What Are NFTs and Why Do We need to Know them?

Photo by Jeffrey Czum from Pexels

If you’re a crypto person you have almost certainly heard the term in the last few months. You might have even if you’re not.

NFT stands for Non-Fungible Token. Ok, so what does that mean? Fungible is the operative word here. Things like dollars, bitcoins, gold ounces are fungible. Each unit is the same as the other. So if I send you one dollar and you send me one dollar we’re even, since every dollar is the same unit of currency. For more on the definition of fungibility and its significance to the definition of currencies, read here.

Implicitly non-fungible tokens are not like this. Each one is unique. But why would someone want a token that is totally unique? Well, the use case for NFTs is different from the use case for dollars, or bitcoins, or gold. The point of making unique non-fungible tokens is to identify, authenticate, and track unique digital or physical goods.

It’s clear that NFTs are big business, at least for the moment. NFTs, which stands for non-fungible (or not interchangeable) tokens, are unique digital assets that exist on the blockchain. The original function of NFTs was to verify digital art, because they can function as certificates of authenticity. Now luxury fashion labels, real estate companies, pro sports leagues, and even legacy art auction houses such as Christie’s, Sotheby’s, and Phillips are selling NFTs. Tom Brady recently announced that he is launching an NFT company that will feature collaborations with famous athletes, entertainers, and artists. 

Photo by Jeffrey Czum from Pexels

It’s enough to make any business owner wonder whether this is a trend worth exploring. Some finance experts warn investors to tread with caution, noting that the price of NFTs has plunged by more than 70 percent since their high point in February. Skeptics warn that the NFT bubble may soon burst as the market is flooded with more creations and the novelty of crypto collectibles begins to fade. At the same time, enthusiasts such as billionaire Mark Cuban say NFTs could provide important new revenue streams for small businesses and creators–and now is the time to jump in. Here’s what you need to know before you do.

So we’ve got the basics out of the way. Admittedly that was a quick summary of things, but in my opinion the core concept of NFTs isn’t that complicated, which is nice. 

It can get quite interesting though, when we look at all the many ways NFTs as a core concept can be used. But first, let’s look at some of the big players in the industry, to make it clear that this is a big deal and only going to get bigger.

Trevor Jones – Creator of the now famous ‘Picasso’s bull’ art series, which have set records, selling at tens of thousands of dollars USD in both primary and secondary sale across the set.

Fewocious – 17 year old artist who is working with Pomp, smashing sales numbers as well, regularly selling pieces over 10k.

RAC – Major recording artist, active crypto enthusiast, has topped charts in music and in NFT sales.

Justin Blau – Global headlining DJ and crypto advisor Justin Blau (also music director at Blockparty) has sold multiple pieces over 20,000 dollars on various platforms.

MF DOOM – Your favorite rappers favorite rapper. A living legend. Making augmented reality compatible MF DOOM masks.

Christie’s auction house – One of the two oldest and highest volume art auction houses in the world, alongside Sotheby’s. Has sold multiple NFTs at their auctions, each fetching over 100k USD.

The NBA – Yep, that NBA. The National Basketball Association is making NFTs via their partnership with Dapper Labs, makers of crypto kitties and Flow Blockchain. Last I heard their first batch did 1.2 mil in sales with 900 beta users in a matter of days. 

I could go on and on, but I just wanted to give a flavor of what’s happening. Major individuals and organizations are already in NFTs, and MANY more are coming. I promise you that. These parties are excited about the prospect of being able to generate digital revenue, and monetize their existing banks of content. Every day the names doing NFTs get bigger and bigger.

Want to know more? Listen here to this Podcast below

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