From Nyan Cat to video of Lebron James dunking to Christie's Beeple (Everydays: The First 5,000 Days), the World is finally waking up to the raising potential of NFTs.
So what exactly are these NFTs?
NFTs known as Non-Fungible Tokens are representation of a unique one-of-a-kind, verifiable digital item/asset that are not interchangeable. NFTs can stand for any real-world items or digital files such as art, audio, videos, items in video games or any other form of creative work. The premise behind NFT is that unlike physical assets, a digital works can be endlessly and easily duplicated. While the digital work themselves are infinitely reproducible, the NFTs representing them create a true certificate of ownership that proves that owner holds the original version.
What are the Benefits of going the NFT route?
The most evident benefit of launching NFT is the market efficiency. NFTs provide distinguishable value to your asset. It can also help remove intermediaries, simplify transactions, establish direct contact between concerned parties and create new Smart-Economic opportunities. Anything can be minted into NFT, whether it's a photo, video, song, tweet, or GIF. By undergoing a Registration and KYC Verification process on any blockchain platform like- Ethereum, Stellar, Quorum etc, a unique identification or signature imprinted on them. The minted value-propositions can be then traded on dedicated online NFT marketplace like- Nifty Gateway, OpenSea, and Foundation etc. In early March Christie's sold a group of Beeple NFTs for over $69 million!
Next obviously line of implementation for NFTs is ID Management. This involves identification, authentication and authorization of a person or entity to have verified access. It helps overcome the "grey" area for auditors and regulators. Another merit that can be attached to Non Fungible Tokens is democratization of Investment opportunities by providing Fractional ownership of high-value tangible asset such as: NFT backed Real-estate on Blockchain, Houses, Condos, and Bullion etc.
Real-life Applications of NFT and those who gained from it?
Here are some amazing real-life applications of Non Fungible Tokens that will help you glean the wondrous potential of this Cryptocurrency trendsetter.
Let's start with Banksy. Who can forget his daring rite of burning his artwork on a livestreamed video?
Allying with a blockchain organization that bought US$95,000 worth of artwork by the famous British Street Artist - Banksy, only to burn it on a live-streamed video. And later re-selling a digital version of it for US$380,000 as a NFT! Rationale behind it? Well it was further explained that by removing the physical piece from existence and releasing the NFT as digital art, the value of the physical piece can be shifted onto the NFT, causing appreciation of it's worth. Now that is a smart economic move. This programmable art using non-fungible tokens help in gaining a perfect mix of artistic creativity and innovative technology.
NFTs can also help streamline the Supply Chain process, making it easier for active players in the Supply Chain industry to share information, track provenance and bring more transparency in the goods distribution process. For instance, Ernst & Young has developed similar model for their Clientele by releasing an Enterprise Procurement Solution on Ethereum. Ernst & Young claims that by switching to a blockchain-based solution have cut down ERP cycle times by more than 90% and reduced costs by up to 40%.
Non Fungible Tokens have recorded significant rise in demand from Collectibles and Gaming industries. The Gaming industry has noted growth of an engaging and interactive Gaming community by implementation of NFTs. By allowing in-game items to be tokenized and facilitation of seamless exchange of digital assets or tokenized in-game items like- rare weapons and skins between games or platforms and by allowing virtual goods to earn the same status as their physical counterparts that can be later traded on open markets; have helped gain more Players' Loyalty towards the Gaming sphere and encouraged them to invest more of their hard-earned cash, making the whole gaming experience more tangible and rewarding for Players.
The most popular blockchain games that have really exploded since launch are- Axie Infinity, Gods Unchained and My Crypto Heroes. Axie Infinity is a digital pet community (similar to Cryptokitties) centered around collecting, training, raising and battling fantasy creatures called Axie. Gods Unchained is a one-of-a-kind digital collectible card game where cards are issued as distinct NFTs and players can have their ownership and tradability with the same level of possession and value as any physical cards. My Crypto Heroes is a famous Japanese battle game with multiplayer role-playing that helps create Heroes and in-game items as Tokens on the Ethereum blockchain.
Quest Global Technologies has built their own internal NFT project- ArtW, an Art-based Blockchain platform that allows you to get your art authenticated, convert your artwork into non fungible tokens and integrate them with NFT Markeplaces, such as- OpenSea, Rarible, Nifty Gateway, Foundation, AtomicMarket etc.