Home » FAQ » NFTs 2.0 – Everything You Need To Know!

NFTs 2.0 – Everything You Need To Know!

The world is changing fast. Very quick. You may have heard the term NFT for the first time a few months ago, now you blink and suddenly you hear NFT 2.0 coming up again. Even more unique, even more possibilities. 

Just when you thought you were starting to understand the NFTs a little, the next thing is just around the corner. You could say that the NFT world is booming at the moment. 

Do you want to know more about the difference between NFT 1.0 and NFT 2.0? Curious about what NFT 2.0 entails and whether this is something you should also delve into? Don’t want to be left behind? Then read this article, so you can find out everything you need to know and keep up with the hype. 

What is NFT 2.0?

NFT 2.0 is an NFT where one NFT can contain multiple NFTs. So something new. 

But let’s start at the beginning, namely with NFT 1.0. The NFTs as you know them are a – not so much anymore – new hype within the crypto world, where digital art is traded for hundreds of thousands of euros. Before we look at NFT 2.0, let’s see what NFT 1.0 is.

What is NFT 1.0?

We previously wrote an extensive article about NFTs. In short: NFT stands for Non-Fungible Token. When we translate this it says non-replaceable token. That probably doesn’t tell you much. It means that NFTs are 100% unique. This is in contrast to, for example, Ethereum (ETH). If you buy one ETH today, sell it, and buy another ETH in two days, there’s no chance that it will be the same ETH. In other words: ETH is replaceable. This does not apply to NFTs. These are unique items, for example, digital artwork or collectible. When we talk about artwork, it is therefore about unique digital art. Not a painting of which 1,000 copies were made. So actually an original, unique Van Gogh, but digitally. 

NFTs are digital collectibles. Owners of this digital art have this in their wallets, such as Metamask, or on the blockchain for trading. Found a buyer? Just sell it. For example, nowadays money is made with NFTs. 

The NFTs we talk about above are especially popular in the arts and games industry. In the game industry, we see that you can use the purchased art in different games. When the NFTs just got hip, we talked about pretty ‘simple’ art, like for example pictures or maps. You own it, you can show it or sell it. We are now much further than just ‘simple’ art. Nowadays you also have music albums as NFTs (for example, Kings of Leon released a music album as NFT) or you can buy a piece of unique video from events. 

Since the inception of NFT 1.0, NFTs have tremendous growth, such as the Bored Ape Yacht Club. These NFTs have been sold for terribly high prices. In fact, like other technologies, the technology behind NFTs is never ‘finished’ and there is always room for improvement or for a better version. Only these NFTs are no longer of the Bored Ape Yacht Club genre but of the “composable art legos”. What this is is discussed below. 

NFT 2.0: a whole new dimension with nested NFTs

And then NFT 2.0 was born. This allows you to do more than just ‘leave it on the blockchain’. 

No more simple art, but add-ons. With the add-ons, you can add all kinds of unique things to the NFT. You can add multiple items to make your NFT even more personal and comprehensive. You may know add-ons from the game world. Suppose you have a certain character in a fighting game, you can add all kinds of items to become stronger, for example, a shield or bow and arrow. That’s how it works with the NFTs 2.0 too. As an example with a character. One character (NFT 1.0) can now add add-ons (e.g. a shield). Did you add this? Then you can collect new add-ons afterward. 

These are the nested NFTs with ‘nested layers‘. People no longer have enough of one picture and want more. 

Features of the version 2.0

In order to be able to speak of NFT 2.0, there are a number of conditions that an NFT must meet. 

An NFT must be ‘extensible‘. In other words: it must be expandable by connecting to other projects or NFTs. You can therefore link certain NFTs to each other or to another dataset. Your NFT is not ‘just’ that picture anymore, but is much more complete if you want it. There is no limit to the number of nested layers, so you can keep creating. Below is a picture of what this looks like in practice.

An NFT must be upgradeable. This means that the future is immediately taken into account and that NFT 2.0 is resistant to changes that are not (yet) foreseen. An update can take place in the art itself, but can also consist of new sources. 

An NFT must be dynamic. This is quite logical because there are elements to add to the NFTs 2.0. The owner can apply this as much as he or she wants. 

These three characteristics are necessary to be able to speak of the new dimension: NFT 2.0. So much more than NFT 1.0. 

Possibilities of NFT 2.0: by RMRK

RMRK (pronounced: remark), and even more advanced NFT protocol, is one such project that deals with NFT 2.0. How does RMRK describe themself? 

You can find this on their website:

 A set of NFT legos that are standalone but allow the NFT creator to build a system of arbitrary complexity when putting them together. A set of standards on the Kusama blockchain, making NFTs. 

RMRK, therefore, builds from the Kusama blockchain. You can see it as Lego blocks, which can be expanded infinitely without the need for parachains or smart contracts. 

The NFTs in RMRK has four corresponding characteristics or skills: 

  • Nested NFTs: As explained above, several NFTs in NFTs. The chain can go on indefinitely, with many different combinations. You see this, for example, in gaming or in the metaverse. 
  • NFT DAOs: the DAO functionality is used here. If the NFT is too expensive, interested parties can collect money to still purchase the NFT. For example, this NFT consists of tokens from several people. Have enough tokens been collected and decisions need to be made about the NFT? Then everyone with a share in tokens can participate in the decision-making. This also applies to profit. Together, investments are made in an NFT, because one person cannot afford it, for example. Will the NFT be sold? Then everyone also shares in the profit. Of course, this also applies to the loss that can be turned. There is talk of fractionalized NFTs. 
  • Reactive NFTs: Two different types of NFTs, where the difference is in the source. For example, consider a tree that is exposed to daylight during the day, but becomes dark as soon as night falls. So there are two sources of codes for these NFTs when it is actually the same art. Yet here lies the difference. This is not possible with the previous NFT 1.0. 
  • Multiple Sources of NFTs: As explained earlier, 2.0 goes beyond 1.0. Much more is added, think of the add-ons, music, or other files. The main difference is that you are now building NFTs in another NFT. With version 1.0 you also had music, or videos, but not added to other NFT. 


Singular is Remark’s marketplace or store for nested NFTs. So you have the “NFTseption” here, as it is beautifully said in the video below. The RMRK marketplace has been developed for Kusama NFTs (the network on which it is available). The advantage of Singular? It is durable and it has low fees. A great place to purchase your NFTs. 

The team behind RMRK

The team is completely doxxed and can be found on the website, including photos and a biography. The founder is Bruno Force. He has a lot of technical knowledge, was always a web developer, worked in computer science, and has worked on ETH 2.0 and Polkadot. He has now started his own business with RMRK. 

Bruno Force talks in a video about the countless possibilities. You can do so much on RMRK that as a developer it’s hard to make a choice because there are so many options. He wants to simplify RMRK with clear papers. 

The other drawback is that there is slow synchronization of RMRK with different blockchains. It is expected that this will get even better in the future, but that is of course never certain. 


The roadmap of RMRK

The roadmap can be viewed in full on the website. Nice goals have been set, such as launching an RMRK 2.0, an auction, and taking RMRK towards the metaverse. 

RMRK went live on September 15, 2021, and currently holds a maximum of 10 million tokens. RMRK is currently in the top 100 NFT coins. You can mint or create NFTs with it, it becomes the currency of the Remark universe and it is used as a governance token, with which you can determine the policy. 

The future of NFT 2.0

NFT 2.0 is really seen as magic. It has a lot of potential, especially when you realize that all these combinations are endless combinations. To make this clear, we make a small side step to Kanaria.


The RMRK team has developed Kanaria, based on a proof of concept. Imagine laying those eggs, see also the picture below. 

This team produced 9,999 eggs, which were available for two months. Interested parties can purchase these. All that was left was burned. In other words: the burning of tokens. The eggs that were left were incubated by the canaries. 

What’s unique about this whole process? The hatched canaries were affected by emotes. Emotes are a type of emoticons used on Twitch by streamers and viewers. Emotes allow you to express certain feelings. So a kind of smiley. So real influence could be exerted on the outcome of the canaries. You can see this as a ‘conditional’ reproduction of the birds. 

Without going into too much detail about this NFT project, the point is that every bird owns items. These are items that belong to the nested NFTs. You can sell these items, or you can buy other items. In other words: you can influence your own canary by playing with the emotes. By collecting certain emotes, you can play your canary’s ‘outcome’ once the canary hatches the eggs. This is not a guarantee and there is no limit. Your bird will be worth more and more.

Interesting isn’t it?

Dog Rescue NFT

It may sound almost unreal that you can earn money with this, but now there are many such projects on the market. Other examples of applications or projects based on the NFT 2.0 principle are, for example, Dog Rescue NFT. With this project, you do not buy an adoptive dog, but you take care of a puppy online. You take care of a dog. It’s almost too bizarre to believe, but others pay for medical expenses, for example. In return, you send photos, as you sometimes see in real life with third-world countries. A kind of sponsorship. 

By constantly adding items (so the so-called Lego blocks we discussed earlier in this article) and taking better and better care of the puppy, your dog can eventually be adopted. Result? You sell your dog, receive money and someone else takes care of the dog digitally from that moment on.

It shouldn’t get any crazier. 

 “The only limit is your imagination”


While NFT 1.0 has only just begun, you are already encountering NFT 2.0. More possibilities, more extensions, and even more new and promising projects. We are not yet half aware of how much potential there is in the 2.0 version and what is possible. 

RMRK is a good example of an NFT 2.0 project. RMRK has built the Kanaria NFT capabilities and immediately shows all the possibilities and features of the infinite combinations that the NFTs can handle. This also applies to the Dog Rescue NFT project. More and more is possible. 

Josephine Tsang

Josephine Tsang

Software Engineer, Blockchain enthusiast, Bitcoin miner, gamer and anime fan. Love to share knowledge on the web (on my own blog, for immla, on twitter or reddit). Always on the look for the coolest and newest Web3 updates. Hope you guys enjoy my writing!

Leave a Comment