The Other Layer 1: How LUKSO Approaches NFTs and Identity Differently

Photo by Steve Johnson on Unsplash As the internet transitions from Web2 to Web3, users are no longer dependent on centralized platforms or big tech companies to manage their data, content, or online identities. In this shift, digital identities become fully user-controlled, deployed as smart contract accounts on blockchain networks. These systems offer better security, autonomy, and privacy. And while future integrations like zero-knowledge proofs (ZKPs) may further improve private verification, today’s models already represent a major shift in how identity is constructed and maintained online. This redefinition of online identity changes how we use the internet and opens new creative opportunities. One of the technologies helping digital identities growth is the Non-Fungible Token (NFT), not just as a collectible, but as a programmable, identity-linked asset that creators and cultural engineers can use to build persistent, self-owned digital presences. NFTs as Building Blocks of Digital Identity NFTs are commonly known as digital assets: photography, animations, written content, or videos, stored on the blockchain. But their role is quickly evolving. Across the Web3 space, projects like Lens Protocol (NFT-based social profiles), POAP (event credentials), and Ethereum Name Service ( ENS ) (blockchain usernames) have explored how NFTs can function as identity primitives. These tokens are becoming dynamic, verifiable representations of ownership, access, and digital presence. At their core, NFTs contain unique metadata and smart contract logic that make them immutable, interoperable, and tamper-proof, laying the foundation for trust in decentralized identity systems. LUKSO , a Layer 1 blockchain designed for creative and cultural use cases, builds directly on this potential. It introduces a standardized framework that treats NFTs not just as assets but as programmable extensions of on-chain identity, tied to smart contract-based accounts called Universal Profiles. LUKSO’s NFT Standards vs Traditional NFT Models While early NFTs focused on scarcity and static media, LUKSO reimagines them as building blocks for identity, interaction, and infrastructure. Built on an EVM-compatible blockchain, LUKSO introduces a suite of smart contract standards, known as LSPs (LUKSO Standard Proposals), designed to support creators, developers, and cultural ecosystems. LSP7 and LSP8: Digital Assets for the Next Internet LUKSO defines two core asset standards: LSP7 – Digital Asset: For fungible tokens (like community currencies, loyalty points, or reputation systems). LSP8 – Identifiable Digital Asset: For non-fungible tokens (NFTs) representing unique items, such as avatars, wearables, memberships, or even identity tokens. These asset types are natively interoperable with Universal Profiles (UPs) and include features not present in older standards like ERC721 or ERC20: Transfer notifications (via LSP1): Every asset interaction can emit signals to the recipient profile or contract. This enables reactive behaviors when apps are designed to listen and respond, laying the groundwork for more composable interactions between assets, users, and platforms. Dynamic metadata (via LSP4): NFT and token metadata is stored on-chain as extensible JSON, including details like creator attribution, license, versioning, and usage intent. Gasless transactions (via LSP25): When supported by relayer infrastructure (like in UniversalEverything.io or the UP Browser Extension), users can interact with NFTs and dApps without needing to hold LYX, lowering onboarding barriers. Together, these upgrades turn NFTs into modular, identity-linked infrastructure, capable of supporting more nuanced and future-facing use cases. Offering New Capabilities for Creators True Ownership and Control At the heart of LUKSO’s infrastructure is Universal Profiles (UPs), smart contract accounts that replace traditional wallets (EOAs). Once a creator deploys a UP, they own a tamper-proof, upgradeable identity that can’t be altered or removed by any third party, not even the platform that displayed it. All access to the Universal Profile itself is governed by on-chain permissions (via LSP6), which determine who can execute transactions, manage keys, or upgrade logic. While assets can be connected to the profile, they may retain their own permission logic unless designed to integrate with the profile’s controller system. This model is a big shift from both Web2 profiles (controlled by platforms) and early Web3 wallets (which offer limited security and flexibility). UPs function more like customizable, secure operating systems for creators’ online presence. Monetization Across Multiple Platforms A key limitation of ERC721 is its single-approval design: creators can only list an NFT on one marketplace at a time. LUKSO’s standards solve this by allowing multi-platform interoperability. NFTs built with LSP8 can be listed, traded, or interacted with across any platform that supports Universal Profiles, without requiring manual approvals or compromising ownership. This approach lets creators reach a broader audience for potential sales, leverage multiple platform strengths, and retain full licensing or royalties control without being bound to a single platform. Interoperable Profiles On LUKSO, profiles are portable. Through interfaces like UniversalEverything.io or the browser extension, a creator’s Universal Profile acts as a consistent identity layer across social networks, marketplaces, apps, and dApps, without needing separate accounts or fragmented wallets. It becomes the interface through which assets are managed, displayed, and interacted with, carrying with it the full context of metadata, permissions, and reputation. Customization and Evolving NFTs NFTs on LUKSO aren’t frozen at mint time. Using LSP4 (Digital Asset Metadata), creators can define on-chain metadata schemas that include functionality, licensing, or utility, and update them later. This enables digital assets that evolve over time, reflect versioned work, or adapt to specific audiences or contexts. Assets become containers for creator-defined logic, not just static tokens. The Impact of LUKSO’s NFTs on Creative Economies and Industries LUKSO introduces a more adaptable set of tools for creators working with digital assets. Instead of limiting NFTs to static media files with fixed metadata, its standards allow for assets that can evolve over time, carry richer contextual information, and remain directly tied to a creator’s profile. This matters for industries, like art, fashion, or entertainment, where the work itself usually changes post-release, where attribution is important, and where creators need distribution options further than a single platform. One important shift is how metadata is handled. With LUKSO’s standards, NFT metadata is stored on-chain and remains editable, so a digital fashion piece might gain new traits after a runway event, or an artwork might change visually in response to a season, milestone, or audience interaction. Assets can also be listed across multiple marketplaces at once, avoiding the platform lock-in that’s typical with standards like ERC721. These mechanics create space for more fluid, collaborative, and iterative creative practices.-LUKSO’s architecture is particularly relevant for creative industries where context, attribution, and adaptability matter. Instead of treating NFTs as media files, LUKSO treats them as programmable, modular components of an identity-driven internet. Creators can issue NFTs that update after launch—reacting to real-world events, collaborations, or creative direction. A fashion piece might gain traits after a runway show; a visual artwork might unlock new elements on an anniversary. Metadata can be editable when creators design NFTs using LUKSO’s flexible metadata standard (ERC725Y + LSP4). This enables digital assets that evolve over time, reflecting versioning, audience interaction, or contextual changes. For industries like fashion, art, entertainment, and design—where much of the work evolves after its release—this model reflects how creative economies already operate. Examples in Use A few early projects show how this plays out. The late Karl Lagerfeld’s estate launched a collection of NFTs on LUKSO as a way of experimenting with digital legacy and scarcity in luxury fashion. The drop showed how a traditional brand could issue limited-edition assets without relying on any single marketplace or proprietary app, while still keeping control over the presentation and licensing of the work. Burnt Pix , a generative art project native to the LUKSO network, used LSP8 to mint identity-aware NFTs where each piece is not only unique, but tethered to a profile and designed to support future updates, turning what would normally be a fixed artwork into something more responsive and reconfigurable. And KidSuper Studios , known for mixing storytelling with streetwear and digital experimentation, has explored LUKSO as a way to release creative works that aren’t just viewed, but interacted with, whether that means narrative-driven collectibles, evolving visual tokens, or fashion pieces with embedded metadata about origin, intent, or version. Conclusion As NFTs grow above static collectibles, they’re becoming part of the infrastructure for digital identity. Through standards like LSP7 and LSP8, LUKSO introduces a more adaptable framework, one that supports profile-linked assets, editable metadata, and interaction across platforms. These tools offer developers, creators and cultural engineers more than distribution, they offer continuity, authorship, and context on-chain. While LUKSO shares Ethereum’s technical foundation, it applies that base in a different direction, one focused on creative economies, identity, and long-term digital presence. It’s not just an ecosystem for trading assets, but a place to experiment with how identity, ownership, and culture are built online. Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.