and collecting industries being recognized as untapped opportunities in the NFT market. LUKSO is at the forefront of this movement, pioneering the exploration and development of NFTs within these industries.
LUKSO is a blockchain platform created to offer a fresh infrastructure for the fashion design and lifestyle sectors. It operates on the Ethereum network and employs a proof of stake (POS) consensus mechanism. One of its primary focuses is on digital identity and digital assets. LUKSO allows users to generate and manage their own digital identities, providing them with increased flexibility and authority over their personal data and information. Another notable aspect of LUKSO is its emphasis on digital assets, specifically within the fashion and lifestyle industries. The platform facilitates the creation and exchange of digital assets such as fashion designs, virtual fashion items, and other lifestyle products. These assets can be traded on various marketplaces and platforms, with ownership and authenticity validated through blockchain technology.
Additionally, LUKSO places significant importance on sustainability and ethical practices, striving to promote eco-friendly approaches within the fashion and lifestyle industries. By establishing a transparent and secure platform, LUKSO enables the monitoring of supply chains and product life cycles. The native cryptocurrency of the LUKSO network is the LUKSO token, which serves various functions including staking, governance, and transaction fees. Furthermore, the token is designed as a bridge connecting the LUKSO network with other blockchain networks, facilitating the exchange of assets and information across different platforms. Overall, LUKSO is an innovative blockchain platform that aims to tackle key challenges in the fashion and lifestyle industries, such as the need for transparency, sustainability, and digital innovation. It provides a secure and transparent environment for the creation and exchange of digital assets while granting users greater control and ownership over their personal data and information.
The founder of LUKSO, Fabian Vogelsteller, is credited with authoring the ERC-20 token standard, which played a significant role in the ICO wave of 2017. Additionally, Fabian has contributed to other notable open-source projects, including Mist, Ethereum’s first decentralized web3 browser, as well as the Ethereum wallet and web3.js library, which is widely used by developers in the blockchain community.
Marjorie Hernández, co-founder of LUKSO, holds the position of CEO and is responsible for overseeing the architecture, strategy, and innovation consulting of the project. Prior to LUKSO, she joined Ernst & Young in 2015, where she established an innovation lab. Bringing her expertise to LUKSO, Marjorie leads the conceptualization, design, operations, and product development of the platform.
What is NFT
The digital revolution has ushered in significant transformations in our lifestyles, work dynamics, and social interactions. A prominent aspect of this revolution is the increasing utilization of digital technologies within the fashion and collecting industries for the creation, distribution, and consumption of goods and services. This paradigm shift has given rise to non-fungible tokens (NFTs), a novel form of digital assets that are authenticated through Blockchain technology, ensuring their security and immutability. NFTs are now being employed to represent fashion items and collectibles, spanning from digital images to virtual fashion articles. These NFTs can be traded, bought, and sold on various platforms and marketplaces, mirroring the transactions involving physical items in the real world. The integration of NFTs in the fashion and collecting industries offers several advantages. Firstly, it enables the generation of unique and verifiable digital items, thereby enhancing their worth and authenticity.
Secondly, it facilitates greater flexibility in terms of creation and distribution, as these items can be readily shared and exchanged across diverse platforms and marketplaces. Nevertheless, the use of NFTs in these industries also presents challenges. Concerns arise regarding the risk of counterfeiting and fraud, given that the value of these items hinges largely on their authenticity and distinctiveness. Moreover, environmental considerations are raised due to the substantial energy consumption associated with Blockchain technology. Despite these hurdles, the adoption of NFTs within the fashion and collecting industries is projected to continue its upward trajectory, as more designers and collectors embrace the tremendous possibilities and opportunities afforded by this novel digital medium. In this video, we will explore a multiverse blockchain network where fashion, gaming, design, and social media intersect. LUKSO allows developers and creatives to shape the distribution of wealth and influence stemming from lifestyle activities, create universal public profiles, establish digital identities and certificates, and build tokenized communities.
LUKSO’s Network Architecture
LUKSO’s network architecture is built on the Proof of Stake consensus protocol, which relies on validators to secure the network and maintain consensus. The protocol incorporates two key elements to ensure a secure and efficient network.
The first element is achieving finality, which means that once a block is added to the blockchain, its information becomes immutable and cannot be altered. To achieve finality, LUKSO utilizes Casper the Friendly Finality Gadget (Casper FFG), a consensus mechanism specifically designed for this purpose.
The second element is establishing a defined ruleset for block arrangement, particularly when multiple blocks require simultaneous validation. In such cases, conflicts can arise, leading to splits in the linear chain at the latest common block. LUKSO addresses this challenge by implementing the Latest Message Driven Greediest Heaviest Observed Subtree (LMD GHOST) protocol. This algorithm provides the necessary ruleset to ensure unified computation on a single branch, effectively resolving blockchain splits.
Summary
LUKSO is a blockchain platform designed to cater specifically to the needs of the fashion and lifestyle industries. It offers a decentralized network that enables the creation, authentication, and trading of non-fungible tokens (NFTs) representing fashion items, collectibles, and digital assets. LUKSO’s network architecture is based on the Proof of Stake consensus protocol, ensuring security and efficiency through validator participation. The platform also incorporates innovative mechanisms like Casper FFG for achieving finality and the LMD GHOST protocol for managing block arrangement and preventing blockchain splits. LUKSO aims to revolutionize the fashion and lifestyle sectors by leveraging blockchain technology, providing unique opportunities for creators, designers, and collectors to engage in decentralized and transparent digital experiences.
Recent Updates
The live LYX price on January 29th is $9.29 USD with a 24-hour trading volume of $291,090 USD. It has a circulating supply of 30,535,907 LYX tokens.
The price of Lyx has decreased by 7.99% in the past 7 days, and increased by 20.05% in the past months. Lyx is 20.08% below the all time high of $11.61.
Market Analysis
The LUKSO mainnet was launched in May 2023, making it a relatively new cryptocurrency with limited available information. Personally, I believe LUKSO is a newly developed crypto platform with great potential. The current price of LUKSO is undervalued, having increased by 45% since its launch.
Let’s begin with the chart analysis. Currently, LUKSO is trading around $9.4. For short-term traders, a potential exit point could be around $10.7, as indicated on the graph. An optimal entry point might be around $6.5. In late October 2023, LUKSO tested the support line and experienced a surge in price for three months. Recently, a slight downtrend has occurred. Thus, it could be a good opportunity to wait for a minor price decrease before entering the market at an appropriate level.
In January, LUKSO organized a series of hackathons, which is basically bringing engineers together to develop solutions within a short timeframe. These solutions were then presented to a commission, which evaluated and rewarded the winning projects. This initiative is significant as it attracts more developers to the LUKSO platform. By incentivizing builders and developers, LUKSO aims to increase the number of products and dApps on their platform, leading to higher liquidity and transaction volume. Overall, these hackathons are viewed as bullish events for LUKSO, fostering growth, innovation, and expansion within the ecosystem. Consequently, I believe the next surge in price could occur in February or March.
One compelling reason why the market sees great potential in LUKSO is its strong founding team.
LUKSO’s co-founders, Fabian Vogelsteller, have notable backgrounds. Fabian Vogelsteller, alongside Vitalik Buterin, was part of the engineering team behind Ethereum and played a crucial role in delivering the ERC-20 protocol, which serves as the foundation for many tokens on Ethereum. Marjorie Hernández, another co-founder, is a prominent figure in the Memphis fashion world, actively exploring the intersection of web3 and high fashion. The combination of Fabian Vogel’s technical expertise and Marjorie Hernandez’s knowledge of the fashion industry positions LUKSO well for success.
Another reason why I believe LUKSO has significant potential is its ability to lower the barriers to entry in the web3 market, thereby attracting more users. This is essential for increasing liquidity within the ecosystem. LUKSO addresses user experience challenges and transaction fees associated with using different dApps by implementing universal profiles, providing a user experience similar to Instagram.
In conclusion, I personally consider LUKSO to be a newly developed crypto platform with great potential, based on the reasons mentioned above. For short-term investors, setting a target exit price around $10.7 and an entry price around $6.5 could be a suitable strategy. For long-term investors, holding the token until the end of 2024 might be a favorable choice.
References
https://docs.lukso.tech/faq/network/blockchain-architecture/
https://coinmarketcap.com/currencies/lukso-network/
https://www.tradingview.com/symbols/LYXUSD/?exchange=CRYPTO