What’s all this fuss around NFT anyway?
How could Jack Dorsey, Twitter’s former CEO sell his first tweet for over $2.9 million? Or why did Elon Musk decide to trade his NFT song?
I’m selling this song about NFTs as an NFT pic.twitter.com/B4EZLlesPx
— Elon Musk (@elonmusk) March 15, 2021
Or How could Grimes make $6M in 20 minutes for a series of 10 artworks? And who can forget Nyan Cat 👇 our favorite flying cat with a pop-Tart body leaving a rainbow trail going for $600K?
NyanCat sold for $600k NFT
And do you remember the Taco Bells, our favorite Taco eatery, that sold selling Taco-themed GIFs and images as NFTs in just 30 minutes?
Our Spicy Potato Soft Tacos can now live in your hearts, stomachs and digital wallets. https://t.co/IC8b45lmd9 pic.twitter.com/FJUcuwCuyy
— Taco Bell (@tacobell) March 8, 2021
But again coming back to the question we asked in the beginning what is this fuss man? Erm, and why is NFT the BIG reason behind it all?
Source: know your meme
Yes, enough with fuss please🤚 because here in this blog we are going to tell you about what are NFTs? Why is NFT the talk of the town? How are big brands playing with NFTs?Top cases? What small brands can do to catch up? The risks and unlimited opportunities NFTs present.
Well, this NFT boom started when in 2016-2017 the radical visionaries created a project that connected the unique digital assets to the blockchain, most commonly on the Ethereum protocol. Moreover, this concept garnered more attention and magnitude with the projects widely known today as CryptoPunks.
So let’s dive into the simple explanation of the question in your mind that is
Non Fungible Tokens.
Right that doesn’t make it any clearer
In the simplest terms, NFTs can transform the collectibles and digital works of art into verifiable assets that can be traded easily on the blockchain. NFTs are tokenized or digital versions of assets that are grounded in the blockchain, the same technology behind crypto assets. Such as Ethereum and Bitcoin.
Yet.. what is making NFTs stand out? Let’s dive deeper because beauty lies in details…😍
Recommended Read: IS YOUR BLOCKCHAIN NETWORK AT RISK?
As NFT stands out for non-fungible tokens. Fungibility here means that each part that constructs the property is interchangeable.
Meaning 4 quarters, 10 dimes, and a dollar note are all worth 1 US Dollar, no matter in which manner you divide or cut them up. The currency here is fungible because it doesn’t matter at all which dime you have… it’s worth a dime. And there is nothing intrinsically more valuable in one dime than another.
The NFTs are part of the Ethereum blockchain. Ethereum is a cryptocurrency like bitcoin or dogecoin, however, its blockchain also supports these NFTs.
There are two main reasons for the expedited investment in NFTs:
For instance, the digital piece of art posted on social media by owners used to become the property of the platform but with NFTs, the channel would not own the artwork.
Brent Hale the Chief Content Strategist at Tech guided.com in this regard says
Whether or not to invest in NFTs depends on the collector and how they feel about it. However, if used appropriately, it can help build a digital collection of artwork and noteworthy pieces. It is predicted that a few years down the line, NFTs would become a means of collecting ownership rights and will play a huge role in mainstreaming cryptocurrency.
This is one of the main reasons big businesses are also running towards NFTs.
In less than a year, the acronym NFT has gone from WTH to BFF for big brands. Indubitably, NFTs and blockchains are ubiquitous in today’s conversations about the tech future.
The main reason big businesses and companies are moving towards NFTs is their potential for monetization. Plus, their pursuit of establishing themselves as leaders in this emerging industry.
Recently, we have witnessed some major brands like Nike, Addidas, and Twitter leveraging the idea of digital ownership. Moreover, NFTs have also proved to be the conduits of new revenue streams and engagement tools for brands.
And how you can underestimate the power of NFTs when Paris Hilton is giving them out
What!!! frankly, what other reason do you have to avoid NFTs when Paris Hilton gives them out on “The Tonight Show”.
In her appearance on “The Tonight Show” on Jan. 24 Paris Hilton gave away the free NFTs to each member of the audience from her upcoming collection.
.@ParisHilton surprises Tonight Show audience members by giving them their own NFTs! #FallonTonight pic.twitter.com/3yWRjoqoDs
— The Tonight Show (@FallonTonight) January 25, 2022
Hilton also gave NFT to the host Jimmy Fallon. Hilton has been an outspoken advocate of NFTs and during her appearance in the show, she discussed her ownership of collectibles from Bored Ape Yacht Club.
Not enough!!! well, our favorite brand Adidas is also in NFT town and who can miss that…right…😎😎
Well, Adidas is launching a digital art creation called “ Adidas for Prada re-source”. It will allow users to contribute to a tiled canvas that is minted into an NFT and sold at auction.
It is a great strategy from their end to engage their fans and get new ones.
As 15% of the final share will be distributed among the fans who contribute. And the 80% will be donated to the non-profit Share Factory whereas the 5% to digital artist Zach Lieberman who will aid to create the design.
Introducing adidas for @Prada re-source —an ambitious first-of-its-kind NFT project featuring user-generated and creator-owned art, in collaboration with digital artist @zachlieberman.
3,000 tiles, 1 canvas. Play.
Learn more at https://t.co/biHgWL4rQq#adidasforPradaNFT pic.twitter.com/bKBnmkWDWI
— adidas Originals (@adidasoriginals) January 20, 2022
The project, in collaboration with Prada, the luxury fashion house is an effort to make up for Adidas’s clumsy NFT drop last month in which the fans were not able to mint “Into the Metaverse” collectibles. Adidas plans to allocate 500 spots to this group for the project’s waitlist.
Furthermore, the other 1,000 spots will be allocated for the holders of “ Into the Metaverse”.
The last 1,500 spots will be allotted to the public.
Impressive right!! The registration is now open
The iconic American clothing retailer has released its non-fungible tokens- these are digital pieces of art that are tied to a blockchain. Constructed on the open-source Tezos blockchain, this collection is designed by Brandon Sines. The NFTs have arrived in the form of a series of digital hoodie art, with distinct levels of rarity at various price points. The prices start from $8.30 or 3 Tez.
Why Barbie should stay behind as she has every right to be in this NFT world. Yes, Mattle owned Barbie has dived into the digital art world with three distinct NFTs of its Barbie and Ken avatars. The tokens include the dolls styled in designs by Balmain. Thus, giving a digital version of Brand’s new line of ready-to-wear accessories. With the inclusion of NFTs, there also will be a set of real-life, and Barbie-sized Balmain pieces.
It seems like the Txampi Diz the CMO of Balmain is betting on the future of NFTs as a robust customer engagement tool for top fashion brands said:
“I believe it is going to completely change the fashion industry, and it will have the same impact as when social media first started or when the internet first launched,” he says.
The above discussion must have left you hooked. Why global players are immensely invested in the NFT revolution? Why do tens of billions seem small in front of NFT potential (NFT sales surged past USD 4 Billion in December 2021)?
📌 Quick fact: In 2021, around 15,000 to 50,000 NFTs were sold each week. This is an incredible increase from 2017 when NFT sales roughly reached 100 per week.
Mind-blown already? There is more to it.
NFTs are no more limited to artwork. This technology is uncoiling its potential in several industries, from fashion to real estate to concerts, in unimaginable ways. Why? Because of its tamper-proof, digitally controlled, publicly traceable, and evidence-centric build.
Let’s find out if your industry is befitting NFT growth partner in 2022?
Real estate is expected to penetrate the mainstream digital NFT world in 2022 and in the future. Now referred to as virtual land, digital real estate is seen as a solid asset to keep and measure wealth. Digital properties will likely take over the physical land due to volatility resistance and more predictability.
For instance, the Sandbox is a digital metaverse powered by the Ethereum blockchain. It allows you to buy LAND — basically a virtual chunk of real estate in The Sandbox metaverse. You can further occupy the LAND with games and other digital assets. Moreover, combine many LANDs and create your very own ESTATE. And rent them out as you like.
Are not you already dreaming about your virtual land and befriending some aliens 👽 😏 ?
Just so you know virtual spaces like The Sandbox, Decentraland, and Cryptovoxels are given a hard cap.
📌 What is a hard cap you ask🤔 ? A hard cap restricts the development/ distribution of its goods beyond a limit. It is generally taken in a positive manner as it expands the worth of each token. In simple words, a hard cap assures a finite supply of unique tokens for a soaring demand in the market.
Wrapping your mind around the lucrative virtual land concept is maybe dizzying. But it’s real and it’s coming for you 💥
NFTs are bringing a much-needed revolution in the monotonous music industry. Musicians can now interact with their fans on an intuitive level. As a musician, you can readily monetize your albums, music, songs, tunes, etc, without paying an intermediary, unlike the traditional music distribution channels.
Our favorite artists such as Snoop Dog, Kings of Leon, Don Diablo, Lionel Richie, Grimes, and many others are already brushing off millions by launching their music on NFT platforms.
Let’s talk about the popular Nashville garage rockers, Kings of Leon, who became the first music band to launch their album as an NFT. And oh boy, it really did pay off!
Less than 1 hour until Kings of Leon: NFT Yourself Auction goes live for 6 Golden Tickets. #yellowheart #kingsofleon #nft @opensea @JoshkatzYh @KingsOfLeon
Info at:https://t.co/Gq1Mey9mfs pic.twitter.com/eZudw3Ge43
— YellowHeart (@YellowHeartNFT) March 5, 2021
The band of brothers used the Yellow Heart platform and made a staggering 820 ETH i.e., 1.45 million USD.
“It’s crazy that the NFT blew up the way that it did. We’re all somewhat educated on it, and, at least in the beginning, I’m still scratching my head and trying to figure it all out.” — Kings of Leon’s in an interview with cleverock.com
💥 Meanwhile Whitney Houston is breaking records:
The Whitney Houston OneOf One NFT, a never-before-heard demo track from Houston at age 17, SOLD for $999,999! Thank you to all who made this incredible moment in music and NFT history possible! 🙏 @dianaesinclair #BeOneOf #whitneyhouston #NFTnews #WomeninNFTs pic.twitter.com/cmdSuyfOBH
— OneOf (@OneOfNFT) December 15, 2021
Artists largely believe that NFTs will bring two treasures to the modern music industry. First and foremost, the authenticity to prove ownership. Secondly, the hard cap element assures asset scarcity and limits music project ownership to a few. The NFT world empowers music artists to eliminate copyright piracy and achieve great profit margins for their creativity.
📣 Uh-oh, it’s not just your favorite musician who’s gonna have all the fun. You as their fan can capture captivating moments from the virtual concerts as digital assets and cash them on NFT marketplaces.
Luxury brands, such as Dolce & Gabbana, are already halfway through the NFT space. In September 2021, D&G auctioned its first NFT collection, Collezione Genesi, for 1,885.79 Ether, i.e. 5.7 million USD in fiat currency. The value of the D&G NFT later jumped to 6.1 million USD after the crypto market rocketed by 10%.
The collection included tangible wearables, such as outfits and their intangible versions as NFTs. The buyers were also given free access to Dolce & Gabbana’s luxurious events.
Just a month later in October 2021, Jimmy Choo, also hurled its NFT collaboration with a New York artist Eric Haze. The NFT fashion collectibles are comprised of 8,888 “mystery boxes” on sale.
At London Fashion Week, Auroboros emerged as a new brand that describes itself as “the first fashion house to merge science and technology with physical couture.” The brand revealed a line of virtual apparel that you can “wear and try” using Augmented Reality (AR).
In essence, NFTs have now become an inevitable way to monetize fashion articles and wearables. The fashion industry can largely cut costs of setting up a physical inventory. Like-minded fashion enthusiasts can finance several collections at once instead of trusting their money for a single one.
Consumers can use the NFT technology to track original fashion collections and prevent counterfeit products — owing to trustlessness and provenance.
Charity organizations are not sitting in the backseat either when the entire world is equally benefitting from the NFTs boom. The technology can help NGOs set up decentralized fundraising events with lesser overhead contrary to the common auctions settings.
The very prevalent NFT artist Beeple auctioned a few items from its collection called “Ocean Front” and donated the gained $6 million amount to the Open Earth Foundation — to battle climate change.
Everybody’s favorite, Ellen Degeneres also held a series of NFT auctions on her show, raised US$33,495, and donated the net amount to the World Central Kitchen, a food-relief association.
The traceable blockchain database driving NFTs assures the donors that their funds are reaching the predetermined charity organizations. Additionally, cryptocurrency-based charities offer lower fees and almost-instant payments.
Although NFT-led charity endeavors are in their infancy, witnessing NFT as a paramount solution to global issues will likely encourage more virtual fundraisers in the future.
The crypto-powered play-to-earn games are a new tangible reality in the NFT co-space. NFTs are empowering players to own their in-game assets — that they can trade for a greater yield on NFT marketplaces. The play-to-earn games are mostly played in developing countries like the Philippines and Venezuela where active players easily earn a bigger income relatively.
Axie Infinity was one such crowd-pleasing in 2021. Last August, Axie Infinity’s NFT revenue beat the US$1 billion trading record, while every active player earned a handsome $1 million. Since the game’s player base crossed over 2 million regular players.
To become a player of Axie Infinity, you are required to buy three Axie NFTs. Since the NFTs for Axie are limited, the player bases are rewarded with price appreciation in the longer run.
What a conversation between an in-game asset owner and a trader looks like 🤑 👇🏻
Other off-the-chart play-to-earn games include The CryptoBlades, Sandbox, and MIR4.
🤔 What’s on your mind? Thinking of reinventing your business already? Are there any crazy ideas boggling your mind? But you also have some concerns, hmmm. Let’s sort them out:
Well, this is natural to feel behind the game when the global giants already seem to dominate the NFT landscape. Whether you are a collector or a distributor, we can confidently say nobody ever stays behind in the NFT race, until they try!
An NFT is a powerful tool that is available to nearly all small-business owners, freelancers, and content creators.
Winning hearts and building trust are two core steps to harnessing great benefits from the NFT craze. But before that you gotta know how to make money first:
Aren’t you forgetting about the big fish already ;)?!
📣 Time for a reality check: Oh, wait, scratching your heads about the risk? A good omen indeed, because nobody sane ever plans new business ventures without knowing risks:
As a small business or big enterprise are you still hesitant to dive into the NFT pool? Well, strong advocate like us even recognizes that this is an immature and unregulated market.
But it is essential for you to know that not all NFTs are created equal.
However, the certificate of ownership stored on the public blockchain cannot be forged. Yet it is crucial for you to remember that this token is a link to the actual digital file stored on the server.
Know your risk
So some of the major risks are given below:
One significant risk is link rot. It happens when the hyperlinks break because of the transference of the file to a new server without updating the link or the server going offline. To avoid any kind of conundrum like this it is important for you to note where the digital file is stored before the creation or purchasing of an NFT. Don’t worry the storage on a public cloud decreases the risk of losing an NFT. But decentralized servers are excellent to save your NFTs from getting lost like Arweave etc.
Another short tip for you is to check the token’s metadata on a decentralized server.
Is Blockchain Technology really safe? Read in our blog here
Intellectual property rights:
Intellectual property rights in association with NFTs are also a topic of discussion worldwide, though this is an area still evolving. Mainly because of the lack of legal precedent, the NFT ownership raises a number of important questions.
Like the commercial rights by creators and future licensing methods which are still in need of refinement or debate.
But for now, if you own an NFT based on copyrighted work, then you should obtain permission from the copyright holder for certain activities. Copyright law bestows the author an artistic work and the right to reproduce, distribute companies and publicly perform and display work.
One of the major concerns regarding NFTs is the environmental impact affixed with them.
As NFTs are widely bought and sold on the Ethereum network which is responsible for the emission of carbon. That’s mainly due to the large amount of computing power it needs to operate.
But, the world of NFTs is quite new and with the passage of time assuredly new technologies will evolve that will help in the utilization of minimum energy. Thus leading towards less carbon emission. As Ethereum is already promised that in a few years it will reduce its carbon emission by 99%
“NFTs are the next big disruptor, just as the internet and eCommerce was.” — Gary Vaynerchuck, Investment guru
But, uh, all things good, let’s not forget the risk we just discussed. It’s a HUGE NFT playing field. And every player must take careful steps before setting up their footprints in a whirlpool of opportunities and risks.
Regardless of how small you wanna try, just keep in mind NFTs are worth it. NFTs are escalating a wave of reinvention and in this, you will definitely need a partner.
There are veteran NFT development service providers available in the market. But it takes the right NFT-vision as well as industry-leading expertise.
You can bank on an NFT development company like InvoBlox and march towards a million-dollar NFT industry already.
The NFT experts at InvoBlox are committed to serving you multiple ways:
💥 And a stellar design that hooks and engages your audience.
It’s your opportunity to beat the competition and create limitless trading opportunities for artists, gamers, and digital asset owners. Fly higher!
There’s more to your benefit:
📌 FYI: 10% of the world’s GDP will be tokenized by 2027. AND …👇🏻
Mints Club is a minting platform for your beloved NFTs where you can tokenize your assets for free. Don’t worry, no coding, no volatility, and no intermediary would stop you from entering the unreal NFT space!
Hey, before you go, let’s vow to break some records and be never afraid of taking some risks.