The world and technology as we know it are advancing at an unworldly rate. With cryptocurrencies like Bitcoin surpassing $50,000, people can’t help but question what has drawn the interest of modern day whales and institutional investors – is it the volatility or are there notable use cases for this technology to potentially disrupt the world we know?
It is impressive yet not surprising that people from around the world, with a broad variance of influence are taking note of this industry. Some countries are even supporting the movement at domestic scale! Bitcoin for example has been implemented as a digital form of money in numerous countries.
What people haven’t entirely fiddled with is using these technologies as a form of social tokens. Where the value does not stem from the token itself but rather the circumstances of the token’s issuance and transference. Monetary value aside, these tokens could be fundamental in tracking customer engagement, driving customer loyalty, and even building a sense of community for brands at scale; not to mention reducing the likelihood of fraud providing brand owners with visibility on the entire lifecycle of their goods and customers.
Non-Fungible Tokens
NFTs or Non-fungible tokens are a new type of decentralized digital asset available on the Ethereum Blockchain and certifiably singular, similar to a unique piece of art. While the sale of digital assets isn’t new, this is a new approach to prevent the duplicity of assets by other Blockchain members.
NFTs can be used to represent several different assets such as in-game items, real estate, virtual collectibles, virtual assets, certifications, identity documents, and more. Now that every token is unique, it cannot be exchanged with simplicity or interchangeability as fungible assets can. For example, you cannot exchange a vintage, rare, and valuable car with a common motorcycle.
Another prominent reason NFTs are different from crypto assets is that they are indivisible. This means that you cannot trade a part of them as you can with Bitcoin. For instance, you cannot cut out a portion of a concert ticket and send it to a friend. Neither of you can enter the concert with the fractions of a ticket.
Put simply, NFTs make digital collectibles possible. In today’s digital world, where copies are developed and distributed in abundance, NFTs make it possible to produce digital scarcity, which, in turn, creates value. NFTs also make digital goods easily tradable, making it easier for them to gain immense value through trading. Besides, since the chain of ownership is also visible to everyone in the Blockchain, the value of NFTs may differ based on who previously owned them.
The root of all value can be easily quantified through NFTs
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How NFTs are Transforming the Sneaker Market
NFTs are creating new roadways for all kinds of developers and unlocking new revenue streams. The fashion industry’s longing for uniqueness and exclusive pieces could allow the creators of NFT to thrive. For instance, in July 2020, the overall sale of NFTs crossed $100 million, according to a study by Nonfungible.com.
Several other high-profile brands have taken a keen interest in creating and trading NFTs. Global footwear manufacturer Nike has leveraged NFTs to create digital shoes called CryptoKicks linked to real-world shoes. Even Louis Vuitton uses NFTs to track the authenticity of luxury goods. NFTs will continue to prosper in 2021 as fashion embraces the metaverse — a digital world where individuals communicate with one another through avatars.
NBA Top Shot has surpassed $50,000,000 in early 2021, making it the biggest NFT marketplace as of now. The implementation of NFTs creates a similarity between the physical and virtual world, yet capitalizing on revenue generation in both.Moreover, it allows brands and companies to have complete control of their digital assets without limiting their growth or fearing that a copied version, such as one exploited with deep fake technologies, will be inaccurately endorsed to the brands and sneaker companies. Ownership requires responsibility, and NFTs enable brands to be only accountable for the original digital product they put on display without sacrificing the potential for it to reach broader audiences.
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