NFTs or Non-fungible token is the technology that enables us to verify and identify ownership of a unique digital item. What NFTs are or how do we use them, is still the most common question that comes along when someone hears or reads about it for the first time.
Digital items can have different forms such as art, collectibles, music, games, sports, etc…
How do we use NFTs?
The most known use case for NFT at the moment is probably digital art, as it created big headlines for a digital image (from the artist known as Beeple), that was sold for $ 69.3 million at Christie’s in February 2021. Until now (April 2021) this is also the highest price ever paid for digital artwork. The buyer even revealed himself after his purchase created huge news.
This case is the simplest and most efficient way to show everyone who has no knowledge about Blockchain in combination with NFTs how this new disrupting technology is being used. Especially the questions what NFTs are should be answered when the concept of an original art piece is explained.
In some ways, the time has arrived, where digital art is breaking through and gaining the exposure and appreciation it has never had before. New breeds of digital artists have now the possibility to mark their unique masterpieces as the only original. There still might be copies of the piece but it now can be easily verified if it’s the original or just a copy.
“We are already living in the future!”
What are the advantages of NFTs?
Artwork can now be verified by everyone without third parties or intermediaries like an auction house or an art expert. This also results not only in more unique work, fewer copies but also in a larger percentage of the profits for the creator.
Another high profile adoption for mainstream NFTs is used in the sports and entertainment industry. The NBA has partnered with Dapper Labs (a blockchain company) to create a marketplace called Top Shot for NBA highlight reels. Fans, collectors or enthusiasts can now be the verifiable owner of a spectacular moment in basketball history. These so-called “Moments” can be owned and sold at Top Shot. While the NBA is the first sport that embraced this technology we can expect other sports leagues like UFC, NFL, etc… to follow along to give their fans what they want to become part of a unique moment in sports history. Can you imagine owning the historical moment when Michael Jordan made his first shot in the NBA or even his last winning shot? I surely can…
The music industry is also another area where NFT’s surely gained attention and is already being adopted. The American rock band “Kings of Leon” is the first Band to release their new album “When You See Yourself” also as an NFT.
The new album will be released in its usual form as digital downloads on Spotify, Apple Music etc… but in addition to the normal album, the NFT version will have special perks. The NFT version of the album will offer lifetime access to front-row seats for live shows, exclusive audiovisuals and a different (moving/animated album cover) limited-edition vinyl.
NFTs are exciting not only because it’s a new way to decentralize digital items and verify originals but also because of the speculative nature of this technology. There is also an increasing number of individuals that intend to sell their NFTs for profit but on the other side are also the collectors that just want to own a piece of art, moment, or history. On whichever side you are, the fact that you are now aware of it confirms that it’s rapidly growing in popularity and my guess is that it’s here to stay.