By Adriaan Brits
In the aftermath of the explosive rise of NFTs, many influencers are noticing the marketing opportunity of a technology that leverages online content and intellectual property.
A Non-Fungible Token (or NFT) is a type of digital asset that can be seamlessly bought and sold online which is driving huge advancements in the art and music industries. Recently, NFTs have been dragged into the spotlight of public knowledge by their potential to make thousandfold returns in an only expanding market.
Indeed, as of the summer of 2021, the total money used on completed NFT sales had reached over USD$34.5 million. This figure does not reflect the true potential value of this market, which is still in the early stages of its development. Despite this, many influencers have been able to realize the opportunities this technology tenders, particularly as a means of generating revenue and further investing in their content output.
This article will explore what NFTs are, before moving onto the ways in which creators and brands can utilize them as well as how major players are taking advantage of them at the moment.
What Are NFTs?
Put simply, NFTs are a file type that allow for the creation and transfer of unique and irreplaceable digital assets. They facilitate the ownership of digital assets in a manner analogous to that of the physical assets of the real world by prescribing digital assets a perceived value. This renders them a collectible and any copies a valueless reproduction.
This is comparable to the way in which you could buy an original piece of art rather than a print of it or reproduction. You would then own the only original in the world (i.e. the only one with value), but anyone could own the prints of it, which would be worthless. Making digital assets ‘unique’ collectibles is done by binding them to a token of Ethereum (which has a distinguishable code) to act as their distinct identifier.
Since NFTs are backed by the blockchain of Ethereum, information regarding ownership can be stored on a ledger that is kept decentralized and thus assured. This allows for rapid verification of both an NFT’s authenticity and ownership.
The Opportunity NFTs Present
Present and Future Possibilities
NFTs create endless possibilities for those creative enough to realize them; creators can use this medium for almost any form of digital content – ranging from art to music to videos. With regards to digital marketers specifically, NFTs provide a means for them to own the intellectual property they create for their clients, remaining in receipt of passive income on each occasion the assets are used by the brand.
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