NFTs - Disrupting Consumerism
Updated: Jul 15, 2022
If you’re reading this, you’re the type to shy away from the topic of NFTs. Most likely because you probably know that you’re about to be swindled into thinking that NFTs are the next best thing since sliced bread with no explanation whatsoever. Relate? Great, carry on reading. If you’re the swindler, redirect to our Education and News blog pages. We have plenty of content for you to sink your teeth into!
So what do we do? Well, it’s simple. We’re a service-oriented consultancy who integrate NFTs for businesses, creators, and traders. Our team is made up of experts not just confined to the world of Web3. We have specialist knowledge from several industries including branding, commercial, property, art and marketing to name a few. Whether you’re a expert, novice or someone who just wants to be able to have an informed opinion around Web3, cool NFT projects or the Metaverse. What’s the Metaverse you mutter? Nothing too impressive… just the virtual world that McKinsey and co just valued to be worth $5 trillion by 2030. Yes, $5 trillion.
Benefits of NFT Integration
First, NFT stands for non-fungible token. A digital asset with a stamp of authenticity made possible by blockchain technology. The blockchain is a shared ledger that uses an automated decision-making process to determine the validity of something – like a digital art, a film, or in some cases, currency. You can also use blockchain technology to authenticate something that exists in the real world. Complicated? You don’t really have to know what it means. All you need to know is that it’s a secure way of authenticating whether something is real, making that ‘something’ almost impossible to forge or replicate.
Blockchain technology has paved the way for many advances in the world that we live in today. Cryptocurrency being one major advance. Imagine a currency that cannot be forged? We already live in one. Bitcoin, Ethereum and Litecoin are all examples of currencies that cannot be forged.
NFTs are another impressive advancement, but to the naked eye can be overcomplicated and vastly misinterpreted. Here at Not Another NFT, we believe that there are four key elements to grasp to form a strong foundation before you discuss, purchase, or pass judgement on NFTs, Web3 and the Metaverse.
Proof of Ownership
(this is the most crucial because it can be applied to so many problems we face in the real world).
Blockchain technology has enabled us to authenticate a digital certificate (or token) that will never expire so long as the creator doesn’t want it to. An NFT is a digital asset that it authenticated by blockchain technology. This means that you can prove that something is real, yours and unique in a matter of seconds.
Why is this important? Well, we live in a world full of forgery. Let’s say you get your bonus and head down to the pawn shop to bag yourself a Rolex. You’ll always ask yourself, is it real? Even if it has a physical certificate of authentication and a serial number, the lack of trust in surface level materials will leave you questioning the authenticity of the watch. But what if its certificate of authenticity was an NFT verified by Rolex that you knew was secure and 100% authentic? What if it never became lost in transit and you could trace every single owner? What if you could use it to prove the authenticity of the watch to re-sell it in the future at its fair value? We think you get the point. That’s right, you’d sit comfortably knowing that the watch is authentic.
Community Building
Since it’s so easy to authenticate an NFT, it’s much easier for creators to control their rarity. As we know from the real world, rarity leads to demand. Exclusivity is therefore an enormous part of NFTs. If you buy into the rarity and you are part of a community, by default you have a common interest with others who are part of that community. A great example of this is the NBA Top Shot collection. Launched in 2020, the NBA collaborated with NFT developers Dapper Labs to create an NFT marketplace where sports fans can buy, sell and trade basketball clips of their favourite players. Sound familiar? You’ve seen this before – Yu-Gi-Oh, Pokémon and Topps trading cards. NFTs are the same, but better. They’re not physical and therefore won’t deteriote, they cannot be forged and have more capabilities beyond just a two-dimensional card. They can be various forms of digital media - NBA Top Shot for example is an NFT collection made up of collectible video clips.
Wait, it gets better...
Another prospect of NFTs is the virtual community that they can live in (the Metaverse). Imagine your favourite cartoon has just released a portfolio of NFTs and you purchase your favourite character. Other than materialistic value and the exclusivity of having this particular card, it may seem pointless. But what if you could take your character into a virtual world, dress them in your favourite brands and engage within that community where you all have a common interest.
Monetisation
There are many ways to monetise NFTs. Whether its brands collaborate to build a digital product portfolio, businesses who utilise the secure features of blockchain to create NFT solutions to today’s problems or artists building their exclusive community. Irrespective of how you might want to monetise NFTs, all of these wouldn’t be possible without one thing – the ability to authenticate a unique asset. To understand the power of NFT monetisation fully, you need to grasp how NFTs exist as a non-reproducible digital asset. This means that creators have 100% control of the supply of its goods. They cannot be forged or reproduced. If marketed properly, demand will exceed supply and the price of that NFT will increase in value. It’s the same historic logic as the stock exchange. Through platforms where you can buy and sell NFTs such as OpenSea.
Transparency
You might wonder, when I purchase or invest in an NFT, where does it live? Good question. It lives in your virtual ‘wallet’. What’s interesting about your wallet, is that anyone can see it and what’s inside. This has birthed an entirely new meaning of materialism. Lots of people buy NFTs to be noticed, to talk about them and for the status. You cannot fake having the most expensive NFT in the world. If you have a nice watch, those around you will make their own assumption as to whether it’s fake. If you own an expensive painting, there’s always an incredibly slim possibility that it isn’t real because of its lack of traceability – experts even theorise that the Mona Lisa hanging in the Louvre is counterfeit. The point is, when it comes to NFT ownership, it’s impossible to theorise whether it’s fake and the entire world can see that you own it. When it comes to assets that showcase your true wealth, the money that those who have it will spend is limitless.
Conclusion
So, to conclude. NFTs are complex and of course lots of the above overlap, but they can be simplified. Next time the topic comes up at the bar, remember four things: 1. Proof of ownership and authenticity via blockchain technology.
2. Community through a shared common interest and exclusivity – think trading cards!
3. Monetization due to their unique properties. If you get stuck here, just know that both proof of ownership and the community features of NFTs enable then to be valuable.
4. Transparency of the material possession someone owns.
If you want to learn more about the value of NFT that best fit your needs, contact us now.
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