NFT: what they are, why they were born, and what are the advantages

NFT: what they are, why they were born, and what are the advantages

 

NFT – Are the #1 digital art format that can change the art industry & organisations globally. NFTS are non fungible tokens protected by a digitally signed key on the Ethereum Blockchain & can’t be replaced but traded. An NFT is also known as NFT Crypto Art & NFT Art.

 

NFT: what they are, why they were born, and what are the advantages of digital CUSTOMER EXPERIENCE

 

It is an acronym that stands for “Non-Fungible Token”. What does it mean? Compared to fungible goods, such as banknotes (which can be exchanged for other banknotes of the same value), non-fungible goods indicate that these goods are not replicable and replaceable, because they possess a specific individuality.

 

In recent months, there has been a lot of talk about Non-Fungible Token, more commonly called NFT. The news of millionaire purchases, coupled with public criticism and poor understanding of the true nature of NFTs, have created more than a few prejudices in people. A little bit of what happened with the birth of cryptocurrencies.

 

This article has the goal - difficult to achieve, we admit - to explain in a few lines what NFTs are and what their role is in our lives, especially that of tomorrow.

 

Let's start with the basics: what are NFTs?

It is an acronym that stands for “Non-Fungible Token”. What does it mean? Compared to fungible goods, such as banknotes (which can be exchanged for other banknotes of the same value), non-fungible goods indicate that these goods are not replicable and replaceable, because they possess a specific individuality.

 

 

 

This individuality is given by a digital brand, endowed with a certificate of authenticity and uniqueness. This certificate is permitted due to blockchain mechanics. The NFTs are accordingly connected with digital tokens, of which they warrant the attributes of oneness and authenticity, giving the owner a certificate of the genuineness of the digital product in question and owned by the NFT. Each NFT, thanks to the blockchain, is a unique piece, and therefore it is not fungible, i.e. not interchangeable. This is - concluded - an NFT.

 

The numbers of NFTs

Currently, NFT sales have skyrocketed to $ 10.7 billion in the third quarter of 2021. This boom can also be attributed to COVID-19, which has prompted many people to experience digital differently: a second life. Furthermore, many artists, performers, and musicians - among the categories most affected by the pandemic - found themselves in the situation of reinventing themselves, finding in NFTs a way to earn from their work even remotely.

 

NFTs solve basic needs. First of all, giving value to what previously none had: digital art and the rights of creators on it. Secondly, the need for “recognition” (social, economic) of people also in digital spaces (and thanks to digital assets), which is currently not satisfied.

 

Precisely and also to satisfy this need, dozens of metaverses have been created, where users can use and show off their NFTs. Facebook's announcement of wanting to launch its metaverse is a clear sign that the road to virtual worlds in which to use one's NFTs is now open.

 

 

 

 

 

 

But what is a metaverse? The canonical definition is a three-dimensional space within which individuals can move, share and interact through personalized avatars. There is no definite explanation, but it generically indicates a virtual place where you can hang out with other people, interact, invest and create your character in the picture and similarities of what you desire to be.

 

The benefits of NFTs: why produce and trade them?

 

For brands and designers, NFTs are a blessing, if you can state that. A whole new billionaire market born out of nothing in recent years: the earning possibilities are practically unlimited, and the costs for companies and individuals are minimal.

 

The application fields are equally infinite: everything can be sold as NFT, just create a digital copy of what you want to sell and that's it. Anyone can tokenize separate goods or digitally created art, or produce groups of thousands of objects.

 

Furthermore, NFTs incorporates all the classic advantages of the blockchain, namely decentralization, disintermediation, immutability of the register, traceability, and verifiability of its contents, movements, and transfers.

 

Another advantage is the possibility of earning also from second, third, fourth, etc. Sales level: in a nutshell, every time your NFT is resold to a third party, you are paid back for your rights. All respect to the truth that on the blockchain all transfers of the keeper is detectable and an ongoing and unlimited revenue stream over time.

 

 

 

 

Too much power to intermediaries

A limitation of NFTs, however, is the fact that today it is necessary to interface with numerous intermediaries. A brand or creator wishing to create and sell their NFTs must necessarily contact two third parties: the blockchain, on which to mine their token, and a marketplace, where they can sell it.

 

While there is little to do with the blockchain, a solution to do without third-party marketplaces - which earn thanks to commissions - exists, and it is NFT-Commerce, our digital commerce platform dedicated only to NFTs. Via our operations, we will permit you to make a candid association connecting your app or site with the reference blockchain, either through a dedicated wallet or directly with a payment gateway via credit card.

 

The user can therefore directly buy your NFTs on your digital property, either through their cryptocurrency or by paying by card. This system allows one to save on third-party commissions, and manage the shopping experience, and recover customer data!

 

Conclusions: why selling NFT makes you money

NFTS are the ultimate - it is indubitable - due to them responding to demands that have long been forgotten by institutions and companies. Starting to explore this world right away can bring significant gains, and offers a competitive advantage over competing companies.

 

It is smart to consider the benefits but also the opposition that new automation poses, and not fall into the trap of superficiality when approaching NFTs. This is why it is essential to ask for support from those who already live and work in the world of blockchain. Because when a new market arises, relying on those who have already managed to create expertise is fundamental.