What Are NFTs? And Whether Your Business Should Care?

Nobody believed in the internet in the late 90s and early 2000s, but the rise of Google is all the proof naysayers need today. The google and alphabet company ecosystem is already at a 2 trillion valuation! Social media platforms were also called a teenager thing, and now almost half of the world is on some social media platforms. 

Every new technology is a fad until proven profitable. But by the time the new concept reaches its peak, the competition increases way too much. Too many players with enough experience and experiments can easily beat a newbie.

That is why we are here with all juicy, trendy info on the most exciting buzzword in the business world, NFTs. Let’s begin with what these are exactly.

So, What are NFTs?

NFT stands for non-fungible tokens. The simplest way to understand a non-fungible token is to understand what a fungible token is. The everyday currency in the world is fungible money or token. If you have 2 ten dollar bills and I have a twenty, we can exchange them, and there is no problem with that transaction. It is because the value is identical even though the bills are two different pieces of paper. The value exchange is similar in this case.

Now, non-fungible tokens have different values, even if things are the same.

But why might similar items have different values? For that, we should understand an inherent problem with digital media.

For instance, if you have a digital picture, somebody can take a high-resolution photo of that picture, and they have an exact representation of that digital picture. As if there was no difference!

It’s like you have a picture of Ronaldo kicking a football for a goal, and we also have a picture of him aiming for a goal. Now, why would anybody pay for your picture when they can screenshot it?

Also Read: What Are NFTs And How Do They Revolutionize Digital Art?

But with the invention of the blockchain (don’t think of it as another big term that needs a 1000 word blog for an explanation, just go with the terminology), now we can say that your screen capture of that Ronaldo goal has real utility.

So how do you know that it has utility?

There are digital wallets to store your digital creations (pictures, video, animation, GIFs, etc.). Other applications and websites can recognize these wallets. Now, it has no real value if anyone else takes a screenshot but doesn’t have the verified metadata that conveys the applications about its authenticity.

Let’s say you own a picture of Camila Cabello performing on stage. You made 100 copies of the picture with different token numbers. Now, if someone tries to sell the same picture without a verified token number with it, the blockchain will tell that it’s not one of the registered 100. It gets even more interesting. Not all similar tokens are of equal value. They look identical, but the token no. 7 might have more value because people think it’s lucky. Or the token no. 100 might have more value as it’s the last one in the sequence. That’s how collectors will increase the value of their digital assets.

Quick NFT stories of big brands

• NFTs of Nike sneakers  

The global sneaker favourite brand has announced that an NFT will be certified with a pair of sneakers to mark its originality. The NFTs will be stored in a virtual locker – CyrptoKick. The culture of collecting, stocking and reselling sneakers will be on the next level, with an NFT seal of authenticity attached to a pair. Such NFT can have many uses, like buying stuff in video games, online sneaker forums, etc.

• The NBA NFT moments  

Following the sports cards legacy, the National Basketball Association (BNA) released an NFT project named ‘NBA Top Shots’. Fans can buy digital collectables of moments from favourite teams, players, matches, and a certificate with the original clip. This is direct to consumer strategy to connect deeper with the team and players.

• Coca-cola NFTs  

Coca-cola launched an NFT auction on international friendship day. The collectables included iconic coca-cola assets for the metaverse inspired by moments of friendship. The assets can be used on virtual reality platforms, games, etc.

How NFTs can change your business

It is true that many people think that NFTs are on a high for now, and it will be another clubhouse in a couple of months. NFT has managed to get so much attention because it connects too many social and financial issues. There is a crypto perspective, virtual reality perspective, defi perspective, and it has captured the social media eyeballs at first.

Many people think that an NFT bubble is going on, which will burst soon. But experts have different views on the mind-boggling trend.

While the people in the art, music and entertainment must have been following the NFT space for a while and might also have an idea about where it will go, for other business domains, NFTs are an important technological advancement as well. Many experts agree that NFTs are worth following. There is no doubt that there is a valuation bubble, but the future is sustainable and inclusive.

The prime benefit of NFT tokens is that they are one of a kind. Brands and businesses have the opportunity to create a unique experience for customers that they can’t get anywhere else. The NFTs for your business bring individuality and a non-repeatable USP. Even with copies of a digital asset, NFT ensures that they own the original.

NFT has created a lot of ground for retail, investments, collaborations, marketing and sales. Businesses can leverage AR and VR to bond with customers and create immersive brand experiences. They just need to understand the NFT space and use it for their operations.

In the future, digital wallets will play a significant role in how assets will be valued. The NFT technology has already made its mark on social media and the digital world. So investing in NFTs now will give your business a head start in years to come as their popularity is sure to surge.

NFTs will form new communities in the digital world. What will your wallet hold be the new base of friendship and online communities within society? NFTs will make your business verified among the more tech-oriented audience in the future.

Ready to ride the NFT extravaganza?

Analyzing the NFT space, two things are certain –

1. There is a high valuation of NFT going on and
2. The future belongs to NFTs

Even if people around you think that NFTs will not be the next internet or social media, it is sure that they are here to stay. NFT are new so was uber, google, the internet, and all the disruptive inventions of the world. But just because it’s new doesn’t mean it’s not going to work.

Also Read: What is a CRM? And How Does it Help in Cutting Business Costs?

The old systems will be broken, and that’s how human societies work. Investing in NFTs might not be the safest move for your business, but it’ll be a smart one soon. Do your research, keep experimenting, understand how the NFT space is changing, and you’ll be on a winning trajectory.

We hope this blog cleared the hype of NFTs and helped you look into them with a fresh perspective.