Don’t understand NFTs? Well, don’t worry, we’ve got the basics down just for you!
What Are NFTs?
NFTs stands for non-fungible tokens. This means no one can copy these little things, not even a screenshot (we know, sounds crazy). Specifically, no one can copy and recreate the same thing. It’s like getting a special baseball card or autograph. No two are alike and they are sold online.
NFTs can be associated with pictures, videos, songs, and so many other things, but the major thing that matters with NFTs is that they are the code “receipts”.
No one can copy NFTs because when you buy an NFT, you get a unique bit of code that acts as a receipt to verify your purchase and its originality.
Who Started NFTs?
The first known NFT was created in 2014 by Kevin McCoy and Anil Dash. It consisted of a video of McCoy’s wife and was sold for $4. The two created the first NFT by teaming up to create a way to let digital artists declare ownership over a piece of original digital art. McCoy and Dash named their first solution “monetized graphics” (anildash.com).
Where Are NFTs Sold?
There are many websites available to buy or sell NFTs, one of the most popular ones at the moment is OpenSea.
How Do I Pay For NFTs?
You generally pay for them using cryptocurrency.
Where Are NFTs Stored?
NFTs are stored on the blockchain and can be found in your digital wallet once purchased.
So, How Do NFTs Relate To Marketing?
Brands such as McDonald’s and Nike are getting into the NFT market because it brings a lot of press to their companies. NFTs are being used as marketing tools, and brands have been talked about in the news or on social media for their NFT creations. Twitter users can even add NFTs as their profile picture, which can generate more buzz to that particular NFT or NFT collection.
Example brand uses include:
- Charmin sold NFT toilet paper art to benefit a nonprofit with worldwide reach. The company offered physical picture frames to go with the NFT in case the buyer wanted to print a copy of the digital art and proudly display it in his or her powder room.
- BMW sold NFT audio tracks of the sound of BMW M Combustion engines recorded at the Dubai Autodrome in anticipation that in the electric car future this sound would not be common (OpenSea).
Are NFTs Being Used In The Metaverse?
NFTs are starting to be more widely used in the Metaverse. (And if you don’t know much about the Metaverse, we have an article here just for you!) In the Metaverse, they have a similar use to real-world trading, investing, purchasing, etc., but in the Metaverse, it seems as though NFTs will be a bigger deal. The Metaverse isn’t fully fleshed out just yet, though, so not everyone’s entirely sure what will happen with NFTs then.
Coca-Cola Company and other popular businesses have come out with iconic items in NFT form for the metaverse. Auctioning off items such as a digital fridge and jacket, The Coca-Cola Company is looking to expand its offerings in digital spaces with emerging technologies that are projected to take off within the next five years or so.
How Do NFTs Make Money For Individuals And Brands?
NFTs make money in several ways.
- For individual or institutional investors, NFTs are much like physical collections but in digital form. Just as people buy and sell physical artwork, vehicles, luxury collectables, etc…, they can do the same thing with online assets. Buy at good prices, hold, and sell when the time and money is right.
- People and brands can make money on NFTs by creating them and listing them for sale. The most popular types of NFTs at the current time are art and other creative pieces.
Is the market for NFTs growing?
The NFT market is projected to grow into a 13.6 billion dollar industry by 2027. The market is currently at $3 billion and is gaining more popularity as time goes on (Reportlinker.com).
Why are NFTs the future?
As the World Wide Web continues its transformation into a more visual and immersive space, the need for ways for all sorts of businesses to be able to secure digital records and offer exclusive online experiences and digital property will grow.
While NFTs are currently mainly used for investing in collectibles and unique creative digital assets, it is predicted by a variety of experts that NFTs will become valued as:
-Keys to exclusive online communities and events
-Video game assets players can buy and exchange for in-game items & rewards
-Ways to acquire digital real estate
-Methods of safeguarding healthcare records & other sensitive data
For more information about a variety of digital marketing topics, check out The Digital People blog.
