There was a time when people aspired to buy the original art of Banksy, Andy, Warhol, and Takashi Murakami until an economical way popped up.
Murakami-san launched his famous artwork “smiley-face flowers” under the NFTs, rare digital items, and crypto collectables.
So let’s know what Non-Fungible Token(NFT) is?
To define it in a non-technical way, NFT stands for weirdest combination for eeriest sequences of intuitively strange, technically complicated, new and ridiculous something.
It’s a one-of-a-kind digital asset that can be bought and sold like any other piece of property.
How did it all start?
NFT recently made headlines for using tech to sell Digital Arts, which was in the market for half a decade.
In 2014, Kevin McCoy, while preparing for seven on seven conferences at the New Museum in New York, sold off NFT Avant la Lettre. Then in 2015, Etherum’s first developer conference in London-. DEVCON1 saw the first launch of the full-fledged NFT Project. It was after the launch of Etherum Blockchain.
The buying of NFT sparked recently in March 2021, when Etheria’s 457 purchasable and hexagon tiles sold for total dollars 1.4 million.
The size and segmentation of the NFT Market:
The size of the NFT space, according to the report, has increased by 704% in comparison to the previous quarter. It was equal to Dollar 10.67 billion during Q3 in 2021.
The tokenized digital form widely accepted by gamers, art lovers, and collectors generated intellectual properties in the contemporary economy.
The real-world usage of NFT are:
NBA players (Athletes) tokenize their contracts so that others can invest in them too, academic institutions, enterprises, and records of one political protest.
1. Bragging rights surpasses efficiency cost:
The base of NFT is the Social Capital, based on the strength of an existing community or a strong new one growing. Celebrities like Steve Aoki, Shaquille O’Neal, and Snoop Dogg positively affirm pop culture in today’s society.
2. Long Game:
With the development and evolution of technology, files on blockchain remain versatile. The fast innovation excites the investors who plan to invest long-term value with lucrative ROI.
3. Importance of famous culture market:
The engine fueled up this year with a few massive wins of social media promotion.
4. NFT use for storytelling by brands:
NFT work as a bedrock for meta in metaverse realms. Companies like Taco Bells, Pizza Hut, and Pringles are confident to adopt the successful use of technology while jumping on the NFT Bandwagon.
Brand agencies using data-driven campaigns are yet to prove their expertise on tokens, which blockchain, what currency, and community around NFTs.
What does a brand create from it?
1. Unique Experiences:
The transformation from virtual real estate to unique caricatures- owning it gives an established feeling of loyalty and brand affinity.
2. Information, advertising, and income:
Keeping NFT as the prize, brands can collaborate with artists and influencers.
What obstacles are faced?
1. Changeable and lack of Information:
The NFT marketplace is the most unstable asset. They are backed by unreliable cryptocurrency, price fluctuations, and profuse to a complete failure. Moreover, crypto and digital wallets are still out of syllabus topics for the masses.
2. Environmental, social, and Government concerns:
The high energy transmitted by blockchain, while NFT campaigns, has put environmental concerns on the table. The increase of carbon footprints by NFTs are brought to a lower range by using alternative validation protocols, which initiates less energy usage.
3.Link rot, plagirisum, and fraud:
Due to the larger size, NFT does not save its files on the blockchain. In place of that, tokens are used like web certificates for owners. The web address that directs to the art makes art subject the link rot.
The artist becomes vulnerable to hackers through sleepminting and crypto-counterfeiting exercises who access their NFT wallets. In this way, the hackers transfer all the money to their account from the artists’ account, raising the question of copyright law and consumer harm.
So, what’s the Future of NFT?
The future of NFT shows that just by flicking a switch in our living room, a 3-D hologram of the Renaissance masterpiece of David Michelangelo. Interesting, isn’t it?
NFT can be an excellent way to show support towards the creators during this pandemic time. Invest in a few without breaking the bank. This will encourage the artists, help marketers create new and unique brand awareness, encourage interaction, and create the masses’ interest in the brand and product.