The complex and often confusing world of blockchain is fast expanding and getting even more complicated. The latest item to know about is called Non Fungible Tokens (NFTs). I’ll dive into what they are and how you can begin to learn and get involved with this evolving market.
Let’s dive into this episode to look at the emerging digital marketing tools for 2021. Listen in to learn more…
VIDEO: Non Fungible Tokens for Entrepreneurs: A Guide to Growth
The Details on Non Fungible Tokens for Entrepreneurs
Recently it’s been bitcoin and Dodge, two blockchain cryptocurrencies, making news headlines. Millions of people have invested in the two in the last few months. In the US alone, over 30 million people, about 11% of the total population, own Bitcoin.
Non-Fungible Tokens (NFTs) could be the next big thing. Though a new concept, several NFT pieces are already on sale. For instance, the NBA is selling numerous NFTs via NBAtopshot.com. Hundreds of people are lining up to acquire these unique assets and they have a marketplace to allow the resale of the NFTs as well. Indeed, the most valuable NFT to date, a piece of digital art, was sold in early March for a stunning $69 million.
Should you join the bandwagon?
It’s the big question every future-focused entrepreneur is asking. Let’s begin by understanding non-fungible tokens and how they derive their value.
What are Non-Fungible Tokens (NFT)?
Non-Fungible Tokens, abbreviated NFTs, are cryptographic assets on the blockchain characterized by unique IDs distinguishing them from other tokens. Remember that a ‘token’ in the blockchain is any valuable asset that’s digitally transferrable between two people.
However, NFTs differ from other blockchain tokens, such as cryptocurrencies, in one primary way – they cannot be exchanged or traded at equivalency. In other words, they are non-fungible.
Fungibility in economics refers to the property of a good or commodity to be replaceable by an identical item. NFTs cannot be replaced by identical items.
An excellent example of a non-fungible item is artwork. Every piece of artwork is unique and cannot be replicated. Therefore, a digital piece of artwork would make a valuable non-fungible token if it finds its way into the blockchain world.
Why the Excitement? What Makes NFTs so Valuable?
It’s simple – no one can own the asset but you! Whether it’s a piece of art or a huge moment in a game, such as the clips the NBA is selling, once you purchase the asset, it’s yours and yours alone.
A question many people often ask is – how would you prevent someone from copying the artwork? What if the owner decides to create the exact version of the work and sell it to a different person?
You don’t have to worry. As already mentioned, non-fungible tokens reside on the blockchain. In its purest form, the blockchain is a list. Each blockchain comprises a record of events and transactions. Once ownership is transferred, it cannot be reversed.
Even better, the blockchain is open to everyone and highly transparent. Anyone interested in a transaction or asset transfer can dig up the history of the transaction/transfer. No permission is needed from anyone to retrieve the information.
Should you Jump In?
The short answer is – yes. If you can buy a few NFTs to hold onto, it would be highly recommendable to do s. You may even want to hurry. There are three main reasons why;
NFTs create value for the tokenized asset: Whether you’re thinking of tokenizing your tweet or a market prediction, NFTs create scarcity, giving value to the tweet/prediction.
It gives investors more liquidity: You can rent out your virtualized assets, such as digital real estate, for partial income while retaining the asset’s ownership.
Massive potential for growth and development: Brands are already entering the space, and fashion, art, and entertainment, are set to follow. Soon, we’ll have celebrities tokenizing everything they say, do, or possess. Surely, it would be unwise to sit and watch.
Wondering Where to Start?
How about visiting nbatopshot.com to browse through the top shot moments on auction. A few are going for as little as $350. Similar to the bitcoin trajectory, these NFTs could be worth a lot more in a few years.
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