The Revolution of NFTs

 

NFT games, NFT art, and non-fungible tokens. You’ve probably read or heard about these subjects somewhere on the internet. But what is this revolution of NFTs? Meme creators, digital artists, musicians, and other classes have already made millions from the sale of these non-fungible tokens. In the following lines, get to know the definition and how it all works.

Bitcoin (BTC) and Ethereum (ETH) paved the way for the emergence of new digital asset formats that attracted thousands of investors and moved billions of dollars. NFTs, an acronym for a non-fungible token, is one of them.

Between January and September 2021, the sales volume of these tokens reached US$ 13.2 billion. The idea that digital assets can be profitable has inspired many to look into non-fungible tokens, including big brands.

Currently, the revolution of NFTs subject is one of the most talked about, not only among cryptocurrency market enthusiasts. Celebrities are buying NFTs, brands are creating their tokens and investors are putting these coins in their wallets. After all, this is a promising market and full of good opportunities.

Several sectors already invest in this type of digital assets, such as fashion, art, games, sports, and finance, among others. And there’s a lot of potential for use because of its versatility: virtually any piece of content can become a one-of-a-kind item.

The analysis predicts that blockchain technology (technically supported by the NFT) will inject $1.7 trillion into the global economy by 2030. But what is NFT anyway? Where and how to buy this digital asset? And how can brands draw successful strategies from this technology? Keep reading to find these and other answers.

What Is The Revolution of NFTs?

NFT stands for “Non-Fungible Token”. A token is an electronic symbol that represents an asset. It has unique features and nothing could replace it. Almost anything can be an NFT: artwork, music, real estate, collectibles, Olympic medals, seats at an event, memes, or even a post on social media. 

To be more clear about what NFT is, it is necessary to understand the concept of fungible and non-fungible assets. Basically, in economics, the term refers to the interchangeability of goods.

A fungible good can be easily replaced by another of the same type, quality, and quantity, as is the case with coins. Non-fungible goods, on the other hand, are unique and cannot be replaced by another identical good due to their unique characteristics. Works of art and collectibles are some examples.

In a financial transaction, the fungibility or non-fungibility of an asset affects its value and determines trades and exchanges involving that item.

For example, a US$100 note is fungible, as exchanging it for two US$50 notes is possible. The painting “The Yellow House”, by the Dutch painter Vincent van Gogh, on the other hand, is not fungible, as it is unique and cannot be exchanged for another one. This concept is very important in the context of the revolution of NFTs.

In other words, NFT is an asset created to represent the identity of a unique item, be it real or virtual. It transforms unique digital media into originals against common copies and attests to the ownership of that particular good.

How Can I Buy NFTs?

The purchase process is simple: register on a platform, have enough funds in cryptocurrencies and purchase the desired NFT. Each marketplace, however, has its own characteristics and accepts different digital assets. 

The purchase consists of converting the user’s money into cryptocurrency, and then the operation is completed on the marketplace specializing in NFT purchases. All this can be done through an exchange or specialized brokerage.

The three most famous NFT markets are:

• OpenSea: the largest NFT marketplace today. Operates purchases with Ethereum or other cryptocurrencies that trade NFTs.

• Rarible: Supports multiple wallets and cryptos for NFT trading. In this marketplace, you can choose to pay with cryptocurrency or real currency, such as the real or the dollar.

• SuperRare: Also works with varied cryptocurrency options for trading. It is another good option for those who want to start this process.

The revolution of NFTs is already among us. It is worth mentioning that the purchase of NFT has different types of negotiations. Some sales are similar to an auction, the “timed auction”. Some have fixed-price art, open for bids, and “Not for Sale” art.

Why Are NFTs Used?

An NFT record basically transforms anything in the digital universe into a unique, exclusive asset with authenticity secured by an immutable blockchain network.

In this way, it is possible to sell music, digital art, and game items, among other possibilities. As they will be unique, only the user who makes the purchase will have the official right to use the product.

In addition, the use of this technology also makes the NFT immutable and non-fungible, that is, something that cannot be “spent” or “consumed”. This makes the marketed item something eternal. This is the key for the revolution of NFTs.

Knowing what NFT is was the first step in understanding how brands can take advantage of this technology. And there are many potential uses, even more so given the growing interest in this subject.

One of the main strategies is to use NFTs in promotional campaigns by offering exclusive rewards or incentives to customers who participate in a certain action. For example, giving away limited edition products or experiences during a live commercial. Brands can also offer consumers exclusive digital content that can only be accessed via an access token. Unreleased songs, videos, and art pieces are some examples of content. 

All these actions contribute to leveraging the company’s audience, generating buzz in the media, and positioning the brand as an innovator by exploring a market with growth potential, in addition to having financial benefits. It is also a way of rewarding the brand’s fans, making them owners of exclusive brand projects, and strengthening the relationship with the consumer.

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