What are NFT’s(Non-fungible Tokens) and How they are a boon for Content Creators?
NFT’s came into the limelight when digital artists start getting a huge amount of value for their artworks. Beeple, an artist whose artwork, “Everydays: the First 5000 Days” sold for $69.3 Million on NFT caught the eyes of the whole world towards the potential of NFT’s. There are many examples where NFT’s are playing an important role in artist’s life by providing them royalties for their work. But before we will discuss the applications, let us understand what NFT actually is.
What are NFT’s??
NFT stands for Non-fungible tokens which simply means that they are unique and can’t be exchanged interchangeably. Let us understand this with an example. Cryptocurrencies like Ether, Bitcoin, Ada,etc are fungible in nature as they are not unique but their value remains the same. Suppose Alex and Bob are two friends. Alex gave a loan of 100 Ethers to Bob. After 1 month, Bob paid his loan to Alex by returning him 100 Ethers back. Since it doesn’t matter whether Bob gave back the same 100 Ethers to Alex or not but value should be 100 Ethers. This is the principle of fungibility. If it would be the case of non-fungible tokens or assets, Bob has to return the exact ethers which he took as a loan.
Non-fungible tokens or assets are unique in nature. You can’t exchange them with any other token or asset. That’s why non-fungible tokens are important in the Blockchain industry as they provide the proof of ownership and authenticity of the owner and his content/artwork.
How and where these tokens are developed??
Non-fungible tokens are minted(developed) using the ERC-721 protocol of Ethereum Blockchain, the most popular public Blockchain for Smart Contracts.
For minting of NFT’s, you need to define a unique identifier to them like ID’s and each NFT has its owner which can be verifiable on Blockchain.
There are other Blockchains like Tron, Steem, Cardano, Flow which provide the service of NFT’s but they are way behind Ethereum in terms of Infrastructure and Community support.
How NFT’s are helping artists in real life
A content creator has to look for platforms that can help them in getting value for their arts but in return, they play with the ownership of the assets. Instead, NFT’s proved to be more beneficial for content creators as now they can maintain their ownership and they are hugely paid for their work on Decentralized platforms.
NFT in a technical sense is simply a token that is minted on Ethereum Blockchain or any other Blockchain. You can trade anything digital or physical by storing unique information about your work.
How can you develop a revenue model using NFT’s?
I have helped Entrepreneurs in developing platforms or marketplaces that use NFT’s or simple smart contracts. Similarly, if you are looking for some innovative business idea then this can be the right industry for you to invest your time and energy. In the first quarter of 2021, the Market Capitalization of the most popular NFT’s raised by 1785% which is very huge and surprising. My personal opinion as an Entrepreneur for you is to try and experiment with this new technology before opportunity slipped out of your hands.
Our team of Engineers has developed NFT’s on Ethereum and other blockchains. For more information and feedback, feel free to connect at yateesh.bhardwaj@benchwork.in