Briefly, the NFT is a code that a digital piece receives to ensure that it is unique and exclusive. The simplicity ends here, but it is necessary to delve deeper into the term. Check it out!
What is NFT?
This acronym can be loosely translated as “non-fungible token”. But don’t worry, I’ll explain it with examples to make it easier to understand.
Fungible is each piece that has an equivalence. She has a value that allows her to be compared to another. That is, it is not exclusive.
For example, clothes. You can buy a model that can be replicated with the same features.
The non-fungible ones are, therefore, exclusive. The pieces of art, for example. A Leonardo Da Vinci painting is unique, no matter how many reproductions can be made. They will never be the original.
These pieces, therefore, have more expensive values, and in some cases, incalculable.
The image of the girl in front of the burning house, called from “disaster girl” It has innumerable reproductions, but none is original. In April 2021, . But how that who browses the internet, in meme format, manages to sell for that value?
The NFT certificate guarantees exactly that, its exclusivity, giving unique codes to Gifs, photos, digital arts, among others.
But how to guarantee that? This is the next topic!
How does NFT work?
We understood that the NTF is a digital certificate. So, it uses the security of blockchains, the same used in cryptocurrencies.
This mechanism guarantees that something is authentic and original, being able to be used in photos, Gifs, images, ebook, game, etc.
The blockchain is a system that allows the tracking of everything that has its security, that is, the sending and receiving of some information over the internet, being widely used in cryptocurrencies. And it is precisely this system that allows the recovery of these pieces.
But, as you may know, cryptocurrencies are fungible. For those with NFTs, the blockchain guarantees exactly the non-fungible nature of something by tracking your transactions.
How did this technology come about?
Perhaps the interest in the NFT began with the sale of the work called by artist Mike Winkelmann, for $70 million!
From there, people started getting involved in crypto art, specifically with NFT, but the emergence of that technology predates that sale.
The NTF emerged in 2012, with the introduction of Colored Coins. It was to be a virtual currency, but it was not successful. From there to here, this certificate was not much discussed, until recently, the sale of Winkelmann’s work and that of the “Disaster Girl”, which we mentioned at the beginning of the article.
In addition to these two, the first tweet made on the social network was put up for sale by its owner, Jack Dorsey, co-founder of Twitter. His NFT was sold for $2.5 million!
There is also the case of Nyan Cat, the famous 8bit cat meme that was sold for half a million dollars.
How are NFTs bought and sold?
Here everything starts to get more intriguing.
Every NFT transaction is done by Blockchain technology.
As we have seen, the blockchain involves a complex chain of data that guarantees the authenticity of something. They are easily accessed and, for that reason, it makes them almost impossible to be replicated or scammed.
That guarantees that the of someone about a digital work are not stolen.
But hey, how do you buy or sell something with NFT?
Everything happens on the Ethereum chain, the same as cryptocurrencies. However, before trading your property, it is necessary to issue an NFT.
And, for that, it is necessary to make a good investment and know if, in fact, it is worth linking this certificate to the work.
This broadcast is made on specialized platforms such as Rarible. In it, you register your work and upload the original file.
Then, you define a value and describe its main characteristics. Then, you pay the issue — be careful, don’t be scared, as you read recently, the values can be really high. All that with the Ethereum digital wallet.
To market the works that already have the NFT certificate, auctions are held and, as in this type of marketing, whoever gives the highest value wins.
But what can you put in an NFT?
Practically everything! podcast, gif, image, tweet, music… imagination is the limit.
How can brands use NFT in their business?
Now that you have seen what NFT is and how it works, you may be wondering how your business can benefit from this technology.
The first advantage is the possibility of adding your brand awareness strategy, that is, recognizing your brand for a specific work, so to speak.
A unique NFT-certified piece of business can have its value as a way to measure how much people recognize your brand — a metric that is constantly debated when it comes to digital business.
Also, when a digital piece has an NFT certificate, it means that there is a certain demand for it. Placing a work as unique creates a sense of scarcity, which contributes to increase the value of the item.
Finally, the NFT guarantees the copyright on the creation, protecting it from improper and unauthorized copies. A certificate of that can be as profitable as a registered trademark, by presenting a certificate of originality.
NFT: a trend that is here to stay or a fad?
This question can only be answered in the future, but it can be assessed that the NFT is something that is indeed reshaping the digital market.
Being attentive to this trend is necessary, mainly because it can bring novelties to your digital strategies.
All this discussion is still well in the beginning and anticipating that debate and discussion can be a game changer for your company.
And, if you want to know how, discover more about Take the opportunity to read this content and find out how NFT can be part of your business!
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