PawnHouse, the World’s First NFT Oracle, Pays Tribute to Claude Shannon, Kevin Kelly, Paul Milgrom, and Robert Wilson

NFT oracles are more complex than DeFi oracles, and it takes great wisdom to solve the problem of NFT asset pricing. Nevertheless, we are glad to have found such a method:

We need to solve three problems. One is the source of price information, the other is the accuracy of price information, and the third is the motivation for information generation. Oracle’s information’s source, accuracy, and sustainability constitute the three elements to solve this problem.

Firstly, a tremendous thanks to Claude Shannon and his “A Mathematical Theory of Communication”, which solves the problem of information sources.

He quantified the smallest unit of information as bits. This achievement is comparable to the unit of Newton’s quantification power as N. The giant who pioneered the theory of the information world pointed out that “Information can be thought of as the resolution of uncertainty.” Therefore, to provide a theoretical basis for the solution of NFT assets, we need enough accurate information to increase the certainty of NFT asset prices.

Then, we would like to thank Kevin Kelly and his “Out of Control: The New Biology of Machines, Social Systems and the Economic World” for helping us solve the accuracy of the information.

The solution is a robust collection of quotation information from users, enabling the emergence of an NFT Oracle. Moreover, it is more in line with the idea of decentralization in the crypto world.

Finally, we would like to thank Paul Milgrom and Robert Wilson and their theory of winning the Nobel Prize in Economics, which showed us how to obtain the motivation factor of information sustainability.

The SMRA theory they put forward successfully solved the problem of information output motivation for asset pricing. And their theories finally provide us with a practical and feasible structural solution for the complete resolution of the pricing of NFT assets.

We face an incredibly complex world. Yet, those giants in history have become the beacon of our voyage. We inherit the light of their wisdom and illuminate the journey of future generations.

PawnHouse Team

November, 2021

About PawnHouse

The PawnHouse project team combined and applied both the SMRA theory (2020 Nobel Economic Prize) and The Wisdom of Crowds theory to effectively solve the issue of decentralized NFT asset-pricing and improve the liquidity of NFTs.

Due to its unique characteristics, the historical transaction price of NFT is determined by private value. This results in less effective price information and is easier to control. By introducing price proposers to the market, PawnHouse satisfies both common and private values, and provides a comprehensive and rich price collection strategy. While building a price corridor for NFT assets, PawnHouse also supports NFT’s collateralization and auction transactions.

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