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Ever find yourself wondering, “What in the world is an NFT?” Well, it’s a valid question, considering the ubiquity of the term nowadays. You might have heard of an NFT online or even through conversation and just went along with it, not knowing exactly what it was. With that being said, you’re in the right place to understand this growing trend. Let’s dive deeper into how NFTs can change the way we do business and affect entrepreneurship.
What Is an NFT?
Beginning in 2014, NFT’s (Non-fungible tokens) are digital assets that represent items such as art, music, video clips, pictures, and more. These items sell online today for millions. Every NFT comes with a unique code. This allows the buyer to own the original item, which contains authentication and proof of ownership. This is a feature many NFT enthusiasts enjoy and is a key reason for the rise in popularity in 2021.
Now, I know what you may be thinking, and no, NFTs are not the same as cryptocurrency. The term non-fungible means that each item has its own digital signature, meaning one item can’t be the same as another. Let’s try to break this down. Did you ever own baseball cards as a kid? Well, if so, that card you owned was one-of-a-kind, which makes it non-fungible because it is irreplaceable; you couldn’t find it anywhere else. Think of the legendary Mona Lisa painting—an irreplaceable item. An item that in other words is non-fungible.
Now, when we think of the term fungible, think of the term replaceable. That basic orange jacket that you just bought for $25 is fungible because if something were to happen to that jacket, you can get the same exact one, from the same company, for the same price. Although NFTs and cryptocurrencies are built on the same programming, the similarities of the two tend to end there, according to Robyn Conti and John Schmidt.
Beeple Rakes in $69.3 million from NFT
As I stated earlier, these digital assets that are bought to represent items can be almost anything. Recently, the founder of Twitter sold his original tweet from 2006 for close to around $3 million, according to Jay Peters. Yes, you read that correctly. This purchase almost acts as buying an autograph. A LeBron James highlight has gone for more than $200,000 from NBA Top Shot, which has gathered way more than $500 million since its release.
An artist by the name of Mike Winklemann AKA Beeple crafted a drawing that smashed records, being sold at a price of $69.3 million. I can go on and on when it comes to recent large NFT purchases, but you get the idea. The whole point of an NFT is to own a unique digital asset, that no one else can say they own on that market, which is the most intriguing part of NFTs. Companies, corporations, celebrities, and entrepreneurs have all been reeled into this fascinating market that seems to be only growing.
Can NFTs Affect the Way We Do Business?
NFT’s have the opportunity to change the way we do business, and it shouldn’t be seen as a negative either. As we learn more about this fascinating market, the more we realize how important it can be towards growing businesses of any kind. Because NFTs have one-of-a-kind digital assets, it gives businesses an opportunity to engage with their consumers in an unusual way. This adds an experience that is new and unique, according to Rick Parmer. These digital assets have the ability to create gateways to grow social media platforms and business opportunities in a way that adds more intrigue for the consumers.
Due to the individuality of an NFT, there’s no concern of one digital item from a business being replicated at another business. Because of this added element, businesses can experiment with many types of digital items that fit their brand and allow them to build, making NFTs a positive addition to the world of entrepreneurship.
However, at the end of the day, it’s all about growing your brand, no matter what it is. This platform and market of NFTs give businesses the opportunity to add another element to their brand and achieve that growth they’re looking for. Increasing and encouraging more interaction from consumers, creating interest, new ways of brand storytelling, and increasing awareness are just a few ways NFTs can boost that brand of yours. It all comes down to understanding the market, breaking it down, and answering the big question everyone has been asking: what in the world is an NFT?
Do you have NFTs for your business? Let us know down in the comments.
This article was originally published in GREY Journal.